The Government supports the development of the indigenous sector by providing a wide range of financial and other supports to help companies develop a sustainable competitive advantage leading to profitable sales, exports and employment. These supports, which are administered by Enterprise Ireland, include employment, marketing, technology, research and development, business and training grants and the provision of equity finance.
Enterprise Ireland, which was established in 1998, brings a new approach to the development of the indigenous sector by focusing on identifying the business needs and the challenges facing its client companies in the competitive global market. It provides a streamlined and flexible response to those needs and challenges by offering support and advice on a basis which relates directly to the key strategic business functions of firms, that is, strategy assessment and formulation; research, development and design; production and operations; marketing; and human resources and finance.
While the situation of our closest competitors is kept carefully under review, the maximum levels of support for enterprise in all EU countries are subject to general EU rules on State aids. At present the development agencies can offer assistance to enterprises of up to 57 per cent of investment costs in the non-designated areas, up to 71 per cent in the designated areas and up to 75 per cent in Gaeltacht areas. In practice, of course, the assistance offered is well below these limits. The designated areas are set out in the Third Schedule to the Industrial Development Act, 1986. New aid limits will apply from January 2000 when new EU guidelines come into effect.
Industrial and trade policy takes a wider view of competitiveness beyond the provision of direct supports to enterprise. It addresses issues affecting the competitiveness of the business environment, including taxation, the provision of adequate infrastructure and skills. In this regard my Department works closely with other relevant Departments as appropriate.
As regards Sligo and the Border counties, I can assure the Deputy that the Government is committed to ensuring the most equitable regional distribution of job opportunities and I have impressed on the industrial development agencies the crucial importance of making greater efforts to provide employment throughout the country.
