Dáil Éireann díospóireacht -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Job Creation.

Martin Ferris

Ceist:

104 Mr. Ferris asked the Tánaiste and Minister for Enterprise, Trade and Employment the effect the 9% cut announced in the 2004 Estimates will have on IDA Ireland's ability to attract inward investment; the consequences for IDA Ireland's provision of factory units around the State; and if she will make a statement on the matter. [29850/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment to Ireland and its regions. While the Exchequer provision for IDA Ireland capital grants in 2004 of €81.835 million is 9% lower than the 2003 allocation of €90.266 million, IDA Ireland advises that the reduced allocation will be sufficient to meet expected demands in 2004 for the following reasons: there has been a trend in recent years to negotiate grants at lower rates than heretofore applied; the value of the grant negotiated is, in many cases, less important than other factors; EU guidelines are also having an effect on the value of grants that can be offered.

The funding of the IDA Ireland property programme is unaffected by the level of funding for capital grants. Expenditure by IDA Ireland on property is mainly funded from resources arising from the sale of existing land and buildings. The requirement for Exchequer funding arises from the need to make an amount available to the agency for cash-flow purposes, primarily at the beginning of the year. In 2004 my Department is providing funding of €3.102 million to IDA Ireland in respect of this activity, which is slightly up on the provision in 2003 of €3 million.

Providing property solutions for inward investors is an important part of IDA Ireland's role as an investment promotion agency. IDA Ireland has factory units available for new projects around the country and will continue to provide new buildings as required in partnership with the private sector. For example, IDA Ireland is currently continuing to develop a network of regionally distributed flagship business parks that will contribute to enterprise development across the regions by providing high specification property solutions for clients in the form of operating sites, office space and supporting infrastructure including professionally managed on-site crèche facilities.

Question No. 105 answered with Question No. 92.