Dáil Éireann Debate, Tuesday - 11 May 2010
102 Deputy Simon Coveney asked the Minister for Enterprise, Trade and Innovation the schemes used by his Department or its agencies to attract companies of a certain sector to the Dublin docklands area; the former schemes that are no longer in existence which were used to attract sector-specific companies since the Dublin docklands regeneration project began; and if he will make a statement on the matter. [18839/10]
Amharc ar fhreagraAt present the Industrial Development agencies under the aegis of my Department use a range of schemes to attract internationally-traded Financial Services operations to all parts of the country. The schemes used are the same ones as are used to promote investment and employment in manufacturing or in other internationally-traded service operations.
The schemes available to Financial Services companies in the Irish Financial Services Centre in Dublin Docklands are the same, and at the same aid rates, as those available elsewhere in Dublin.
For the country as a whole, schemes fall into a number of categories. Regional aid is paid, in areas where it is allowed under EU State aid rules, in the form of capital or employment grants or in the form of preference shares, and the amount payable is linked to the level of investment or to the numbers to be employed in the operation. However, since 1 January, 2007, regional aid is no longer payable in Dublin, and therefore not in the IFSC. Other categories of aid are payable on a uniform basis across the country. These include grants to support Research Development and Innovation, Training grants, and SME supports such as to carry out market research or towards participation in trade fairs.
Therefore, the category of schemes no longer available in the IFSC, or elsewhere in Dublin, is regional aid. When the IFSC was originally established, regional aid was paid in the form of 10% corporation tax. When the 10% corporation tax rate was phased out, regional aid became payable in forms such as capital grants or employment grants. The rate for regional aid in Dublin fell to 17.5% in 2000 and to 0% from 1 January, 2007.
