Regional Aid, also known as investment aid, is paid in the form of grants by the industrial development agencies to businesses in order to support new investment and new employment in productive projects in Europe's most disadvantaged regions.
Such aid must be in accordance with the Regional Aid Map 2007-13. This Map, which was drawn up by my Department in accordance with the European Commission’s Regional Aid Guidelines 2007-2013 following extensive consultation, was approved by the European Commission which has responsibility for the Regional Aid Guidelines.
The eligible regions and applicable aid rates in Ireland for the 7 year period as set out in the Irish Map are contained in the tabular statement below. Individual counties rather than gateways were designated in the Irish Map, which is available on my Department’s website.
The Regional Aid Guidelines for 2014-2020 were adopted by the European Commission on 19 June 2013. The guidelines will enter into force on 1 July 2014. Consequently, the current guidelines, which were due to expire at the end of this year, are to be extended for six month transition period.
The Regional Aid Guidelines 2014-2020 were adopted after extensive consultations by the Commission with many stakeholders and with the European Parliament, the Committee of Regions and the European Economic and Social Committee.
In the light of these guidelines, a revised Irish Regional Aid Map will be submitted to, and approved by, the Commission before the end of June 2014. In drawing up this Map, economic data such as unemployment and Gross Domestic Product for all counties will once again be analysed afresh when deciding which counties will be designated for Regional Aid.
Regional Aid Map 2007-2013 – IRELAND (as reviewed by Commission Decision
N130/2010 – Official Journal c 226/5 21.8.2010)
BORDER, MIDLANDS and WEST REGION
Large Firms
Period
|
2007-2010
|
2011-2013
|
Aid Rate
(Gross Grant Equivalent)
|
30%
|
15%
|
Medium Firms
Period
|
2007-2010
|
2011-2013
|
Aid Rate
(Gross Grant Equivalent)
|
40%
|
25%
|
Small Firms
Period
|
2007- 2010
|
2011-2013
|
Aid Rate
(Gross Grant Equivalent)
|
50%
|
35%
|
SOUTHERN & EASTERN REGION
Large Firms
Area
|
Period
|
Aid Rate
(Gross Grant Equivalent)
|
South East sub-Region
(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands 1
|
2007-2013
|
10%
|
Mid West
(Clare, Limerick, North Tipperary 2)
|
2007-2013
|
10%
|
Kerry,
Cork (entire county)
|
2007-2008
|
10%
|
-
|
2009-2013
|
0%
|
1 Bear, Cleire, Dursey, Heir, Long, Sherkin, Whiddy
2 As a result of Commission Decision N 130/2010, large investment aid and aid for investment projects with eligible expenditure exceeding EUR 25 million is once again permitted for these three counties. Prior to the decision, such aid had only been allowed up until the end of 2008.
Medium Firms
Area
|
Period
|
Aid Rate
(Gross Grant Equivalent)
|
South East sub-Region
(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands
|
2007-2013
|
20%
|
Mid West
(Clare, Limerick, North Tipperary)
|
2007-2013
|
20%
|
Kerry,
Cork Urban Regeneration Area
|
2007-2013
|
20% 3
|
Cork (apart from Urban Regeneration Area)
|
2007-2008
|
20%
|
-
|
2009-2013
|
0%
|
Small Firms
Area
|
Period
|
Aid Rate
(Gross Grant Equivalent)
|
South East sub-Region
(Carlow, Kilkenny, Wexford, Waterford, South Tipperary) and designated islands
|
2007-2013
|
30%
|
Mid-West
(Clare, Limerick, North Tipperary)
|
2007-2013
|
30%
|
Kerry,
Cork Urban Regeneration Area
|
2007-2013
|
30% 3
|
Cork (apart from Urban Regeneration Area)
|
2007-2008
|
30%
|
-
|
2009-2013
|
0%
|
Lower aid rates apply to Large Investment Projects (i.e. > €50 million
3. From 2009-2013 no aid may be awarded in these counties for investment projects with eligible expenditure exceeding EUR 25 million