At the outset, it should be pointed out that the Regional Aid Map is decided by the European Commission not the Government. In negotiations with the Commission, the Government sought the inclusion of much more of the country. We will do so again at the mid-term review in 2023 when the data from the census is available.
Regional Aid does not involve any European money or grants and should not be confused with structural funds which Ireland qualified for in the past. Rather it delineates the areas where Regional Aid can be granted by the Irish exchequer, based on specified criteria.
The Regional Aid Map for every Member State must be developed within the criteria laid down in the European Commission’s Regional Aid Guidelines, issued in April 2021. Ireland’s economy has shown strength and improvement since 2014. As a consequence, the European Commission proposed to reduce the overall coverage of Ireland’s Map, as a proportion of total population, to 25.6%. Following intensive negotiations with the Commission, this was increased to 35.9%. This is a reduction of almost one third from the 51.3% which applied previously. This adjustment was part of a European wide review and Ireland was not unique in facing a reduction in coverage. With a more limited population coverage, and the strict criteria set by the Commission, it was important that the optimal allocation was achieved.
To achieve this, the Department of Enterprise, Trade and Employment, working with stakeholders, including Enterprise Ireland, IDA Ireland and Údarás na Gaeltachta, developed a multi-dimensional model that provided a depth of analysis within the Commission’s set criteria. This was an objective and impartial approach, though final approval of the Map, for Ireland and for all Member States, rests with the European Commission. The Commission announced its decision on 22 March 2022.
To meet the Commission’s current criteria for inclusion on the Regional Aid Map, the area must be in a NUTS 2 or NUTS 3 region that has a GDP per capita below or equal to the EU-27 average, or an unemployment rate above or equal to 115 % of the national average. Under European law, Athy is the in Mid-East NUTS 3 Region, alongside Wicklow, Meath and Louth, which does not meet this criterion.
Alternatively, an area could form part of a contiguous area that is proven to be undergoing major structural change or in serious relative decline. A contiguous area cannot be formed by areas selected based on different criteria of paragraph 175 of the Regional Aid Guidelines; the entirety of a contiguous area must be proposed and justified under a common criterion.
Therefore, Athy Municipal District could not be assessed independently from the surrounding area. The Commission’s criteria are assessed at NUTS level and apply only to contiguous areas. Therefore, some Municipal Districts with specific challenges, may appear to be eligible, but they do not meet the criteria.
LEAs not included on the map can still access all other types of State Aid. Only approximately 7.4% of Ireland’s State Aid is in the form of Regional Aid and other aid remains available to enterprises, irrespective of their location. For example, enterprises in Athy LEA and other areas not included on the Regional Aid Map may still avail of Research, Development and Innovation Aid, Environmental Aid, Training Aid, and Consultancy Aid, under the General Block Exemption Regulation. Aid under the De Minimis Regulation, i.e., aid to an undertaking of less than €200,000 in any rolling 3-year period, offers a further avenue, particularly for smaller sized grants and investments to small enterprises.
While the Regional Aid Map coverage has reduced, Enterprise Ireland offers are still available to SMEs in all areas of the country, including Athy. Measures include:
- the Capital Investment Initiative (CII) Fund.
- the Job Expansion Fund (JEF); and
- tailored expansion projects (i.e., Company Development).
As a result, the ability of SMEs in Athy Municipal District to avail of capital and employment support from Enterprise Ireland has not changed.
In March, we launched the Mid-East Regional Enterprise Plan (REP) to 2024. The REP brings together the three counties of Kildare, Wicklow and Meath, to work together with all the business development agencies, LEOs, local authorities, education systems and chambers of commerce. All of these bodies are involved in promoting job creation in County Kildare.
Strategic Objective 1 is to position the Mid-East as the primary location for the development of the agri food hubs and under that strategic objective, action 2 is the development of the Athy Food, Drink and Skills Innovation Hub.
I know this project is long awaited, but the plan re-commits to it and states that it will create a number of much needed impacts:
- Opportunity to strategically grow businesses to work from or progress from the Hub. There will be an ambition to support them to progress to HPSU status, achieve internationalisation and growth
- Job creation activity for the Athy local economy and the wider region.
- Give a clear recovery pathway to food and hospitality sector through economic stimulus, education and innovation, skills attainment and job paths for learners.
- Youth and long term unemployed will engage in learning opportunities that will allow them to either enter the workforce for the first time or return to the workforce after a lengthy absence, in the food and hospitality sector.
- Act as a centre of excellence in supporting innovative companies across the region.
- Develop Kildare’s first social enterprise zero waste café as an exemplar climate action hospitality hub.
- Through the Discovery Centre, provide community and schools outreach education in healthy eating, career pathways (emphasis on non-formal routes) and sustainable living.
