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 including Graiguecullen-Portarlington. 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. Consequently, the European Commission proposed to reduce the overall coverage of Ireland’s Map, as measured by 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.
Due to the significant decrease in coverage to 35.9%, several Local Electoral Areas (LEAs) identified by the multi-dimensional model could not be included. We sought to include these areas and explored all options with the European Commission, but it was not possible to include them. However, they have been recognised and listed as reserves, including Graiguecullen-Portarlington, and these areas will be kept under close review with a view to including them as part of a mid-term review of the Map, which will take place in 2023.
Laois has benefited from the inclusion of two out of the three LEA’s within the 2022 map. According to the POBAL deprivation index, Graiguecullen-Portarlington is the least disadvantaged LEA of the three LEAs in County Laois. While Graiguecullen-Portarlington LEA is not included in the Map there is scope for positive ‘spill-over’ effects for the Graiguecullen-Portarlington LEA, e.g., residents of Graiguecullen-Portarlington LEA can benefit from employment opportunities in neighbouring areas such as Portlaoise.
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 Graiguecullen-Portarlington 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 Graiguecullen-Portarlington. 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 Graiguecullen-Portarlington LEA to avail of capital and employment support from Enterprise Ireland has not changed.
