European Commission Approves Ireland’s Regional Aid Map for 2007-2013

The Minister for Enterprise, Trade and Employment, Micheál Martin, T.D., has announced that Ireland is to retain significant scope to grant investment aid under a new Regional Aid Map approved by the European Commission for the period 2007-2013.

The European Commission’s Regional Aid Guidelines govern the areas in which EU Member States may grant regional aid, more commonly known as investment aid. Investment aid is intended to promote the economic development of certain disadvantaged areas within the European Union in order to redress regional disparities. Under Ireland’s current Regional Aid Map, which defines the areas where regional aid may be granted until the end of 2006, all parts of the country currently qualify for some level of investment aid. Given Ireland’s economic performance since the current Regional Aid Map was approved by the European Commission in 1999, it was to be expected that our scope to designate areas for regional aid for 2007-2013 would be significantly reduced. Nevertheless, Ireland has secured entitlement under the new Map to maintain regional aid qualification, at varying aid rates, for areas accounting for 50% of the country’s population for the period 2007-2013.

Minister Martin explained that in designating areas within the permitted population threshold Ireland had to observe a strict EU requirement that the areas selected be relatively more in need of economic development. The Minister said that he had consulted with the Southern & Eastern Regional Assembly in relation to the areas which should be designated within that Region and that he had accepted the Assembly’s proposals.

Under the new Map, all of the Border Midlands and West Region will be classified as an “economic development region” and will continue to qualify for regional aid throughout 2007-2013. The South East sub-region (Wexford, Waterford, Kilkenny, Carlow and Tipperary South) also qualifies for regional aid throughout 2007-2013 on the basis of unemployment criteria specified by the European Commission.

The Mid West sub-region (Clare, Limerick and North Tipperary) and Kerry will be entitled to regional aid only for small and medium-sized firms throughout 2007-2013 and for large firms for 2007-2008.

County Cork will be designated for regional aid for small, medium and large firms for 2007-2008. In addition, the docklands area of Cork has been designated as an urban regeneration area and will also retain entitlement to aid for small and medium firms until the end of 2013 in order to facilitate possible financial supports for urban regeneration in the area over that period.

Minister Martin said he welcomed the designation of Cork Docklands as an urban regeneration area. “The Cork Docklands area represents one of the last major redevelopment opportunities in the city and the area has the potential to become a model for sustainable urban living. The current situation of Cork Docklands provides an opportunity to address the high levels of disadvantage in the area through the provision of employment opportunities, an integrated living environment with adequate social and community supports, and a good environmental quality of life. There is also the potential to build a new high quality urban quarter adjacent to and integrated with the city centre. “

While Dublin and the Mid-East sub-region (Meath, Wicklow and Kildare) will no longer be entitled to regional aid after 2006, Minister Martin pointed out that they will continue to qualify for other forms of State aid, including aid for small and medium-sized enterprises, aid for Research and Development, Training aid and aid for Environmental Protection, which will continue to be available in all areas.

25 October 2006

ENDS

ETE 1654