Govt has just 24 days to change EU's regional aid map

Issued : Monday 8 March, 2010

Speaking from Strasbourg, Alan Kelly MEP has called on the Irish government to apply for changes in state aid rules to make Ireland more attractive to investment and create jobs.

"Ireland must seek major changes in the EU rules governing state aid in order to facilitate job creation.

"The rules governing the amount of state aid you can give to a company for setting up in a region are due for review.

"When I raised this with the Commission they stated that the 2006 rules would apply unless the Irish government sought a change in these.

"Some parts of Ireland like the Mid-West and South-East have an aid ceiling of 10%, while most of the East and even county Cork, no state aid is available for larger enterprises.

"These ceilings are designed to protect poorer regions, however they were based on data drawn up in 2006 when the Irish economy was dramatically different.

"Unless the Irish government makes an application to change this, they will not be allowed to provide companies with grants for starting up in many parts of Ireland.

"Since 2006, unemployment in Ireland has more than doubled. Many parts of Ireland do not qualify for any state aid grants for companies.

"Taking one example, in the last three years both Dell and Proctor and Gamble have partly left the Mid-West to go to Poland where they received close to €100 million from the Polish government.

"If we are to make ourselves attractive to investors, we need to be able to offer grants and other incentives so that our young people will be encouraged to stay.

"I hereby call on the Irish government to seek this change in the EU regional aid map and I will support them as an MEP to seek a better deal for Ireland and Munster."