Government nearly missed vital EU aid deadline

Issued : Wednesday 28 July, 2010

"The Irish government came dangerously close to missing out on a vital EU deadline to improve job creation in Ireland.

"The EU's regional aid map was drawn up in 2006 but was due for review this year with a submission deadline of April 1st.

"However the Commission revealed in correspondence, that just three days before the deadline, the government was still to submit its application to change Ireland's regional status.

"This was despite the fact that the matter was raised six months earlier in the parliament and all the indications were the government wouldn't be applying.

"I raised in the parliament and with the Commission six times between October 2nd 2009 and May 17th this year and made repeated public calls for a change to be granted.

"I take heart in the fact that after persistently raising it in the parliament, the government finally took the initiative and applied for a change in the status.

"I was aware Mid-West of Ireland was in a position to achieve a new status which would help companies set up in the area.

"Under the old rules, the EU would not have allowed any state aid for large enterprises establishing businesses in Clare, Limerick or North Tipperary.

"However a change would allow the government to give up to 10% grant to large enterprises for the Mid-West.

"I am delighted that the Commission has taken a positive view of the Mid-West and it shows how Europe is willing to help towards job creation and recovery.

"This new 10% status immediately raises the ability of the Mid-West to attract large industry and help replace the jobs lost by Dell and other companies.

"I welcome the fact that the government have belatedly helped the region after standing idly by when up to 10,000 jobs left."