Minister denies EU funds abuse

THE Minister for Enterprise and Employment, Mr Bruton, yesterday told fellow industry ministers that Ireland had never used EU structural funds to subsidise relocation of factories to Ireland.

That they chose to relocate, the Minister said, reflected simply the attractive competitive environment offered by the country, most particularly its highly trained and flexible workforce. There was nothing wrong with such competition which was inevitable and quite natural in an increasingly globalised marketplace, he said.

Mr Bruton was responding to concerns expressed by his Belgian and Danish colleagues at the consolidation of the Boston Scientific European operation in Galway at the expense of several hundred jobs in each country. Another transfer, that of Renault from Belgium to France and Spain, has caused particular anger.

Mr Bruton said that Ireland had always observed the regional aid rules of the Union and welcomed attempts by the Competition Commissioner, Mr Karel van Miert, to initiate a discussion on reducing state aids to industry while increasing their transparency.

As part of his review, Mr van Miert is due to look at the framework of rules for relocations by companies, but Mr Bruton said later that Ireland had nothing to fear from such a debate.

Mr Bruton also raised Irish concerns about tariffs imposed by some EU countries on memory chips which he said were adversely affecting the cost of computers, and he briefed Mr van Miert on the Government's concerns about the Tesco takeover of Quinnsworth, notably on the need to ensure proper provision for small local suppliers.

He said he was confident that the approach would be recognised as of value by the Commission when it looked at the competition aspects of the takeover.