The European Commission has agreed that the State is to retain significant scope to grant regional investment aid until at least 2013.
Minister for Enterprise, Trade and Employment, Micheál Martin, has announced the new Regional Aid Map has been approved by the European Commission for the period 2007-to 2013.
The EC's regional aid guidelines govern the areas in which EU member states may grant investment aid. This 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.
Mr Martin said that given Ireland's economic performance since the current map was approved 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 per cent of the country's population."
Mr Martin explained that the areas selected to qualify for the investment aid had to adhere to strict guidelines and be relatively more in need of economic development.
Under the new plan, all of the Border, Midlands and West region will be classified as an "economic development region" and will continue to qualify for regional aid. The South East sub-region (Wexford, Waterford, Kilkenny, Carlow and Tipperary South) also qualifies for regional aid thon 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.
While Dublin and the Mid-East sub-region (Meath, Wicklow and Kildare) will no longer be entitled to regional aid after 2006, Mr 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.
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.