Funding for IDA and other agencies cut

Enterprise: Annual funding for several development agencies, including the IDA, Enterprise Ireland and Shannon Development has…

Enterprise: Annual funding for several development agencies, including the IDA, Enterprise Ireland and Shannon Development has been reduced by the Minister for Enterprise, Trade and Employment, Ms Harney.

"Activity in this area is driven by demand and funding allocations reflect this fact," she said. IDA grants to industry have been cut by 9 per cent.

While the IDA grant for industry was reduced, the organisation did receive extra money for capital projects (3 per cent) and general expenses and administration (3 per cent).

The grants available to Enterprise Ireland were cut by 15 per cent, although its general funding was not cut, and extra cash was found for innovation and R&D.

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Ms Harney said the decision to reduced grant aid for business reflected a shift towards science and innovation.

Ms Harney said Exchequer funding for FÁS training and employment programmes would be augmented by extra funds coming via the National Training Fund. Overall the FÁS budget would increase by 2.7 per cent.

"This amount of investment means that the combined participating levels on community employment, jobs initiatives and social economy programmes will be maintained at end of 2003 levels and no further reductions in numbers are envisaged in 2004," she said.