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Dáil

Ceisteanna—Questions. Oral Answers. - Job Creation Costs.

asked the Minister for Industry. Commerce and Tourism the average grant cost of each job created by the IDA and if he will make a statement on the matter.

Comment on this
Desmond J. O'Malley Minister for Industry, Commerce and Tourism (Mr. O'Malley) Fianna Fáil

The grant cost per job approved by the IDA in 1978 ranged from £2,169 in the case of domestic small industry, through £2,677—overseas small industry— £4,435—overseas new industry—to £4,858 in the case of domestic new industry. Details of the cost per job approved in 1979 are not yet available.

It is not possible to calculate the actual grant expenditure associated with each job created as the payment of capital grants approved by the IDA is made on foot of certified expenditure on eligible fixed assets and not as new jobs are created. There is normally a time lag between the installation of new plant and machinery and the creation of new jobs on the factory floor. On the other hand, employment on occasion may precede the payment of grant.

Comment on this

What elements are included in calculating the cost per job? Can the Minister give me a list of items included in arriving at the figure?

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The amount paid in capital grants?

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Would items such as the provisions of three-phase electrical power, which can be very expensive, or the provision of a large water supply to an industry which would use a lot of water, items for which grants are available, be included in calculating the cost per job?

Comment on this

If the work in question was regarded by the IDA as part of the eligible fixed assets, it would normally.

Comment on this

The factors I have referred to, which in many cases would involve a large input of money, would not in the normal way be regarded as fixed assets of the company.

Comment on this

If they are not in the ownership of the company presumably they would not, but the IDA may on occasions make a contribution towards the cost of such items.

Comment on this

They would not be included in the cost per job?

Comment on this

It would depend on the circumstances of each company. One could not give a blanket answer to that because it would not in respect of some and would in respect of others.

25.

Comment on this

asked the Minister for Industry, Commerce and Tourism if his Department have been responsible for administering grants for technical assistance to industry; if these grants have been reduced or terminated; and, if so, if he will restore them to their former levels.

Comment on this

The technical assistance grants scheme administered by my Department has been terminated with effect from 11 February 1980. I do not propose to restore it.

Comment on this