asked the Minister for Industry and Commerce the plans, if any, he has to restructure the grants system payable to industrialists in particular so that more emphasis be placed on jobs than on machinery; and if he will make a statement on the matter.

I have not yet had an opportunity of reviewing the existing industrial grants system. However, I support the current policy which is designed to facilitate a shift in the pattern of State aid resulting in a greater proportion of funds being used to support marketing, technology acquisition and research and development with reductions for fixed assets and factory construction. I believe this policy will encourage the development of stronger internationally-competitive companies capable of sustained employment and output growth.

I should also point out that the Industrial Development Authority are empowered, under the Industrial Development Act, 1986, to make an employment grant in respect of additional persons employed in small industrial undertakings. An employment grant is only made available in lieu of a capital grant in respect of fixed assets.

While accepting that because of time pressures the Minister has not had an opportunity of examining the current position would he not accept, from his previous experience, that there has been overemphasis on capital grants rather than on job creation?

I am aware of many positions in which fixed asset grants could be replaced by a mixture of, perhaps, rent subsidies and guaranteed loans or interest loan subsidies, especially in the small industrial area where sometimes equity is not too readily available and when the use of guaranteed loans and rent subsidies could replace excessive grants.

May I take it that the Minister will examine this as a matter of priority and report to the House?

Certainly.