Value for money from the grant
Noonan sought the project’s investment-to-return ratio to assess whether it had been adequately examined. The Minister cited estimated added value and grant-rate comparisons but did not provide the ratio; Bruton then briefly queried whether the jobs would be on a three-day week.
(Limerick East): The Minister will be aware that the Government do not sanction projects where the investment to return ratio falls below a certain point. Normally, the Government expect a return of four times the investment from IDA projects. Could the Minister tell us what the return ratio is in this case?
Comment on this
(Limerick East): That is not the question I asked. Is the ratio three to one, four to one or five to one? That is the crucial question as to whether this was rushed or adequately examined by the Department of Finance.
Comment on this
There was no question of rushing this project. The IDA, through their managing director, assured everybody that normal and correct procedures were followed. However, neither the Government nor I have any apology to make for oiling the wheels of State agencies as we have been looking at reports for long enough.
Comment on this
(Limerick East): I will not chase that hare. I have seen IDA proposals to the Government over four and a half years and there is always an investment to return ratio which is underwritten by the Department of Finance to ascertain whether the taxpayer is getting good value for money. That information must be in the Minister's brief because it is in every IDA proposal to the Government.
Comment on this
I do not have that information in my brief. This is probably one of the lowest levels of grant-aid in the food industry and in general industry. I will read out some percentages. In the general food industry in designated and disadvantaged areas a grant of up to 75 per cent is available and the general rate paid out to overseas industry in the past three years was 26.85 per cent in the designated area and 27.19 per cent in the non-designated area. The total average for all was 27.11 per cent.