Committee Reports > List of Committees > Dáil > 1987 > Committee on Public Expenditure > Report No. 24 - The Industrial Development Authority

APPENDIX 1

SOURCE: C.P.E.P. 1985

II: Programme Statement

Industrial Development Authority

Industrial Development Authority was established as an autonomous body under Industrial Development Authority Act, 1950 It was constituted in its present form Act, 1969. The Authority’s primary function is to under the for Industry, Trade, Commerce and Tourism as a body having the promotion of industrial development throughout the with the Shannon Industrial Estate and small industry development and West and South West Offaly which come under of Shannon Airport Development Company. Údarás na Gaeltachta is in the Gaeltacht areas. The IDA has established throughout Ireland and also has 23 overseas offices which promote in their territories.

Authourity is the principal Government agency charged with the implementation the Government’s industrial development strategy. The objectives of this strategy, out in the White Paper on Industrial Policy, are:—

the creation and maintenance of the maximum number of sustainable jobs in manufacturing and international service industries;

the maximisation of value added by such industries;

the development of a strong and internationally competitive industrial sector comprising both indigenous and foreign owned industry;

the promotion of a more rapid development of our natural resource based industries, and

the promotion of greater integration of foreign industry into the economy through improved linkage with Irish industry and educational institutions.

main policy instruments at the Authority’s disposal to achieve these objectives the provision of grants and other financial facilities for new and existing manufacturing and international service industries; the provision of worker training grants; provision and administration of industrial estates, sites and advance factories and special circumstances custom built factories for approved projects at regional locat . In addition, the Authority actively promotes joint ventures and licensing agreements between foreign and Irish industry and provides advisory services to meet the of small industries and handcraft industries.

IDA’s main activities are set out hereunder:—

(i)Existing Manufacturing Industry — (firms over 50 employees)

The IDA encourages expansion and development of this sector by liaison with these companies, by negotiating incentive packages and through the range of services and facilities the IDA provides for industry. The Authority is also working through the medium of the Company Development Programme to ensure that existing Irish industry reaches its full development potential. This and acting as a catalyst to the development of medium term strategies and objectives.

In 1984, the IDA approved 143 projects in indigenous companies and 57 projects in overseas companies already established here. This excludes approvals under the Feasibility Research and Development, Small Industry and Enterprise Development Programmes.

(ii)New Overseas Industry

The attraction of new overseas industry plays an important role in the country’s industrial development. At the beginning of 1985 there were over 890 overseas companies established in Ireland employing 80,300 persons.

(iii)Small and Start-Up Industry

The development of small and new start-up industry has become increasingly important as a source of new industrial employment, investment and output. At the beginning of 1985 there were 29,500 persons employed in IDA-assisted small firms.

(iv)Enterprise Development

The Enterprise Development Programme was initiated in 1978 to encourage Irish people with technical, managerial and/or commercial skills to start their own manufacturing business. This programme includes, in addition to facilities available under the Small Industries Programme, the possibility of offering loan guarantees and grants to reduce interest on loans raised for working capital. Many of the projects approved under this programme are in the high technology area. At the beginning of 1985 there were 2,000 persons employed in IDA assisted Enterprise Development projects.

(v)International Services

The IDA may offer employment grants in special service sectors designated by the Minister for Industry, Trade, Commerce and Tourism. Projects to be aided must contribute significantly to national and regional development and must be commercially viable, have good prospects for growth and be such that they would not be developed in the absence of employment grants. Designated sectors include data processing, software development, healthcare services, technical and consulting services, international financial services, publishing , recording services, administrative headquarters, commercial laboratories, services and research and development centres. In 1984. 33 projects approved with an employment potential of 910 jobs.

Cost Per Job Approved 1978-1984

The grant cost per job approved and estimated fixed assets per job approved from 1978 to 1983 and estimates for 1984 are as follows:

This is in current prices calculated on the basis of total IDA investment divided by job potential. Job potential is defined as the number of jobs expected to be created at full production when investment is complete. Since 1982 only jobs that will materialise within five years are included.

Cost Per Job Sustained 1978-1984

(i)All data are in 1985 prices.

(ii)The number of jobs underlying the data is the amount of first time jobs created in the 1978-84 period and sustained until the end of that period.

Part I—General Government Expenditure