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32 1969

INDUSTRIAL DEVELOPMENT ACT, 1969

Chapter III.

Provisions Relating to Grants.

Authority's general grant-making powers.

33. —(1) The Authority may make a grant, on such terms and conditions as it thinks proper, towards the cost of fixed assets of or for an industrial undertaking to which this section applies.

(2) The amount of a grant under this section shall not exceed 40 per cent of the cost of the fixed assets in the case of an industrial undertaking in a designated area, or 25 per cent of the cost of the fixed assets in the case of an industrial undertaking elsewhere than in a designated area.

(3) This section applies to an industrial undertaking in respect of which the Authority is satisfied that—

(a) it would be likely to provide or maintain employment in the State,

(b) financial assistance is necessary to ensure its establishment, maintenance or development, and

(c) it is of a reasonably permanent nature and will be carried on efficiently.

Further grants by Authority.

34. —(1) Where the Authority has made a grant under section 33 of this Act in respect of fixed assets it may make a further grant, on such terms and conditions as it thinks proper, in respect of those assets if the industrial undertaking is one to which this section applies.

(2) The amount of a grant under this section shall not exceed 20 per cent of the cost of the fixed assets.

(3) This section applies to an industrial undertaking in respect of which the Authority is satisfied that—

(a) the significance and character of the employment likely to be provided by the undertaking warrants the making of the further grant,

(b) the undertaking will result in the development or utilization of local materials, agricultural products or other natural resources or will achieve significant linkages either with existing firms or potential new enterprises,

(c) the undertaking will have a high technological or scientific content, or

(d) the industry in which the undertaking is engaged is likely to have an exceptional growth potential.

Grants by Authority for fixed assets leased.

35. —(1) The Authority may make a grant on such terms and conditions as it thinks proper in respect of the cost of fixed assets which have been leased for the purpose of an industrial undertaking which conforms to the requirements of section 33 (3) of this Act.

(2) The amount of a grant under subsection (1) of this section shall not exceed 40 per cent of the cost of the fixed assets in the case of an industrial undertaking in a designated area or 25 per cent of the cost of the fixed assets in the case of an industrial undertaking elsewhere than in a designated area.

(3) Where the Authority has made a grant under subsection (1) of this section, in respect of the cost of fixed assets, it may make a further grant, on such terms and conditions as it thinks proper, in respect of the cost of those assets if the undertaking conforms to the requirements of section 34 (3) of this Act.

(4) The amount of a grant under subsection (3) of this section shall not exceed 20 per cent of the cost of the fixed assets of the industrial undertaking.

(5) Where a grant under this section is payable by instalments over a period of years, the amount of the grant shall, for the purposes of subsection (2) and (4) of this section, be taken to be the capital value of such instalments as determined by the Authority.

Grants by Authority towards reduction of interest.

36. —(1) The Authority may, in the case of an industrial undertaking which conforms to the requirements of section 33 (3) and 34 (3) of this Act, make a grant on such terms and conditions as it thinks fit towards a reduction of the interest payable on a loan raised to provide fixed assets for that undertaking.

(2) A grant under this section shall not be reckoned in the calculation of the maximum grants payable to the undertaking concerned for the purpose of sections 33 (2) and 34 (2) of this Act.

(3) Where a grant is made by the Authority under subsection (1) of this section, the grant shall be in such form and on such terms and conditions as may be specified in a scheme governing the making of such grants sanctioned by the Minister with the concurrence of the Minister for Finance.

Guarantee by Authority of loans.

37. —(1) The Authority may guarantee the due repayment of the whole or part of the principal of any moneys (including moneys in a currency other than the currency of the State) borrowed in respect of fixed assets of an industrial undertaking or the payment of interest on such moneys or both the repayment of the principal and the payment of such interest, if (in each such case) the undertaking conforms to the requirements of sections 33 (3) and 34 (3) of this Act.

(2) Whenever a loan is guaranteed under this section, the guarantee shall be in such form and manner and on such terms and conditions as may be specified in a scheme governing the giving of such guarantees sanctioned by the Minister with the concurrence of the Minister for Finance.

(3) Moneys required by the Authority to meet sums which may become payable by the Authority under a guarantee shall be paid out of funds at the disposal of the Authority and shall not be reckoned in the calculation of the maximum grants payable to the undertaking concerned for the purposes of sections 33 (2) and 34 (2) of this section.

(4) In relation to a guarantee under this section in a currency other than the currency of the State, the reference to moneys in subsection (3) of this section shall be taken as referring to the cost in the currency of the State of the actual moneys payable by the Authority.

Grants by Authority towards re-equipment, etc.

38. —(1) The Authority may make a grant, on such terms and conditions as it thinks proper, towards the cost of fixed assets required for the re-equipment, modernisation, improvement or expansion of an industrial undertaking or in respect of fixed assets leased by an industrial undertaking for the re-equipment, modernisation, improvement or expansion of the undertaking.

(2) The amount of a grant under this section shall not exceed 35 per cent of the cost of the fixed assets in the case of an industrial undertaking in a designated area, or 25 per cent of the cost of the fixed assets in the case of an industrial undertaking elsewhere than in a designated area.

(3) The total amount of moneys paid in grants under this section in respect of an industrial undertaking shall not exceed £350,000.

(4) Notwithstanding anything in this section the Government may, in respect of a particular industrial undertaking, permit the making by the Authority of grants under subsection (1) of this section exceeding in amount £350,000, but provided that in each such case the percentage limits specified in subsection (2) of this section are not exceeded.

(5) Where a grant under this section is payable by instalments over a period of years, the amount of the grant shall be taken to be the capital value of such instalments as determined by the Authority.

Training grants by Authority.

39. —(1) The Authority may make grants (in this Act referred to as training grants), on such terms and conditions as it thinks proper, for the training (either in the State or elsewhere) of persons in the processes of an industrial undertaking, if the Authority is satisfied that—

(a) the undertaking would be likely to provide or maintain employment in the State,

(b) financial assistance is necessary to secure the establishment, maintenance or development of the undertaking, and

(c) the undertaking is of a reasonably permanent nature and will be carried on efficiently.

(2) A training grant may be made for the training of persons for positions of supervision or management in an industrial undertaking or for the engagement of instructors, technical advisers or consultants to train (or assist in the training of) persons for such positions.

(3) The amount of training grants made in respect of a particular industrial undertaking shall not exceed the sum of the amount of wages or salaries paid by the undertaking during the period of training to the persons being trained, the amount of expenses paid to those persons by the undertaking for travel and subsistence and the amount paid by the undertaking in respect of fees (including fees and remuneration of instructors, advisers and consultants) and similar expenses connected with the training.

Research grants by Authority.

40. —(1) The Authority may make grants (in this Act referred to as research grants), on such terms and conditions as it thinks proper, towards the cost of projects of research and development to which this section applies.

(2) This section applies to projects of research and development which—

(a) have as their primary object the promotion or development of new or improved industrial processes, methods or products in the State, and, in particular, such processes, methods or products as are likely either to involve the use or development of local materials, local agricultural produce or local natural resources or to offer prospects of expansion in existing industries or prospects of promotion of new industries, and

(b) are carried out wholly or mainly in the State and wholly or mainly sponsored by one or more than one industrial undertaking in the State.

(3) For the purpose of a research grant the Authority may consult such adviser, consultant, institute or other organisation or person as it considers proper.

(4) (a) Subject to paragraph (b), the amount of a research grant shall not exceed 50 per cent of the approved costs of the project concerned or £15,000, whichever is the smaller sum.

(b) The amount of a research grant may, with the approval of the Government in a particular case, exceed £15,000 by such sum as the Government shall in that case specify but provided that the percentage limit specified in paragraph (a) of this subsection is not exceeded.

(c) In this subsection “approved costs” means, in relation to a particular proposed research grant, such expenditure by the industrial undertaking or undertakings concerned as the Authority is satisfied has been incurred for the purpose of promoting the project concerned and has been expended on—

(i) the provision of sites or premises (including the acquisition of land), the construction and adaptation of buildings, and the provision of services and other works;

(ii) the provision of plant, machinery, equipment and materials;

(iii) the payment of salaries and wages to persons engaged on the project;

(iv) the payment of fees or other remuneration to technical advisers consulted in connection with the project.

Percentage limits on aggregate of certain grants.

41. —(1) Where in respect of an industrial undertaking grants have been made under two or more of the sections to which this section applies, the aggregate amount of such grants shall not exceed the amount of grants payable under sections 33 and 34 of this Act.

(2) This section applies to sections 33 , 34 , 35 and 46 of this Act.

Maximum amount of certain grants.

42. —(1) The total amount of moneys granted under one or more of the following sections of this Act, namely sections 33, 34, 35 and 46, to or in respect of a particular industrial undertaking shall not exceed £350,000.

(2) Notwithstanding anything in this section the Government may, in respect of a particular industrial undertaking, permit the making of a grant or grants under one or more of the said sections of this Act exceeding in amount £350,000, but provided that in each such case the percentage limits specified in sections 33 (2), 34 (2), 35 (2) and 35 (4) of this Act (as may be appropriate) are not exceeded.

Authority's powers to value assets, etc.

43. —For the purpose of making a grant or other payment under this Part of this Act, the Authority may determine at its discretion the cost or value of assets of an industrial undertaking or the capital value of any payments made to or benefits received or receivable by an industrial undertaking.

Authority's power to purchase shares in certain industrial undertakings.

44. —(1) Where, in the opinion of the Authority, an industrial undertaking conforms to the requirements of sections 33 (3) and 34 (3) of this Act, the Authority may out of funds at its disposal purchase or take shares in the body corporate owning, controlling or managing the undertaking.

(2) Shares purchased or taken by the Authority under this section shall be registered in the name of the Minister for Finance.

(3) All amounts representing dividends or other moneys received by the Minister for Finance in respect of shares purchased or taken under this section shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance may direct.

Contravention of term or condition attached to grant.

45. —Whenever there is a contravention of a term or condition attached to a grant or other payment under this Part of this Act, the amount of such grant or payment shall be repayable to the Authority and in default of being so repaid may be recoverable by the Authority as a simple contract debt.

Grants to secure reduction of factory rents.

46. —(1) Where, in the opinion of the Authority, a grant may be made under section 9 of the Act of 1966 to a person, the Authority may, in lieu of making the grant to that person, make the grant on such terms and conditions as it thinks proper, to the person carrying on (or intending to carry on) the industrial undertaking concerned.

(2) The amount of a grant under the said section 9 (as extended by this section of this Act) made after the commencement of this section shall not exceed the amount of the grant which may be made in respect of a factory building under section 33 or sections 33 and 34 of this Act (as the case may be).

(3) Notwithstanding anything in the said section 9, a grant under that section (as extended by this section) may be made to or in respect of an industrial undertaking in an area which is not an industrial estate.

(4) Where a grant under the said section 9 (as so extended) is payable by instalments over a period of years, the amount of the grant shall be taken to be the capital value of the instalments as determined by the Authority.

Leasing by Authority of land at concessionary rent.

47. —Where land is leased by the Authority to or for an industrial undertaking at a rent less then the economic rent as determined by the Authority, the capital value of the difference between the rent so payable and the economic rent so determined shall be deemed to be a grant for the purposes of section 35 of this Act.