Business
MEP welcomes new guidelines on investment aid for companies
Ireland North West MEP Pat the Cope Gallagher has reacted to the decision by the European Commission to publish new guidelines on how EU Member States can grant investment aid to companies in order to support economic development in peripheral regions across the EU.
The new guidelines were published this week following a decision by the College of EU Commissioners.
Pat the Cope Gallagher MEP described the new guidelines as “a vast improvement on the original proposal put forward by the Commission”.
Pat the Cope Gallagher MEP stated that “there was great concern, within the Irish Government and the various State agencies responsible for attracting new investment into Ireland including Údarás na Gaeltachta and the BMW Regional Assembly, when the Commissioner for Competition, Joaquin Almunia first published his draft document. As a result, I requested an urgent meeting with the Commissioner in March to discuss his ideas.
“He originally wanted to prohibit aid to large companies in so called “c” regions which would have essentially prevented the Irish Government from providing incentives to companies interested in setting up new businesses in Galway. This would have serious consequences for the North West as often new facilities or plants established would be part of a larger international company with more than 250 people employed.
“This situation was untenable due to the current economic climate and I was also familiar with several companies in the West which may not have established bases without the help of investment aid. Furthermore, investment aid is still very much needed to address deep rooted regional problems such as geographical remoteness, poor connectivity and infrastructure, particularly in the West.”
Mr. Gallagher added that “the final proposal represents significant progress from the initial proposal by the Commission to restrict aid to large enterprises across “c” regions. The compromise agreed by the Commission will allow Member States to provide investment aid to large enterprises for new economic activities and diversification of existing enterprises into new products or new process innovation.”
Mr Gallagher concluded: “I would also like to pay tribute to the Irish Commissioner Máire Geoghegan-Quinn for her efforts to ensure the continuation of aid for companies in the West.”
The new President of Local Ireland, the association representing local news publishers around the country, is Head of Irish Times Regionals Dan Linehan.
Mr Linehan takes over the presidency from Declan McGuire of the Connacht Tribune. His appointment was confirmed at the recent Annual General Meeting of Local Ireland at Bloomfield House Hotel near Mullingar, Westmeath.
Mr Linehan, who has served as Vice President of the organisation for the last two years, said: “The coming years are a very important time for local publishers with many important issues to be addressed, including the implementation of the Future of Media Commission recommendations, defamation reform, the role and support for local publishers in public service reporting and helping publishers develop commercial digital offerings.”
Speaking at the AGM, Mr McGuire acknowledged the work done by the Executive in the past two years under the direction of Executive Director, Bob Hughes, on several projects related to the publishing industry but most especially the successful conclusion of the long-running campaign for the abolition of VAT on newspapers.
He also wished Mr Linehan the very best in his new role as President of the association for the next two years.
Mr Hughes thanked Mr McGuire for his leadership and support during his term of office and said he looked forward to working with Mr Linehan on the key policy priorities for the association, including Government supports, Government advertising, fair remuneration for content from the tech platforms and the reform of the legislation for defamation.
Local Ireland members also elected Seán Mahon, Managing Director of the Southern Star, as Vice President for the next two years.
The shortage of affordable housing is the single biggest impediment in attracting and retaining workers in the West, according to business group Ibec.
At a ‘Regional Insights Series’ meeting in the Galmont Hotel in Galway last week, employers were told that capacity constraints and labour supply are the key challenges facing business growth in the region.
Ibec Head of Regional Policy Helen Leahy said: “There must be greater focus by government on enhancing quality of life issues such as housing and infrastructure which are driving labour shortages in the region.
“Ibec’s vision for the West is to realise its potential to become a globally competitive location. An inadequate supply of affordable housing is now the single largest impediment to attracting and retaining talented workers, without whom business investment and expansions are not possible.
“Labour shortages are a real concern for businesses in the region. People decide where to live and work based on quality of life and access to high quality services and amenities. Industry tends to follow talent, and in this regard, the region needs to have all the building blocks in place as the attraction and retention of world-class talent becomes increasingly competitive on a global level,” said Ms Leahy.
Amongst Ibec’s priorities for the West are:
- Addressing housing and infrastructure challenges
- Transitioning towards a new growth model with Net Zero energy powered by Atlantic offshore wind resources
- Adapting businesses to the new economic realities
- Enhancing capacity and skillsets to achieve sustainable development objectives
- Investment in people and skills
- Creating competitive advantage through digitalisation
- Innovation as a key driver of productivity growth
One in five Galway businesses want to go fully cashless, as the move towards card payments and tapping continues unabated post-Covid.
In all, 22% of Galway businesses would like to be fully cashless, according to a survey carried out by BOI Payment Acceptance (BOIPA), a provider of payment technology solutions, which asked Irish businesses about the current payment landscape as well as business confidence and concerns.
Over one-third (36%) of Galway businesses were unaware there is no contactless limit on mobile wallets – just below the national average – while 54% believe the increase in card over cash transactions has helped them run their business.
Six out of ten Galway businesses expect to grow this year despite the cost-of-living crisis and running costs dominating as key concerns; 62% believe their business will grow over the next twelve months despite global economic uncertainty.
Unsurprisingly cost-of-living increases and running costs were the main concerns the majority of businesses had.
For more, read this week’s Connacht Tribune.
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