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So you have to manufacture, export, and be over 10 employees

  • 06-08-2009 5:01pm
    #1
    Closed Accounts Posts: 511 ✭✭✭


    ......are no support from Govn effectively.

    Looking at all the grants and aids available to companies in Ireland and continually you will come up with the 'manufacturing and international traded service' criteria. Anyone tell me why?

    I mean we are clearly not a good location, in general, to manufacture from due to in wage etc.

    Why dont the govn help smaller firms who are not engaged in these areas?


Comments

  • Closed Accounts Posts: 52 ✭✭jerryob


    Flash,
    In practice the 'manufacturing and international traded service' definition is old-school IDA-language. I'm in the medical product side of things, and haven't had an issue yet. For example, with the Seed Capital Scheme, the pink application form to get certified asks wierd questions when applied to a products company, e.g. to do with capital investment, building leases, production, operations.... I translate them into what the appropriate product-oriented Q should be.

    Would this work for your line of business?

    I'd guess the EI/CEB's got the 000's wrong when they sent the volume order to the printers....


  • Registered Users, Registered Users 2 Posts: 9,817 ✭✭✭antoinolachtnai


    The language might seem strange, but 'manufacturing and internationally traded service' is a very very broad category. It certainly covers software (providing you sell it abroad) and it certainly covers medical devices (if you make them here) and it would also cover the design of medical devices for the international market.

    What type of industry do you have in mind that should be covered by that but isn't?

    (I am not saying the scheme is a great idea by the way, just remarking on the designation)


  • Closed Accounts Posts: 112 ✭✭VO


    I believe the reason that they can only help companies which fall under these categories is due to EU regulation on state funded aid to business. Given the current climate it needs to be badly reviewed.

    Also could this be seen as being anti competitive - If I have a company which is trading profitably and my copetitor is losing money he can get aid but i can't - seems to contravene some of the same EU regulations


  • Registered Users, Registered Users 2 Posts: 9,817 ✭✭✭antoinolachtnai


    What would be the point in subsidising companies that only serve the home market?

    You would just be taking money from the strong companies and giving it to the weak companies.

    This would be a highly damaging thing to do. It would discourage efficiency and profitability.

    If you want to help businesses in the economy generally, the answer is easy - reduce employers' PRSI. Employer's PRSIis the biggest tax on employment. Realistically, this is not going to happen.


  • Registered Users, Registered Users 2 Posts: 273 ✭✭REDZ


    They are the sectors of the economy that bring money in, other sectors rely on them.


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  • Closed Accounts Posts: 511 ✭✭✭flash harry


    sorry for delay in getting back to this...

    I'm not specifically talking about my own situation, just a general observation in light of existing and the latest govn manufacturing 'leg up'.

    As fo some of the replyies I would disagree with the rationale e.g. Dunnes Stores does not manufacture or export (within reason) and they are one of the biggest employers in the country so surely helping a small Dunnes in the making does as much to damage the germans (Aldi/Lidl) and the British (Tescos/M&S) etc.

    But my real point is that small companies in Ireland account for huge amounts of employment in true pareto principal fashio


  • Closed Accounts Posts: 128 ✭✭W!zard


    We need more exports, one thing we have to learn from the good times we can not sell to each other. My point is, we should support small export companies as much as medium to multi-national companies. The Internet has made exporting to a global market a possible choice for new startups.


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