Industrial Development Act, 1986

Research grants.

[1969, s. 40; 1981, s. 8. New in pt.]

29.—(1) Following consultation with such bodies as may be specified by the Minister from time to time, the Authority may make a grant (in this section referred to as a research grant), subject to subsection (5), 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, agricultural products or other natural resources or to offer prospects of expansion in existing industry, promotion of new industry or to increase industrial employment, 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 £250,000, whichever is the smaller sum.

(b) The amount of a research grant may, with the approval of the Government in a particular case, exceed £250,000 by such sum as the Government shall in that case specify, provided that the percentage limit specified in paragraph (a) is not exceeded.

(c) In this section “approved costs” means in relation to a particular research grant, such expenditure by the industrial undertaking or undertakings concerned as the Authority is satisfied has been or will be incurred for the purpose of promoting the project concerned and has been or will be 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 fees or other remuneration to technical advisers consulted in connection with the project;

(iv) the salaries and wages paid to and the travel and subsistence expenses of persons engaged on the project or in identifying product or process development prospects within the industrial undertaking; and

(v) overhead charges associated with the project concerned.

(5) The Authority may, in the case of small industrial undertakings as defined from time to time by the Minister, make payment of up to one-third of a research grant prior to the approved costs being incurred on condition that the amount so paid shall be repaid to the Authority if the research or development project concerned has not been carried out to the satisfaction of the Authority.

(6) The Authority shall not make a payment under subsection (5) unless it is satisfied that the industrial undertaking has available to it sufficient assets to cover its liability under that subsection.

(7) The Authority shall not, without the prior permission of the Government, give in respect of a particular industrial undertaking, research grants exceeding in the aggregate the higher of:—

(a) £500,000; or

(b) £500,000 in excess of the aggregate amount of research grants for which the permission of the Government has previously been obtained by the Authority.