Industrial Development Act, 1977

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Number 37 of 1977

INDUSTRIAL DEVELOPMENT ACT, 1977

ARRANGEMENT OF SECTIONS

Number 37 of 1977

INDUSTRIAL DEVELOPMENT ACT, 1977

AN ACT TO AMEND AND EXTEND THE INDUSTRIAL DEVELOPMENT ACTS, 1969 TO 1975. [21st December, 1977]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

Definitions.

1.—In this Act—

“the Acts” means the Industrial Development Acts, 1969 to 1975;

“the Authority” means the Industrial Development Authority;

“the Principal Act” means the Industrial Development Act, 1969 .

Grants, etc. for re-structuring of industry.

2.—(1) For the purpose of promoting the re-structuring of industry, the Authority may, in the case of the acquisition by an industrial undertaking of the whole or part of another industrial undertaking or in the case of an amalgamation between two or more industrial undertakings, in addition to the powers conferred on it by the Acts—

(a) make a grant, on such terms and conditions as it thinks fit, towards the reduction of interest payable on a loan raised in connection with such an acquisition or amalgamation,

(b) 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 connection with such an acquisition or amalgamation or the payment of interest on such principal or both the repayment of the principal and the payment of such interest.

(2) The Authority shall not, without the prior permission of the Government, give a guarantee in respect of moneys borrowed in connection with an acquisition or amalgamation referred to in subsection (1) of this section where the aggregate amount of the principal of any moneys the subject of the guarantee exceeds £500,000.

Enterprise development grants, etc.

3.—(1) For the purpose of encouraging the establishment of an industrial undertaking by a suitably qualified person who has not, or has not to a significant extent, previously been an owner of an industrial undertaking, the Authority may, in addition to the powers conferred on it by the Acts—

(a) make a grant, on such terms and conditions as it thinks fit, towards the reduction of interest payable on a loan raised to provide working capital for such an undertaking,

(b) 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 working capital for such an undertaking or the payment of interest on such principal or both the repayment of the principal and the payment of such interest.

(2) The Authority shall not, without the prior permission of the Government, give a guarantee in respect of moneys borrowed in respect of working capital for an undertaking referred to in subsection (1) of this section, or make a grant towards the reduction of interest payable on a loan raised to provide working capital for such an undertaking, where the amount of the principal of any moneys the subject of the guarantee and the amount of the grant payable towards the reduction of interest exceed in the aggregate £150,000.

Assistance by Authority to developing countries.

4.—The Authority shall have, in addition to the functions assigned to it by section 3 of the Industrial Development Authority Act, 1950 , and section 11 of the Principal Act, the function of providing, as the Minister may consider appropriate, assistance of a technical or advisory nature to a developing country.

Amendment of section 17 of Principal Act.

5.—(1) Section 17 (2) (a) (inserted by the Industrial Development (No. 2) Act, 1975 ) of the Principal Act is hereby amended by the insertion after “section 15 of this Act” of “and of shares purchased or taken by the Authority under section 44 of this Act and of grants made by the Authority under section 2 or 3 of the Industrial Development Act, 1977”.

(2) Section 17 (2) (inserted by the Industrial Development (No. 2) Act, 1975 ) of the Principal Act is hereby amended by the substitution for paragraph (b) of the following:

“(b) The aggregate amount of moneys guaranteed in respect of principal by the Authority under section 37 of this Act or section 2 or 3 of the Industrial Development Act, 1977, and outstanding, and of payments made by the Authority in respect of principal on foot of guarantees under any of those sections, shall not at any time exceed £100,000,000.”.

(3) Section 17 (as amended by the Industrial Development (No. 2) Act, 1975 ) of the Principal Act is hereby amended by the substitution for subsection (3) of the following:

“(3) (a) The aggregate amount of grants under section 12 of the Act of 1952, section 3 of the Industrial Grants Act, 1956, and subsection (1) (b) of this section (excluding any amounts required by the Authority to enable it to meet its obligations or liabilities arising from guarantees under section 37 of this Act or section 2 or 3 of the Industrial Development Act, 1977) shall not exceed £400,000,000.

(b) The aggregate amount of grants made by the Minister to the Authority to enable it to meet its obligations or liabilities arising from guarantees under section 37 of this Act or section 2 or 3 of the Industrial Development Act, 1977 in respect of principal shall not exceed £100,000,000.

(c) In relation to a guarantee referred to in paragraph (b) of this and the preceding subsection in money in a currency other than the currency of the State, the references to principal in those paragraphs shall be taken as referring to the equivalent in currency of the State of the actual principal, such equivalent being calculated according to the cost in the currency of the State of the actual principal at the time of the giving of the guarantee.”.

Amendment of section 20 of Principal Act.

6.—The following section is hereby substituted for section 20 of the Principal Act:

“20.—(1) The Authority may, with the consent of the Minister given with the concurrence of the Minister for Finance, borrow temporarily by arrangement with bankers such sums as it may require for the purpose of providing for current expenditure.

(2) In this section ‘current expenditure’ includes expenditure by the Authority in the exercise of any of its functions, whether of an administrative or of a capital nature.”.

Amendment of section 39 of Principal Act.

7.—Section 39 of the Principal Act is hereby amended by the insertion of the following subsection after subsection (3):

“(4) The Authority shall not, without the prior permission of the Government, give in respect of a particular undertaking a training grant or training grants exceeding in the aggregate £850,000.”.

Amendment of section 40 of Principal Act.

8.—Section 40 of the Principal Act is hereby amended by the substitution of “£50,000” for “£15,000” in paragraphs (a) and (b) of subsection (4), and that subsection, as so amended, is set out in the Table to this section.

TABLE

“(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 £50,000, whichever is the smaller sum.

(b) The amount of a research grant may, with the approval of the Government in a particular case, exceed £50,000 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.”.

Amendment of section 44 of Principal Act.

9.—The following is hereby substituted for section 44 of the Principal Act:

“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—

(a) purchase or take shares, to any extent it may consider desirable, in the body corporate owning, controlling or managing the undertaking or in a body corporate participating in the ownership, control or management of the undertaking,

(b) form or take part with other persons in the formation of such bodies corporate,

but no shares shall be purchased or taken by the Authority where as a result the Authority would have a majority shareholding in a body corporate, unless the Minister shall have approved of the proposed purchase or taking of shares.

(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.

(4) The Authority shall not, without the prior permission of the Government, expend more than £1,000,000 in the purchase or taking of shares in a particular body corporate.”.

Amendment of Second Schedule to Principal Act.

10.—The Second Schedule to the Principal Act is hereby amended by the substitution of the following paragraph for paragraph 6:

“6.—(1) The common seal of the Authority shall, when applied to a document, be attested by the signature of two members or by the signature of a member and an officer or servant of the Authority authorised by it to act in that behalf or by the signature of two officers or servants of the Authority so authorised.

(2) All courts of justice shall take judicial notice of the common seal of the Authority, and every document purporting to be an instrument made by the Authority and to be sealed with the common seal and to be attested in accordance with this paragraph shall, unless the contrary is shown, be received in evidence and be deemed to be that instrument without further proof.”.

Short title, construction and collective citation.

11.—(1) This Act may be cited as the Industrial Development Act, 1977.

(2) The Acts and this Act shall be construed together as one Act and may be cited together as the Industrial Development Acts, 1969 to 1977.