The IDA has had its allocation of grants for industry cut from €121 million (£95.3million) this year to to €87.3 million in the estimates for 2002. This reflects the fall-off in foreign direct investment in the economy, especially in the dot.com sector. One of the main beneficiaries of the grants, Intel, has deferred completion of its €1.5 billion FAB 24 plant at Leixlip.
There is a 51 per cent cut in eCommerce initiative funding from €13.4 million to €6.7 million.
In contrast Enterprise Ireland has had its allocation for grants to indigenous industry increased from €64 million to €76.6 million to, an increase of 20 per cent. Most of this funding will go towards helping Irish companies develop marketing and export strategies abroad.
F┴S training programmes for the unemployed are receiving a 38 per cent boost in expenditure to €103 million in anticipation of a net rise in average unemployment from 142,000 this year to 155,000 next year.
However expenditure on Community Employment schemes aimed at the long term unemployed will continue to be cut back, by four per cent to €382 million.