No. 28/1995:

INDUSTRIAL DEVELOPMENT ACT, 1995

ARRANGEMENT OF SECTIONS

1 Short title, collective citation, construction and commencement.

2 Interpretation.

3 Power of Agencies to acquire, hold and dispose of land and other property.

4 Transfer of securities to Agencies.

5 Establishment of subsidiaries.

6 Power of Agencies to invest in certain bodies.

7 Amendment of Shannon Free Airport Development Company Limited Act, 1959.

8 Amendment of Shannon Free Airport Development Company Limited (Amendment) Act, 1986.

9 Exemption from stamp duty.

10 County Enterprise Boards.

11 Expenses of Minister.

SCHEDULE

AN ACT TO MAKE FURTHER PROVISION FOR THE DEVELOPMENT OF INDUSTRY AND FOR THAT PURPOSE TO MAKE PROVISION FOR THE ESTABLISHMENT AND FUNCTIONS OF COUNTY ENTERPRISE BOARDS, THE EXTENSION OF THE POWERS OF FORFÁS AND ITS AGENCIES, THE AMENDMENT OF THE INDUSTRIAL DEVELOPMENT ACTS, 1986 TO 1993, AND THE SHANNON FREE AIRPORT DEVELOPMENT COMPANY LIMITED ACTS, 1959 TO 1991, AND FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID.

[8th November, 1995]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

1.—(1) This Act may be cited as the Industrial Development Act, 1995 .

(2) The Industrial Development Acts, 1986 to 1993, and this Act, so far as it relates to those Acts, may be cited together as the Industrial Development Acts, 1986 to 1995.

(3) The Shannon Free Airport Development Company Limited Acts, 1959 to 1991, and this Act, so far as it relates to those Acts, may be cited together as the Shannon Free Airport Development Company Limited Acts, 1959 to 1995.

(4) The Industrial Development Acts, 1986 to 1993, and this Act, so far as it relates to those Acts, shall be construed together as one Act.

(5) The Shannon Free Airport Development Company Limited Acts, 1959 to 1991, and this Act, so far as it relates to those Acts, shall be construed together as one Act.

(6) This Act shall come into operation on such day or days as may be fixed therefor by order or orders of the Minister, either generally or with reference to a particular purpose or provision, and different days may be so fixed for different purposes and different provisions of this Act.

2.—(1) In this Act—

"the Act of 1993" means the Industrial Development Act, 1993 ;

"Agency" means Forbairt or IDA, as the context requires;

"the Company" means Shannon Free Airport Development Company Limited;

"Forbairt" means the body established by that name by the Act of 1993;

"Forfás" means the body established by that name by the Act of 1993;

"IDA" means the body established by the name of "Industrial Development Agency (Ireland)" by the Act of 1993;

"the Minister" means the Minister for Enterprise and Employment.

(2) In this Act—

( a ) a reference to a section is a reference to a section of this Act unless it is indicated that reference to some other enactment is intended;

( b ) a reference to a subsection or paragraph is to the subsection or paragraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended.

(3) In this Act, a reference to any enactment includes a reference to that enactment as amended by any other enactment including this Act.

3.—(1) The First Schedule to the Act of 1993 is hereby amended by the substitution, for paragraph 1(2) thereof, of the following:

"(2) Forfás and each Agency shall have the power to acquire, hold and dispose of land and other property or any interest therein.".

(2) All land which, immediately before the commencement of this section, was vested in Forfás, and all rights, powers and privileges relating to or connected with such land shall, on such commencement, without any conveyance or assignment, stand vested in IDA for all the estate or interest for which it was vested in Forfás but subject to all trusts and equities affecting the land subsisting and capable of being performed.

(3) The powers and functions set out in section 16 of the Industrial Development Act, 1986 , may be exercised by IDA notwithstanding anything to the contrary in subsection (1) of section 9 of the Act of 1993.

(4) Forfás and each Agency may sell, lease or otherwise dispose of land otherwise than in accordance with subsection (1) of section 16 of the Industrial Development Act, 1986 , with the express consent of the Minister.

4.—(1) Forfás shall determine the appropriate Agency to which each of the securities referred to in subsection (2) shall be transferred under that subsection and, for that purpose, shall draw up and submit for the Minister's approval a Schedule showing the Agency to which it proposes that they be transferred and a copy of such Schedule shall as soon as it has been approved by the Minister be laid before each House of the Oireachtas.

(2) Securities in any body corporate which were, immediately before the commencement of this subsection, standing vested in Forfás shall, on such commencement, be transferred to Forbairt or IDA without assignment, in accordance with the Schedule drawn up under subsection (1).

( 3 ) ( a ) Where securities have been transferred to one of the Agencies under subsection (2), and it subsequently appears to Forfás that any of the securities concerned should be further transferred to the other Agency (whether by reason of a change in the controlling interest of the body corporate concerned or otherwise), Forfás shall, following consultation with both Agencies, have power to direct that such further transfer take place without assignment.

( b ) Where Forfás makes a direction under paragraph (a), the transfer referred to in that paragraph shall have effect on the date of the notification referred to in subsection (4).

(4) Where securities are transferred under this section, Forfás shall notify the body corporate concerned of the transfer and evidence of the transfer shall be entered in any register required to be maintained in respect of the securities by the body corporate concerned.

(5) Every right and liability transferred by this section to an Agency may thereupon be sued on, recovered or enforced by or against that Agency in its own name and it shall not be necessary for that Agency to give notice to the person whose right or liability is transferred by this section of the transfer.

(6) A transfer of securities in a body corporate under this section shall not be affected by any provision, whether in the memorandum or articles of association of the body corporate or otherwise, purporting to restrict the transfer of such securities.

(7) Section 12 of the Finance Act, 1895, shall not apply to the vesting in an Agency of any property or right transferred by or under this Act.

(8) This section shall not apply to any securities held by Forfás, immediately before the commencement of any of the provisions of this section, in International Development Ireland Limited.

(9) In this section—

( a ) "securities" includes stocks, shares, debentures and loans, and

( b ) a reference to the appropriate Agency shall be construed as a reference to Forbairt or IDA, as the case may require.

5.—(1) An industrial development body may, without prejudice to its general responsibilities under this Act, perform any of its functions, provide any of its services or carry on any of its activities through a subsidiary (within the meaning of the Companies Act, 1963 ) which is wholly owned by that body and, accordingly, that body may, with the consent of the Minister and the Minister for Finance, for the purpose of such performance, provision or carrying on, form and register such a subsidiary.

(2) The memorandum and articles of association of a subsidiary referred to in this section shall be in such form as may be determined by the industrial development body concerned, with the consent of the Minister and the Minister for Finance.

(3) ( a ) The Minister may give an industrial development body such policy directives as he considers appropriate in relation to any policy, programme or activity of a subsidiary and the body concerned shall comply or, as may be appropriate, secure compliance with the directive.

( b ) A directive under paragraph (a) shall not apply to any particular undertaking or person.

(4) A directive under subsection (3) in relation to the disposal of any assets or profits of a subsidiary shall not be given without the consent of the Minister for Finance.

(5) In this section, "industrial development body" means Forfás or either Agency.

6.—(1) Forfás shall, in pursuance of its function of encouraging the development of industry and technology in the State, and in addition to any other powers vested in it under the Act of 1993, have power to invest or make a loan, out of moneys at its disposal, in or to a body to which this section applies, subject to such financial limits and such other terms and conditions as may from time to time be specified in a scheme governing the making of such investments or loans drawn up by Forfás and the Agencies and sanctioned by the Minister with the concurrence of the Minister for Finance a copy of which scheme shall be laid before each House of the Oireachtas as soon as may be after the making and sanctioning thereof.

(2) The power conferred on Forfás by subsection (1) shall, in relation to a specific scheme or schemes, be assigned to, and exercised by, an Agency in accordance with such directions as Forfás, with the concurrence of the Minister, may from time to time determine.

(3) The reference in subsection (1) to moneys at the disposal of Forfás—

( a ) includes a reference to moneys arising from schemes, grants and other financial facilities involving the disbursement of European Union Funds, and

( b ) for the purposes of subsection (2), means moneys at the disposal of the Agencies.

(4) This section applies to a body which is a body corporate, partnership or other body which is established for the purpose of investing in industry in the State, or a particular sector of industry in the State, and which administers, or proposes to administer, an investment fund or funds for that purpose.

(5) Forfás and the Agencies shall include full details of all investments and loans made by them or any of them in their annual report.

7.—(1) Paragraph 5 of the Schedule to the Shannon Free Airport Development Company Limited Act, 1959 , is hereby amended by the insertion, after "Company", where it secondly appears, of "including any wholly-owned subsidiary of the Company".

(2) Where a scheme made by the Company under the said paragraph 5, as amended, includes officers or servants of a wholly-owned subsidiary of the Company, the provisions of paragraphs (2) (c), (3) and (4) of the said Schedule shall apply to such officers or servants as they apply to officers or servants of the Company.

8.—(1) Section 3 (amended by the Industrial Development (Amendment) Act, 1991 ) of the Shannon Free Airport Development Company Limited (Amendment) Act, 1986 , is hereby amended by the substitution of "£200,000,000" for "£150,000,000".

(2) Section 10 (b) of the Industrial Development (Amendment) Act, 1991 , is hereby repealed.

9.—No stamp duty shall be payable on any instrument under which any land, easement, way leave, water right or other right whatsoever over or in respect of the land or water is acquired by the Company, Forfás or the Agencies.

10.—(1) This section applies to any body, referred to in the Schedule to this Act as a County Enterprise Board ("a Board"), established for the purpose of promoting and assisting economic development within its area of operations and incorporated with the approval of the Minister as a company limited by guarantee under the Companies Act, 1963 .

(2) The Minister may, out of moneys provided by the Oireachtas, make grants of such amounts as the Minister, with the consent of the Minister for Finance, may sanction to enable a Board to meet its administration and general expenses and to discharge its obligations and liabilities incurred in the performance of its functions under subsection (4).

(3) ( a ) The aggregate amount of grants made by the Minister under this section shall not exceed £100,000,000.

( b ) The aggregate expenses, obligations and liabilities of a Board shall not exceed the total of the grants made to it under this section except to the extent of its receipts from other sources and provided for in subsection (4) (f).

(4) A Board may for the purpose of promoting and assisting economic development within its area of operations, in particular by means of enterprise creation and business development—

( a ) make a loan, upon such terms and conditions as it may determine, to an undertaking,

( b ) make a grant, upon such terms and conditions as it may determine, to an undertaking,

( c ) make an equity investment, upon such terms and conditions as it may determine, in an undertaking,

( d ) support, in such manner as may be deemed expedient, local developments likely to contribute to enterprise creation and business development or other economic benefits and in general to foster in the area an awareness of the need for enterprise creation and development,

( e ) subject to the prior consent in writing of the Minister, take over, purchase, lease, exchange, hire or otherwise acquire any real, leasehold or personal property and to sell, lease, mortgage, exchange, dispose of or otherwise deal with any such real, leasehold or personal property,

( f ) receive grants, donations, contributions, subscriptions, and generally manage, invest and expend all properties and moneys belonging to the Board,

( g ) employ such personnel (including a chief executive officer) in such manner and on such terms as have been approved by the Minister (with the consent of the Minister for Finance) as the Board may think desirable or necessary for the furtherance of its objects, and

( h ) do such other things as are consistent with its objects.

(5) ( a ) Where a Board makes a loan, grant or equity investment under this section, such loan, grant or equity investment shall be in such form and on such terms and conditions as may be specified in a scheme governing the loan, grant or equity investment sanctioned by the Minister with the consent of the Minister for Finance.

( b ) A Board shall not borrow or give securities, or provide loan guarantees.

( c ) The Minister may exercise any function under this section in relation to a Board either directly or by means of any person or body authorised to do so in pursuance of and in accordance with regulations made by the Minister under this section.

(6) The Minister shall not be liable for any loss suffered by a Board in the exercise of any function under this Act.

11.—The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

Section 10.

SCHEDULE

COUNTY ENTERPRISE BOARDS

The Carlow County Enterprise Board

The Cavan County Enterprise Board

The Clare County Enterprise Board

The Cork City Enterprise Board

The Cork North County Enterprise Board

The South Cork Enterprise Board

The West Cork County Enterprise Board

The Donegal County Enterprise Board

The Dublin City Enterprise Board

The Fingal County Enterprise Board

The South Dublin County Enterprise Board

The Dun Laoghaire-Rathdown County Enterprise Board

The Galway County and City Enterprise Board

The Kerry County Enterprise Board

The Kildare County Enterprise Board

The Kilkenny County Enterprise Board

The Laois County Enterprise Board

The Leitrim County Enterprise Board

The Limerick City Enterprise Board

The Limerick County Enterprise Board

The Longford County Enterprise Board

The Louth County Enterprise Board

The Mayo County Enterprise Board

The Meath County Enterprise Board

The Monaghan County Enterprise Board

The Offaly County Enterprise Board

The Roscommon County Enterprise Board

The Sligo County Enterprise Board

The Tipperary North County Enterprise Board

The Tipperary South Riding County Enterprise Board

The Waterford City Enterprise Board

The Waterford County Enterprise Board

The Westmeath County Enterprise Board

The Wexford County Enterprise Board

The Wicklow County Enterprise Board

ACTS REFERRED TO