1. —(1) This Act may be cited as the Industrial Development (Science Foundation Ireland) Act 2003.

(2) The Industrial Development Acts 1986 to 1998 and this Act may be cited together as the Industrial Development Acts 1986 to 2003.

(3) The Shannon Free Airport Development Limited Acts 1959 to 1998 and section 34 of this Act may be cited together as the Shannon Free Airport Development Limited Acts 1959 to 2003.

(4) This Act shall come into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

2. —(1) In this Act, unless the context otherwise requires—

“Act of 1986” means the Industrial Development Act 1986;

“Act of 1993” means the Industrial Development Act 1993;

“Act of 1995” means the Industrial Development Act 1995;

“Act of 1998” means the Industrial Development (Enterprise Ireland) Act 1998;

F1[“applied research” means original investigation undertaken in order to acquire new knowledge directed primarily towards a specific practical aim or objective;]

“Board” means the Board of the Foundation referred to in section 8 ;

“Director General” means the chief officer of the Foundation appointed under section 13 ;

“establishment day” means the day appointed by the Minister under section 3 to be the establishment day;

“Forfás” has the meaning assigned to it by section 5 of the Act of 1993;

“Foundation” has the meaning assigned to it by section 6 ;

“functions” includes powers and duties, and reference to the performance of functions includes, as respects powers and duties, references to the exercise of the powers and performance of the duties;

“institution” means any institute, university, college, laboratory, office or service (whether under the control of a Minister or otherwise) which is wholly or partly engaged in research and development or any other activity related to science or technology;

“Minister” means the Minister for Enterprise, Trade and Employment;

“oriented basic research” means research that is carried out with the expectation that it will produce a broad base of knowledge that is likely to form the background to the solution of recognised or expected current or future problems or possibilities;

“prescribed” means prescribed by regulations made by the Minister;

“remuneration” includes allowances for expenses, benefits-in-kind and superannuation;

F1[“strategic areas of opportunity for the State” shall be construed in accordance with section 7(6);]

“superannuation benefits” means pensions, gratuities and other allowances payable on resignation, retirement or death.

(2) In this Act—

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

(c) a reference to an enactment shall be construed as a reference to that enactment as amended, adapted or extended by or under any subsequent enactment including this Act.

3. —The Minister shall by order appoint a day to be the establishment day for the purposes of this Act.

4. —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.

5. —(1) The Minister may be regulations, provide for any matter referred to in this Act as prescribed or to be prescribed, and make regulations generally for the purpose of giving effect to this Act.

(2) Regulations under this Act may contain such consequential, supplementary and ancillary provisions as the Minister considers to be necessary or expedient.

(3) Every regulation made under this Act shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the regulation is passed by either such House within the next 21 days on which that House has sat after the regulation is laid before it, the regulation shall be annulled accordingly but without prejudice to the validity of anything previously done thereunder.

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28. —Section 21 of the Act of 1986 is amended by deleting subsection (5) of that section.

29. —The Act of 1986 is amended by substituting the following for section 25:

“Employment grants.

25.—(1) The Authority may make a grant on such terms and conditions as it thinks proper in respect of a person employed in an industrial undertaking which conforms to the criteria set out in subsections (3) and (4) of section 21.

(2) Without the prior permission of the Government, the total amount of money granted to a particular undertaking under this section shall not exceed in the aggregate the higher of—

(a) €5,000,000, or

(b) €5,000,000 in excess of the aggregate amount of such expenditure for which the prior permission of the Government has previously been obtained.”.

30. —Section 28 of the Act of 1986 is amended by substituting the following for subsection (4) (as amended by the Act of 1998):

“(4) Without the prior permission of the Government, the total amount of money granted to a particular undertaking under this section shall not exceed in the aggregate the higher of—

(a) €5,000,000, or

(b) €5,000,000 in excess of the aggregate amount of such expenditure for which the prior permission of the Government has previously been obtained.”.

31. —The Act of 1986 is amended by substituting the following for section 29 (as amended by the Act of 1998):

“Research grants.

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 research and development to which this section applies.

(2) This section applies to research and development which—

(a) has as its primary object the promotion or development of new or improved industrial processes, methods or products, 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 or to enhance the viability, competitiveness or strategic importance of existing industry in the State, and

(b) is 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 research and development concerned or €2,500,000 whichever is the smaller sum.

(b) The amount of a research grant may, with the approval of the Government in a particular case, exceed €2,500,000 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 research and development 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 research and development;

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

(v) overhead charges associated with the research and development 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) €2,500,000; or

(b) €2,500,000 in excess of the aggregate amount of research grants for which the permission of the Government has previously been obtained by the Authority.”.

32. —Section 31 of the Act of 1986 is amended by substituting the following for subsection (4) (as amended by the Act of 1998):

“(4) Without the prior permission of the Government, the total amount of money expended in the purchase or taking of shares in a particular industrial undertaking under this section shall not exceed in the aggregate the higher of—

(a) €5,000,000; or

(b) €5,000,000 in excess of the aggregate amount of such expenditure for which the prior permission of the Government has previously been obtained.”.

33. —The Act of 1986 is amended by substituting the following for section 34:

“Aggregate limit on investment aid.

34.—Without the prior permission of the Government, the total amount of money granted under sections 21 (as amended by the Industrial Development (Science Foundation Ireland) Act 2003), 22 or 25 (inserted by the Industrial Development (Science Foundation Ireland) Act 2003) to a particular undertaking or expended in the purchase or taking of shares in the same industrial undertaking under section 31 (as amended by the Industrial Development (Science Foundation Ireland) Act 2003) shall not exceed in the aggregate the higher of—

(a) €10,000,000; or

(b) €10,000,000 in excess of the aggregate amount of such grants for which the prior permission of the Government has previously been obtained.”.

34. —The Shannon Free Airport Development Company (Amendment) Act 1986 is amended—

(a) in section 2, by substituting “ €350,000,000” for “ £200,000,000” (inserted by the Act of 1998), and

(b) in section 3, by substituting “ €400,000,000” for “ £250,000,000” (inserted by the Act of 1998).

35. —The Act of 1993 is amended—

(a) in section 6(1) by substituting the following for paragraph (b) (as amended by the Act of 1998):

“(b) to advise on the development and co-ordination of policy for Enterprise Ireland, IDA and Science Foundation Ireland and such other bodies (established by or under statute) as the Minister may by order designate,”,

(b) in section 6(1) by substituting the following for paragraph (e) (as amended by the Act of 1998):

“(e) to advise and co-ordinate Enterprise Ireland, IDA and Science Foundation Ireland in relation to their functions.”,

(c) in section 9(1) (as amended by the Act of 1998) by inserting “, IDA or Science Foundation Ireland” for “or IDA”,

(d) in section 9(3) (as amended by the Act of 1998) by substituting “Forfás, Enterprise Ireland, IDA and Science Foundation Ireland” for “Forfás, Enterprise Ireland and IDA”,

(e) by substituting the following for section 11:

“Grants.

11.—(1) There may be paid by the Minister to Forfás, IDA, Enterprise Ireland and Science Foundation Ireland, out of moneys provided by the Oireachtas, grants of such amounts as the Minister, with the consent of the Minister for Finance, may sanction for—

(a) the administrative and general expenses of Forfás, IDA, Enterprise Ireland and Science Foundation Ireland, and

(b) the obligations and liabilities of Forfás, IDA, Enterprise Ireland and Science Foundation Ireland.

(2) The aggregate amount of grants made by the Minister to Forfás, and the agencies under subsection (1)(b) (other than grants to which section 14(3) of the Act of 1986 applies) shall not exceed €3,400,000,000.”,

(f) by substituting the following for section 12:

“Industrial incentives.

12.—(1) Without the prior permission of the Government, the total amount of money granted to a particular industrial undertaking under sections 21 (as amended by the Industrial Development (Science Foundation Ireland) Act 2003) and 22 of the Act of 1986 shall not exceed in the aggregate the higher of—

(a) €5,000,000, or

(b) €5,000,000 in excess of the aggregate amount of such grants for which the prior permission of the Government has previously been obtained.”,

(g) in the First Schedule by—

(i) substituting the following for paragraph 2(2) (as amended by the Act of 1998):

“(2) The Board of Forfás shall consist of not more than 13 members and the Board of IDA shall consist of not more than 12 members.”,

and

(ii) substituting the following for paragraph 3(1) (as amended by the Act of 1998):

“(1) On every anniversary of the establishment day, 2 of the members of the Board shall retire from office.”,

and

(h) in paragraph 2(2) (as amended by the Act of 1998) of the Second Schedule by substituting “IDA, Enterprise Ireland, National Standards Authority of Ireland or Science Foundation Ireland” for “IDA, Enterprise Ireland or the National Standards Authority of Ireland”.

36. —Section 10 (as amended by the Finance Act 1999) of the Act of 1995 is amended in paragraph (3)(a) by substituting “ €500,000,000” for “ £200,000,000”.

37. —Section 52 of the Act of 1998 is amended by substituting “IDA, NSAI or Science Foundation Ireland” for “IDA or the NSAI”.

DUBLIN

PUBLISHED BY THE STATIONERY OFFICE