The Department of Enterprise, Trade and Employment said today the spending cutbacks announced in the Budget Estimates would "significantly curtail" funding allocations to the development agencies.
The Tánaiste and Minister for Enterprise and Employment, Ms Harney, said €1.069 billion had been allocated to her Department for 2003, this represents a 5.3 per cent decrease on 2002.
The IDA, Shannon Development, Enterprise Ireland and the County Enterprise Boards will all see reductions in their capital budgets.
Ms Harney admitted this will impact on the capacity of agencies to provide support for industry with a consequent reduction in new approvals for grant aid and equity investment as well as some prioritisation of other measures.
The Tánaiste said: "These reductions will clearly impact on support for new investment. However, the challenge for the future is to find ways to ensure that Ireland remains attractive for investment and to continue to encourage job creation in key sectors of the economy."
