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Thursday, December 11, 2008

EU to investigate Dells €52m subsidy from Poland

As rumour and suspicion surrounds Dells future in Limerick, the EU has said it will investigate Poland's 52.7 million Euro subsidy to the computer maker saying they doubt the company's new Polish plant in Lodz needed a state subsidy.

"EU Competition Commissioner Neelie Kroes said the EU executive needed to make sure the aid "will not reinforce Dell's position or create significant capacity in a market on the decline."

When Dell announced plans to build the plant in Poland, it was hailed as a landmark project for bringing high-skilled work to the country where hundreds of thousands of young, educated people were leaving for higher-paid jobs. "
Via Ap
Labour Senator Alan Kelly said in the last hour,

“The EU competition Commissioner Neelie Kroes has suggested that large aid amounts present a high risk of distorting competition, and that large-scale projects like this need less aid. It is important that when Ireland is seeking to attract and retain major employers, that we are operating on an even playing field.

If other countries can flout the rules and regulations and get away with it, we will find it increasingly difficult to provide good quality jobs for our well-educated workforce.”
Dell employs around 3,000 workers at its manufacturing plant in Raheen which is seen as a very important part of the economic fabric of Limerick and the mid west region. Its closure would be catastrophic for the area.

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