A major firm locating in the mid-western region will be able to get grant aid of up to 10pc of the value of their investment following a decision by the European Commission on regional investment rules.

According to the Minister for Enterprise, Trade and Innovation, Batt O'Keeffe, the decision was made in response to the Government's submission to the European Commission on a mid-term review of the regional aid guidelines on State aid.

The decision will help the enterprise agencies to create jobs in the mid-western region.

'The ability of the Government's enterprise agencies to grant-aid major investment projects in the mid-west will help us to draw firms to the region and create jobs. Our submission to the European Commission set out a strong and persuasive case for the mid-western region following the closure of the Dell manufacturing plant," the Minister said.

"While skills base, corporation tax, language, and physical and digital infrastructure are the main determinants of firms' investment decisions when they are considering rival locations, grant aid can also act as a strong incentive and add to the attractiveness of a location," he said.

The decision to restore regional aid to the whole mid-west region goes beyond the recommendation in the Report of the Mid-Western Taskforce which sought aid for a number of business parks in the region.

It puts the mid-western region in the same position as the south-eastern region, which covers Carlow, Kilkenny, Wexford, Waterford and South Tipperary, where State aid for large investment projects is already allowed.