When I reported progress on the debate last week I was discussing the role the EEC will play in the industrial development of this nation. I should like to refer to the European Regional Development Fund. The sum allocated for the first three years is £541.665 million which is a very substantial amount for industrial development but the disappointing aspect is the very small allocation Ireland will receive. We will get 6 per cent of the fund in each year and this is very bad not only from our point of view but with regard to the attitude adopted in the EEC concerning the application of the fund. I should have thought that Europe would have taken a more liberal view of the underdeveloped countries in the Community, particularly Ireland, but also southern Italy and parts of England and France.
The method of allocation leaves much to be desired. It is fair to say that the amount of money allocated to Ireland will not be of any real help to the industrial development of the nation and the small sum we will get during the three years will only be a drop in the ocean when compared with the amount the Government are allocating to industrial development. Our views on this matter should be made known quite strongly within the EEC. I know speeches have been made and I am sure there have been representations at Government level but perhaps we should take a stronger line on this matter.
Governments of member states administer the scheme in their own countries and this is fair enough. The fund is designed to act as an incentive to increase investment in respect of economic activity and infrastructure. If the fund increases in the next few years, as we hope it will, the question of allocation between economic activity and infrastructure will assume an even greater importance. I should like to hear the Minister on this aspect of the fund. There is great need for the development of infrastructure in certain areas and there is also need for greater economic activity on the part of the Government through their agencies in parts of the country such as my constituency in Waterford. Quite properly, the Government have taken a decision to allocate most of the money from the fund to the western part of the country. That is a fair decision although the EEC ruled that all of Ireland is an underdeveloped region. There may be a question of a fair allocation between the whole of Ireland rather than on a narrow regional basis. This question will assume greater importance and will be debated more widely when the fund is increased.
Another aspect of EEC policy which will affect industrial development here is the competition policy. It is important that we maintain a competitive structure within the various industries. I would not like to see a situation occurring whereby we would have a development of monopolies. I do not think it would serve the best interests of our country to allow such a development. Where possible we should have competitive firms within an industry. There has been a tendency here, through shell companies, and take-overs on the part of big companies, towards a monopoly situation. To get the benefit of European markets one must specialise and have a flexible attitude towards development. However, it is in our interests to ensure that we do not have monopolies.
There is a danger of turning a blind eye to this development. We should encourage small industries here. In recent times I have noticed an attitude on the part of the IDA not to grant aid to small firms within certain industries. At least two such firms approached me recently concerning a refusal by the IDA to give grants on the basis that the industry was suffering from an over capacity or that there was not a need for further expansion within the industry. I do not like that trend. It is a wrong attitude on the part of the IDA. The firms that approached me have a long tradition in their respective industries. They are hard working and have technical knowledge of the industry. The IDA should be encouraging a modernisation and an expansion of such small family firms and should revise their attitude in this regard. Competition is good for industry and it keeps the big concerns on their toes. These small firms are quite flexible and capable of competing with the larger concerns.
Industrial life here has been affected by the Herrema kidnapping and the bombings in England. I cannot see foreign concerns sending technical experts or investing money in concerns here if they cannot guarantee safety for their employees or their investments. The damage done by those responsible for the kidnapping and the planting of the bombs was great and those who perpetrated those crimes should be condemned by all citizens. The amount of damage done to our economy will not become apparent for a number of years. I hope there will not be a repetition of such acts which are nothing but an insult to the Irish people. I was abroad during the Herrema kidnapping and I know of the reaction in Europe.
I should like to refer to the need for industrial expansion in Waterford. Like the rest of the country we are suffering from the effects of the recession. The number unemployed has doubled over the year; higher than the national average. As a growth centre we need the establishment of at least two major industries to take up the slack that exists. I am pleased that the IDA purchased 50 acres along the river Suir and designated that area for industrial development of marine associated industries. That is a wise move in view of the potential development of oil resources. The industrial estate there survived well during the last year and the future of that estate is secure.
It needs to be recognised by the Department and the Government and the IDA that Waterford is a priority area for industry. We have suffered more than the national average in this respect and I hope this will be recognised in the coming years. I cited old established industries like Denny's bacon factory and Goodbodys' as well as other old firms which went to the wall. They need to be replaced. I am hoping that an industry will be located in Goodbodys' factory which is still owned by Goodbodys', who I understand are privately negotiating in this matter.
I support the Bill in so far as it proposes to increase to £400 million the amount of money that may be advanced to the IDA, who down the years have done a lot for industrial development. As I said, I hope they will look on Waterford as a priority area in need of substantial investment.
