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Dáil Éireann debate -
Tuesday, 23 Nov 1993

Vol. 436 No. 1

Adjournment Debate. - IDA Operations in Cork.

In requesting a review of the IDA's operations in Cork, I am conscious of how difficult it is for the authority to attract mobile international investment to Ireland. However, when 1,800 jobs bypass the Cork area in the space of 18 months alarm bells ring and it behoves us, as public representatives, to ask why. The 1,800 jobs were made up of 200 jobs in Synorgen which went to Holland, 600 jobs in Valence which went to Belfast, 600 jobs in Johnson & Johnson which went to Limerick and 450 jobs in Louisiana Pacific which went to Waterford. Is it not totally inexplicable that in such a short space of time so many jobs should bypass Cork? Some went to foreign locations and perhaps the Minister will say that we should be very glad to have others within the country. When 200 jobs in Synorgen went to Holland it was indicated that there might have been an under-the-counter deal to attract the company there. We accepted at face value the fact that this company went to Holland. However, Valence indicated clearly that it wanted to set up in Cork and asked the IDA to point out a project team for them. The IDA looked for and got planning permission for the project. Now the company has gone to Belfast. It is extraordinary that when the company was coming to Cork it was offering 300 jobs. When it decided to locate in Belfast there were 600 jobs and the principals of Valence said the reason they went to Belfast was that the IDA was dragging its feet. To date no substantial reason has been given for this.

We know about the projects that bypassed Cork. What about the ones about which we know nothing? It is possible that the job numbers far exceed 1,800. With 30,000 people in the Cork area unemployed the Minister can understand our concerns about the ramifications, and that others will slip the net. If a fisherman puts out his net and finds a great haul of fish he will pull it in. If, having pulled in the net, he finds that all the fish have slipped out, he knows it is time for an investigation. Will the Minister ask the IDA what exactly is happening in Cork? It might be that there are weaknesses in the system that can be easily rectified.

Given what has happened in the Cork area, I ask the Minister to treat Cork as being in crisis and an area deserving of special attention for mobile international investment in the near future.

Donegal South-West): Ba mhaith liom leathscéal a ghabháil thar ceann an Aire Fiontraíochta agus Fostaíochta os rud é nach bhfuil sé ar a chumas bheith anseo anocht. The Minister does not have any plans to carry out a review of the IDA's operations in Cork. He is satisfied that the Authority is doing everything possible to assist in the development of indigenous industries and the attraction of overseas investment to the Cork area.

The Deputy will be aware that decisions regarding the location of projects are ultimately made by intending investors following detailed examination of potential sites throughout Ireland.

In deciding on a location, a number of factors are taken into consideration by the promoters, such as availability of port facilities, access to rail and road networks, proximity to European markets, availability of appropriate skills and the location of sources of raw materials. The Minister is satisfied that, as a general rule, Cork compares favourably with other parts of the country in so far as the above criteria are concerned. Indeed, since 1987 Cork has secured a reasonable share of the overseas projects which have been won for Ireland.

The city of Cork is home to a number of significant overseas-owned companies, including Apple Computer Ltd., and Bourns Electronics Ireland, which together employ in excess of 1,500 people.

There have been 91 site visits to the Cork area so far this years, compared to 97 visits for the same period last year. However, the number of return visits by intending promoters is twice what it was last year.

Both Cork city and the Cork region in general are home to a number of developing Irish companies. The trend in small business in Cork is upward, despite some inevitable closures. In 1992, small business contributed significantly to job creation in Cork.

Following the enactment of the Industrial Development Act, 1993, work is now underway to complete the preparation of the restructuring of the IDA and EOLAS. The Government intends that the new agencies, FORFÁS, FORBAIRT and IDA Ireland, will commence operations at the beginning of next year.

FORFÁS will provide overall policy advice and co-ordination, FORBAIRT will concentrate on indigenous industry and IDA Ireland will focus on overseas industry. However, the establishment of the new agencies is not being done in isolation. It forms part of our overall strategy, as contained in the document. Employment through Enterprise, which sets out a comprehensive approach to the generation of industrial development and job creation.

The fundamental thrust of the agency restructuring is to recognise that the developmental needs of indigenous and overseas firms are different. While our financial and taxation incentives are the main vehicle for attracting overseas firms to Ireland, indigenous companies need far more direct assistance in areas like management, technology and finance.

A significant, and increasing, amount of State support for small business is already provided in the management development, R & D and feasibility study areas. Such grant support is designed to help companies become more competitive and better positioned to meet future challenges.

The State agencies are working closely with local communities to develop enterprise and to create jobs in Cork city. In the case of the IDA specifically, their marketing efforts have been enhanced with the addition of a new promotional video on the region, sponsored by AIB, and a new regional map which has been sponsored by Bank of Ireland. I would like to pay tribute to both banks for their sponsorship of these important initiatives.

There is a strong regional dimension to our industrial policy, with regions seeking to maximize development in those areas where they have a comparative advantage. As Deputy O'Keeffe is aware, Cork is home to a number of high technology projects. The Cork Business and Technology Park at the Model Farm Road is being developed as a prestige location for high technology industry and will enhance Cork's prospects for further high technology projects in the future. The first phase of the development, a 40 acre landscaped site, one mile from University College, Cork, and within walking distance of the Cork Regional Technical College, EOLAS, FÁS and IDA's regional office. A further 80 acres, owned by Cork Corporations, will be developed by the IDA in a similar style to accommodate complementary industries.

Ten per cent of the national software industry is based in Cork. Of the 25 firms in the region which have received grant assistance, 19 are Irish owned. I am pleased that the IDA has allocated a staff member in Cork to deal specifically with the development of the software industry in the area.

Cork remains one of the most attractive locations for the pharmaceutical and chemical sectors. Much attention has been devoted to the environmental issue in Cork. I assure Deputy O'Keeffe that the Government is determined that all chemical and pharmaceutical plants in the Cork region will operate to the highest national and international standards.

The IDA and FÁS are represented on all four county enterprise boards in Cork, including the Cork City board. The county enterprise initiative is now up and running, following a period which necessitated a wide range of consultation with a great many interests at national and local level. The initiative will promote job creation and will aim to do so by providing funding support for small enterprise development. The Government is determined to achieve our objective of developing indigenous resources to the fullest possible extent.

The full range of FÁS services is available in Cork with the employment services office providing a placement service for employers and unemployed persons seeking employment. That office also administers the various employment schemes, such as the social employment scheme, which is directed at the long term unemployed. The training centre provides the usual range of training courses directed at the long term unemployed and early school leavers.

As I said at the outset, the Minister is satisfied that the IDA is doing everything possible to assist in the development of indigenous industries and the attraction of overseas investment to the Cork area.

I will bring Deputy O'Keeffe's views to the attention of the Minister for Enterprise and Employment.

Cork is Utopia.

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