Charles Flanagan
Question:5 Mr. Flanagan asked the Taoiseach the plans, if any, he has for the expansion and further development of the Financial Services Centre; and if he will make a statement on the matter. [10444/95]
Ceisteanna — Questions. Oral Answers. - Financial Services Centre.
My appointment as Minister of State for the IFSC coincided with the decision by the European Commission to extend the deadline for new entrants to the centre by an additional six years. This focused my attention on developing a strategy so that those extra years could be used to best advantage. I am also intent on looking beyond that again where appropriate, to seek to secure the long term expansion and development of the centre. To this end, I am currently engaged in a series of meetings with senior public sector and industry figures aimed at developing an agreed way forward to capitalise on the opportunities provided by the extension of the deadline.
There is still a very significant flow of new projects being brought forward by IDA Ireland and I believe that the desired expansion for the centre will come naturally as the number of IFSC companies builds; as the range of products and services on offer grows; and as the experience and reputation of IFSC companies increases.
I have set the following objectives in relation to the economic development of the Centre: (1) to substantially increase the level of direct employment from the current level approaching 2,500 over the next five years. It is hoped to double or perhaps treble this number to bring the total to between 4,000 and 6,000; (2) creation of at least 1,000 jobs in related back-office activity. Between (1) and (2) 5,000 additional jobs over a five year period is a reasonable target; (3) maximising consequential employment in associated legal, accounting and general — software development and security, cleaning, catering and other — services in the domestic economy.
In addition, I have set up a long term review group, under my own chairmanship and consisting of the Department of the Taoiseach, Department of Finance, the National Treasury Management Agency and the IDA to plan in a concerted way the long term development of the centre.
Recently, I visited Boston and New York and met some of the most senior figures in the financial world, many of them with interests in the IFSC or interested in locating there.
It is my intention to appoint an international ministerial advisory committee to advise on realisable targets to set to ensure that the great progress made in establishing the IFSC continues to gain momentum and is maximised.
I wish to ask the Minister two brief supplementaries. What are the current numbers employed in the Financial Services Centre? Will he comment on the slow pace of development at the centre to date?
The average number of persons employed during 1994 was 2,000. In the light of the new projects which have been continuously coming on stream, the current figure is probably closer to 2,500 and I believe there is potential to double this figure over the next few years. I am concerned about the slow pace of development in the centre but I am pleased that the pace has picked up. I am satisfied that the targets which have been set are being met. The physical development of the Financial Services Centre is a matter for the Custom House Docks Development Authority which reports to the Minister for the Environment.
I am amused at the Minister's definition of a slow pace of development. Funds were increased from zero billion funds in the centre to about £10 billion in the space of three years. What plans has the Minister to bring into the centre those companies that have certificates for the special tax incentives?
My reference to the slow physical development was not in relation to the funds coming into the centre but in relation to the physical development of the centre. My concern relates to the fact that there are almost 200 companies located outside the centre. I have been trying to bring pressure to bear on those concerned to ensure that the centre is developed sufficiently to allow those companies to locate there. I am happy that great progress is being made. The matter is being kept under review.
It is the Minister of State's wish that the companies concerned will locate in the centre. There is an easy device that he could use — he may withdraw the certificate at any time.
That would be a matter for my colleague, the Minister for Finance. We should not, however, use a sledgehammer to crack a nut.
Some companies have refused to locate in the centre and have instead signed long leases in respect of premises at other locations throughout the city. Does the Minister of State believe it may be necessary to use a sledgehammer in those instances?
I share the Deputy's concern. Structures have been put in place to ensure the successful future development of the centre. I pay tribute to those who were involved in its past development.
Will the Minister of State confirm that the centre made £2 billion profit last year and, on the basis of the employment figures he has given, that each employee, therefore, made £1 million?
As this question relates to the long term development of the centre I do not have the figure but I will supply it to the Deputy. I am pleased with the progress that has been made in terms of the employment created and the substantial tax revenues contributed. It is my earnest wish that this will continue. From discussions I have had recently with international players in this field, I am optimistic about the future of the centre. I intend to ensure that my Department and the other Departments involved give it top priority to ensure that it attains its maximum potential.
We now proceed to questions nominated for priority to the Minister for Equality and Law Reform.