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Dáil Éireann debate -
Tuesday, 27 Feb 1996

Vol. 462 No. 2

Written Answers. - IDA Restructuring Costs.

Micheál Martin

Question:

233 Mr. Martin asked the Minister for Enterprise and Employment the cost to the Exchequer of restructuring the IDA over the past three years. [4294/96]

As the Deputy is aware, the establishment of three new industrial development agencies took place on 1 January 1994 in accordance with the Industrial Development Act, 1993 and as a consequence of the recommendations of the Industrial Policy Review Group (Culliton) being examined and endorsed by the Government-sponsored Moriarty Task Force.

The Culliton recommendations included the proposal to set up an agency (Forbairt) with responsibility for the development of indigenous industry and a separate agency (IDA Ireland) with responsibility for the attraction of foreign direct investment projects to this country. A central theme of the Culliton report was that industrial policy must go beyond a narrow focus on the interventions of the industrial development agencies and concern itself with the wider environment for enterprise. This role is centrally assisted by Forfás.

The previous Government approved the Moriarty recommendations on restructuring and introduced the necessary legislation to give effect to these recommendations. This legislation brought about organisational change for the existing agencies and a consequential small and once-off increase in staff numbers to accommodate overhead functions in the three new agencies. The Exchequer cost of this is estimated at £850,000 per annum. Increased efficiencies will in time largely compensate for this additional cost. Charges in office accommodation at both HQ and regional level gave rise to further once-off additional costs of about £500,000.

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