Vol. 470 No. 4
263 Mr. D. Ahern asked the Minister for Enterprise and Employment his intentions regarding the recommendations of a Forfás report which called for the sale of an IDA/Forbairt industrial property portfolio; the way in which this will affect property held by IDA and Forbairt in the north east region, particularly County Louth; and if he will make a statement on the matter. [19070/96]
The report prepared for Forfás provides a good basis for setting new policy directions and I have considered in detail the recommendations which it makes. As a consequence, I have made the following decisions to sharpen the focus in the management of the property portfolio:
— IDA Ireland has been given responsibility for the property portfolio since January 1996.
— The private sector will, from now on, have a lead role in the provision of industrial buildings.
— Existing properties will be offered for sale, using commercial criteria, to sitting tenants.
— If sitting tenants are not in a position to purchase in the short to medium term, then the property will be offered for sale to third party investors, individually or as part of a portfolio.
— For vacant properties, where there is a low expectation of occupancy by incoming investment, IDA Ireland will examine other potential employment uses of such buildings, including their sale.
Property remains an important instrument in competing for foreign direct investment and in facilitating regional development. But, as the report indicates, our industrial property needs can best be provided through partnerships between the IDA, the private sector and local authorities. A more tightly run property management function, now being put in place, will ensure that this policy instrument is most efficiently used for development purposes, and the combination of the private sector, local authorities and IDA Ireland should ensure the proper provision of a balanced, internationally competitive land portfolio across the country. It is very much in the interests of each local authority to make adequate provision for well serviced industrial lands if new industrial projects and new employment are to be secured for their areas.
IDA Ireland reports that an increasing number of projects, particularly large projects, require the scale and range of skills, support services and infrastructure which are only available in the larger urban areas. I believe that the new policy approach which I have determined will pose a challenge to the IDA, local authorities and private property developers in the Louth area as well as all other areas to effectively co-operate in making those areas outside the greater urban areas attractive to foreign investors.
In this context, I have asked IDA Ireland to work in partnership with local authorities and the private sector to ensure the provision of suitable sites across the country for industrial development. The primary objective is to ensure that serviced sites are available so that we continue to be highly competitive in the attraction of foreign investment and to achieve a balanced regional spread, so providing local employment opportunities.
