Dáil Éireann debate -
Tuesday, 4 Feb 1997

Vol. 474 No. 3

Written Answers. - North-East Job Creation.

Rory O'Hanlon

Question:

41 Dr. O'Hanlon asked the Minister for Enterprise and Employment his views on the low number of overseas jobs attracted to the north-east in view of all the commitments to economic development; and the plans, if any, he has to ensure more overseas investment to the region; and if he will make a statement on the matter. [1428/97]

James Leonard

Question:

49 Mr. Leonard asked the Minister for Enterprise and Employment the steps, if any, he proposes to take in view of the end-of-year statement by the IDA indicting the poor performance of the north-east region in job creation; and his views on whether there is urgent need for policy change in his Department and the IDA in relation to the provision of factory space. [1967/97]

Minister for Enterprise and Employment (Mr. R. Bruton)

I propose to take Questions Nos. 41 and 49 together.

The low number of overseas jobs attracted to the north-east, as to certain other areas, in 1996 is indeed disappointing and, as indicated in my reply to Deputy Noel Ahern, the overall topic of regional dispersal of jobs and projects is one of serious concern to both me and the Government. It is, however, important to note that in the period 1990 to 1995 the north east experienced steady jobs growth. This pattern is expected to resume this year.

The fact is that the IDA can only encourage promoters, albeit with financial inducements, to locate in particular areas. The competition in attracting mobile overseas investment is intense and new projects increasingly require facilities available in larger urban centres. The number of new greenfield manufacturing projects, as opposed to expansion of existing projects, attracted to Ireland in any year is limited. Many of these have specific locational requirements which means they are not mobile within Ireland. Ultimately the choice of location is made by the investor, taking account of competitive advantages such as infrastructure and business environment.

In this regard, as indicated in reply to Deputy O'Rourke's question on the regional distribution of new employment, achieving a better regional distribution of jobs across the country requires a strong co-operative approach between the development agencies, local authorities and infrastructure/services providers. For its part, the IDA in 1997 is favouring locations outside the larger urban centres in every way it can, including with higher grant levels as appropriate, with the involvement of private sector investors, stimulating and supporting a major programme of modern advance factory construction at key locations and working closely with local authorities to have available quality sites at priority locations for new industrial investment. It should be noted, however, that new projects announced during 1996 for the north-east region, EPC Corporation and DSC Communications, in Dundalk and Drogheda, respectively, are currently in start-up phases. While they will not immediately offset the job losses last year, over the next few years these projects, with projected employment of over 770 jobs, will be very significant in re-establishing employment growth across the region.

In relation to the responsibility of Forbairt for the attraction of overseas investment, the decision of the Heinz Corporation to locate in Dundalk will boost the local economy also. This plant, now under construction and providing good employment in that phase, will provide an additional 200 jobs. The decision of Heinz to locate there has also increased interest in the region on the part of other overseas companies. Clearly the establishment of such major enterprises in the area will have significant downstream effects and the creation of links and subsupply to them will further reinforce the economy of the region through the creation of new jobs and the maintenance of existing employment.

IDA Ireland is also responding to the challenge of attracting new inward investment to the north-east region through the acquisition of land suitable for industrial development and the encouragement of advance factory provision by the private sector. I have given specific information relating to counties in the Border region in my reply to a question on today's Order Paper from Deputy Brendan Smith.