Mary O'Rourke
Question:16 Mrs. O'Rourke asked the Minister for Enterprise and Employment the proposals, if any, he has to ensure a greater regional distribution of new employment; and if he will make a statement on the matter. [3108/97]
Priority Questions. - Regional Dispersal of Industrial Investment.
The very strong performance of the economy stimulated by the policies of this Government has been reflected in a similarly strong growth in employment across all the regions as reported in the recent labour force survey. This has been supported by the work of the industrial development agencies under the aegis of my Department, who have been recording unprecedented levels of job creation.
I am fully conscious of the need for regional dispersal of industrial investment and the corresponding new job opportunities. This is a core element of the statutory mandates of the industrial development agencies and, while I am satisfied that they are not overlooking this aspect in carrying out developmental activities, I have emphasised the importance I and the Government attach to this with the relevant chief executives. I have also focused particularly on this issue in my recent addresses to the annual staff conferences of both IDA Ireland and Forbairt.
To achieve a better regional distribution of jobs across the country requires a strong co-operative approach between the development agencies, local authorities and infrastructure and 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.
Forbairt also has a specific regional mandate and its organisational structures reflect this. That so much of its work involves helping existing Irish companies to develop their potential, and helping start-up projects throughout the country, means that it is in a sense more suited to the regional development task than IDA Ireland, which must respond to a competitive international marketplace. In this regard, Forbairt's specific activities in the area of links, technology transfer and a strengthening of executive resources in the regions to focus on the services sector are all geared to maximising development potential at regional level.
Shannon Development is the embodiment of regional development and has over the years piloted many valuable initiatives in this regard. My officials are currently exploring with them whether there are ways to tap the potential of smaller mobile investment projects not currently targeted which might be more amenable to locating in areas outside the larger urban centres.
County enterprise boards were established precisely to ensure there was a balance of small enterprise at local level throughout the country as a counterpoint to the increasing trend of bigger investment projects to be concentrated on the larger population centres. With 7,711 full-time and 1,624 part-time jobs created in 6,061 projects assisted by 35 boards up to the end of 1996, across the length and breadth of the land, their value and success in this regard cannot be overestimated.
However, there are clear constraints on our ability to direct investments to particular locations. There is a fundamental shift in the mix of IDA's business in recent years. More than half of all job creating investment are not mobile because they come from existing overseas companies expanding their operations and these companies usually expand on their existing site. Second, many of the new technology based and large scale investments have requirements that can only be met near larger urban centres. If Ireland as a country does not provide the support services, infrastructure and logistics they require at or near large urban centres, they will go elsewhere in Europe.
Nonetheless, having had the discipline and resourcefulness to put policies in place which have led to the current levels of economic and employment growth, we must now find the ingenuity to ensure there is a reasonable spread of the economic benefits deriving from that growth. I have accordingly asked the agencies to look at the scope for a greater dispersal of industrial investment projects in the context of the fact that choice of location is ultimately a matter for the promoter, responsible use of Exchequer resources and maximising the input and contribution of local interests.
My question related to the IDA, not to Forbairt, the county enterprise boards etc. On the greater regional distribution of new employment, is the Minister aware of generally available statistics which show that of the 17,000 jobs announced by the IDA in 1996, 71 per cent were in Dublin, 7 per cent were in Cork and 6 per cent were in Limerick, while there were none in the midlands and the west and 152 of the new projects announced for the west in 1996 were for existing industries? In 1995 80 per cent of new overseas industrial projects were located in four major cities and this increased to 89 per cent in 1996. What does the Minister intend to do about the IDA's clear Pale mentality?
I did not refer only to the IDA, but to regional distribution and new employment. The labour force survey clearly reveals a better regional spread in employment creation in all regions during the past two years than during the previous two years. There has been an improvement in employment performance in all regions.
The Deputy asked about the IDA position. I am surprised she quoted announcement figures as she is usually very sceptical of these. Suggestions that one year's figures for the IDA summarise the regional position are very misleading. The approach adopted by the Government has led to the creation of employment not only by overseas industry and the manufacturing sector but also by indigenous industry and various areas in the service and tourism sectors. The overall picture shows there is a very strong regional spread.
I also recognise, however, that the IDA must take particular cognisance of the need for a regional spread. I have specifically discussed this matter with the chief executives of the IDA and Forbairt and their executives in other areas with a view to achieving a better regional spread. This is part of their mandate and the Government is eager to make progress in this area.
The Government is clearly not making progress in this area, and that the Minister had to take them to task tells its own story. The original remit of the IDA as set out in the 1950 legislation was, and I quote from the Official Report of that time——
It is not in order to quote at Question Time.
I am quoting from the Official Report.
It is still not in order.
The Minister of the day said the IDA would have a regional remit but clearly this is not the case. The praise the Minister heaped on himself, the IDA and the Government cannot obscure the serious disquiet among people in the midlands, the west and parts of the south west that they have been forgotten by the IDA in its onward rush to secure welcome jobs.
I assure the Deputy that the IDA has not forgotten its remit to spread jobs throughout the country, and it will not be permitted to do so. This remit is a core part of its mandate, a part which I take seriously.
The IDA is not the entire story in the regional employment strategy. There has been a very good regional spread in employment performance during the past two years, with all regions experiencing substantial employment growth. There is a need for balance in this debate and I can give the Deputy figures which show the very strong performance not only by county enterprise boards and indigenous industries but also by the service and tourism sectors which have contributed to the overall balanced employment performance.