Written Answers. - Job Creation.
Brendan Smith
Question:
18
Mr. B. Smith
asked the
Minister for Enterprise and Employment
his views on the widespread concerns, particularly in the western and Border regions, in relation to the failure to attract substantial inward investment to create much needed employment; and if he will make a statement on the matter.
[6222/97]
As indicated in reply to a large number of questions in recent times on the issue of regional dispersal of job opportunities, both I and the Government are fully aware of concern about the issue.
While indicating in these replies the very real constraints under which IDA Ireland must operate, in particular the fact that choice of location is ultimately for the promoter in the context of what he perceives to be the best interests of the project, I have also emphasised the Government's determination that everything possible will be done to ensure that the benefits of our recent economic success are spread throughout the country.
It was in this context that I announced last Monday a new emphasis on locations outside larger urban centres which is elaborated on in replies to separate questions today. Specifically, in relation to the western region, I would point out that almost 840 new first time jobs were created in IDA supported overseas companies in 1996, continuing the new job creation trends of the past two years.
The western region is now host to 60 overseas companies extending across the health-care and medial devices, electronics, engineering, telecommunications, software and internationally-traded services sectors. These sectors provide permanent job opportunities for well over 9,100 people, representing an increase of 7 per cent in the numbers employed in overseas firms compared to 1995 and, indeed, earlier this week I announced a major expansion for the Boston Scientific Group in Ballybrit to provide an additional 1,000 jobs in Galway.
Notwithstanding this positive performance, the IDA is acutely aware that the major proportion of the new jobs created in the region were in fact created in Galway city and county. In full recognition of this, the IDA will be redoubling its efforts in 1997 to achieve a more balanced dispersal of new jobs across the whole region.
Despite a less than satisfactory level of new job creation in County Mayo, it was gratifying that so many of the county's overseas companies increased their workforces and indeed strengthened their roots in the local economy through the securing of additional business functions.
While a total of 197 jobs were created in IDA assisted companies in the north west/Donegal region in 1996, after losses of 471 jobs net employment fell by 174.
Since January, the following announcements have been made for the region: Westmark, from Germany, announced its intention to establish a mechanical kitchen aids project in Carrick-on-Shannon and provide 88 jobs. Lilly Industries announced its intention to establish an industrial coatings facility in Ballinamore, County Leitrim, creating 12 jobs. Abbott Laboratories announced its intention to expand its operation at Finisklin, Sligo for the manufacture of diagnostic kits and a new sterilisation facility which will create an additional 50 jobs.
In the forest products sector the major multinational companies are strategically located on a regional basis to maximise the raw material supply. The Masonite project, which will employ 330 by 1998, is a prime example of this strategy. The impact on Leitrim and surrounding counties has already been substantial. Smaller projects will continue to be developed on a regional basis.
It is expected that the purchase of land and the construction of new buildings in both Sligo and Letterkenny will prove beneficial in securing further new projects.
As indicated in reply to a separate question, the disappointing performance in job creation in 1996 in the north east region was almost exclusively due to the substantial job losses of approximately 500 in Keytronic, Dundalk during the year. New projects announced during 1996 for the north east region, EPC Corporation and DSC Communications, are currently in start-up phases and therefore will not offset the job losses in 1996. However, over the next few years these projects are expected to create significant employment and will assist in re-establishing growth across the region.
IDA Ireland is actively responding to the challenge of attracting new inward investment to the north east region through the acquisition of land for development, and an advance factory is under construction in Dundalk. This factory is being promoted by the IDA. A new industrial site is being acquired in Cavan and this will be developed and a private developer for an advance factory will be sought.
A developer will be sought to provide an advance factory in Monaghan when a project has been secured for the Cavan factory.
Denis Foley
Question:
19
Mr. Foley
asked the
Minister for Enterprise and Employment
the industrial and job creation targets set by his Department for 1997; and if he will make a statement on the matter.
[3038/97]
I expect that the exceptionally strong performance of 1996 will be continued this year in terms of new jobs. The following are the targets for the respective industrial development agencies.
The target for Forbairt-assisted companies is 12,000 new jobs, 14,500 for firms assisted by IDA Ireland, 1,500 for Shannon Development assisted companies and 3,000 gross new jobs for enterprises assisted by the county enterprise boards.
There will of course be some job losses which will offset these gains; while it is not possible to determine these in advance, I expect the downward trend in job losses to continue.
John Ellis
Question:
20
Mr. Ellis
asked the
Minister for Enterprise and Employment
the efforts, if any, which will be made by the Government in order to redress the imbalance of jobs created by the IDA in 1996 in view of the fact that 71 per cent of the jobs funded by the IDA were in Dublin and only 0.86 per cent were in the west of Ireland; and if he will make a statement on the matter.
[4034/97]
I am satisfied that the figures quoted by the Deputy bear no relationship to the actuality of IDA new jobs created in 1996 as supplied to me, the real situation being considerably better than that portrayed by the Deputy.
A critical part of IDA Ireland's remit is to achieve the most equitable spread of development across all regions of the country. IDA Ireland continues to devote considerable resources, energy and enthusiasm to this task and in fact in 1996 a total of 62 projects were approved to locate in areas outside the eastern region.
There is, however, a fundamental shift in the mix of the IDA's business in recent years. More than half of all job creating investments are not mobile because they come from existing overseas companies expanding their operations and these companies usually expand on their existing site. Many of the new technology-based and larger-scale investments have requirements that can only be met near large urban centres. If Ireland does not provide the support services, infrastructure and logistics they require in or near a large urban centre, they will go elsewhere in Europe.
From IDA Ireland's experience of seeking more greenfield and expansion investments in the marketplace, it is known that in the first instance the country as a whole has to win the project against increasingly severe competition. Then IDA Ireland has to try to get the best possible distribution across the country. No location, county or region has an automatic right to new investment — it has got to be that bit better, more attractive, more competitive at meeting the needs of the new investor than many other similar locations in the UK and all across Europe.
Results for 1996 show that IDA Ireland is achieving a spread outside the east coast and especially at locations such as Cork, Limerick, Galway, Tipperary and Wexford and will do even better in achieving regional dispersal as initiatives taken in 1996 begin to take effect.
In terms of actual jobs as opposed to promised jobs, there is in fact quite a positive spread into all the larger population centres around the country. For example, County Galway saw an 11 per cent increase in actual employment in IDA supported companies in 1996.
To achieve a better regional distribution of jobs across the country requires a strong co-operative approach between the IDA, local authorities and infrastructure-service providers. For its part the IDA, in 1997, is:
— favouring locations outside the larger urban centres in every way it can, including 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,
— Working closely with local authorities to have available quality sites at priority locations for new industrial investment.
While in the final analysis it will be the companies that will decide location based primarily on the competitiveness and general level of attractiveness of individual locations, the Government is determined that every effort will be made to ensure a fair dispersal of projects throughout the country. It was in this context that I announced the new policy emphasis on employment growth at locations outside the larger urban centres, with the components outlined above and including additional IDA executives at senior level to oversee this new focus.
