Mary Coughlan
Question:35 Miss Coughlan asked the Minister for Enterprise and Employment the steps, if any, he intends to take to ensure a better geographical distribution of new employment; and if he will make a statement on the matter. [6201/97]
Written Answers. - Employment Distribution.
A critical part of the remit of the agencies for which I have responsibility is to achieve the most equitable spread of development across the regions of the country. This is a matter in which I maintain a continuing interest through regular visits to the various regions. This ensures that I have first-hand knowledge of how the policy is being given effect.
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/service providers and the local community. I am ensuring that this approach is pursued by the agencies for which I have responsibility.
Since the county enterprise boards were established in 1993 they have played a key role in developing local enterprise throughout the country. They have created over 8,500 full-time job equivalents. These jobs have been created in every county in the State and reflect the potential for job creation represented by local development initiatives. I am confident that the support provided by the boards will continue to ensure the development of micro-enterprise and job creation throughout all regions of the State.
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. 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.
As I announced in Galway earlier this week, this year IDA Ireland is pressing ahead with the implementation of a regional policy for employment growth at locations outside of the larger urban centres. This new policy involves: favouring locations outside the larger urban centres in every way it can. Financial incentives will now be biased in favour of smaller regional locations, with higher grant levels as appropriate to each individual case; 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.
IDA Ireland is devoting additional resources at a senior level to oversee this new focus.
While in the final analysis the companies themselves decides on location, taking account of competitiveness and available infrastructure, this new regional focus will give an added bonus to smaller locations.
We have to recognise 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. Second, many of the new technology-based and larger 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 in or near large urban centres, they will go elsewhere in Europe.
Forbairt is also ensuring that a good geographical spread of developments is maintained. Specialist technology transfer executives are based in the Forbairt regional offices in order to specifically bring the benefits of these initiatives to all areas and it is intended that a greater focus will be put on these activities in 1997.
Forbairt also operates a linkage programme which works with companies to maximise the amount of raw materials, components and other major purchases. Significant progress was made in 1996 in extending the benefits of this programme to all the regions, and executives in regional offices will be focusing on this activity in 1997. Forbairt is taking steps to exploit developments, under the Small Business Operational Programme — Measure 3, which examines initiatives for extending the range of supports and assistance to service businesses. Given the nature of the projects which can emerge in this sector, it is likely that they will contribute to a wider dispersal of new employment opportunities.