Dáil Éireann debate -
Tuesday, 25 Mar 1997

Vol. 476 No. 7

Written Answers. - Community Support Framework.

Cecilia Keaveney

Question:

364 Cecilia Keaveney asked the Minister for Enterprise and Employment if there are elements of positive discrimination exercised by his Department towards particular areas in view of the fact that areas of rural Ireland contribute substantially to our current Objective One status; the form that any such positive discrimination takes; and if he will make a statement on the matter. [8041/97]

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

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. I am ensuring that this approach is pursued by the agencies for which I have responsibility.

IDA Ireland is currently implementing a new regional policy for employment growth in locations outside of the larger urban centres.

This new policy involves: financial incentives being biased in favour of smaller regional locations with higher grant levels as appropriate to each individual case. The involvement of private sector investors, stimulating and supporting a major programme of modern advance factory contruction at key locations. Working in partnership with local authorities to have available quality, serviced sites at priority locations for new industrial investment.

In addition, IDA Ireland is devoting additional resources at senior executive level to oversee this new focus. This, allied to the regional structure and emphasis of all the industrial development agencies for which I have responsibility, will further assist in achieving the balanced industrial development and employment creation which is a central objective of this Government.

Clearly, in the final analysis, location decisions are made by industrialists themselves but the policy approach outlined will focus consideration or options additional to location in the major cities.

This policy will yield positive results for rural areas. We have to recognise also a fundamental shift in the mix of IDA's business in recent years. More than half of all job creating investments are not mobile. They come from existing overseas companies expanding their operations and these companies usually expand on their existing site. Secondly, 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 at or near large urban centres, they will go elsewhere in Europe or beyond it.

Forbairt is also ensuring that a good geographical spread of development 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 purchasers. 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 examiness initiatives for extending the range of support 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.

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.