Dáil Éireann debate -
Thursday, 11 Nov 1999

Vol. 510 No. 5

Written Answers. - Task Force Report.

Cecilia Keaveney

Question:

88 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment her views in relation to recommendation 1.4.2 of the Donegal task force initiative report; and if she will make a statement on the matter. [23085/99]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

The Donegal employment initiative recommended that job creation targets should be established for the county and broken down within different sectors of the economy.

I believe that the real merits of the strategy set out in the report of the Donegal employment initiative do not revolve around particular target numbers, which are intended only as indicative figures and as a guide to the development agencies. The main objective should be to point the direction of change and to move in that direction as strongly as possible using the recommendations for action outlined in the report.

The Donegal employment initiative acknowledged that its overall target, derived from the indicative job creation targets identified at paragraph 1.4.2 in its report, represented an ambitious goal for achievement in eight years. The development agencies view some of the sectoral targets as unrealistic given the historic performance of their respective portfolios. The adoption of county level targets throughout the country would reduce the promotional flexibility of IDA Ireland and Enterprise Ireland.

Both IDA Ireland and Enterprise Ireland have responded positively to the development strategies outlined in the report and have confirmed their intention to work in partnership with the interests represented on the task force in an effort to implement its recommendations.

In particular, the IDA is seeking to increase the Objective One region's share of new jobs in greenfield projects from 25 per cent at present to 50 per cent. This should have a significant impact in Donegal and is reflected in the IDA's commitment to: providing a significant grant differential in favour of the Objective One region, including Donegal; restructuring its organisation to place increased emphasis on regional development and, in particular, on the Objective One region; expanding its Donegal regional office through the creation of two new posts in Letterkenny to work exclusively on promoting Donegal.

Enterprise Ireland has also reorganised its structure to deal with regional issues, including action arising from the work of the Donegal task force. Enterprise Ireland is committed to giving priority to Donegal in identifying and supporting job-creating initiatives.

Regional aid guidelines and the rules attaching to the next round of Structural Funds for the Objective One region will enable the agencies to assist companies at higher rates in the region.