Dáil Éireann debate -
Wednesday, 9 Feb 2000

Vol. 514 No. 1

Adjournment Debate. - Industrial Development.

Mr. Perry

I represent the most talked about region in the country. I have almost lost track of the number of new reference titles which have been bestowed on the north-west during the life of the Government. The most recent, the BMW region, is probably the most inappropriate if it is supposed to refer to the type of car most frequently seen in the Sligo-Leitrim area. It does not matter which acronym one chooses for the north-west region, it does not change the fact that despite all the talk about regional development, not one finger has been lifted to practically assist the economic regeneration of that part of the country.

Does the Minister realise that the only announcement concerning jobs in the north-west in the past three years referred to job losses? At a time when every other region has been lamenting the difficulty in filling job vacancies, the employment levels in the north-west have fallen by almost 1,300. The roar of the Celtic tiger has not been heard in Sligo-Leitrim because the Government has refused to make any practical investment in the region.

The Western Development Commission, despite having wonderful ideas and plans for the area, finds its hands are tied. While the national development plan may promise much needed finance, the real challenge is its efficient allocation and administration. The much hyped spatial plan offers only a further two year wait for strategic decisions to be made concerning the north-west.

My real reason for raising this matter is to find a replacement employer for a fully serviced 24,000 square foot modern factory located on a two and a half acre site in the industrial estate in Tubbercurry which has been vacant for almost two years. It is vital that the Minister and his office enter immediate discussions with IDA Ireland to find a new employer for this major facility in south Sligo. The facility is in a tax incentive area and has huge potential. It is 130 miles from Dublin, 110 miles from Shannon and 130 miles from Belfast.

Mr. Treacy

What about Knock?

Mr. Perry

While there are job losses in the region this facility is standing idle. I know IDA Ireland hopes to get an employer, and I am certain the Minister will do his utmost in this regard.

What does Objective One status mean when there is no money available to make improve ments to infrastructure and living standards? If the north-west is allowed languish in the doldrums much longer it will be too late to hope for rehabilitation. No strategy committees or working groups will be able to fill the void left by the lack of planning and investment in the region.

I ask the Minister to help with this very important development in south Sligo and want to know what he will do to ensure we get an employer in this area which has huge potential. Tubbercurry is included in the upper Shannon renewal scheme which offers a huge opportunity for employers to set up and create jobs in an area where they are badly needed. The facility is state of the art with access to huge ESB capacity. It is a crying shame that this facility has been lying idle for over two years. I make a special appeal to the Minister, who is from the west and whose opinions I value, to make a special effort in this regard. I can provide the Minister with details on this unit located in Tubbercurry, a growing town. Currently up to 100 houses are being built in the town through the upper Shannon scheme, for which the Government deserves credit.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The management of the industrial property portfolio is a statutory function of IDA Ireland as laid out in section 16 of the Industrial Development Act, 1986. In this regard the provision of industrial development sites is a day to day matter for IDA Ireland and not one in which we have direct functions. IDA Ireland is allocated Exchequer moneys each year which it uses along with its own resources to purchase strategically located sites for industrial development purposes. This activity comes within the remit of the agency's day to day functions. IDA Ireland is involved in the provision of industrial property for the purposes of achieving economic growth nationally and in regional and peripheral areas. Scarcity of land for industrial purposes would inhibit industrial development. Consequently, the agency buys and develops land to ensure there is adequate supply to meet the emerging demand. Essentially, its involvement in the provision of industrial property arises from market failure and relates to the achievement of its core job creation objectives.

No new factory space is provided directly by IDA Ireland. The agency relies instead mainly on private developers and grant assistance to industrial investors to provide their own premises. However, IDA Ireland still plays a crucial role in ensuring adequate land is zoned and developed for industrial purposes in the regions which it serves and I am assured by IDA Ireland that industrial property is being provided in order to assist industrial development in the Border region.

In this regard, it is IDA Ireland's aim as part of its new strategy to deliver half of all new green field jobs into the Objective One regions in the coming years. This has been agreed by IDA Ireland, the Department of Enterprise, Trade and Employment and the Government. This is a challenging objective and to achieve this goal the agency will continue to work closely with the providers of infrastructure to ensure they are focused on the needs of each region and also with the educational and training bodies so that they may deliver improved facilities for industry.

Other initiatives include a greater focus on the marketing of the regions geared towards specific sectors and the improvement of marketing material for the regions. Specifically in the Border areas IDA Ireland is building up significant land holdings in Letterkenny, Sligo and Dundalk and currently there are factories and offices in the course of construction in these towns. In addition, factories are planned for other regional centres, including Monaghan, Carrick-on-Shannon and Ballyshannon.

In Carrick-on-Shannon, IDA Ireland has been granted planning permission for construction of a 25,000 square foot facility. Negotiations are in place with developers and a decision on this option will be made in the immediate future. Both this proposed facility and the existing land bank have been marketed to potential clients and all options are being aggressively pursued. In the case of Monaghan, planning permission for an advance factory has already been obtained. In the case of Ballyshannon, IDA Ireland is in the early stages of factory design. A factory has also been completed in Cavan and is being actively promoted.

In the Finisklin Business Park in Sligo, an advance factory is now complete and IDA Ireland's new office facility is well advanced. In addition, IDA Ireland continues to market facilities that are developed by private investors. These include new industrial units under construction in Cleveragh, Sligo, and vacant buildings, such as the former Westpack building in Tubbercurry. This has been referred to by Deputy Perry, whose colleague, Deputy Matt Brennan, is constantly representing the case.

The employment base in both Sligo and Leitrim increased during 1999 to a combined total of almost 3,000 permanent jobs in IDA Ireland client companies. The presence of existing strong companies like Abbott and the excellent contribution of the Sligo Institute of Technology are key factors which will underpin continued growth in this region.

I am confident that the new strategy adopted by IDA Ireland, with its focus on provision of property for industrial development, will bring benefits to the Border region. I am sure the Deputy will agree that as a result of the inventory of locations and investments already made this region is ready to capitalise on the huge investment in the national development plan for the Border, midlands and western region. I am confident that in this Objective One area we will be able to locate much foreign direct investment to supplement the tremendous work of Enterprise Ireland and the county enterprise boards in terms of indigenous industry.