Vol. 526 No. 4
70 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that the aims and projects outlined in the national development plan which relate to her Department will be implemented in full within the timescale established in the national development plan; and the mechanisms she has put in place to ensure these projects are on schedule. [27068/00]
My Department is the designated managing authority for two of the operational programmes under the national development plan. These are the productive sector operational programme and the employment and human resources development operational programme.
The aims and programmes outlined in the national development plan which relate to my Department were drawn up in close consultation with the implementing agencies which include Enterprise Ireland, IDA Ireland, Shannon Development and FÁS. Under the plan the agencies have been set ambitious targets, in particular in relation to the development of the Objective One BMW – Border, midlands and west – region. For example, IDA Ireland has a target to locate at least 50% of all new greenfield jobs in the region. I am satisfied that over the period of the plan these targets will be achieved.
Following approval of the national development plan by the Government and the European Commission work commenced on the preparation of the operational programmes. In the meantime formal Commission approval has been obtained for the employment and human resources development operational programme. It is expected that formal Commission approval will be forthcoming for the productive sector operational programme in the very near future.
The operational programmes are monitored by their respective monitoring committees which, in the case of the productive sector and human resources development operational programmes, are chaired by my Department. The monitoring committees will meet twice yearly and prepare annual reports.
When does the Minister hope to obtain the approval of the European Com mission for the proposals contained in the productive sector operational programme? Does she believe the objective of IDA Ireland of locating 50% of all new greenfield jobs in the BMW region will be achieved? Does she not believe they will only replace jobs already lost, for example, in Ballinasloe?
I do not have a specific date, but I understand approval will be forthcoming from the European Commission in a matter of weeks. I do not accept what the Deputy said. There are 300,000 more people at work today than in June 1997, not all of whom are working in the cities. For example, we announced yesterday that the American company, Teradyne, is to make a major investment of £50 million in Cavan. This is the largest investment ever made in the county and the only direct foreign investment of any substance in 22 years. Major efforts, therefore, are under way. There will be other announcements shortly in relation to other areas in the BMW region. It will be additionality, not simply replacement.
The issue now is to ensure there is more balanced regional development. One of the ways to ensure this is to make things happen in the regions. Clearly, one of the obstacles to making things happen in the BMW region was the violence and political instability in Northern Ireland, which affected possibilities in counties on both sides of the Border. Inadequate infrastructure remains a barrier to investment. The development of telecommunications infrastructure with the road and transport plans generally as well as the water and sewerage developments envisaged under the national development plan will play a major part in making the regions attractive for investment, both indigenous and foreign.
Two thirds of Irish companies which apply to Enterprise Ireland for grant aid are located in the Dublin area. We, therefore, have an enormous amount of work to do to encourage our own companies to locate outside the greater Dublin area. This process is under way with a view to encouraging companies to locate or expand their operations in other regions.
Does the Minister agree that meeting the targets set in the national development plan for infrastructural development is the key to the development of the regions? Given the chronic shortage of staff in her area of responsibility, does she agree the infrastructural projects provided for in the plan are running behind schedule because of delays in the planning process due to the lack of engineers and so forth? On telecommunications infrastructure, what progress, if any, has been made in ensuring employers in rural areas can avail of such infrastructure at the same cost as those in urban areas?
The most effective way to reduce costs is through competition, which leads to improvements in services and delivers better value for money for consumers. Thirty companies are now licensed to provide telecommunications services as against one just a few years ago. This has driven down the cost and improved the quality of service, particularly on the international side. When the local loop is unbundled – the process is under way – there will be similar improvements on the domestic side.
On infrastructural development, there is no doubt it is the case that the development of areas outside Dublin and the big cities is very dependent on infrastructural improvements. If it takes an investor from the United States or mainland Europe who flies into one of our international airports, Dublin perhaps, a number of hours to travel to a regional location, it is not very encouraging for investment in the regions. Transport infrastructure, therefore, is crucial, as is education infrastructure.
The reason we have introduced the working visa arrangement for planners and building professionals generally is the shortage of indigenous resources. This year there has been a substantial increase in the student intake in the planning school in UCD.
