Dáil Éireann debate -
Tuesday, 6 Feb 2001

Vol. 529 No. 4

Written Answers. - Industrial Development Agencies.

Michael Creed

Question:

114 Mr. Creed asked the Tánaiste and Minister for Enterprise, Trade and Employment her views regarding the future role of state agencies charged with attracting additional employment and inward investment to the country; and if she will make a statement on the matter. [3261/01]

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

The industrial development agencies, under the aegis of my Department, are continuing to achieve their targets for attracting additional employment and inward investment to this country. Preliminary results for the year 2000 show a record number of jobs being created by the industrial development agencies with 23,300 jobs being created in IDA Ireland – supported companies, 16,500 jobs created in Enterprise Ireland-supported companies while Shannon Development-supported companies created 2,200 jobs. These results speak for themselves. However, with a rapidly changing global economy, which impacts strongly on Ireland, continuous review of policy and of the environment for the development of existing and new companies is essential. Going forward, the agencies will be required to sustain enterprise development in an environment characterised by high levels of employment, the need for new economic infrastructure, the increasing importance of skill formation and technological development and growing international competition.

The agencies have recognised these changes and have formulated strategies to enable them to continue supporting the development of the enterprise sector. A major agency objective is to enhance the competitiveness of agency client-companies, the better to enable them to withstand the increasingly competitive pressures arising from the global economy. In the case of Enterprise Ireland, this is achieved by assisting indigenous client companies to move up the value chain, while IDA Ireland does this by striving to raise the quality of both new and existing overseas companies and by strengthening their sustainability and strategic value in Ireland. Enterprise Ireland, which also has responsibility for the food and natural resources industry, is actively marketing Ireland as a location for leading edge food products. In the midwest region, Shannon Development is also focused on promoting higher quality, sustainable employment. A further consideration, in the evolving policies of the agencies, is the Government commitment, contained in the national development plan, to refocus industrial development away from the Dublin and eastern region towards a more equitable spread nationally. A commitment in IDA Ireland's current strategy is that at least 50% of all new greenfield jobs will be in Objective One regions, a commitment which was delivered on by IDA Ireland during the year 2000. Enterprise Ireland, Shannon Development and the county enterprise boards are also committed to developing indigenous industry and to regional dispersal. Enterprise Ireland has deployed over 100 staff in its regional network and works closely with all development organizations in the regions, as well as the third level educational institutions, local development bodies and other industry to pro-actively facilitate an integrated approach to regional development. The effectiveness of the agencies in addressing all of these issues into the future will be kept under review and I am confident that the agencies will continue to play a pivotal role in the development of our economy over the coming years.