I wish to share my time with Deputy Flanagan.
Adjournment Debate. - Industrial Development.
Is that agreed? Agreed.
According to CSO figures, County Offaly has the lowest per capita income in the country. As a representative of the people of the county I find it alarming that per capita income is £7,394. By contrast, per capita income in Dublin is £3,750 in excess of that. The Government and Fianna Fáil public representatives have questions to answer as the blame for this worsening situation rests on their shoulders. Is the Minister of State aware that disposable income for the average Offaly resident is down from 84% of the national average in 1988 to 79% today? He has nothing to smile about.
This serious situation for the people of County Offaly must be urgently addressed to provide income and employment opportunities and to improve services, infrastructure and educational facilities. Following consultations with Deputy Flanagan and Fine Gael public representatives in the county, including members of Offaly County Council, Tullamore and Birr Urban Council and Edenderry Town Commission, it is clear the Government has failed to deliver to the people of the county in terms of jobs, road infrastructure, rail networks and decentralisation.
The employment situation is especially serious. Low Alpine has shed 220 jobs, Snickers 20 and Daibier 20, all in Tullamore. More than 100 jobs have been lost at Leoinie in Birr and approximately 150 jobs at Arlington in Portarlington were lost just over two years ago. In addition, Bord na Móna has undertaken a major reorganisation resulting in approximately 1,500 redundancies over a five year period while the ESB is undergoing continuing reorganisation with future job losses planned.
The IDA, Shannon Development and the Government failed to react with the urgency that is essential to provide alternative employment. The number of new overseas industries attracted to County Offaly has not matched the numbers of jobs lost. The Tánaiste and Minister for Enterprise, Trade and Employment has refused to meet Offaly County Council to discuss new industries and new employment opportunities for the county. She did not attend the Dáil when Deputy Quinn raised the issue of job losses in Tullamore and the people of the county will be unhappy at her failure to attend the House this evening.
County Offaly needs an ambitious road building programme as a modern road structure is essential to develop the county. The necessary investment has not been allocated. In the recent announcement of funding by the NRA the county was not included in the budget of £660 million. The county is the fourth smallest in terms of expenditure on roads with County Laois the fifth smallest. The Government must prioritise County Offaly for new industry, road investment, rail lines and decentralisation. All are essential.
I support Deputy Enright on this matter. The failure of the Tánaiste and Minster for Enterprise, Trade and Employment to attend the debate speaks volumes. The situation is very serious. Job losses have not been replaced and task forces appointed by the Government are under achieving. For the past 20 years redundancies have been proposed in the twin anchor employers of Bord na Móna and the ESB. The warning about changing working patterns have been ignored by the Government. Circumstances in traditional industries in the midlands have given rise to serious redundancies and action has not been taken.
The only major development in County Offaly is the construction on the N6 route. It will create little benefit to people in the midlands as traffic is pushed from Dublin to Galway with careless disregard for their livelihoods, especially those in County Offaly. I call on the Minister to visit the county. She has refused to do so and refuses to understand the serious and high levels of unemployment throughout the county, from the Kildare border to the River Shannon. The county is a black spot and immediate action is required by the Government.
This is a Government of collective responsibility. I regret the Minister cannot be here but she is abroad on a trade mission seeking international investment for the country. Any Member here to answer on behalf of the Government does so on a the basis of collective responsibility.
The provision of jobs in any area is a day to day matter for the industrial development agencies and not one in which the Minister would have a direct function. The Government through the enterprise development agencies is committed to ensuring the most equitable distribution of job opportunities and to encouraging the establishment of industry in the regions. The agencies are strongly focused on achieving this aim and resources are being deployed to reflect this. A key factor in achieving this, the primary objective of the Government, is the creation of a business environment in which job opportunities continue to flourish and in which job applicants have the requisite skills requirements.
In line with commitments contained in the national development plan, the enterprise development agencies are strongly focused on achieving this aim and resources are being deployed to reflect this new focus. In recognition of the economic underdevelopment of the Border, midlands and west region, in which I live, and of which County Offaly is a part, the region qualifies for Objective One status over the lifetime of the national development plan. In the context of its Objective One status, the industrial development agencies, under the aegis of the Department, can provide projects in the BMW region with more favourable funding across the range of financial supports than projects elsewhere. For its part, IDA Ireland fully recognises and is committed to ensuring that a process of balanced regional dispersal is achieved in the BMW region. A key priority of the agency in the midlands region is the pursuit of a more balanced regional spread of new overseas investments to secure significant industrial developments in this Objective One area. The policy of IDA Ireland is to focus on projects with jobs of higher salary and on enhancing the quality of existing jobs. Recent projects in County Offaly include Continental AG and Flextronics in Tullamore, Sanirish in Edenderry and Grafica Zannini, which has completed the construction of its new facility in Tullamore. Through development programmes which IDA Ireland operates it is aimed to have capable companies moving systematically up the value chain from being basically mandated subsidiary operations to being strategically independent operations within their corporate structures world-wide. Last year 589 new jobs were created by IDA Ireland assisted companies in the midlands region, resulting in a net gain for the year of 105 jobs. The total number of IDA jobs thus created for the region amounted to 6,208. This increase in employment reflects how IDA Ireland's strategy to secure 50% of all green field projects for the Border, midlands and west regions is beginning to show positive results.
Shannon Development, which has responsibility for developing indigenous industry in south-west Offaly has reported an increase in employment in its client companies in indigenous industry of 5% in south Offaly during the past year. Its year end 2000 employment survey shows a net increase of 33 in indigenous employment in south-west Offaly. A major Shannon Development initiative in the Birr area is the Birr technology centre. This is a £2.4 million project, which represents a major milestone for the incubation and growth of knowledge based industry in south Offaly. The new technology incentive facility will provide more than 23,000 square feet of high quality office space geared towards businesses of the high growth knowledge based services sector.
Enterprise Ireland is also deeply committed to promoting balance regional economic development. Its strategy is to help new and existing enterprises to flourish in their communities. It is not primarily about relocation. The agency currently supports 144 client companies in the midlands region, employing 5,406 people mainly in the food and consumer products and industrial centres.
What about County Offaly?
The Deputy is against construction on the N6. He does not want it through his area. The agency's new regional development strategy, which was launched by the Minster on 5 February, sets out, inter alia, the basis of Enterprise Ireland's response to both the job losses and experience in the Laois-Offaly area and the under performance of the midlands region.
The agency recognises that there has been in many parts of the midlands region a low level of entrepreneurship and innovation, especially in those areas distant from third level institutions. Among a range of measures designed to address this problem is an initiative aimed at the provision of campus incubation and commercial research and development space in the institutes of technology. This has been developed in conjunction with the BMW regional assembly, for which financial support of up to £2 million for each centre is envisaged.
Enterprise Ireland also works with a number of locally based groups, including Offaly County Development Board, the Offaly County Enterprise Board – a major success story – and the Offaly CEB evaluation committee and local community groups throughout the county with a view to stimulating new projects generation among micro enterprises, thus leading to new job creation.
Its midlands regional office team also provides a customised and confidential service for Dublin based companies considering relocation. The agency has established a target of 30 expansions of Dublin based companies to be located outside the capital and is committed to working with local authorities, developers and local communities throughout counties Offaly, Laois, Westmeath and Longford to develop a marketing strategy to attract some of these projects to the midlands. In addition, the midlands region will benefit from a higher level of funding—
Another failure.
There is no commitment from the Minister of State to meet the people of County Offaly or prioritise the county.
—than other less developed parts of the country. Over the three year period of the regional development strategy, in excess of 30% of Enterprise Ireland's financial supports to companies will be committed to projects in the BMW region. The combined efforts of the enterprise development agencies will ensure both the region in general and County Offaly in particular will benefit significantly in coming years under the positive leadership and detailed attention of the Government to all parts of Ireland.
The Minister of State should prioritise County Offaly.
(Interruptions.)
We have taken important decisions with regard to roads infrastructure and decentralised the Department of Education and Science to Tullamore. I hope the Deputies will welcome these developments, but they appear to be divided and not to know what they want. We will deliver to the people of County Offaly, County Laois and the midlands.
The Minister of State should be ashamed.