Dáil Éireann debate -
Tuesday, 20 Nov 2001

Vol. 544 No. 3

Written Answers. - Industrial Development.

Louis J. Belton

Question:

146 Mr. Belton asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress regarding the siting of new industrial concerns in the BMW region in 2001; and if she will make a statement on the matter. [28615/01]

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

Over the past two years IDA Ireland has radically changed its poli cies with the aim of delivering half of all new greenfield jobs into Objective One regions which includes the BMW region. This involves doubling the proportion of greenfield jobs negotiated for these regions.

In an effort to ensure that the objective will be achieved, IDA Ireland initially reorganised its internal structures. This restructuring included allocation of additional staff to its regional offices, opening new regional offices in Cavan and Limerick and allocation of regional responsibilities to key executives in its HQ project divisions.

Recently, the IDA announced that additional posts would be transferred to Athlone, which will comprise staff from regions, property, and healthcare divisions bringing the staff complement up to 30. In addition, posts are being transferred to Sligo comprising staff from international services and consumer products divisions bringing the staff complement up to 15. The purpose of these moves is to develop these centres as magnets for growth for these regions.

IDA Ireland's incentive package is also strongly geared in favour of the Objective One regions which is in line with the new EU state aid limits. Greater focus is put on marketing of the regions for specific sectors and improvement of marketing material for the regions.

In the Objective One regions IDA Ireland has acquired a number of additional sites and also upgraded many of its site to business park standard. Furthermore, it has arranged, in partnership with private developers, to provide advance factories and advance offices in a number of key locations.

As a result of the above initiatives, 50% of all jobs negotiated by IDA Ireland during 2000 in new greenfield investment projects have been secured for the Objective One regions. This is a strong result in that it came from intensive and radically changed marketing approaches by the agency working in close partnership with the local authorities and the third level colleges and universities across the country. Despite the ongoing retrenchment in the US economy, which is the source of a significant proportion of overseas investment, the IDA continues to strive towards maintaining this level of investment in the BMW region.

In 2001, there were 11 announcements of IDA Ireland assisted projects for the Border, midlands and west region which combined have a job potential of 1,235 jobs at full development. A number of these announcements were also for research and development projects which falls within the IDA's strategy of embedding existing companies in the Irish economy. Details of these projects are appended.

IDA Ireland Project Announcements for the BMW Region 2001

Company	Origin	Product
North East Region
Ryusyo Industrial Co.Donore RoadDroghedaCo. Louth	Japan	Electronic Equipment
J: Secures 100
North West Region
Kirchhoff IrelandLisnenanLetterkennyDonegal	Germany	Automotive Components
J: 50	I: 3 million
PacifiCare Health SystemsIDA EstateLetterkennyDonegal	US	Medical Claims Processing
J: 160 expansion
Prumerica Systems Ltd.Letterkenny Office ParkWindyhallLetterkennyDonegal	US	Customer Service and Transactions processing
J: 450 exp
Abbott LaboratoriesBallytivnanSligo	US	Pharmaceuticals
J: 195	I: 55 m
Environmental Industry and ResearchEnterprises Ltd.(EIRE) Ltd.Ballyshannon	Germany	Water and Waste Systems for Marine Industry
J: 15
Company	Origin	Product
Midlands Region
GenemedixSragh Industrial EstateTullamoreCo. Offaly	UK	European Manufacturing Centre
J: 30	I: 7.2 million
West Region
Star Guide5 Westlink ParkOranmoreGalway	US	Medical Device Components
J: 185	I: 4m
Voltex Ltd.CastlebarCo. Mayo	UKI: 10.5 m	Fibre Optic Products Global Centre of Excellence
Fortis Fund Services (Ireland) Ltd.Galway Technology Park	Netherlands	Administration in Fund Services
Galway City
J: 50+
Boston ScientificInternational Product DevelopmentCentreBallybrit Business ParkGalway	US	Substantial Expansion of R&D Facility

Enterprise Ireland has also focused its efforts in the BMW region and its regional development strategy for this year to the end of October has seen 12 new high potential start-ups supported by the agency established. This accounted for 25% of total such start-ups countrywide over the period.

The agency's regional development strategy is built on a four-pillar approach which aims to develop the competitiveness and export potential of existing businesses in the regions, enhance the operating environment for business, support an increased level of new high potential start-ups throughout the country and identify new opportunities for economic development in the region, including investments by expansion-minded Dublin-based companies.

Enterprise Ireland is currently running a series of seminars around the BMW region aimed specifically at promoting the generation of HPSU – high potential start ups – companies. These have been held in the north-east, north-west and west regions to date. The Border regions are also working in partnership with IFI and Ledu to set up a cross-Border programme to promote technology enterprise start-up. High potential start-up companies which have been established in 2001 include Iontas in Moyville, 100 jobs, County Donegal and Zonen Technology Limited, at Knock Airport.

Identifying new opportunities for economic development in the regions, including investments by expansion-minded Dublin-based companies, is part of Enterprise Ireland's regional development strategy. To highlight this Enterprise Ireland held a special event "Into the Regions" in June 2001. Over 100 companies attended and the agency is currently following up with companies which expressed an interest in relocating to the regions. Dublin-based compan ies, which have located in part of the BMW region to date this year include: Network 365 Limited in Letterkenny, Mettallocraft Limited in Ballymahon, County Longford, Eurosync Tehnologies in Dundalk and Transwer Limited in Sligo.

Enterprise Ireland also works closely with Údaras Na Gaeltachta and the city and county enterprise boards in supporting the establishment of indigenous industries in the BMW region. The city and county enterprise boards have an extensive network throughout the BMW region and have developed a specific expertise in supporting new micro enterprise formation, with very positive results to date.

Finally, Enterprise Ireland is also funding a substantial number of community enterprise centres throughout the BMW region. Donegal Community Enterprise Centre, Donegal town was officially opened in October 2001 and Westside Community Enterprise Centre was officially opened in Galway city. Sligo Community Enterprise Centre is due to be completed in the first quarter of 2001. In addition to this, a 10,000 sq. ft. community enterprise centre for Moyville was approved funding in 2001.

Improved access is crucial in establishing both indigenous and overseas investment to the regions and in this context the importance of improved air and road access cannot be over-emphasised. This has been recognised in the National Development Plan 2000-2006 which includes plans to bring our roads, railway and air services up to a standard consistent with a modern economy within the next six years. Availability of high quality telecommunications and energy supplies are also essential. Both Enterprise and IDA Ireland will be keeping in close contact with relevant infrastructure providers to ensure that they are aware of the agencies priorities.