I thank Deputies McGrath and Penrose for raising this matter. They will be aware that the operation of ESB power generating stations, including Rhode, is a day to day operational matter for the board and management of the ESB. It is expected that the board will be in a position to take a decision regarding Rhode early in the new year.
The situation in relation to the power station is that a tube failure occurred in the boiler on 12 May 2001 while returning to service from a seven week outage. There was significant consequential damage, including the rupturing of a number of additional tubes and a breach of the brickwork on the furnace wall.
Immediately after the incident, the ESB set up its own internal investigation team and notified the Health and Safety Authority. Given the seriousness of the incident, three sets of investigations were put in place. External experts have carried out a review of the plant and reported their findings. The ESB has made this report available to the Health and Safety Authority as that authority is currently carrying out its own review. The authority report is expected later this month. In addition, ESB engineers and local station staff are examining all options to facilitate a safe return to service. As I am sure the Deputies will appreciate, it is crucial for the board of the ESB to fully investigate the causes of this incident and to give full consideration to all the options regarding the future operation of the station.
I assure the Deputies that ESB board decision will take full account of all the particular aspects of this case, including the provision of electricity generating capacity and employment consequences in the midlands region.
On a wider level, the job losses from Bord na Móna and ESB have been addressed by a number of local bodies coming together with representatives of Offaly County Council, Offaly County Enterprise Board, Bord na Móna, ESB, North Offaly-Oak Partnership Task Force and West Offaly Partnership-Task Force. A county enterprise board fund is being established to address the issue of attracting investment and employment opportunities into the areas affected. The Department of Enterprise, Trade and Employment has approved a special allocation of £100,000 to the Offaly County Enterprise Board towards the setting up of this fund which will be augmented by contributions from the other parties mentioned above. This initiative is at an early stage and confirmation-negotiations on funding from other bodies is currently taking place.
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. A key factor in the achievement of this objective, and a primary objective of this Government, is the creation of a business environment in which job opportunities continue to flourish and, equally, 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. The 12.5% corporation tax rate and initiatives on matters such as education, physical infrastructure and technology under the national development plan, allow Ireland to remain competitive both in developing indigenous industry and securing inward investment projects.
To ensure that the objective of balanced regional development will be achieved, IDA Ireland has, over the past two years, radically changed its policy with a commitment to delivering half of all new greenfield jobs into the Objective One regions, of which Offaly is a part, in the coming years.
The results for the year 2000 showed that there were 589 new jobs created in IDA Ireland client companies in the midlands region, resulting in a net gain of 105 jobs, which reflects how the agency's strategy is beginning to show results. In the past 18 months, the agency has succeeded in attracting a number of companies to the county, including Sanirish, Continental AG, Flextronics and Grafica Zannini, which between them employed over 330 people at the end of November 2001. Grafica Zannini has completed the construction of its building and recruitment has now started.
The Tánaiste and Minister for Enterprise, Trade and Employment announced in May 2001 that GeneMedix would establish its European manufacturing centre, incorporating development and technical support capability, in the 21,313 square foot advance facility on IDA Ireland's Srah Business Park in Tullamore. The project will involve investment of 7.2 million and is expected to create up to 55 jobs during the initial start up phase. IDA Ireland continues to market Tullamore, Birr and Edenderry in County Offaly for suitable inward investment projects. In the past year, there have been 21 site visits by IDA Ireland clients to Tullamore and ten site visits to Birr. IDA Ireland is represented on the Tullamore inter-agency task force which was set up and it is also a member of the Offaly County Development Board. IDA Ireland transferred additional posts to the regions and the staff complement in Athlone has gone up.
Enterprise Ireland and the Offaly County Enterprise Board are also actively promoting the development of indigenous enterprises. Enterprise Ireland supports 28 client companies in the east Offaly area alone, excluding Tullamore, employing almost 650 people at the end of 2000.
It also recognises that some communities require specific assistance to develop and fulfil their potential. The agency highlights the strengths of the midlands region. The area has the benefit of the Athlone Institute of Technology and of improved access to attract new overseas investment into the area. It has the benefit of being recognised in the NDP with its roads, railway and air services, etc. The IDA will keep in close contact with the relevant infrastructure providers to ensure the midlands area continues to be developed.
The Tánaiste is confident that the ongoing co-ordinated job creation efforts by the industrial development agencies in County Offaly will bring positive results to the area and help to offset any effects on the region due to the current difficulties being experienced by the Rhode power station.