Dáil Éireann debate -
Wednesday, 20 Feb 2002

Vol. 549 No. 1

Written Answers. - Job Creation.

Cecilia Keaveney

Question:

119 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment the advantages under her Department's remit that have accrued to County Donegal and the north-west region arising from the Objective One designation; and if she will make a statement on the matter. [6032/02]

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

Under the regional industrial grant aid rates, approved by the EU Commission on 26 October 1999, the grant aid intensities for new industrial development projects in the Border Midland and Western – Objective 1 regions are set at 40%, plus a further 15% allowable for small and medium sized enterprises for the period 2000 to 2006. This compares with an aid intensity of just 17.5% plus a further 10% for SMEs in the Dublin area. Additional aid for training and research and development may also be approved. Thus the Objective One status granted to the north-west region, including County Donegal, by the EU allows the State to provide a higher level of support in comparison with other regions of the country.

The latest CSO live register analysis shows that those claiming unemployment benefits in the north-west region, counties Donegal, Leitrim and Sligo, fell from 17,822 in March 1997 to 13,347 at the end of 2001, a drop of 25%. To maintain this trend the development agencies continue to be particularly proactive in the region. Letterkenny, Buncrana and other regional centres such as Sligo are significant locations and are drivers for enterprise development in the region.

IDA Ireland, the agency under the aegis of my Department charged with the attraction of overseas industry to Ireland, has committed itself to delivering half of all new greenfield jobs into the Objective One regions in the coming years. Among the projects secured for the region in recent times are; PacifiCare Health Systems, expansion with an additional 160 jobs; Prudential Insurance Company of America, 300 additional jobs; Sterling Fluid Systems, 16 jobs; Kirchhoff Ireland, expansion with additional 25 jobs; Interventional Technologies, 90 additional jobs in Letterkenny; Claddagh Group, 35 jobs in Buncrana; and Eire Limited, 15 jobs in Ballyshannon. In addition, Abbott Ireland has recently announced two major projects in Donegal town and Sligo creating 190 new jobs. Recently MBNA opened a new office facility in Carrick-on-Shannon. This will create 300 new jobs.

Enterprise Ireland, which has responsibility for the development of the indigenous sector, provided funding to its clients to the value of €30,416,941 in the BMW region, €1,831,891 in Donegal in 2000. In 2001 the figures were €30,939,907 and €2,872,511, respectively. This funding would, for example, be used for research, development and training projects. The 99 new jobs supported by Donegal County Enterprise Board during 2001 made Donegal the third highest of all counties and represent a 20% increase on the prior base level.

Forfás, the industrial policy advisory agency under my Department's aegis, has produced a database of the enterprise base, and social and physical infrastructures, of towns in the north-west with populations over 1,500. These profiles are being used to guide and inform future infrastructure investment and enterprise development initiatives.

The Government recognises the very significant infrastructure needs of the region. These needs are being addressed through the national development plan and the national spatial strategy. The north-west's status as an Objective One region has enabled the Government to maximise the benefits of this strategy for the region.