Dáil Éireann debate -
Thursday, 5 Dec 2002

Vol. 558 No. 6

Written Answers. - Job Creation.

Joe Sherlock

Question:

41 Mr. Sherlock asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent statement from the Small Firms Association that job creation in the private sector had come to a halt and that prospects for the rest of the year were poor; her plans to stimulate job creation; and if she will make a statement on the matter. [24881/02]

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

The annual Forfás employment survey, which is currently under way, will provide a clear picture as to the employment changes in clients of IDA, Enterprise Ireland, EI, Shannon Development and Údarás na Gaeltachta.

With regard to EI, it is anticipated that gains will be more modest than last year and losses greater as companies continue to downsize. The key factors underpinning job losses in EI clients are: the weak international trading environment, the weakening competitiveness of companies and costs pressures on wage bills, packaging costs, insurance premiums and oil prices, all of which continue to undermine competitiveness.

Notwithstanding this, EI continues to work with new high potential start-up ventures through its specialist regionally based teams to ensure the seedbed of development clients going forward. Furthermore, EI continues to work closely with existing clients on developing exports, increasing innovation and improving competitiveness. EI also assists in the provision of business infrastructure and has a number of initiatives well under way in this area such as Webworks in key locations, IT incubation centres and community enterprise centres. Furthermore, the new seed and venture programme established by Enterprise Ireland is focusing on new regional funds, funds for new technologies, for example, biotechnology as well as continuing to support high growth companies. It is anticipated that these funds will leverage of the order of €200 million of private venture capital in support of SMEs in Ireland.

For their part, the city and county enterprise boards will continue to encourage and support the establishment of new micro-enterprises and the expansion of existing ones, particularly in the less developed areas within their boundaries. The boards will give priority to identifying micro-enterprises that have the capability and potential for substantial and sustained growth. They will assist these businesses to identify and develop suitable market and product opportunities, and will help them develop relations with larger companies, higher educational institutions, venture capital providers and others needed to provide a platform for expansion.

While the current economic downturn has impacted on the level of job creation in many parts of the economy, new foreign direct investment job creation is still happening on a significant scale. IDA is competing strongly at present for a range of valuable investments in the pharmaceuticals, healthcare and international services sector. Meanwhile, major investments are proceeding such as Intel's €2 billion spend on FaB 24 at Leixlip and Wyeth's €1.5 billion biopharma development in Grange Castle.

It is worth recording that, despite the worst downturn in the history of the ICT sector, the five leading companies in the sector in Ireland – Intel, Dell, IBM, HP and Microsoft – continue to employ between them as many people in Ireland as they ever did. In October 1999, just three years ago, these companies between them employed just over 13,000 people in Ireland. Our current estimate for October 2002 is that they employ just over 16,000 people.

Furthermore, there is still considerable interest in Ireland among many leading international companies for higher level activities. This interest is spurred by our successes over the past decade and our newer offerings both in skills and the 12.5% rate for all corporate trading profits. Ireland's future success will be dependent on our ability to achieve an environment where research and knowledge, high level skills and expertise, high quality infrastructure and business services, are combined in that flexible and creative way which is almost uniquely Irish. Foreign direct investment will feed into that future operating model and will be essential to its success, but it will be increasingly integrated and interwoven with Irish business which is itself ever more international. The further transformation to being innovation-driven will not be instant, but it will need to progress quickly so that we are recognisably different, yet again, by 2010. In the meantime, we need to continue winning foreign direct investment at higher value levels using some of the advantages and tools that have been so successful for us to date.

Jimmy Deenihan

Question:

42 Mr. Deenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment the efforts made by her Department and the IDA to secure an industry for the advanced factory in Listowel, County Kerry; and if she will make a statement on the matter. [24901/02]

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

I wish to assure the Deputy that the Government is committed to ensuring the most equitable regional distribution of job opportunities and I have impressed on IDA Ireland the crucial importance of making even greater efforts to provide employment in regional locations as opposed to Dublin and its environs.

In this regard, IDA Ireland has designated Listowel as a priority town in the mid-west region and the agency is committed to securing a new project for the town. The agency is aiming to attract a project from a complete range of IDA target sectors in either manufacturing or internationally traded services.

I officiated at the sod-turning ceremony for the 16,600 square foot facility in September 1999 in Listowel, which was completed in September 2000. Since its inception, IDA Ireland has been actively marketing the BES building in Listowel through its property division and its network of overseas offices. There have been four site visits by overseas companies to the building, as well as viewings by members of the agency's international services division who have also met the promoters of the building. While these efforts have not yet resulted in the securing of a suitable inward investment project, IDA Ireland is continuing to actively market the BES facility and Listowel to potential clients. However, it is the client who makes the final decision on where any project will locate.

Figures for 2001 indicate that, unlike other locations in Ireland which would have seen a decrease in employment in IDA Ireland-assisted companies, north Kerry experienced substantial growth of 16% through the agency's existing base of companies. Today, there are approximately 1,200 people employed in 11 IDA Irelandsupported companies in north Kerry.

I am confident the measures being adopted by IDA Ireland, as well as the continuing commitment of the Government to regional development, will bring positive results to Listowel.