Dáil Éireann debate -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Job Creation.

Denis Naughten

Question:

128 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she intends to take to attract employment to the BMW region; the percentage of new jobs created in the region by the IDA and Enterprise Ireland in each of the past three years; and if she will make a statement on the matter. [4284/03]

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

The issue of job creation is a day-to-day operational issue for the enterprise development agencies of my Depart ment and is one in which I have no direct function. As far as the agencies under the aegis of my Department, IDA Ireland, Enterprise Ireland and the Donegal County Enterprise Board, are concerned these agencies are committed to ensuring an equitable distribution of job opportunities and to encouraging the establishment of industry in the regions, in particular the BMW region. Under the regional industrial grant aid rates, approved by the EU Commission on 26 October 1999, the grant aid levels for new industrial development projects in the region are set at 40% plus a further 15% allowable for small and medium sized enterprises, SMEs, for the period 2000-2006. This compares with an aid level 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.

Of the jobs created in 2000, 2001 and 2002, the tabular statement, which is included in the official reply, shows that almost 20% were located in the BMW region and 80% in the rest of the country. This is broadly in line with the share of population and labour force in the BMW region.

Regions	Share of Population in 2002	Share of Labour Force in 2002	Share of Jobs created in 2000	Share of Jobs created in 2001	Share of Jobs created in 2002
BMW	26.5%	25.5%	19.9%	23.0%	19.5%
South and East	73.5%	74.5%	80.1%	77.0%	80.5%

IDA Ireland is the agency charged with the responsibility for attraction of foreign direct investment to Ireland and its regions. The IDA targets 50% of all new greenfield jobs for the BMW region, and this target was achieved in 2001 and 2002. While there has been an economic slowdown in both regions, IDA Ireland is fully committed to achieving this target over the 2000-2006 period. This is consistent with the regional policy objectives set out in the current national development plan and is substantially higher than was the case prior to the current NDP, when the figure was 25%. IDA Ireland's focused strategy on the BMW region has attracted a significant range of projects, such as Prudential and Prumerica in Donegal, MBNA in Carrick-on-Shannon, the Abbott developments in Sligo and Donegal and GeneMedix in Tullamore.

Enterprise Ireland is the agency under my Department's aegis with responsibility for developing indigenous industry. Its regional development strategy, Driving growth in Regional Enterprise, outlines that the overall approach adopted by the agency is to: develop and sustain existing businesses in each region; identify and encourage new start-up enterprises with strong growth potential; and enhance the environment for business in each region, incorporating both physical infrastructure and the development of strong linkages between the third-level institutions and business.

Between 2000 and 2002 Enterprise Ireland directly invested just under €80 million in 685 businesses in the BMW area. Much of this support was directed at enhancing the capability of companies both in terms of developing innovating products and processes and in increasing the skills of management and staff. In addition, Enterprise Ireland has facilitated access to seed and venture capital funding through the seed and venture programme, a primary focus of which is on new regional funds. Enterprise Ireland has been involved in the establishment of nineteen community enterprise centres and six third-level campus-based innovation centres in the BMW region. In addition to providing a valued support to new start-up companies, the location of the incubators at institutes of technology and universities is intended to encourage entrepreneurship and the translation of intellectual property from within the colleges into commercial reality.

Planning is at an advanced stage for the development of phase 1 of Webworks facilities in four locations around the country, to include Galway and Sligo. Webworks will provide high-class office facilities for technology-based companies and a nurturing environment that is conducive to networking among the companies, thus promoting mutual learning and sharing. Finally, at the micro-enterprise level, the city and county enterprise boards are actively co-operating with the BMW Regional Assembly in developing indigenous micro-enterprise in the region. I am confident that, given the commitment of the industrial development agencies, the BMW region can withstand the present downturn and remain an attractive location for both foreign direct investment and indigenous firms.