Written Answers. - Job Creation.
Denis Naughten
Question:
35
Mr. Naughten
asked the
Tánaiste
and Minister for Enterprise, Trade and Employment the action she intends to take to bring new employment to the BMW region in line with the programme for Government; and if she will make a statement on the matter.
[12235/03]
Denis Naughten
Question:
68
Mr. Naughten
asked the
Tánaiste
and Minister for Enterprise, Trade and Employment the action she intends to take to bring new employment to the midlands and surrounding counties which have seen significant job losses; and if she will make a statement on the matter.
[12236/03]
I propose to take Questions Nos. 35 and 68 together.
Job creation is a day-to-day operational issue for my Department's enterprise development agencies 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 relevant city and county enterprise boards are concerned, these bodies are committed to ensuring an equitable distribution of job opportunities and to encouraging the establishment of industry in the regions, particularly the Border, midlands and western region, of which the midlands is an integral part. Regional development has become a significant focus of Government policy in Ireland. This importance has been confirmed in the National Development Plan 2000-6 and the national spatial strategy. The development agencies have outlined a strategy for developing their client base in the BMW region.
Enterprise Ireland, the agency responsible for indigenous companies, is working closely with existing clients in the midlands and surrounding counties, including those in the BMW region, to grow sales, exports and employment. The agency works with its client companies across all aspects of their business, from strategy to production, research and development to marketing and finance. In the past four years it has supported the establishment of 35 high potential start-ups in locations throughout the BMW region with 12 new high potential start-ups targeted for 2003.
Enterprise Ireland will continue to work closely with clients in the midlands and surrounding counties. It will encourage and support new high potential start-up companies, develop exports, increase innovation and improve competitiveness with existing clients. It will develop incubator space such as web works, innovation centres, community enterprise centres. It will also facilitate access to capital through the seed and venture programme, a primary focus of which is on new regional funds, and funds for new technologies
IDA Ireland has statutory responsibility for the attraction of foreign direct investment to Ireland and its regions. Over the past five years the overall challenges for IDA supported companies have been difficult. Much of the midlands and BMW region is in a period of transition from dependence on the more cost competitive sectors to higher value-added activities. Part of this transition has involved job reductions and losses by long established employers in the area. It reinforces the importance and urgency of attracting more modern industrial and higher value-added activities.
The IDA's overall strategic response to this new competitive circumstance has been towards a broader vision of what constitutes FDI. This includes less emphasis on job numbers, a much greater focus on job quality and higher value added activities. It aims to make Ireland a centre for innovation and the strategic management of value chains rather than just a manufacturing or basic service location. IDA Ireland is committed to playing its part in the development of the midlands by maintaining the maximum number of existing jobs in overseas industry and attracting new foreign direct investment into the region. The agency strengthened its commitment to the area by establishing its healthcare division and part of its property and regions division in Athlone.
IDA Ireland is committed to achieving a target of 50% of all new greenfield jobs over the period 2000-06. At present it is working towards achieving 50% of all new greenfield jobs in the BMW region over the 2000-03 period. Achievement of this latter target is heavily dependent on short to medium term developments in the world economy. These can heavily influence overall international flows of mobile investment and infras tructural development in the Objective One region under the national development plan.
Some recent examples of IDA initiatives in the midlands include a comprehensive IDA property programme in place on the Garrycastle business and technology park; two new technology buildings of approximately 25,000 sq. ft. completed and being actively marketed by IDA; and a further office unit of 14,000 sq. ft. also completed and also currently being marketed by IDA. Srah Business Park, Tullamore is being upgraded and all infrastructural work will be complete by July. Total investment on the park is approximately €3.5 million. IDA is also marketing the 27,000 sq. ft. facility on the business park which is planned for upgrade.
The BMW regional operational programme is EU co-financed under the micro enterprise measure. At micro enterprise level it provides direct financial assistance through capital, employment and other grants, training, mentoring and other supports for the creation of employment. My Department supports this measure through the 13 city and county enterprise boards located in the midlands and surrounding counties.
In 2002, 470 projects were sanctioned in the BMW region and a total of €6,003,764 was approved in grant aid resulting in the creation of 1,517 jobs. The city and county enterprise boards are actively co-operating with the BMW regional assembly in developing indigenous micro enterprises in the midlands and surrounding counties. A particular advantage of the CEB system is that it delivers dispersed economic development throughout 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.
