Dáil Éireann debate -
Wednesday, 21 May 2003

Vol. 567 No. 2

Written Answers. - Job Creation.

Arthur Morgan

Question:

170 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the sale of the premises of a company (details supplied) was expedited by the company's need to repay the IDA a substantial amount of grant aid that has been forfeited due to job losses; and if she will make a statement on the matter. [14018/03]

Arthur Morgan

Question:

171 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of new permanent jobs which will be created as a result of the sale of the premises of a company (details supplied). [14019/03]

Arthur Morgan

Question:

172 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the IDA will reinvest the recouped money from a company (details supplied) into job creation for Buncrana, County Donegal. [14020/03]

Arthur Morgan

Question:

173 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the sale of the premises of a company (details supplied) illustrates clearly the failure of the Government and its job creation agencies to bring jobs to Buncrana and Inishowen, County Donegal. [14021/03]

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

I propose to take Questions Nos. 170 to 173, inclusive, together.

I am informed by IDA Ireland that the buildings concerned are owned by the company in question. Therefore, moneys received from the sale of the properties go directly to the company itself. IDA Ireland has been aware of the company's intention to sell the buildings and such sales can reasonably be attributed to prudent management of assets and cash flow.

The buildings in question have been on the market for three years and IDA Ireland has worked closely with the company to find prospective purchasers. I understand that three buildings are being purchased by local business interests. One building will be used as a retail furniture showroom but information on the intentions of the other purchasers is not yet available.

While the company in question is aware of its commitments to IDA Ireland under grant contracts, discussions on the subject of grant repayment have yet to take place and are scheduled for early next month.

As regards job creation, the industrial development agencies have promoted quite a few new projects for Donegal over recent years. In 1999, Pacificare International announced a project with 150 jobs and, in 2001, a further expansion of 160 jobs was announced. In 2000, Prudential Insurance announced 150 jobs and an expansion of 450 jobs in 2001. This was followed by an expansion of InterVentional Technologies – 78 jobs. More recently, in 2002, Keith Prowse announced a new project with the development of a customer service centre in Buncrana which will create 120 jobs over three years. Current employment is 70.

While the industrial development agencies will support further projects through their normal funding mechanisms as they are secured for an area, they do not ring-fence money for particular locations as such.

The local county development board is currently implementing a county strategy. This strategy provides for the development of the county over a ten-year period. Overall, I am satisfied with the work done to date by the industrial development agencies in the county and I look forward to continued progress taking place over the period of the current CDB strategy.