Dáil Éireann debate -
Thursday, 29 May 2003

Vol. 567 No. 7

Written Answers. - Industrial Development.

Michael Ring

Question:

111 Mr. Ring asked the Tánaiste and Minister for Enterprise, Trade and Employment the negotiations which are taking place between herself and a company (details supplied) in County Mayo; the length of time that IDA factory has been vacant; the cost to the IDA for that factory every year; the length of time the lease agreement is for; her views on whether it would not be better for the IDA to enter into an agreement with this company by paying them an employment grant for workers rather than having this property vacant for another 20 years; and if negotiations are still taking place with the company.

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

IDA Ireland has statutory responsibility for the attraction of foreign direct investment to the State and its regions. The management of the IDA's industrial property portfolio is a day-to-day operational matter for the agency and not one in which I have a direct function.

I understand from IDA Ireland that the building in question is owned by a private company and has been vacant for most of the past 20 years. On 2 January 1983 IDA Ireland took out a 35 year lease on the building, with rent reviews every five years. Up until January 2003 the annual rent was €92,481 per annum. The agency is currently involved in rent negotiations with the owners.

Upon receipt of the company's business plan, a formal response was sent to the company, expressing IDA Ireland's willingness to purchase the building and sell it to the company, thereby incurring a substantial loss. In addition, IDA Ireland offered grant assistance based on a number of commercial factors and limited planned capital investment by the company concerned.

IDA Ireland advised me that it is firmly of the view that the level and type of assistance offered is appropriate for the type of project proposed. It has no plans to alter its offer. It is conscious of the need to provide high value employment opportunities in communities that provide sustainable long-term jobs. It has reacted to the proposal from the company in a positive and innovative manner and is in the best interest of all parties.

To date IDA strategies have proved successful even in the most difficult of times. The level of foreign direct investment in Ireland, relative to the size of the economy, is one of the highest in the world and is one of the highest in Europe. I am confident that the strategies and policies being pursued by the IDA in Mayo, together with the ongoing commitment of Government to regional development, will bear fruit in terms of overseas investment and jobs for the people of Ballinrobe.