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Dáil Éireann debate -
Tuesday, 10 Jun 2003

Vol. 568 No. 1

Written Answers. - Industrial Development.

Jerry Cowley

Question:

202 Dr. Cowley asked the Tánaiste and Minister for Enterprise, Trade and Employment if she can examine IDA policy in the west of Ireland in view of the disclosure that the IDA is paying almost ?100,000 a year to rent a vacant Mayo factory premises in Ballinrobe, County Mayo; and if she will make a statement on the matter. [15506/03]

The management of the IDA's industrial property portfolio, including policy and strategy in regard to location and cost of individual units, is a day-to-day operational matter for the agency as part of the statutory responsibility assigned to it by the Oireachtas for the attraction of foreign direct investment to the State and its regions.

IDA Ireland has made substantial progress with regard to the proportion of new greenfield jobs locating in the BMW region consistent with the regional policy objectives set out in the Government's national development plan. In 2002, 44% of all new greenfield jobs located in the BMW region compared to about 25% in 1999. IDA Ireland is fully committed to achieving a target of 50% of all new greenfield jobs to be located in the BMW region over the 2000-2006 period and is working towards achieving this target by the end of 2003. This latter target is quite an ambitious one and heavily dependent on short to medium term developments in the world economy, which can heavily influence overall international flows of mobile investment.

With regard to value for money for the taxpayer, the Comptroller and Auditor General carried out a review – The Provision and Management of Industrial Property – in 1998, and the IDA Ireland's property portfolio is also included in the series of reviews currently being carried out as part of the Government's overall expenditure review initiative. Reports under the initiative will be published and I anticipate the report on the IDA's property portfolio to be available by early 2004. I am arranging for a copy of the comptroller's 1998 report to be forwarded to the Deputy under separate cover.

Phil Hogan

Question:

203 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the grants or other assistance sanctioned by IDA, Enterprise Ireland and the Enterprise Board for a company (details supplied) in County Donegal since 1998; and if she will make a statement on the matter. [15517/03]

The decision to grant-aid a company is a day-to-day matter for the agency concerned and is not one in which I have a direct function. However, I am informed that the company to which the Deputy refers is a client of Enterprise Ireland. Both IDA Ireland and Donegal County Enterprise Board have confirmed that the company did not receive assistance from them.

Enterprise Ireland has informed me that since 1998, it paid a total of €353,644 to the company in question in development support. I am also informed that the company has received support and advice from Enterprise Ireland through its company development adviser, the Enterprise Ireland Human Resource Department, and the Enterprise Ireland overseas offices in the USA, UK, France and the Czech Republic. In addition, representatives of the company have attended various seminars, training programmes and workshops organised by Enterprise Ireland over the past number of years.

Cecilia Keaveney

Question:

204 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment the position in relation to a company (details supplied) in County Donegal; the projection for job creation and job losses in the same company; and if she will make a statement on the matter. [15519/03]

Prumerica Systems Ireland Limited, a subsidiary of Prudential Financial Inc., was established in 2000 in Letterkenny. Prumerica provides software development and maintenance for the corporate information technology group. In 2001, a software quality assurance centre of excellence was established to support other software development groups in the US and currently employs some 270 people. The software development centre continues to grow and is actively recruiting for the operation.

PRUPAC operations centre was established in 2001 and employs some 120 people dealing with Prudential's general insurance business such as policy processing and claims handling aspects. Prudential Financial Inc. has announced that it has signed a definitive agreement with Liberty Mutual and Palisades for the sale of the property and casualty insurance businesses that operate nationally within the US and New Jersey respectively. It is understood that the development is being clearly communicated to all staff involved in the Letterkenny operation. As part of the deal, it was agreed that Prumerica Systems Ireland Limited would continue to operate as is and provide transition services to the new owners until year end 2004.

There have been no job losses at the facility. The company had a temporary contract with a local employment agency to provide temporary staff for a short period. The agreement for these temporary workers has not been renewed. The IDA will actively pursue the impact for the Donegal operations with the new owners.

Seán Crowe

Question:

205 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will consider the ringfencing of community employment and jobs initiative positions in RAPID areas from closure in view of the importance of those jobs in areas officially recognised as disadvantaged. [15531/03]

In accordance with the Government's decision in 1999 to restructure community employment, participation levels are gradually being reduced reflecting the significant reduction in the numbers of the long-term unemployed, and the shift in emphasis away from work experience programmes to training, from which there is a greater level of progression to employment. The target year-end participation rate on CE is 20,000, and 2,200 places on the job initiative programme.

FÁS is endeavouring to manage the allocation of places to individual projects as equitably as possible. Drugs task force activity and child care service provision are ring-fenced from any reductions and projects in RAPID areas are given priority. CE places in the health sector (which includes personal assistant services) are being maintained at existing levels to ensure continuity of the delivery of these services.

A number of reviews of CE are currently under way. The PPF provides for an overall appraisal of active labour market programmes to be carried out and this work is being undertaken under the aegis of the standing committee on the labour market, which is chaired by my Department. In addition, a cross-Departmental senior officials group has been asked to consider options for the future of CE, taking account of the link with the provision of community services. FÁS is also currently undertaking an internal review of CE and the job initiative programme, which is well advanced and should be finalised shortly. The outcome of these various initiatives, which I expect should be completed by the third quarter of 2003, will inform the Government's consideration of options for the future of these programmes.

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