Dáil Éireann debate -
Tuesday, 10 Jun 2003

Vol. 568 No. 1

Written Answers. - Job Creation.

Michael Ring

Question:

217 Mr. Ring asked the Tánaiste and Minister for Enterprise, Trade and Employment if negotiations have take place between the IDA and a potential employer (details supplied) in County Mayo; if the negotiations have been completed; and the position in relation to this company and the IDA. [15881/03]

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

IDA Ireland has statutory responsibility, assigned to it by the Oireachtas, for the attraction of foreign direct investment to the State and its regions. Negotiations on grants or on the management of IDA Ireland's industrial property portfolio is a day to day operational matter for the agency and not matters in which I have a function. IDA Ireland informs me that the company in question purchased plant, machinery and stock from the liquidator of a company called Abelcrest which formerly operated in Ballinrobe. It is understood that the purchase took place against a background whereby the company were considering a number of options including establishing a production facility at Ballinrobe, in eastern Europe, or consolidating production into its existing facility in Wales.

Upon receipt of an application for assistance from the company IDA Ireland formally expressed its willingness to purchase the factory in Ballinrobe 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. However, the company has since informed IDA Ireland that the project will now proceed at its existing facility in Wales.

IDA Ireland advises me that it is firmly of the view that the level and type of assistance offered is appropriate for the type of project proposed and it has no plans to alter their offer. IDA Ireland is fully conscious of the need to provide high value employment opportunities in communities and considers it has reacted to the proposal from the company in a positive and innovative manner in the best interest of all parties.

While I am disappointed that it has not been possible to bring the negotiations with this company to a successful conclusion, it would not be appropriate for me to second guess the judgment of IDA Ireland in deciding the appropriate level of assistance warranted in the case of individual projects. The law sets out the responsibilities clearly. IDA Ireland evaluates proposals and decides how to negotiate to get value for the country. It has done so in this case, as in all others, and it is convinced that its negotiations stance is the most appropriate in view of the proposal.