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Dáil Éireann debate -
Tuesday, 1 Jul 2003

Vol. 570 No. 2

Written Answers. - Job Creation.

Brian O'Shea

Question:

83 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that just seven of the 20 IDA Ireland projects announced in 2003 are based outside Dublin and Cork; the steps she is taking to ensure that the regions get a fair share of industrial development projects; and if she will make a statement on the matter. [18466/03]

I assure the Deputy that the Government is committed to ensuring the most equitable regional distribution of job opportunities. Regional development has become a significant focus of Government policy in Ireland. I have impressed on IDA Ireland the crucial importance of making even greater efforts to provide employment in regional locations.

IDA Ireland has assured me its commitment to regional development is stronger than ever now with the national spatial strategy in place. IDA Ireland is determined to see the emergence of strong magnets of attractions in each region. For its successful development, each region needs to have clear, competitive reasons companies would wish to locate there rather than elsewhere. The success of our economy during the 1990s and on into this decade means that Ireland is now much less competitive as a location for low wage manufacturing projects. As such Ireland, must now gear itself towards attracting a different type of investor. The focus for the future must be to attract investment requiring high skill levels, that is, as far as possible, innovation rather than production orientated, and that links to an increasingly sophisticated business environment.

I am acutely conscious of need for foreign direct investment that helps redress regional imbalances. Large urban centres have inherent advantages for investments, especially for those that are competed for globally. IDA Ireland has relocated key operational units from Dublin to Waterford, Athlone and Sligo. The objective is to assist in the development of these centres by helping them to grow and thus develop as magnets of attraction or regional hubs. Furthermore, IDA Ireland has developed a number of new business parks and office buildings to the best international standards to provide a range of property options for overseas investors. These are generally in the gateway or institute of technology towns with smaller developments in other centres.
IDA Ireland is fully committed to achieving a target of 50% of all new greenfield jobs in the BMW region over the 2000-03 period. The achievement of this latter target is heavily dependent on short to medium term developments in the world economy, which can heavily influence overall international flows of mobile investment and infrastructural development in the Objective One region. This has resulted in inward investors focusing again on the city areas thereby making it difficult to pursue this target to the full.
Ultimately, it is the overseas investor who will choose the location which, in their view, is the most competitive and best suited to its particular needs. In essence we must continue to strive to offer the best possible location for high level activities. The challenge of achieving high value FDI into regional locations is considerable, nevertheless, progress is being made. For example, substantial software development activities have been attracted to Letterkenny and Mullingar. Financial services back offices have been attracted to Wexford, Kilkenny, Galway and Mullingar.
I am confident that the strategies and policies being pursued by IDA, together with the ongoing commitment of Government to regional development, will yield results in terms of attracting additional sustainable overseas investment to the regions.
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