Dáil Éireann debate -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Industrial Development.

Olwyn Enright

Question:

128 Ms Enright asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will be introducing new incentives to bring inward investment to the regions in line with her stated priority; and if she will make a statement on the matter. [29948/03]

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

IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment to Ireland and its regions. IDA Ireland adopted a new regional strategy in February 2003. The objective of the strategy is to create a "pull" or "magnet" in the regions for enterprise development rather than rely on "push" or dispersal from Dublin. This is based on a gateway approach to regional economic development.

The core components of the new regional strategy adopted by IDA have been successfully implemented. IDA Ireland has nine offices outside Dublin, six of which are in the Objective One region. Key IDA Ireland business units such as the regions and property division, ICT and health care divisions and engineering and consumer products have been decentralised to Athlone, Waterford and Sligo. The Athlone, Waterford and Sligo offices have national as well as regional responsibilities. Work is at an advanced stage in terms of constructing a network of flagship business parks in the regions.

I am pleased the agency, in line with the regional policy objectives set out in the Government's national development plan, has made substantial progress with regard to the proportion of new green field jobs locating in the Objective One region, which consists of the Border, midlands and western counties. The underlying process of creating new green field jobs in the region is initiated with first time site visits by overseas investors. Commencing in 2000, 50% of all first time site visits handled by IDA Ireland have been directed to the Objective One region.

The objective is for IDA Ireland to secure at least 50% of all green field job approvals for the BMW counties. Following from this, the expectation is that 50% of all new green field jobs created will be achieved in the region. Typically, new jobs on the ground come on stream within three to five years of approval. In 1999, prior to the start of the Government's current national development programme, approximately 25% of all new green field jobs were locating in the BMW region. This increased to 36% in 2000, 42% in 2001 and 42% in 2002. I am confident the strategies and policies being pursued by IDA, together with the ongoing commitment of Government to regional development will bear fruit in terms of overseas investment and jobs for Ireland and its regions.

Question No. 129 answered with Question No. 111.