Vol. 633 No. 1
96 Mr. Callely asked the Minister for Enterprise, Trade and Employment the measures in place to monitor and maintain the attractive and competitive position of the Irish economy; the policies in place to sustain and grow the economy; and if he will make a statement on the matter. [8125/07]
121 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the action he will take to address the issue of a lack of competitiveness in the economy leading to major job relocation to various overseas destinations with particular reference to the quality and value of the jobs now relocating; and if he will make a statement on the matter. [8533/07]
I propose to take Questions Nos. 96 and 121 together.
Every economy of the developed world experiences flows of capital as firms make adjustments to their operations and decide where to locate different aspects of their value chain.
The National Competitiveness Council in its most recent report, Ireland's Competitiveness Challenge, has made a number of recommendations aimed at improving our overall competitiveness. It outlines policy recommendations across the following areas: labour force; social capital; public income and expenditure; regulatory environment; infrastructure; productivity of Irish-based enterprise; Ireland's education system; innovation, research and development; costs of doing business in Ireland; and energy.
The Government is committed to acting on the recommendations of the National Competitiveness Council, which are designed to stimulate productivity growth and improve our ability to sell goods and services abroad. For example, the National Development Plan 2007-13 proposes a wide range of investments which will improve productivity by removing infrastructural bottlenecks that increase costs. It will enhance the skills of graduates and people already in the labour market, and will create a more supportive environment for enterprises in developing new products and services. The strategy for science technology and innovation will drive research and development performance and underpin long term competitiveness.
In summary, the Government recognizes the need to stimulate productivity growth and improve our ability to sell goods and services abroad. A range of strategies is now in place to assist and I am confident that we can build on our past achievement while laying the pathways for growth and higher productivity in the future.
I wonder whether the Minister read the article at the weekend by the Irish chief executive of Intel on his concerns about our competitiveness. Intel is accustomed to making adjustments. It is at the cutting edge of technology and research and development is a major aspect of its activity. It is involved in all aspects of manufacturing from research and development and innovation right through to production, and from that viewpoint, it is a very impressive operation. Is the Minister concerned about some of the adjustments being made by Intel which has reduced seriously its number of contractors who were a permanent feature on the Intel site for some time? Perhaps the job losses in this sector have gone under the radar. They might not have been noticed because they have been spread among a number of contractors. Will the Minister engage with firms such as Intel in respect of the concerns they are expressing? As Intel is based in my home town, as well as the constituency I represent, I tend to be realistic when I comment on the adjustments it has to make. However, I am concerned about the loss of jobs at contractor level. Intel has expressed concern about Ireland's economic competitiveness. Does the Minister engage with companies such as Intel, or is he removed from the process, whereby the various agencies discuss matters of this nature with such companies? Does he hear from the agencies rather than directly from companies?
Since my appointment as Minister for Enterprise, Trade and Employment, I have met the managements of such companies, including the manager of Intel's Irish operation, on a regular basis. The employment offered by Intel is robust. Many towns would love to have an employer such as Intel which continues and will continue to make a significant contribution to the economy. Intel is investing significantly in research and development initiatives. As part of its ongoing contact with the company, IDA Ireland is anxious to broaden the range of activities in which Intel engages in Ireland. IDA Ireland and Intel are hoping to work together over the next ten years to engage in research which will produce new products and solutions for the market. That is the best way of underpinning Intel's contribution to the Irish and global economies, which has been to produce quality products.
The number of jobs in many major companies varies as demand peaks and falls over the course of the year. Seasonal employment is distinct from the core employment offered by such operations. It is obvious that more temporary contracts are offered by many companies in the run-up to Christmas, before the level of such employment decreases again. The volume of activity sustained by a company the size of Intel and those who engage with it will always ebb and flow. The Government has been articulating the need to safeguard in a vigilant manner the cost base of the economy as it has developed. We have to be conscious of the competition we face in areas such as energy and labour costs. We are taking on board the concerns outlined to us by many companies. When I met representatives of a number of companies, not including Intel, in the United States last week, they spoke positively about the degree to which their Irish facilities contributed to their global successes. They made no bones about the high level of skill of the Irish workforce and the continuing contribution of Irish workers to the successes of global companies. Such comments have been repeated by representatives of many companies which operate in Ireland.
97 Dr. Cowley asked the Minister for Enterprise, Trade and Employment if he will urgently establish an action plan for industrial employment in County Mayo, in view of the fact that the county is calling out for increased employment taking into account the empty IDA parks in Castlebar and Ballina; and if he will make a statement on the matter. [8577/07]
State support for enterprise and job creation is channelled through the industrial development agencies. While I can issue general policy directives to the agencies under the Industrial Development Acts, I am precluded from issuing directives about individual undertakings or giving preference to one area over others. I have been assured by the agencies under the remit of the Department of Enterprise, Trade and Employment that they are endeavouring to attract new investment, encourage the establishment of new businesses, expand existing businesses and develop the labour market in County Mayo. Ballina and Castlebar will benefit from the ongoing investment in transport, energy and utilities outlined in the new national development plan. It is vital that national investment is partnered with local vision and leadership. Private investment must also play a role. County development boards are best placed to oversee any additional responses required, in addition to the work of the industrial development agencies under the auspices of the Department.
IDA Ireland which recognises the need to secure high value investment that will provide sustainable long-term jobs is developing world-class business parks in Ballina, Castlebar and Westport as part of its marketing strategy for County Mayo. I was pleased to learn recently that significant progress had been made by Mayo County Council in securing unburdened title to a site of 10.29 hectares on the Sligo Road in Ballina. Employment in companies in County Mayo supported by IDA Ireland increased by almost 10%, from 2,711 to 2,973, between January 1998 and December 2006. The county's employment performance has been good when considered within the current global economic climate. There is a diverse range of foreign direct investment companies in the county in sectors such as medical technologies, pharmaceuticals, international services, engineering and information and communications technology.
Enterprise Ireland is focusing on the creation of new jobs by supporting entrepreneurs establishing new high potential start-up companies. It is concentrating on the retention and creation of new jobs in existing companies and the enhancement of Ireland's innovation capability at a national and regional level. It is supporting research in companies and third level institutions. The overall aim of Enterprise Ireland's strategy is to transform Irish companies into businesses which are focused on the market and driven by innovation. It is working to increase the exports, sales and employment of such companies. Some 3,145 people were employed in Enterprise Ireland's client companies in County Mayo at the end of 2006. Since January 2006, Enterprise Ireland has approved funding support of almost €2 million, of which €1.45 million has already been paid to companies in the county which are supported by the agency. The Mayo County Enterprise Board supports small businesses throughout the county which have not more than ten employees. The board approved the allocation of €620,000 to 30 projects in 2006. It paid approximately €440,000 in grant assistance to 29 projects which resulted in the creation of 110 net jobs in companies throughout the county which are assisted by the board.
I welcome the progress made with the industrial site in Ballina which has been discussed for donkey's years since the last time I raised the matter in the House. Perhaps we can make further progress, as IDA Ireland has not delivered. The Minister has mentioned that he does not have anything to do with IDA Ireland, but he cannot deny that the buck stops with him. Perhaps he is not aware of certain developments. For example, the former Henniges plant on the Crossmolina road has been converted into a 12-unit retail warehouse and garden centre. When the plant closed in 2001 with the loss of 170 jobs, the then Minister for Enterprise, Trade and Employment, Deputy Harney, said her "immediate priority" was to find "an alternative industry for Ballina". She pointed out that the Government aimed "to ensure that 50% of all new jobs are located in the Border, midlands and west region". She said she would "ensure that Ballina figures prominently" in further job creation efforts. She mentioned that she had asked IDA Ireland and other State agencies "to actively promote Ballina", but new investment was not forthcoming. Some 230 staff at the Volex plant in Castlebar which employed 950 people at one time were laid off in January 2002. In August 2004 the plant was sold for over €5 million to a local auctioneer who was operating on behalf of a consortium. It later became a car showroom and a furniture sales operation. Many IDA Ireland factories have been sold and are now being used for purposes for which they were not originally intended. That sends the wrong message to those who hope to be able to stay in the west and work in their own areas.
When I met officials from IDA Ireland, they told me they could not do much for County Mayo because of the poor state of its infrastructure, including roads such as the N5 to Westport, the N26 to Ballina and the R312 to Belmullet. Similar problems are encountered in the county's telecommunications infrastructure, for example, as a result of the Government's failure to spend €3.75 billion in the BMW region. We all hope the western rail corridor will be developed, but as matters stand we cannot even get an early train to Dublin.
IDA Ireland claims to have arranged nine visits by potential investors over a number of years. I do not know where they were brought in Ballina because there was nothing to show them. I hope this will change. I ask the Minister to advise me of the significant changes made since October when I last raised this issue which I have been raising consistently. Millions of euro are being spent on the rental of vacant IDA Ireland premises in County Mayo. Does IDA Ireland have a policy of selling its premises to private enterprise to turn them into car showrooms? I am sure these private enterprise people are very happy. I question the potential for jobs and the reason for these factories being vacant.
The industrial policy in County Mayo encompasses more than just IDA Ireland. There are approximately 19 IDA-supported companies in County Mayo, employing approximately 3,000 people in permanent jobs and a further 450 in temporary and contract employment. Employment numbers are strong relative to the 1990s and almost 10% higher than in January 1997. Some of the key companies include Baxter, Allergan and Coca-Cola, which are significant reference sites to enable us to market the county for other types of investment.
Enterprise Ireland has been very active in County Mayo and working with the Galway-Mayo Institute of Technology is providing a significant source of graduates to the area. It is also providing additional supports for locally-based companies and incubation space for entrepreneurs and new companies. IDA Ireland is investing significantly with more than €6 million devoted to property solutions. I refer to the Castlebar flagship business and technology park which is built on a site of 11.78 hectares. The Deputy is correct that with regard to Ballina, significant legal difficulties arose which were beyond the control of IDA Ireland and of the Department but these are nearing resolution. A site of 25.31 hectares contains a world-class business and technology park in Westport. I refer the Deputy to the developing road infrastructure and significant progress has been made in that regard. I refer also to the development of the sites along with the 12.5% corporation tax and the strong education infrastructure. County Mayo is positioned for foreign direct investment but indigenous space should not be forgotten nor the need to develop and support locally-based companies. I have met with a number of such companies in County Mayo which have been particularly successful. If the infrastructure can be developed further, then we will do even better.
I wish to ask the Minister a brief question. Will he explain why €2 million is being paid by the IDA for empty buildings in County Mayo? Why does the Minister not try to fill these factories when the unemployment rate is twice the national average in the Ballina area, in particular, and considering that 1,000 jobs have been lost in the past nine years?
The unemployment rate is not twice the national average. The unemployment rate in the region is about 4.3% which is in line with the national average. We must be careful not to bandy about figures which are not accurate.
There is a particular problem in the Ballina and north Mayo area.
98 Mr. Quinn asked the Minister for Enterprise, Trade and Employment the number of deaths and injuries arising from workplace accidents generally and specifically in regard to the construction industry for 2006; the way these figures compare with 2003, 2004 and 2005; the figures for 2007 to date; the additional steps he will take to reduce such accidents; and if he will make a statement on the matter. [8322/07]
In 2006 there were 50 recorded fatalities in Ireland as a result of work-related accidents, compared to 74 work-related deaths in 2005, 50 in 2004 and 68 in 2003. There were 12 construction-related fatalities in 2006 compared to 23 in 2005, 16 in 2004 and 20 in 2003.
In the period 1 January to 5 March 2007, 19 workplace fatalities were reported to the Health and Safety Authority. These comprised one in agriculture, seven in fishing, two in mining and quarrying, six in construction, one in real estate renting and business activity and two in public administration and defence.
To date, a total of 7,935 non-fatal accidents, resulting in absence of more than three days from normal work, were reported to the authority across all sectors in 2006. Of these 1,685 were related to the construction sector. This compares with in 8,240 in 2005, of which 1,644 were in construction, with 8,461 in 2004, of which 1,501 were in construction, and with 7,177 in 2003, of which 1,108 were in construction. The level of accidents reported to the Health and Safety Authority, however, only shows part of the picture in regard to non-fatal accidents. For example, the most recent figures available from the Central Statistics Office quarterly national household surveys for 2003 and 2004 show non-fatal occupational accident numbers of 21,900, of which construction accounted for 5,300 in 2003 and 21,840, of which construction accounted for 5,820, in 2004. In the period 1 January to 1 March 2007, 723 non-fatal accidents were reported to the Health and Safety Authority, including 191 in construction.
There are more than 200,000 workplaces in Ireland and a total workforce of more than 2 million. In 2007, in order to make best use of its resources, the Health and Safety Authority is once again prioritising a number of sectors for attention. These include the high-risk sectors of construction, agriculture and mines and quarries, as well as the health services, local authorities and process industries. The focus in these sectors will include the publication of a code of practice relating to safety statements tailored to those employing three or fewer in the construction sector; the management of a promotion and training support programme following the distribution in late 2006 of the code of practice for the agriculture sector; the publication of a similar code of practice for the fishing sector; an extensive inspection programme targeting key risks; and an inspection and information programme which targets the public sector.
Additional information not given on the floor of the House.
To improve health and safety standards on construction sites and to ensure maximum benefit from the improved legislative basis provided in new Safety, Health and Welfare at Work (Construction) Regulations which I introduced in 2006, as well as building on the successful seminars organised by the authority for the construction industry, the authority is committed in 2007 to carrying out a focused programme of 7,000 construction site inspections covering appointment of competent designers, project supervisors and contractors, safety and health plans and safety statements, work at heights, traffic management and reversing vehicle safety, welfare arrangements, and slips, trips and falls on a level; carrying out 100 inspections of designers concentrating on design risk assessments for work at a height and the provision of slip resistant floor surfaces; assisting designer professional bodies in the development of competence for their members; contributing to the implementation of the construction safety partnership plan; contributing to the implementation by FÁS of the Claritas recommendations on the Safe Pass and construction skills certification schemes; enforcing and providing information on the construction and work at height regulations; publishing and promoting a code of practice on safety statements for employers of three or fewer in construction; commencing research on the safety and health implications for non-English speaking workers in the sector; preparing draft guidance on construction-specific aspects of work at a height and progressing draft codes of practice on pre-cast construction, concrete anchors, scaffolding, underground services and roof work, and developing guidance on client best practice; developing safe system of work plans, SSWP, for local authorities, implementing a development plan for the SSWP, a new initiative aimed at simplifying the safety message for both English and non-English speakers; running a hard-hitting campaign to change attitudes to construction safety.
Written Answers follow Adjournment Debate.
