Willie O'Dea
Question:56 Deputy Willie O’Dea asked the Minister for Jobs, Enterprise and Innovation if he will list the measures he has introduced to increase exports to BRIC countries; and if he will make a statement on the matter. [36029/11]
Priority Questions
Export Trade
The Government is fully committed to developing and expanding engagement with the key high potential markets of Brazil, Russia, India and China, as these countries are very promising destinations for the sale of Irish goods and services.
The agreed programme for Government commits us to achieve the maximum growth in exports, including the long-term development of new markets. We plan to implement progressively the recommendations in the strategy and action plan for Irish trade, tourism and investment to 2015 entitled, Trading and Investing in a Smart Economy . This has a particular focus on Brazil, Russia, India and China. The formation of the Export Trade Council under the chairmanship of the Tánaiste has given new impetus to this work. It will develop initiatives that will help export growth in these markets. Specific co-ordinated market plans for each of the BRIC countries have been devised, involving all the State agencies.
I have had discussions with a number of groups regarding the scope for developing a more effective Asia trade strategy. This was specifically discussed at the global economic forum and proposals made there are being assessed.
Key instruments to pursue trade expansion are Minister-led trade missions. I led a trade mission to India in April last, with 22 Enterprise Ireland client companies participating. I would be eager to have a trade mission to China next year to reinforce our success in that market.
Enterprise Ireland has opened new offices to facilitate Irish companies developing export opportunities to these four countries. Good progress is being made in these markets albeit from a low base. In the four years between 2006 and 2010 our merchandise exports to the BRIC economies increased by 69% and our services exports by an even more impressive 130%.
At European level, I have pressed for new trade opportunities for Irish exporters, through the negotiation of new free trade agreements with India, and as part of Russia's forthcoming membership of the World Trade Organisation. The Tánaiste recently signed a programme for trade and economic co-operation with Russia which opens up new opportunities.
On the last day I raised this question the Minister told me "an exporters' unit was being operationalised within Enterprise Ireland". Has that taken place yet and, if so, how is the new unit performing?
The programme for Government contains a number of specific commitments on this section, including creating a new home-to-export programme to share the expertise of exporting companies with firms currently reliant on domestic markets. Has this been done? The programme for Government also contains a commitment to develop a source-Ireland portal to market Irish goods and services abroad. Has this been done? There is also a commitment to establish local trade and investment teams in BRIC countries. Has this been done? In addition, there is a commitment to develop cultural and diplomatic links with emerging markets, including a scholarship scheme. Has this been done?
On another such commitment, may I take it that we can expect a provision to be included in the forthcoming budget to exempt from VAT service companies which export more than 90% of their output? That was another specific commitment included in the programme for Government.
As the former Minister will know, the likelihood that I will reveal budget decisions is remote. Yes, a new unit is operational within Enterprise Ireland. For example, it is seeking to engage with companies which are below the threshold normally regarded as making them eligible for Enterprise Ireland involvement. This is specifically to encourage more small companies to seek export markets. I am developing a jobs strategy, as part of which we will be examining initiatives precisely in the area to which the Deputy referred. How do we enter new markets and get more companies to expand? In addition, how do we get more seasoned companies with experience to support new companies? We are working on these issues. At the global economic forum it was significant that a number of people involved in overseas markets were willing and anxious to support this work.
There is a limited range of placements in BRIC countries. The review of our strategy in these countries will examine how we can expand that footprint. There is clearly a recognition that BRIC countries provide a significant opportunity. However, one must also balance the fact that some of our more traditional markets such as parts of the USA that have not been opened up by Irish exporters provide real opportunities in the short term. We need a long-term strategy to match this in these really dynamic economies.
Deputy Willie O'Dea: I understand what the Minister is saying in that all of the specific commitments mentioned are a work in progress. That is fine and we will keep in touch with the Minister on them. He quoted figures for the increase in exports to BRIC countries, but is he aware that the percentage we export to those countries in terms of GDP remains static at 3.7%? It is lower than for any of the Euro-16 areas. The trade balance with BRIC countries has dropped from €80 million last year to approximately €70 million today. Does the Minister realise that it has taken 14 years for our trade with BRIC countries to double to a figure of 3.7%? Does he accept that it will take a great deal of time, effort and continued application to build trade with them? Such trade is badly needed in view of the fact that, taking the balance of trade figures into account, our export recovery seems to be faltering, while the domestic economy remains flat.
The Deputy is right in that these are countries in which we are working from a low base. The figures are encouraging, but this is not the final word on our attempt to exploit these markets. They indicate ups and downs, with the figures being good in some years and then there is a reversal. That is a feature of territories in which, it is widely accepted, companies have to invest in the long-term to build successful export markets. There are no short-term fixes. We need to get companies which are willing to make that level of commitment to open up these markets. The work of Enterprise Ireland lies in seeking companies which are willing to make such long-term commitments. I accept what the Deputy says, there is a lot more work to be done in these markets.
Economic Competitiveness
Peadar Tóibín
Question:57 Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he will detail an assessment of the cost to our competitiveness and employment levels of the continued implementation of upward only rent agreements. [35939/11]
Policy responsibility for upward-only rent reviews comes within the remit of the Minister for Justice and Equality, Deputy Alan Shatter. I do not have specific data on the impact of upward-only rent agreements but the National Competitiveness Council provides some data on rents generally. Rent represents an average of 2% to 7% of total costs for manufacturing businesses, and 5% to 6% of total costs for services businesses. The council reported in its Competitiveness Scorecard 2011 that Ireland experienced a fall of 22% in rental costs for prime industrial sites in 2010, with a decline of 12.3% in prime office space rental costs. Both of these were the largest annual declines experienced across the countries benchmarked and both marked a continuation of falling prices seen since the peak in 2007. Rental costs in many of Ireland's competitor economies rose in 2010. Nonetheless, upward-only rent reviews have kept rents for many businesses at an artificially high level compared to open market trends and property values. My Department does not have data on the extent of renegotiation that has occurred.
The Land Conveyancing and Law Reform Act 2009 abolished upward-only rent reviews for all new leases signed on or after 28 February 2010. However, upward-only rent review clauses continue to apply to leases which were entered into prior to that date, impacting on the competitiveness of businesses. The Minister for Justice and Equality is continuing to work on legislative proposals in this area and is receiving advice from the Attorney General.
In the meantime, I urge businesses to make use of the rent review arbitration code, which was drafted by the working group on transparency in commercial rent reviews in 2010. The aim of this code is to make the arbitration process more straightforward, particularly for those businesses who may only rarely be involved in rent reviews and arbitration proceedings. The code is intended as an addition to the Arbitration Act 2010. It cannot override the mandatory provisions of the Act but it provides a mechanism to deal with disputes on commercial rents which can help to resolve issues at a lower cost, in considerably less time, and in a less adversarial way for the parties concerned.
Additional information not given on the floor of the House
The working group on transparency in commercial rent reviews also recommended the establishment of a public database containing relevant details of letting arrangements and rent reviews in the commercial property market. The database, which will ensure transparency in the market and allow all parties to access relevant information, will be established under the Property Services (Regulation) Bill 2009, which has already passed through the Seanad, with Report and Final Stages due to be held in this House later today.
Upward-only rents affect competitiveness and raise the costs for end-user consumers. There is also a cost in jobs for the State. Approximately 250,000 people work in the retail sector in the State and it is estimated that approximately 46,000 people have lost jobs in the retail sector in recent years. It is reckoned that approximately 50,000 jobs in the retail sector are in serious danger of being lost at the moment. This sector is a very sensitive to cost changes.
Between 2000 and 2007 there was an increase of approximately 240% in rents in the State for businesses, which was a massive increase in the base cost. The programme for Government states clearly that the issue will be dealt with but Opposition parties are hearing that the Government feels there may be a constitutional issue. Retail Excellence Ireland has stated there can be a change within the parameters of the Constitution.
It is these costs, along with the VAT increases that will be brought about by the Government in the upcoming budget, which form a line from Dublin to Galway, making businesses north of that line extremely uncompetitive compared to their counterparts in the North of Ireland. This issue does not only affect the private sector, it also affects the public sector. How much is the Government paying in upward-only rents?
I do not have that information to hand and the question would have to be directed to the Minister of State responsible for the Office of Public Works, Deputy Brian Hayes. He is responsible for public rent. I do not intend to understate the difficulties in the retail sector, and this issue has been raised by that sector. The Government has included the matter in the programme for Government and as I noted in the reply, the Minister for Justice and Equality, Deputy Alan Shatter, is examining the options in this area and considering what legislation can be produced. The work he is undertaking is ongoing.
I have done a little research on the Government's expenditure and my understanding is that, through the OPW, it pays approximately €98 million in rent a year. Approximately €55 million of the rent paid by the Government is paid on an upward-only basis. It is estimated that the current decrease in rent in the private sector is approximately 30% in the past three years. If the Government only benefited from half of the decrease it would save €8 million a year. I refer to the fair decrease of the upward-only rent contracts in which the Government is engaged. It is a large amount of money when cuts are expected to be made to the social welfare bill shortly. Given the state of the public finances, the economy, small businesses and the quarter of a million jobs that are dependent on them, it is incumbent on the Minister for Jobs, Enterprise and Innovation to drive the reform of upward-only rents.
Far be it from me to tell the Deputy to whom he should address the questions but the responsibility for public rents falls to the Department of Finance. Deputy Brian Hayes has been given an explicit mandate to seek reductions in costs across a range of procurement issues. Last week the Minister for Public Expenditure and Reform, Deputy Howlin, published documentation on public service reform which outlined detailed strategies on how savings would be made through public procurement. There is a strategy in place seeking to reduce those costs.
The Minister for Justice and Equality, Deputy Shatter, is responsible for upward-only rent legislation, not my Department. I accept what the Deputy says; that this is both an issue for public costs and private employment. It is clear that we are seeking better deals in the public sector on all areas of procurement.
Job Creation
Catherine Murphy
Question:58 Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if, in view of the numbers of unemployed remaining consistently over 440,000, achieving full employment is the aim of his Department in the liftetime of this Government; if so, the job creation schemes he proposes to help achieve this; the figures he can provide in terms of projected jobs to be created as as result of these schemes; and if he will make a statement on the matter. [36672/11]
Job creation is at the top of the Government's agenda. Since we came into office, we have been working hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. Our objective is to put the country back on the road to economic recovery and full employment. However, we are also realistic about the scale of the task that lies ahead. The number of people on the live register is the legacy of failed policies and a measure of the challenge that faces us.
Creating a robust economy, capable of capturing new opportunities and sustaining jobs, requires a medium to long-term vision. I have said many times before that Governments do not create jobs, entrepreneurs do. It is true that with major capital investment Government can stimulate economic activity and create jobs in the design and construction phase of individual projects. Sustainable employment growth, however, requires a dependable, indigenous engine for growth and jobs. That can only be built on a foundation of competitive costs, a supportive environment for business, opening up new export markets and embracing innovation.
In the recent capital budget, an allocation of €2.3 billion is being provided to my Department's Vote between 2012 and 2016. This means that funding for my Department's enterprise development agencies will be protected or enhanced over the medium term. A number of new initiatives will also be funded, including a partial loan guarantee scheme and Innovation Fund Ireland. As a consequence, I expect the enterprise development agencies to deliver on their ambitious jobs targets of more than 110,000 gross new jobs over the five years of the programme to 2016. This represents an average of 22,000 new jobs per annum. Every new job is estimated to have a multiplier effect, so the overall impact on job creation of these activities is estimated at 220,000 gross new direct and indirect jobs. However, the Government has ambitions to go beyond these targets.
In this context, I am currently preparing a jobs strategy for the Government which will set out a series of clear, actionable measures to support the creation and retention of jobs. The strategy will focus on a number of areas.
Additional information not given on the floor of the House
These areas include: improving competitiveness and intensifying competition in sheltered sectors; assisting indigenous business to grow; supporting indigenous start-ups; attracting inward entrepreneurial start ups; developing and deepening the impact of foreign direct investment; exploiting opportunities in new and emerging sectors; and supporting employment initiatives within the community.
The actions contained in this jobs strategy will assist all enterprises across all sectors to protect and create jobs. We will be taking a "whole of Government" approach to making this happen. Some of the actions in the jobs strategy will be delivered in the short term and will have an immediate impact, while others will be delivered over a longer timeframe. The objective is to publish the strategy early in the new year.
We all agree that job creation is the most important objective because it is clear that if one gets people back to work, they are paying taxes and not receiving social welfare and it has a dynamic that goes beyond the good of the individual who is at work. Will the approach be targeted at certain sectors? Earlier this year, the Government announced that it would boost tourism by cutting the lower rate of VAT, which would create a stimulus to jobs in that area. Now, we hear there is to be an increase in the upper rate of VAT. Will that not be a counter-balance?
The Government's capital budget has been reduced. We expected shovel-ready projects but some of these have been scaled back significantly. Will that impact on the 110,000 jobs the Government had targeted?
There appears to be greater intervention at the level of multinational companies and foreign direct investment. Enterprise Ireland and the county enterprise boards seem to be slow to change. We have been waiting for some initiatives in the county enterprise board sector. The last time I asked a question about these initiatives I was told they were due to be announced. Unless we get those things right I cannot see how those sectors will be resourced to create jobs. Reform in those sectors seems to be taking a little longer than I anticipated. If jobs are the centre-piece of Government policy should that reform not be to the forefront and should we not have seen something sooner?
Deputy Murphy asked several questions. Yes, there are targets. The figures I quoted of 22,000 jobs per annum and 110,000 jobs by 2016 are targets set by IDA and Enterprise Ireland and those targets have sectoral elements within them. I can provide those figures to the Deputy. The Deputy is right to say there have been reduced capital allocations. However, the enterprise area has been protected from such reductions and these targets are robust. We have provided money to underpin them and even to provide for some more initiatives aimed at small businesses, such as the partial loan guarantee, the micro-finance initiative and others.
There is not an undue emphasis on IDA versus indigenous companies. Looking to the long term, we clearly need to have more growth from the indigenous side. At present, it is about 12,000 jobs from the IDA and 10,000 from indigenous exporters. We need to see the indigenous element of that grow stronger. Many of the measures I will develop in the jobs strategy will be aimed at getting more people, whether Irish or overseas people, to start businesses. For example, I recently announced a €10 million fund to encourage foreign people to start businesses in Ireland, which is a real area of opportunity.
Is full employment a stated aim of the Government? I know that is a tall order, but I would rather shoot for the stars and narrowly fail than not aspire to full employment. That is my prime question. Can the Minister answer it?
I said plainly in my reply to Deputy Murphy's question that the Government's objective is to put the country back on the road to economic recovery and full employment. I recognise that this ambition will not be realised in the short term, but I agree with the Deputy that we need to set ourselves ambitious targets. We should aim to get back to having 2 million people at work and being in the top five in terms of competitiveness. The Taoiseach has said, repeatedly, that we should be the best small country in which to do business by 2016.
We need ambitious targets that drive policy development. I hope the jobs strategy will have such ambitious targets and will sustain momentum over a long period of years. We will not simply produce a document and forget about it.
SME Sector
Willie O'Dea
Question:59 Deputy Willie O’Dea asked the Minister for Jobs, Enterprise and Innovation if he will announce measures to tackle the credit shortfall faced by businesses here, particularly the small and medium enterprises; and if he will make a statement on the matter. [36212/11]
A key priority of the programme for Government is to ensure an adequate supply of credit is available to fund small and medium-sized enterprises. Work is well advanced in my Department on realising our commitments in terms of the temporary partial credit guarantee scheme and the micro-finance loan scheme. The design phase of the temporary partial credit guarantee scheme has been completed and formal proposals will be brought to the Cabinet shortly. Once the design is approved by the Government, a further request for tender will be published to select an operator to allow for the roll-out of the scheme in the coming months. In parallel with the work taking place on the scheme's design, my Department is preparing primary legislation to make the necessary statutory provision for such a scheme.
The micro-finance fund to provide loans for small businesses is also being developed by my Department. This proposal is being designed to stimulate lending to sustainable micro-enterprises. It is targeted at start-up, newly established or growing micro-enterprises across all industrial sectors employing not more than ten people. It will provide loans of up to €25,000 for commercially viable proposals that do not meet the conventional risk criteria
The Minister for Finance has restructured the banks and deleveraged the banking system. This is the principal response to the problem of making credit available through banks. These initiatives have ensured the capacity for the pillar banks to lend to SMEs and other important sectors is in excess of €30 billion during the next three years. The Government has imposed lending targets on the pillar banks for the three calendar years from 2011 to 2013. Both banks will be required to sanction lending of at least €3 billion this year, €3.5 billion next year and €4 billion in 2013 for new or increased credit facilities for SMEs.
Businesses having difficulty with credit refusals can use the services of the Credit Review Office which will carry out an independent and impartial review of the banks' decisions to refuse or reduce credit. The office will also monitor the performance of the banks in meeting their lending targets.
The Minister of State referred to the recapitalisation of the banks, but does he realise that it is not working, that there is a credit famine and that the financial institutions are once again trying to hoodwink the people with their figures, many of which are accounted for by restructuring and replacing existing funds? In the programme for Government, the Government made a significant promise to introduce specific policies to make more credit available to small business. The problem has become more acute since the Government took office, yet we have seen no policies introduced. How much money does the Government propose to guarantee in the loan guarantee scheme?
Regarding the 200,000 small companies and the credit supply of €30 billion for business, the banks will be monitored closely. Many are employed in small companies. Thanks to the legacy of the previous Government, small companies are encountering difficulties because of a lack of demand. Companies which were viable three years ago are now under considerable pressure.
What lack of demand?
The micro-finance loan scheme is before the Government and will be sufficient to meet demand. Each loan will provide up to €25,000 for start-up companies and people with ideas in order that enterprise might be encouraged. The scheme will be important, as the banks are not meeting the level of demand. I agree with the Deputy that all the evidence indicates that people are experiencing significant difficulties. This is evident from the number of closures and the lack of confidence in the commercial sector. The partial loan guarantee will not substitute for the banks, but it will provide a level of comfort for clients seeking loans from banks.
How much will be guaranteed?
Does the Deputy mean in the loan?
Yes.
I am open to correction, but the ratio will be 50:50.
What is the total figure for the amount to be guaranteed?
The exact figure must be signed off by the Government. It is not for me to announce it in the Chamber. When the scheme is announced by the Government, the figure will be more than adequate to meet demand.
I heard what the Minister of State said about the last Government but the problem is that businesses starved of credit are worried about what this Government will do for them. Deputy John Perry is in government now and people are looking to the Government to do something to make financial institutions lend some of the capital stuffed into their coffers. The Minister of State said it is widely known that the figure for the micro-finance scheme will be €100 million. I note the refusal of the Minister of State to say how much will be guaranteed under the partial loan guarantee scheme but some of his civil servants, during the debate on Committee Stage, have mentioned a figure of €300 million-€400 million. For the end of March 2011, the amount of loans to SMEs outstanding in this country was €58.2 billion. This represents a decline of €7 billion over the course of the year. Can the Minister of State explain what impact a couple of hundred million euro will make in this situation? Does he agree that a more radical approach is needed?
There are several options at the moment and the €32 billion ring-fenced over a three-year period for SMEs is very important. The taxpayer and the Government have recapitalised the banks. It is critically important for domestic banks to have profitable SMEs and SMEs need good banks. It is a win-win situation. The banks are duty bound. On the basis of my discussions with banks and based on the evidence on the ground, people are being refused credit and existing loans have been re-financed. We must have straight talk from the banks and the Government will monitor them. With regard to the funding of micro-finance, the last Administration did nothing. The matter was talked about for years prior to the change of government——
What the Government proposes to do now will be worse than useless.
The last Administration promised it for two years.
This Government has promised it for a year.
The people who did not cause the recession are the people now paying a huge price. This is the legacy of the last Government, which closed the viability of small businesses.
People want to know what this Government will do. What will this Government do? Will the Minister of State focus on that?
We will do much more than the last Administration, which did nothing for small businesses.
The Government is taking its time.
Job Creation
Tom Fleming
Question:60 Deputy Tom Fleming asked the Minister for Jobs, Enterprise and Innovation the initiatives, policies and-or steps he has taken or will take to tackle the unemployment crisis in County Kerry which currently boasts a worrying unemployment rate of approximately 20%; the action he will take to address the loss of jobs due to the phased closure of a company (details supplied) in Castleisland; the stage the proposed development of the Pretty Polly building in Killarney and the Global Pharmaceutical Centre of Excellence in Tralee as potential employment hubs have reached and the projected completion times for both; and if he will make a statement on the matter. [36663/11]
The enterprise development agencies under the remit of my Department provide a suite of support measures and interventions that help to support job creation and job retention across the country as a whole, including County Kerry. The overall mix of incentives varies from fiscal policies, such as the 12.5% corporate tax rate that all companies can avail of, to targeted supports or incentives designed to stimulate specific types of business activity. These incentives include funding for certain capital investment, job creation, research and development, training, marketing, and management development. The focus of Enterprise Ireland support, in collaboration with the county enterprise board, is on measures to promote high potential start-up companies, increase productivity, develop management and international sales capabilities, facilitate access to equity and finance and to support entrepreneurship and micro-enterprise.
As regards the specific issues raised by the Deputy, since the announcement by Aetna to close its facility at Castleisland on a phased basis by the end of 2011, IDA Ireland has worked to attract other international financial services operations into the region. In addition, IDA Ireland has worked with Aetna to construct a prospectus setting out the skills and capabilities of the workforce and a profile of the Castleisland facility, which IDA is using as part of its efforts to attract alternative employment to Castleisland. IDA has highlighted the skills and capabilities of the Aetna workforce to a number of relevant investors. While several initial expressions of interest have been identified, IDA continues its efforts to attract genuine prospects to Castleisland.
IDA has been successful in attracting JRI America Incorporated, a subsidiary of Japanese financial services company Sumitomo Mitsui Financial Group to locate in the Kerry Business Park in Tralee, County Kerry. The company announced plans in September to establish a software development operation in Tralee, which will create up to 100 highly skilled positions over the next few years with recruitment already under way for several positions.
Additional information not given on the floor of the House
Officials from all three enterprise development agencies, IDA, Enterprise Ireland and Shannon Development have been in negotiations with Global Pharmaceutical Centre of Excellence, GPCE, at various stages since the this project was first announced. I understand that all the agencies have agreed a collaborative approach whereby GPCE would receive whatever comprehensive support is available. I am informed that Enterprise Ireland, which is willing to support any viable business proposition, is awaiting a new business plan from the promoters of GPCE while IDA has commenced discussions with one company proposed by GPCE. As regards the Pretty Polly site in Tralee, this site is the property of Tralee Town Council and not IDA. I understand that IDA is endeavouring to source a suitable prospective tenant for the building and is working with the town council on the detailed specification of the buildings to assist with the efforts.
In the past few years County Kerry has become a commercial and industrial wasteland. That is the honest reality; we have lost numerous companies in the last ten to 20 years. In my question I mentioned Pretty Polly which at its peak employed 1,100 people. There were 1,000 jobs lost in Burlington in Tralee and another 500 in Denny.
The Deputy must ask a question.
I am trying to give an insight to what is happening in the county. Liebig in Killorglin has closed, while Aetna Company has been the subject of a phased closure in recent months. I urge the Minister to redouble his efforts to find a suitable employer for that facility. Castleisland has been seriously neglected. Morale is at a low level because of these job losses. The company indicated to me a few months ago that it would hand the plant over to the local authority and the Minister told me then that he understood it would be sold by the company. Will he intervene to ensure the facility is handed over to Kerry County Council or a local authority body?
I did not say anything about selling any site; IDA Ireland is promoting the Castleisland site. The Deputy asked about the global pharmaceutical centre of excellence and officials from all three enterprise agencies, IDA Ireland, Enterprise Ireland and Shannon Development, have been in negotiations since it was first announced. All the agencies have agreed to a collaborative approach, whereby the GPCE will receive whatever comprehensive support is available. Enterprise Ireland which is willing to support any viable business proposition is awaiting a new business plan from the promoters of the GPCE, while IDA Ireland has commenced discussions with a company proposed by the GPCE.
The Deputy asked about the Pretty Polly site in Tralee. That site is the property of Tralee Town Council, not IDA Ireland which is trying to source a suitable tenant for the building and working with the town council on the detailed specification of the building to assist in seeking applicants.
I thank the Minister and the Minister for Arts, Heritage and the Gaeltacht for facilitating a meeting with Enterprise Ireland and IDA Ireland in recent months. We hope the rewards will be reaped and that a substantial number of jobs will be provided in the pharmaceutical centre proposed for Tralee. The Pretty Polly site is an ideal location. Pretty Polly employed up to 1,100 people at one stage and I urge all Ministers to find a suitable project, be it in education, enterprise, technology or manufacturing. This is a wonderful plant of substantial size.
What is happening with the Shannon Energy Valley initiative? There has been a lot of bureaucratic messing that has held up the project. In the region of €500 million has been invested in the liquid nitrate gas proposal which has dragged on for a number of years, with various impediments. I ask all Ministers and the Taoiseach to get involved and make an all-out effort to finalise the project because otherwise it will be lost.
While the Pretty Polly site is very valuable, there are questions about the need to convert the building into units that would make it more usable. That issue may need to be explored locally.
I met the sponsors of the LNG project. The key issue in this regard relates to the pricing of gas and whether a fee must be paid in respect of interconnectors. The issue relates to a role that does not fall to the Government but to the Commission for Energy Regulation. That is my understanding of the current position but I would need specific notice to be able to elaborate thereon.