The Minister can be assured of as warm a welcome for the Bill in this House as it received in the other House. I should like to make some comments, not with a view to changing any of the terms in the Bill or of offering any opposition to any of its clauses but in order that the House might have the opportunity to discuss, in the wider context, the general question of industrial development particularly in the regional context.
The Minister's introductory speech was, possibly of necessity, quite a short one as he was dealing merely with two provisions in the Bill, both of a quite simple nature although somewhat divorced in the size of their monetary implications. It is quite obvious from his brief reference to the activities of the Industrial Development Authority over the ten years since 1960 that it has done a wonderful job of work. I think it only right that I should avail of this opportunity to pay a generous tribute to the several members of the board of the Industrial Development Authority for their success over the years.
It is interesting to note that over the last 20 years, indeed one might say since the foundation of the policy of encouragement to industrial enterprises by the Undeveloped Areas Act, 1952 an enormous sum, in excess of £130 million, has been committed for industrial development throughout the country under various headings, industrial grants, encouragement of one type or another to the non-designated areas in the way of adaptation grants to small industries and so on. It is also interesting to note that up to the end of last year something approximating to only half that sum had been paid out. It is quite understandable, therefore, that the Minister should have to come to the Houses of the Oireachtas to seek sums for further development and indeed to honour the commitments made by the IDA.
The Minister mentioned in his introductory speech that the sum now being voted should cover the IDA's requirements over the next three years. I wonder is he correct in that statement? If more than half of the additional sum of £56 million has to be utilised to honour existing commitments it means that there will remain a balance of £44 million for further industrial development. Having regard to the increasing pace of industrial development particularly in recent years and the rising cost of industrial development, I would be inclined to question if, indeed, the Minister is seeking sufficient funds from the Houses of the Oireachtas.
I am aware that that is a matter that can be rectified by the Minister returning to us for further funds in the near future but I am a great believer in seeking adequate funds. In this regard the Minister might have sought greater funds having regard to the recently published plans of the Industrial Development Authority covering the years 1973 to 1977. We are not very far away from 1973 and I think the Minister should have related his request for further financial assistance to the five-year plan set out in this preliminary report of the IDA. However, the Minister may feel that he can always return to us if he wants more money and be sure of a warm welcome. That is perfectly true, assuming that the money will be available.
I regret that the Minister did not give us some more information on a subject that is germane to this discussion today, that is the general question of regional industrial development. Perhaps the Minister's idea was to give us an opportunity, if we so desired, to speak on this much wider and very much more complicated subject about which numerous reports have appeared over the last ten or 12 years. For that reason I am a little disappointed that the Minister did not touch on the subject and give us some further information about the type of industry that will be set up in the growth areas such as Cork, Shannon, Ennis, Limerick, and the type of industries that the IDA hope to establish in the smaller country towns and villages.
The recent report of the IDA, although it is described as a preliminary report, with a further report to follow shortly we assume, seems to depart quite dramatically from the whole concept of growth areas or poles of development as strongly recommended by successive reports over the past decade. In this regard I think that the Minister's Department, in the reports that have emanated from it, have strongly favoured the location of industry, particularly heavy industry, in a limited number of development or growth areas. Again I hoped that the Minister might have given us some idea of the changed thinking in his Department about the location of industry, in other words the more recent view taken by them that industrial development is better sited generally throughout the country rather than in a limited number of growth centres.
From the point of view of popular support all of us in public life would agree that if successful industry can be established throughout the country in small urban or rural areas it would be far better from the point of view of social progress, but I should like to know what has prompted the Minister's Department, and certainly the IDA, to alter their views with regard to the location of industry. I believe every one of us, particularly those who come from areas outside the capital city, would welcome the widest possible diversification of industry but we would be unrealistic if we did not appreciate that not all types of industries can be located in country towns and villages however great the desire to do so. Perhaps the Minister, in his reply, would give the House some idea of the thinking behind this programme of diversification of industry.
The Minister gave us some indication in his speech of the number of jobs created by the Industrial Development Authority over the last ten years and the figures he gave are certainly very impressive. I wonder if we can count on the same rate of job creation in the years ahead having regard to the enormous increase in the cost per job illustrated in the IDA report which has occurred particularly in recent years. In other words, how many extra jobs does the Minister consider will be created by this £100 million in the light of present-day circumstances? I think this is a very important point having regard to the redundancies which have occurred and which will continue to occur for some years to come under conditions of free trade, technological advances and changes in consumer tastes.
Perhaps he would also let us know what further capital investments are likely to be required in the years ahead to make us competitive in the free trade conditions we will encounter from next January onwards. Even allowing for the fact that there is a five-year transitional period, we will be meeting greater competition from big industries outside the country. What are the capital commitments likely to be, apart altogether from the question of the amount of money required for grants—adaptation grants and other types of grants—paid by the Industrial Development Authority? I do not think we can deal with this in just one tight section and say, for instance: "We will give the IDA £100 million and they will provide a net 38,000 additional jobs." That is telling only a very small portion of the story. A lot of other expenditure will be required for the necessary infrastructures for houses, for development of ports, for the development of transport, or for roads. All these will come into the picture; and when we are having regard to our likely capital commitments in the years ahead I feel they are relevant to the general question of industrial development under free trade conditions.
Having regard again to the question of the change in emphasis from industries in a limited number of areas to a wider diversification, perhaps the Minister might also say if this is being influenced to any degree by our decision to join the EEC. With the wider diversification of industry will we be in a better position to compete in the export market and to compete against people exporting into our own market? If so, perhaps the Minister will spell it out in his reply.
With regard to growth centres, it is interesting to note that in 1962 a report emanated from the Minister's own Department. In it was posed the question that I have just asked: "Should grants policy encourage a wide dispersal of industry throughout the country or a concentration of industrial development in a number of centres selected as suitable for such development?" This report came down very emphatically in favour of the location of industry in a limited number of growth centres. It said:
The direction of industrial grants policy towards a wide dispersal of industry would not be economically justifiable in the circumstances facing us under free trade, because essential technical services would not be available in small towns. A limited range of available educational facilities would only be available. The labour force in part may have to be drawn from outside sources. Local infrastructure would have to be expanded. Transport costs could be higher. Higher carrying of stock would be necessary.
In free trade conditions most firms are likely to prosper in areas where there are concentrations of industry where
(a) basic services—gas, electricity, water, health, housing and educational facilities at all levels may be provided at lower economic costs.
(b) Transport costs of materials and finished products can be extended, developed and improved with ease and economy.
(c) Essential technical services will probably be provided by specialist firms and organisations or through joint action.
(d) The location of a number of industries in the same area helps to establish an industrial tradition and create a body of skilled labour which, in turn, tends to attract further industrial development.
(e) Firms in different lines of activity can cater for each other's needs and promote efficiency of all of them.
The pattern of development in major industrial countries favours concentration in a number of selected centres. The impetus towards growth originated in a few "poles of development". Growth forces radiated from these centres and encouraged growth in surrounding areas.
In 1964, the Report of the Committee on Development Centres and Industrial Estates came to the following conclusion. It reads:
Development centres would be effective in the promotion of industrial development and attraction of new industries would encourage the growth of existing firms.
They recommended not more than six centres of development.
Apparently, this was the thinking up to quite recently. Now we are going to depart from that in favour of a wider diversification of industry. This is a very welcome change but one which the Minister and his advisers ought to substantiate by facts and figures, possibly taken from other countries, having regard to the fact that we will be in an intensely competitive situation from 1973 onwards. Undoubtedly, if we are to make effective efforts to solve our emigration problems and migration problems from the west to the east, we shall have to locate big industries in growth centres.
It is unrealistic to believe that the large type of industry that can compete in free trade conditions can be located in small areas. It cannot be, and it is obvious that, whether we like it or not, we shall have to regard certain areas as growth centres and as the home of the type of industry which could be both capital intensive and labour intensive. It is obvious that the whole country, outside of Dublin, could be regarded as an area for development.
I am sure the Minister will agree with me that one obvious growth centre for development is in the Shannon-Ennis-Limerick complex. If we are to make any inroads into the tendency to migrate towards Dublin and the east, it is imperative that at least one major growth centre must be developed in the west or south-west. The obvious centre is the Limerick-Shannon-Ennis area. I should like to know what proportion of the extra £100 million would be coming to that important and critical area. It is critical not only for the people who live there—Limerick, Clare and North Tipperary—but also critical for the country, as a whole, if we are to redress the imbalance which has been going on now for a big number of years.
Perhaps it is not possible for the Minister to indicate in round figures what proportion of these funds would be available for the south-west, but it is a very important and live issue there and the people would be greatly encouraged by any words from the Minister in regard to the Government plans for developing that Limerick-Shannon-Ennis area as a growth centre for major industrial development.
When I speak of major industrial development I speak in context of ore smelters, oil refineries, petro-chemical complexes, and all types of major industrial undertakings that require deep water, and safe and level locations for industries. All these requirements exist in the Shannon estuary which, up to now, has remained completely undeveloped and, to a large extent, completely ignored by successive Governments, notwithstanding the fact that we hear from time to time of grandiose plans from other ports for spending millions of pounds to improve their own amenities. I do not blame them for that but, having regard to the existing natural amenities in the Shannon estuary, I should have thought that one of the priorities on the Government's list of developments would be the exploitation of the natural resources of the Shannon estuary at very minimal costs.
The Minister referred to the preliminary statement of the IDA which appeared recently. This visualises the net creation of 38,000 additional jobs. I questioned if this could be done with the money now being made available. From 1961 to 1966 the total number of net extra jobs in the manufacturing industry was 18,941, and from 1966 to 1971 23,623 net jobs were created in industry. That is a total, over the ten years, of 42,564, an average of about 4,000 net extra jobs in manufacturing industry per year. It is now proposed under the IDA's five-year plan—1973 to 1977—to increase that to something like 7,500 jobs per year. This is a very substantial increase of some 75 per cent. Can this be done having regard to the fact that we are now well into 1972 and the five-year plan begins in 1973?
It is interesting to look at the percentage of jobs, taken by the different areas or regions. In 1961 to 1966 and from 1966 to 1971 Donegal represented 3.1 per cent for the first five years and 5 per cent for the second five years. In the north-west it was 1 per cent for the first five years and 2.6 per cent for the second five years. In the west it was 4.1 per cent and 6.8 per cent respectively. In the midlands the figures were 0.4 per cent and 4.8 per cent respectively. In the south-west the figures were 16.8 per cent and 17.1 per cent respectively. The south-east figures were 9.8 per cent and 8.6 per cent. In the north-east the figures were 8.4 per cent and 11.2 per cent, and in the east, which includes Dublin, the figures were 34.2 per cent and 33.6 per cent. For the mid-west, including the area under the direction of the Shannon Free Airport Development Company, the figures were 22.2 per cent between 1961 and 1966 and 10.3 per cent between 1966 and 1971. I do not claim these figures give all the answers, but it is an indication to show that, in spite of the enormous sums spent over the past 20 years since the Undeveloped Areas Act was enacted in 1952, the majority of industrial development and industrial jobs still go to the east coast, with Dublin as the big winner. The only exception to the picture is the mid-western area, including Shannon Airport.
If we are serious about redressing this imbalance between the east and west and south-west coasts, something more positive than plans, good intentions and large sums of money will be required. It is in this context that I question seriously the Government's intentions in regard to overall regional development. So far, apart from an indication of what the Government intend doing, no overall plan has appeared. There is no master plan which can be integrated into the evolving plans of the European Economic Community.
If we are not off the mark now, while the idea of regional development is much in the minds of those connected with the EEC, we may be too late in the queue. The Government should be up and doing and bringing forward these plans for regional development. We have nine regional development areas and regional development organisations which have operated on a voluntary basis up to now, with great success so far as the mid-western regional development organisation is concerned. In other areas, there has been little or no success.
One of the reasons for many thousands of people supporting our accession to the EEC was that in its evolving regional policy, which is not spelt out in legal terms yet, a great hope was held out for the development of the western and south-western areas. If we do not take advantage of that in good time, there is a grave danger we will be left where we have been for generations—on the low-back car, financially and economically.
I regret we cannot carry on this discussion in the context of the Government's plans for regional development. I understand they will be made known shortly, but it is a pity that we do not know what these plans are now. I hope the Minister will give us some concrete information as to when these plans will be made known, what form they will take, and what form the overall national regional development plan will take in regard to the existing regional development organisations. Are they to be politely thanked when the plans are made known and, as has happened on numerous occasions, are those who have given their time and labour voluntarily and enthusiastically, to be thanked and then bureaucracy allowed to take over from there on?
We have limited financial resources and we must ensure that we have the enthusiastic support of all the people, not just the people at the top in the Dáil and Seanad and in Government offices. We can only have that if there is close association and consultation with the people, particularly those who live in the remote rural areas. There must be consultation with regional development organisations; they must be brought into partnership in the Government plans, and they, in turn, must consult with the local communities. I am a great believer in local enthusiasm as an unpaid driving force. We must ensure that everybody knows what plans the Government have regarding regional policy. We must ensure that these plans are accepted enthusiastically. This is vitally necessary if we are to make a success of our regional development.
I referred already to the question of new jobs and regional targets. I should like to draw the Minister's attention to the record over the past five years when 23,000 net new jobs were created. The trend is discouraging, not due to any fault of the IDA, but possibly for reasons over which they or the Government have no control. I refer again to some figures which should be illuminating. In 1967 the figure was 2,000 net new jobs in industry and manufacture. In 1968 the figure was 5,000. It went up to 9,000 in 1969. This was an encouraging trend. In 1970 it dropped to 5,000 and in 1971 it dropped to 2,000. I do not recall the forecast for the current year. Can the Minister assure us that in 1973 the target of 7,500 net new industrial jobs will be achieved in the face of these figures and in view of the downward trend over the past three years?
The IDA preliminary statement notes that from 1973 onwards the south-east, north-east and the east are going to get 16,900 net new jobs and the mid-west 3,800. In the case of the mid-west, the current population of 269,000 is estimated to increase to 291,000 by 1977. That is an increase of 22,000 extra people, but the extra job provision is only 3,800. I do not know what the relevance is between these two figures. There must be a connection, and perhaps the Minister would explain it in his reply. It seems to me that the estimated creation of 3,800 net new jobs in the mid-west is not sufficient to cater for a population which is estimated to increase by 22,000 in the same period.
I would like to avail of this opportunity to pay a generous tribute to the remarkable work of the Shannon Free Airport Development Company since its establishment. They are now using their experience and expertise to develop industries in the mid-western region. The Shannon Free Airport Development Company's success has been largely due to the independence which they have enjoyed and to the receipt of adequate funds. Will these conditions of affairs continue when the Government bring out their new regional plans? As a person who lives in that area I hope that the Minister and the Government will ensure that SFADCO will continue to enjoy that independence. Their independence and the fact that they have had access to adequate funds over the years should be an example as to how the other regions might develop. No doubt the Minister is aware that they have made a recent projection for the next five years of the sort of jobs they intend to create and the industries they intend to establish at a total cost of £16 million. Will that money be available for SFADCO to carry on their work?
Another factor which I hope the Government have in mind is that the opening up of trade with Europe will remove the geographical disadvantages under which the south-west and west suffered for generations in Anglo-Irish trade conditions. I do not know whether this factor has been sufficiently taken into consideration by the Government in their plans for development, but it is obvious to anybody looking at the map that the south-west and western ports were at a disadvantage trading with English ports. That disadvantage will now disappear to a large extent in free trade conditions. We should now be talking about making capital available to assist the ports in the south-west and west and in developing the Shannon estuary as a base for heavy industry.
A further development which we are awaiting, possibly with some trepidation, is the plan of the Minister for Local Government for the reorganisation of local government. Obviously, the organisation of the regional development organisations—county councils and city councils—will largely depend on the ideas the Minister has concerning them. These plans should have been announced in advance of this discussion on the IDA and their financial requirements. Anything to do with the regions or local authorities should be part and parcel of an overall Government plan.
We are at a disadvantage in this House, as the Deputies were in the Dáil, in not being in a position to discuss generally the organisation of local bodies and how they would function in the context of EEC conditions. I want to suggest to the Minister again, having regard to a point which I possibly overemphasised, but one which I feel strongly about, the appointment of a Minister for Regional Development. There are other Ministries of far less importance than a Ministry of Regional Development. The Government should give serious consideration to the setting up of such a Ministry.
In our efforts to encourage the location of industry in the south and west in undeveloped areas, perhaps too much emphasis has been put on direct subsidies to industrialists. Sometimes I wonder if the idea we have in mind of encouraging people to live and work in the south-west of Ireland would not have been better encouraged by differential taxation. Instead of the benefit going entirely to the company or the firm concerned, why not give the people living in the south and south-west, in the undeveloped areas or designated areas, some special personal tax relief. If a gesture like this were made by the Government it might have far greater impact on the individual than confining assistance only to corporations or individuals setting up industry.
So far I have not seen any indication of cross-Border economic co-operation, development or integration in the Government plans. It is not too far fetched to see now that we are going to have to co-operate with our fellow-citizens in the North in developing areas like the north-west. Donegal, Leitrim and Sligo cannot be developed in a vacuum. Any development must envisage the development of the entire area west of the Bann and west of the Shannon. Now is the time for the Government to think and talk along these lines and to produce realistic plans envisaging cross-Border co-operation and further integration in the development of these areas. Practical gestures like this often do much more to bring about a feeling of goodwill and co-operation between North and South than many of the long-winded public speeches we hear from time to time both inside and outside the Houses of the Oireachtas.
I should like to reiterate what I said at the start and to give this Bill a generous welcome. It is a step in the right direction. I should like to emphasise that taking this Bill on its own outside the context of a national regional development plan is just dealing with one very small facet of a very important subject. I hope the Minister will impress on the Taoiseach and his colleagues in the Government the urgent necessity of producing a national regional development plan which we can take advantage of. We will be joining the EEC in a matter of months and we should ensure that we get the necessary technical know-how in good time and not be left at the end of the queue.
