Seanad Éireann debate -
Thursday, 19 Jun 1986

Vol. 113 No. 9

Shannon Free Airport Development Company Limited (Amendment) Bill, 1986: ( Certified Money Bill ) Second Stage.

Question proposed: "That the Bill be now read a Second Time".

Minister of State at the Department of Industry and Commerce (Mr. E. Collins)

The principal purpose of the Bill is to provide for the further financing of the Shannon Free Airport Development Company Limited by extending the industrial assistance limits in current legislation to provide for the continuation of SFADCo's industrial and tourism/ traffic development roles.

Specifically, the Bill provides for an increase from £120 million to £130 million in the aggregate of the amounts which the Minister for Finance may subscribe in taking up shares in the company; and an increase from £60 million to £105 million in the aggregate amount of grant-in-aid, voted annually, which may be made to the company.

Share capital subscribed to the company is used for capital expenditure on the industrial estate at Shannon and in the mid-west region and west and south Offaly. The main headings of expenditure are land acquisition, construction of factories and ancillary works. A small proportion is expended on tourism projects of a capital nature such as up-grading of the Bunratty Folk Park.

The grant-in-aid moneys are applied towards meeting the company's running expenses and providing financial assistance to companies on the Shannon Industrial Estate. The financial assistance relates to grants for plant and machinery, training schemes, acquisition of buildings, rent reductions, technology transfer and research and development. A substantial part of the company's running expenses relates to the administration of their small indigenous industry programme in the mid-west region where, however, grants for various programmes come from the IDA under full delegated grant giving authority to Shannon Development. I should add here that the major proportion of administration of costs are generated by the company from own resources primarily from rent on factory space.

In relation to running expenses, it is also relevant to point out that the significant element of these arising from the company's tourism activities used to be met by a special grant-in-aid for which the Minister for Tourism was specifically accountable notwithstanding the fact that the amount comes within the overall limit being amended by section 3 of this Bill. Following reassignment of ministerial portfolios earlier this year, responsibility for this expenditure now belongs with the Minister for Industry and Commerce, which change will I hope facilitate a more coherent and integrated approach by the Department to their role in relation to the company.

Accumulated expenditure by Shannon Development under the share capital and grant-in-aid headings as at 31 May 1986 amounted to £91.6 million and £60 million respectively. In fact the grant-in-aid limit has been reached and the company have been relying in the meantime on a combination of own resources income and bank borrowings to meet their obligations. It is therefore a matter of urgency that these limits now be increased. It is estimated that the increases proposed will suffice until 1990. I should stress in this regard that the Bill is merely an enabling measure which increases the funds which the Dáil may annually vote for the company.

Shannon Development's objectives are succinctly described in their annual report as follows: to ensure the growth of Shannon Airport in trade, passengers and services; to ensure the realisation of the potential for economic development inherent in Shannon as a location for industry; to develop and test concepts and systems which will lead to a dramatic growth of small indigenous industry in the mid-west region and west and south west Offaly, and to do so in a manner which will pioneer future national policies; within this function to conduct a standard-setting pilot programme for food processing.

It is appropriate here to report on progress under these headings, particularly since the last legislation increasing the company's financial limits was passed in 1983. First, it is encouraging to note that overall traffic in 1985 has again reached the level attained in the 1977-79 period, and has been showing a steady increase since 1983. Within that trend, terminal traffic of 665,000 in 1985 was the highest figure ever recorded at Shannon and while international developments are not conducive to new records being set in 1986, the decisions of Pan American Airways and Delta Airlines to begin scheduled service into Shannon from the US in 1986 are most welcome. The company's success, in conjunction with Bord Fáilte, in attracting these airlines highlights, however, the continuing over-dependence of Shannon Airport on its west bound connections, and it is to be hoped that they can emulate this success in continuing to increase their UK and continental traffic.

In relation to the development of the Shannon Industrial Estate, while it is true that employment on the zone is less than the peak figure attained in 1981, the decline has not been great and it is again encouraging to note the upward trend in employment since 1983 to its current level of 4,400. Concomitant with this has been a continued strong growth in exports from the zone, and more importantly, a continued widening of the positive trade balance.

Developments in relation to small indigenous industry are possibly most encouraging of all. When the company undertook this role in the region in 1978 there were 3,000 people employed in some 350 small firms, of which 20 were exporting. There are now 5,300 people employed in 700 firms of which 100 are exporting, and within that overall increase of some 75 per cent there has been an increase of 190 per cent in employment in firms assisted by the company. A very positive aspect of this part of the company's operations is of course the virtually uninterrupted growth of employment in this sector, which is of course vitally important to the future economic wellbeing of this country. It was the obvious success of this programme that led to the nationwide regionalisation of the IDA's small industry programme. This was completed in 1985 and means that the administration of the programme, including decisionmaking on grant applications, now rests with the regional small industry boards supported by 130 IDA staff at regional level.

Apart from the intensive promotion of small indigenous industry, which is the most significant example of SFADCo work being adopted nationally, other examples of initiatives which have led to the growth of this sector in the mid-west being adopted on a national basis are the workspace concept, the matchmaker programme, now nationally embodied in the linkage programme, and start your own business courses.

While these initiatives relate specifically to the small indigenous industry role it is interesting in passing to note some of the other important developments pioneered by SFADCo since they have been set up. These include the development of mediaeval banquets, Rent an Irish Cottage, development of Ireland's first new town, establishment of the innovation and micro-electronics application centres and the world's first duty free airport industrial estate.

I mentioned that the company also have the role, assigned to them in the White Paper on Industrial Policy, of conducting a standard-setting pilot programme in food processing. Already a detailed report on progress to date has been submitted by the company to the Department of Industry and Commerce and consideration is being given to how this progress can be accelerated. Work so far has concentrated on promotion of the food processing business, identification of new products and development of food enterprises and food buildings. An example of this is the experimental food kitchen in Raheen, Limerick which, in conjunction with the IIRS, will ensure that first-rate technical facilities will be available with units constructed to the highest food regulatory standards of prospective markets.

Also of relevance in this context is the appointment of a Minister of State for Food based jointly in the Departments of Agriculture and Industry and Commerce, followed by the establishment of a permanent food committee which has, inter alia, the mandate of assessing the feasibility of the recommendations in the various recent reports and studies on the food industry.

A major development affecting SFADCo since passage of the 1983 legislation has been the publication of the Industrial Policy White Paper already referred to. As the major provisions of this were incorporated in the Industrial Development Act, 1986, Senators will be aware of the detailed changes being made therein. Suffice it to say in this context that Shannon Development will be implementing the new policy directions in their industrial development work relating to greater selectivity in industrial incentives, a shift from fixed asset investment to technology acquisition, marketing and research and development, and a greater concentration on internationally traded manufacturing and service activities.

The Dáil's Public Expenditure Committee report on Shannon Development was both timely and informative in the context of our current deliberations. This will, of course, be the subject of detailed debate in the Dáil, and its specific recommendations on various aspects of the company's operations will require careful scrutiny. It is, however, relevant at this stage to note the conclusion that the company have been highly successful at their appointed tasks of promoting traffic through the airport and encouraging small industry throughout the mid-west region. Indeed, the value of the company's work has also been acknowledged in most positive terms in the OECD's report "Innovation in Irish Industry".

In this brief review of the activities of Shannon Development I have demonstrated that the company are doing everything within their power to successfully carry out their multi-role mandate. The moneys provided for in this Bill will enable them to continue to do so for the next three to four years and deserves our support.

I, therefore, commend this Bill to the House.

Mrs. Honan

I warmly welcome the Bill. The mid-west seems to have dominated the Seanad with the Harbours Bill, the preinspection facility for Shannon and now this excellent legislation on SFADCo. People who have reservations about SFADCo and whether it should continue playing the tremendous role it is playing not only in the region but for the benefit of the nation as a whole, should spell out what they mean when they express them. SFADCo is a success story and must be recognised as such.

I should like to put on record my thanks and good wishes to Paul Quigley who has retired. He was a little different from other people who held posts similar to his and, indeed, from people who held posts of lesser importance than his. Paul Quigley had time and respect for politicians of all parties, which is a little unusual in people who hold these posts. He had the same kind of commitment as we, in all parties, have. SFADCo does not belong to anyone; it belongs to the nation. He did a tremendous job while he was there.

I wish his successor, Mr. Dunne, the best of luck in his job which is now perhaps a little easier than it was in Paul Quigley's time which were the pioneering years. This, however, does not lessen Mr. Dunne's task in continuing to maintain the success of SFADCo.

Shannonside must also be recognised for its success story after 21 years and for the part it has played in the region. I hope my information that Shannon is to have a larger fuel terminal is right. I understand this is to cost a cool million. This would ensure the continuation of Atlantic traffic through Shannon. I ask for the support of the Government in regard to this matter.

I welcome the speech made by the Minister of State this morning. I wondered why Deputy Noonan wanted the Department of Industry and Commerce. I congratulated him on his appointment. I had a fair idea that SFADCo would form part of his portfolio and I now see that I was right. However, I am sure the Minister will be very broad-minded about it, as we were in other days.

The Minister of State stated that when the company undertook their role in the region in 1978 there were 3,000 people employed in the region in 350 small firms of which 20 were exporting. There are now 5,300 people employed in 700 firms of which 100 are exporting. There has been an increase in employment of 190 per cent in firms assisted by the company. That is fact and I welcome it.

Later in his speech the Minister of State referred to SFADCo in national terms. SFADCo was never intended to be a development just confined to Limerick or Clare. People who were involved in SFADCo from the beginning never saw it as a one-role venture. I am glad that the Minister is in agreement with me when he speaks of SFADCo as being a national body and not just concerned with a few roles in the west.

I pay tribute to the success of the small industries which SFADCo have taken up in recent years. I should like to mention John Costelloe and Kevin Vaughan who are development officers and all their counterparts in other areas. This was a new task which was given to them and already the results have been tremendous.

With regard to the factory building programme we are told that the company completed a total of ten small industry factory units with a total area of 2,700m² in the region. Will the Minister give a breakdown of those ten units and say where they were completed?

I should like to refer to something that was said by the Minister which is rather interesting after yesterday's debate on the Harbours Bill. I would like some information on it because we are talking about the west Clare coastline. The Shannon Development Annual Report, 1985 states:

Mariculture is a sector showing considerable development potential, with the resources inherent in the long coastline of County Clare and the waters of the Shannon Estuary. With the Mid-West Regional Development Organisation the Company initiated a "Mariculture Research Group" to identify potential mariculture sites on the regions seaboard. Membership of the Committee is drawn from the company and other agencies, including the Mid-West Regional Development Organisation, Local Authorities, Limerick Harbour Commissioners, the Industrial Development Authority, An Foras Forbartha, Department of Fisheries and Electricity Supply Board.

During the year, the Committee completed evaluation of mariculture potential in 10 Shannon estuary sites. A set of proposals have been prepared based on that evaluation. Similar studies of the West Clare coastline were under way at year end.

This has a bearing on a Bill we discussed in the House yesterday.

I am delighted to see that we now have SPS International Ltd., Lana Knit, Boart Hardmetals and de Beers Industrial Diamond Division Limited. They all marked 25 years. I congratulate them and put it on the record of the House that there are companies which have made it well. I cannot resist saying this. I did not play a major role but my husband, Derry, did, in the early days of these companies. It is like the story which goes something like this: you should remember the people you meet on the way up because you might need them on the way down or something to that effect. They had celebrations recently commemorating the 25th anniversary of their being in Shannon. They decided for some unknown reason — not that it worries me because my attitude to socials and functions is well-known — to ignore Senator Honan. I do not mind. We were there when they needed us. We were there to start them. The fact that they are an absolute success and providing employment is sufficient for me. When I heard about it, there was amazement that I was not there. There are new people on the political scene around now and they probably took my place at that function but they will not take my place in other areas.

I should like also to make reference to the success of the company, Guinness Peat Aviation. I cannot let this Bill go through this morning without paying a special tribute, from the top man down, to Guinness Peat Aviation. I do not think the major role that company has played is sufficiently publicised and its success story in conjunction with Aer Rianta. It is most important that I should not leave Aer Rianta out of this debate but I must put on record the marvellous success of Guinness Peat Aviation.

Traffic through Shannon has been tremendous. The Minister stated this in his opening address. Earlier this week I put on the record of the House the commitment of people, who give more time than they need to their jobs. Again, I shall name Liam Skelly and Michael Guerin. I have done this already. I feel strongly about the tremendous role Mr. Skelly has played in the upper part of Shannon, the traffic end of it. We could do with more Liam Skellys in the Ireland of today.

I should not like to let this Bill pass without making reference to Aeroflot and congratulating them for the contribution they are making to Shannon Airport and through traffic. It would be good to put on record the marvellous year the shops and the catering services had last year. It is a condition of all transatlantic schedule services that flights in both directions must stop at Shannon Airport. I can never let a Bill involving airports pass without putting on record the importance, no matter who might be in Government or no matter what some air companies or their senior personnel might think at times, of continuing to have the commitment to stop at Shannon coming in and going out. I have said before and I will say it again if there were not this total commitment by all parties to Shannon, with rules laid down that traffic must stop at this transatlantic gateway, there might be a change in thinking.

The position regarding transatlantic traffic through Shannon Airport is worthy of special mention. Unlike Dublin and Cork, where Aer Rianta have major roles, at Shannon the task has, historically, been shared by Aer Rianta and SFADCo. That has been a success. I would hope that it would be in nobody's mind to change it.

Again, I would make reference to the small industries package and the small industries which have been mooted and supported by Shannon development. This has been a tremendous success. It has helped people who would not have gone into industry in other times because there was an impression here at one time that industry was only for very big units. Now we have a whole new way of thinking. I always felt strongly — as far back as 25 years ago — and I never had any doubts — Senator Ferris knows what I am talking about — that if we had encouraged our young entrepreneurs of 20 years ago and given them the finance and the backing we gave to other groups from other nations, we would have more successful big factories, Irish owned, Irish managed and they would have to take the rough times with the smooth.

If past Governments made a mistake, it was that the IDA and all the bodies of that time were not prepared to listen to or to recognise that young Irishmen had it in them to be successful industrialists and that their commitment was total and absolute. They did not have to have parent companies outside while the company here with big grants from the Irish Government was only a subsidiary of the parent company. It is rather interesting that it is the other way around now. The particular company I speak about are now the parent company to a company in Europe. We made a mistake away back. The one I am talking about had to be driven home and it took some convincing at that time. It was a pity that there was not more encouragement for persons like that. We would have more big Irish owned companies in this nation today with good salaries and rearing great families in other constituencies. SFADCo was not in the area I am speaking about.

I thank the Minister for his continued support of Shannon and SFADCo and his recognition of it being a national body rather than a body belonging to three or four counties. I wish success to the man who replaced Paul Quigley. I am glad that Father Harry Bohan was put on the new board because, again, he was probably before his time and he has been proved successful in the role he has played. That has been recognised by all of us.

I must again pay tribute to Clare County Council and, again, to our former County Manager, Joe Boland, who like Paul Quigley, has retired. The role of the County Council was a major one. They are more or less out of it now as far as I know. It would be important that I would put on record in this House my thanks to the county council for the tremendous role they played in the early days and right up to recently. I thank the Minister for his financial support for Shannon and for SFADCo. I thank the Cathaoirleach. I totally support the Bill. I am in a new capacity today as acting leader and I understand the Minister would like all Stages of the Bill passed. I am happy about that.

Mr. E. Collins

That would be a help. The Committee Stage is non-contentious and simple and in view of the fact that we have reached the limit of finances under one of the sections, it would be desirable if we could get the Bill through.

An Cathaoirleach

Limerick has taken over the place in the past couple of days.

Mr. Howard

I agree with Deputy Honan on concluding the Bill and I can reassure the Minister that there will be little difficulty getting all Stages of this very welcome measure through this morning.

Three years have passed since we discussed a similar measure in relation to Shannon. On that occasion it was also a measure, indeed, the purpose of which was to extend the limit of the financial resources available to the development company in Shannon. Basically, it is three years since we had an opportunity of reviewing the progress of the Shannon Free Airport Development Company. It is not necessary to delay at any length in reviewing the events of the past three years where that development organisation are concerned. This can be summarised by saying that in the past three years we have witnessed a continuation of the success and development that company have been noted for since their inception. It is in that sense that I join with my colleague Senator Honan in welcoming the Bill and welcoming it for what it contains.

I also welcome it because it represents a continuation of Government belief and support for the development company for Shannon and the mid-west. It is an endorsement of the achievements of SFADCo and a recognition of the vital role that development company have in the future of industrial development, not merely in Shannon and the mid-west, but also outside that area. The previous speaker mentioned the capacity of SFADCo to initiate and develop new ideas and new projects which are capable of being transplanted or copied throughout the country. In some cases even beyond our shores that is recognised. This Bill is an endorsement of the role of that company. I welcome it for that purpose.

The purpose of the Bill, as the Minister stated, is to increase the financial resources available to the development company, to raise the share holding the Minister for Finance may hold in the company by £10 million and to increase the aggregate amount of grants by a total of £45 million, from the present level of £60 million to £105 million. The Minister pointed out that the grant-in-aid is used for the running costs of the development company. There is almost a doubling of the £60 million limit. Credit must be given to the company for containing their operating cost on a pro rata basis. This compares very favourably with some other operations in the country in this regard. The fact that the Minister is prepared to come in this morning and virtually double the limits of the grant-in-aid, is, again, an indication of confidence, and rightly placed confidence, in the capacity of SFADCo to meet the ambitious targets they have set for themselves for the next few years.

I join with Senator Honan in paying a tribute to Paul Quigley who has retired from his position as Chief Executive of Shannon Development and to extend a very warm welcome to his successor, Mr. Tom Dunne. The good work of Paul Quigley will be effectively continued by Tom Dunne, whose performance in the past number of years as the chief of the small industries development programme has been outstanding. Mr. Dunne showed ample evidence of his capacity and suitability to continue the good work of his predecessor and, indeed, to develop even further the ambitious targets set by the company for the coming years.

I wish to refer very briefly to the annual report of Shannon Development. I am not totally sure of this but, so far as I am aware, this is the first annual report for 1985 of any State body, at least it is the first I have received. I am open to contradiction but, to the best of my knowledge, that is so. This is a welcome development. It is something I hope other semi-State bodies, who seem to have difficulty in producing their annual reports within a reasonable period of the end of the financial year involved will copy. It is just another indication of the efficiency of Shannon Development that we can have this document within a few months of the end of the financial year.

There are a few sentences of the chairman's report on page 2 that summarise what Shannon Development are all about. I quote:

The role of Shannon Development is to integrate its diverse responsibilities in air traffic, multinational manufacturing and service industry promotion, small industry promotion and development — into the major change agent for innovation, economic and employment growth.

He goes on to say:

It is also our strategy to be vigorous in taking the appropriate risks, in setting up such activities as the Innovation Centre, the Food Centre, tourist promotion and amenities, as catalysts to get enterprise started.

That is the sentence which has had a bearing on the success of Shannon and that is the willingness to take the calculated risk. The most successful examples of projects that Shannon Development have initiated over the years I have been involved, carried a high risk factor in their early days. It was indicative of the courage, and maybe to some degree the ability of the promoters of the development company, that the risk involved did not scare them off.

It must be always recognised that the risk taking is something that is not looked on very favourably in too many quarters in the State. Of course, risk taking is risk taking and there is always the chance that there will be failure. If the number of failures can be minimised in relation to the number of successes, it is only by that type of risk taking that we can successfully overcome many of the problems that face our country, particularly the matter of creating the number of jobs and employment opportunities that we require. I believe it is that capacity and that willingness on the part of the Shannon Development Company to take risks and, luckily, the great majority of their risks have proved successful. If they had not been willing to take these risks over the years, there would be no need for the Minister to be here this morning increasing their limits. They would be just floating away down there as the same self-contained little unit doing no more than perpetuating their own existence.

They never were prepared to settle for that sort of role. They always saw their position and their duty as achieving what they have achieved and, therefore, I compliment them on their willingness to take risks particularly the risks in which they have been so successful.

We have spoken about Paul Quigley and his contribution. We have welcomed Tom Dunne. I should like to link in to the welcome to Tom Dunne the men who will be operating immediately under him on their promotion and on the extension of the duties they will be performing there. I refer to Willie Moloney and to Tom Kelvin. Also I have to acknowledge the contribution that John Costello, the local agent in my local town, has made to the success of the small industry programme in County Clare.

Speaking of the people who lead the Shannon Development Company and wishing them well in the future there and every success one cannot overlook the fact that the originator of the Shannon Development Company, the great pioneer, the man who was responsible for so many successful ideas down there, and whose brainchild so many of them were, retired from the board since we spoke last in relation to Shannon. That is Dr. Brendan O'Regan. I do not have to tell the House the contribution his commitment, his intellect and his enterprise meant not alone to Shannon Development Company but to the region. On behalf of all of us I want sincerely to thank him, to put on the record how grateful everybody is, to acknowledge the high esteem in which Brendan O'Regan is held — and I am sure will always be held in by the people of the mid-west region. It is interesting to note that his withdrawal from his involvement in the Shannon area does not represent for him a retirement into private life as is the accepted thing. No, capable of the commitment and the energy he has shown over the years, he is now devoting his time to the promotion of peace and understanding between both parts of this divided island. I wish him even better success in his new role than he achieved in the mid-west during his active involvement there. There are one or two other aspects of the report I want to comment on. The report has been available since shortly after the completion of the financial year. On page 3 of that report there is briefly set out progress, development and growth under virtually every single heading whether it is in relation to traffic development, projects, actual jobs created and the level of exports from the duty free zone in Shannon or on the other hand, in relation to small indigenous industry where more projects have got underway, more jobs have been approved, more jobs have been created and extra space completed, built and occupied.

Targets are also set out for 1986 in relation to total traffic development and the arrival of Pan-Am and Delta Airlines, plus preinspection, will be decided advantages in helping to achieve these targets and even surpass them. The report shows jobs created and job potential of the Shannon Free Zone and of small indigenous industry. The programme target is 1,200 jobs for the coming year. The target for jobs potential is almost 3,000.

There are only one or two other short matters that I want to refer to in relation to what is contained in the report. On page 8 there is a graph layout that illustrates the steady growth of employment in the small indigenous industry programme between December 1977 and December 1985. On page 13 there is a most interesting graph which shows the continuous and steady growth in exports both in volume terms and in value terms from the industrial zone over the ten year period.

There is also on page 16 a graph that illustrates very clearly and graphically the continuous growth in tourism attendances at the castle banquets and the centres in the area.

Under all headings of its responsibility whether it is the Shannon Free Zone, whether it is in the town development of Shannon up until very recently, whether it is in tourism promotion or in traffic promotion through the airport, Shannon Development have more than fulfilled the role that has been given to them. As I say, it is an encouraging report. I mentioned that air traffic increased during 1985. I referred to the fact that Delta Airlines and Pan-America, plus preinspections are factors that will help in the development of the airport itself. The additional funds that the Minister is proposing to make available in this measure will enable the company to continue with certainty its ambitious programme of job creation and to succeed in the many fields over which it has responsibility. I welcome the measure. I fully support it and reassure the Minister he can have all Stages before lunchtime.

Mr. Kiely

I would like also to welcome this Bill which is to provide for the financing of the Shannon Free Airport Development Company Limited. I spoke previously when we had a similar Bill. It is not too long ago. My comment on the increase from £120 million to £130 million in the aggregate amount which the Minister may subscribe in taking up shares in the company is that I am wondering if the increase is adequate. The Bill offers the House an opportunity to comment on the Shannon Free Airport Development Company Limited and on activities in the mid-west region.

Like the previous speakers, Senator Honan and Senator Howard, I would also like to pay tribute to the outgoing general manager, Paul Quigley, a man of ability and integrity who played a major role in the overall development of the mid-west region at a time of rapid change in industrial development internationally. Within his term of office he brought about a dismantling of the protectionism which existed to almost total free trading in a time of crisis and recession. The best tribute one can pay to him is evident in the now thriving development company and industry throughout the mid-west region. Many of the difficulties experienced by other parts of the country during times of recession, depression, oil threats and so on have been minimised by the efforts of the development company in the mid-west region — the region embracing Clare, Limerick, North Tipperary and now parts of Offaly. That is a tribute to the company, the dedication and commitment of their personnel, and especially to the man who has recently retired, Paul Quigley, the former general manager.

Like Senator Honan and Senator Howard I would also like to congratulate Mr. Tom Dunne on his appointment as general manager of the company. He has vast experience in the company; he is a man of ability. He is a dynamic executive with wide experience in industrial development and has been involved in the company for quite a while. He would be aware of difficulties in attracting industry to the region. He fully understands the enormous problems of the region and also the opportunities obtaining there. I have no doubt that under his leadership the company will go from strength to strength. I wish him well and I am sure the House wish him well in his new post and wish all the personnel in the company well in their endeavours to keep the company going as successfully as has been the case up to now.

We are aware that the company have experienced outstanding success in a number of areas. I am doubtful if the provisions of the Bill will adequately meet the changing circumstances of industry at present. As I mentioned at the outset, it is only two-and-a-half years since similar legislation was before this House. It would be more appropriate for the Minister to introduce legislation covering a period of say, five years, in order to enable the company to develop in a planned and proper way.

The provisions of this Bill are not adequate. The amounts provided are not adequate to meet the challenges facing the region in future years. I do not think it is desirable that we should have to come back to this House every consecutive year seeking authority to increase the amounts payable by the Exchequer to companies like this. This is bad for the semi-State agencies and for the Houses of the Oireachtas. If we are to give them the necessary support to undertake the work needed to be done in the mid-west region they must be able to plan much further ahead than, say, one, two or three years. They should be in a position to plan at least five years ahead.

The development company recognise the difficulties that exist in attracting industry to the remote rural areas where there is a lack of infrastructure, telecommunications and so on. The telecommunications system in the part where I live which is part of the region of south west Limerick is completely inadequate. We are still not automatic. I read a report from Limerick County Council four or five years ago, saying that that region would be automatic in 1983. At the end of 1986 we are still not automatic and I know of businesses that were trying to get automatic telephones. They were losing business because of the operator telephone system. They found it very difficult to get automatic service although prepared to pay for it.

This is a hindrance, and definitely an obstacle to attracting industries to the rural area which is one of the principles of the small indigenous industrial programme. Definitely, we have to exploit our resources in all those areas. Now that Golden Vale have their rationalised programme, there are I think in every parish buildings suitable for small industries that could be set up and provide employment in rural parishes. The local community is depopulated: people have had to go to built up areas and the SFADCo idea is to provide as much industry in small parishes as possible.

We will have to exploit our other natural resources in coastal areas. That is the only way in which jobs will be provided which in turn will mean extra revenue for the State and the immediate community. It would help to ensure that parish identity today will be maintained. The fish industry will have to be developed. It could definitely cut down the importation of fish and that is something we must do ourselves. It is insane to allow the Norwegians, Dutch, Danes and Spanish to come in and do what we can do for ourselves. I support the development company and the youth employment agency in their efforts to encourage local enterprise to become involved in the training of local people and to use local resources. The new projects are mentioned in page 10 of the report.

During the year the company launched an agri-business pilot programme to develop a series of integrated agri-business projects in the mid-west. The successful ventures will be commercialised into independent enterprises. To promote this programme, a mid-west resource committee have been established. The committee will include representatives of the following agencies: ACOT, the Council for the Development of Agriculture, An Foras Talúntais, the Department of Forestry, Macra na Feirme, Córas Tráchtála, Thomond College of Education. Irish Creamery Milk Suppliers and the IFA. These bodies are definitely making great contributions towards this programme and I am sure they will ensure its success. The projects established as part of this programme include deer, geese and pheasant. I know young farmers in my own immediate vicinity who have availed of this programme and have such projects in operation. This is something I would like to congratulate SFADCo for initiating. I am sure with the committee set up to monitor it, it will be a success.

You have no hope of attracting any industrial project to this area without involving enormous costs to the State. A number of projects could be organised along the Shannon Estuary and to date this has not been done. That reminds me: I was looking at a map there that Senator Howard referred to, figure 1, the location of projects approved for 1985. We will probably come to it later this morning. The Shannon Estuary has been debated on many occasions but it remains undeveloped. Yesterday we discussed the Harbours Bill which deals with the Shannon Estuary. That Bill is totally inadequate and is not expected to be of much benefit as regards developing the Shannon Estuary. That is why we must look to SFADCo to get involved in the promotion and development of suitable sites for all types of industries. Potential definitely exists along the estuary. I also note from the 1985 report — Senators Honan and Howard referred to it — that the company built ten small factory units in that year. It is interesting to note that 86 per cent of the factory buildings that have been allocated are occupied. A small number of units are available for occupation by new industrialists. That is desirable.

I would like to urge the Government and the development company to continue to build advance factories. It is generally recognised that the international recession is lifting and there are encouraging signs that an upturn is about to take place. It is desirable that we should have sufficient factory space to avail of any upturn in the economy. There is an urgent need to develop small industries to link up with bigger concerns. In the 1985 report the development company indicated that more than £3 million worth of business was generated by import substitutions in 28 small concerns. These companies manufacture small components which are for local industries. When the GAC company based in Shannon closed more than 200 people were made redundant. We saw the impact that the closure of a small company can have in an area. It was very depressing and I am asking the Minister to make some effort to get that bus building plant re-opened. We are all aware, as I am sure the Minister is, of the need for school, rural and city buses. This year we will be importing about 25 buses which could have been built at Shannon if there had been any initiative by the Government. This inaction is tragic and I hope that at this late stage they will salvage something of the bus company.

I would also like to refer to the Burlington textile factory based near Limerick which closed down a number of years ago. Hundreds of highly-skilled people were let go and there has been no effort to re-open the plant. We know that because of its nature the textile industry has been receiving EC aid in Britain and Northern Ireland. Why can we not get it for our industries here, such as Burlington, instead of allowing them to close down? We have heard the story before that because of their policy on textiles the EC have not been grant-aiding companies in that business: we are told that there is over capacity in the industry. Why are we different from Britain? I hope the Minister will tell us what effort is being made to get the Burlington plant in Clonlara near Limerick city re-opened. It is also interesting to look at the report for 1985 which became available recently and to see that the bulk of activities in expenditure of the company seem to relate to development of small indigenous industries. In the last eight years — Senator Howard also referred to this — there seems to have been great progress made in that area. The company have been very successful in what they have done. They have benefited the mid-west region considerably and have been beneficial for the country as a whole because much of the development in respect of small industry that has taken place would not have occurred but for the steps taken in 1978. At the time — and I remember speaking on this Bill — there were reservations as to whether this scheme would be successful. Thank God that is past tense and the scheme is successful in benefiting the area, its youth and the industrialisation of the mid-west region.

I should like to refer to the small indigenous programme and the locations of projects approved in 1985. The locations are concentrated around Limerick city, east Clare and well scattered in north Tipperary and Offaly. There is one area which seems to be rather blank. That is my own area in south-west Limerick around Drumcollogher and Bruree, Ballingarry and Kilmallock, my own parish. As I mentioned already Golden Vale are closing down creameries in these parishes. There are buildings there that would be very suitable for industrial factories. There is no employment in my parish whereas 20 years ago about 20 were employed in the local creamery; now there is nobody. The rural areas should definitely get attention from the sector. West Clare and places along the Shannon Estuary also need attention; I think there is great potential in that area.

There is an excellent timber plant in Kilrush which was closed down recently because of Government inactivity in providing the necessary raw materials for wood processing. A number of meetings were held. I understand a representative of the Department visited the area and discussed it with local people but the workers are still redundant and they have joined the dole queue. That was a successful small business and it was the duty of the Government to see that it was provided with the raw materials. It was a factory run by Woodfab and I think Woodfab are getting into difficulties in other areas because of the lack of sufficient supply of raw materials. This is something I spoke of recently in a Private Members Motion. The Government will have to tackle the provision of raw materials for wood processing factories.

Scarriff was in trouble some years ago but it is now open thanks to a Spanish firm of wood processors who came in to develop our timber resources which we could not do ourselves. The Government seem to have allowed the Spanish to exploit our fisheries and now they are exploiting our timber resources — but to good effect; it is good that the industry is there and giving employment but it is something that we should be doing ourselves and we should recognise that fact.

I am pleased with the report and I will co-operate with the Minister in ensuring that the Bill will be passed today. I would like to compliment the development company for the work they are doing. I would also like to congratulate Father Harry Bohan on his appointment to the board. He has proved most successful in his rural housing and other schemes. To our disappointment a couple of weeks ago he trained the Clare team to beat Limerick. How he will do with Senator Ferris's county I am not too sure. He will be a great acquisition and will make a great contribution to the board. The board should be encouraged to continue with the work and to press ahead with the development of our natural resources. I welcome the attention they are giving to the agri-business and to food products and to the mariculture area generally. That must be encouraged if we are to succeed. We must start with our own natural resources and every resource we have should be explored to ensure that the area will benefit and get employment. We wish to give every encouragement to the developing company to press ahead with the overall development of the mid-west region. The mid-west region, as mentioned during the debate on the Harbours Bill yesterday, reminds me of something I mentioned on the previous occasion when the SFADCo area was being enlarged to include part of Offaly with Clare, Limerick and north Tipperary. Geographically there is room also for the inclusion of north Kerry. North Kerry is included in the Harbours Bill which deals with the development of the port and the Shannon Estuary. North Kerry is apart from Clare and in line with the west Limerick boundary and parts of the Shannon in Clare and geographcally I cannot see any problem in including north Kerry with the mid-west region and allowing it to avail of the grants that SFADCo are providing. We need more expansion in tourism and in this respect it is encouraging to see in the report the increased number of tourists at the banquets and tourist amenities.

There is need for more advance factories to be built so that there will be a progressive development of the region in the next few years under the development company.

I welcome the Bill and hope it will be a success.

Mr. Ferris

As my colleagues in the mid-west are Munster people like myself I think that Senator Kiely will agree that they have done better than we have in Tipperary both in industry and in the GAA field. I do not want to pre-empt the decision in next Sunday's match. We might improve in that line.

We do look upon SFADCo with a certain amount of envy particularly in west Tipperary where we are so closely associated with the development they have. The closest development to my area is Oola although that is not included in the figure 1, Location of Projects Approved for 1985, on page 7 of the Report. Oola is literally two miles from my own county boundary and from the west Tipperary section of the constituency that I represent. Senator Kiely's area is very closely linked with us through SFADCo.

There has been an increasing desire expressed by industrial developers in my part of the county to be linked with SFADCo simply because they have looked upon the success of SFADCo in the past and the dynamic role the company have played in assimilating projects, in taking the risks but, more important, acting as catalysts for industrial entrepreneurs in development. This is a technical Bill or a Bill that allows the Minister certain financial limits in accordance with the rules of the House. It is only a piece of legislation that enables him to assist the company to continue to progress. Although that is the content of the Bill as such it does allow us an opportunity to pass favourable comment on the work of SFADCo and to identify some of the areas that have been involved in the hope that other areas, and indeed the IDA through their now regionalised projects, can take an example from the good work that is being carried out by SFADCo.

It is significant that the aggregate amount of grant in aid can now be increased from £60 million to £105 million. This is a significant increase in the amount of leeway available to the company to grant-aid projects which are approved. The increased latitude for the Minister for Finance in taking up subscriptions in shares of the company from £120 million to £130 million would deal with the point Senator Kiely has raised. It is a pity that dynamic companies like this have to come back to the Oireachtas all the time for approval. It is fair to say that they have never been stopped by this Government from doing anything or coming up with any other projects by a restriction of capital investment or the will of this Government to invest with them. The reason for this Bill is that they have achieved the original limit that was set. It is appropriate that limits would be set; otherwise, a semi-State company, if they had an unlimited rein could break the country. For example, Irish Shipping, made the most extraordinary arrangements about contracts to the extent that if action was not taken by the Government, we would be tied up in a situation in which Japanese people could eventually call the tune and the State would have to pick up the tabs. There has to be some day of reckoning.

I am satisfied that SFADCo have always presented themselves in the most forthright manner. They have their facts and figures available to indicate that they have been successful. I will join with my mid-west colleagues in complimenting all of those who have been involved with SFADCo, from the days of their inception down to the present in which we look upon what they are doing in their area and doing so successfully. There have been statutory bodies involved with SFADCo, the Limerick Harbour Board, the new harbour authorities that we hope will be set up in the Shannon Estuary and the county councils of Limerick, Clare and Tipperary North Riding. I should pay a special compliment to the local authorities that have been directly linked with them in trying to ensure the infrastructure that was necessary in the development of Shannon as a town — the excellent road network that now services the airport and the surrounding hinterland. The two county councils involved, in spite of occasional criticisms from the media, particularly the radio commentators, and their comments about the Ennis Road, have achieved a network of roads servicing the airport that are a credit to them. I wish all county councils were as progressive as those two. We, in south Tipperary and in the west part of south Tipperary where I live can identify immediately with that region and airport. It is 35 to 40 minutes from us because of the excellent road network. It is because of that that we identify with that region and direct our thoughts towards it. We look to Waterford for ports but we look to Shannon for our airport infrastructure. Many people from the town of Tipperary commute to Shannon for work and gainful employment. That is why we can identify so closely with SFADCo.

This Government in the past in giving recognition to the mushrooming town like Shannon stressed that it was appropriate that it should have the status of at least a town commission, a statutory body elected by the people of Shannon. I would hope that it would evolve eventually into an urban council situation and have more powers available to its elected representatives to take an active part in the development of the town itself and its industrial complexes. I have visited all the factories in that area from time to time with leaders from my party. We have always been very impressed with the level of industrial development that has taken place in and around the town of Shannon.

The number of owner-occupied dwellings has increased immensely. There were over 2,500 dwellings there in 1985. Out of that emerges an extraordinary statistic which is shown on page 17 of the Report — 59 per cent of all those houses are owner occupiers. That is an indication of the confidence that people have in the continuing development of their area. They want to acquire property there and own it. Shannon has matched that confidence in its people. There has also been an air in SFADCo that they do not want to confine themselves to industrial development as the IDA do. Of course the IDA's specific role is to stimulate industrial development. In the past they have tended to concentrate totally on multinationals or foreigners in the development of industry.

As Senator Honan said, it was a tragedy that more preference was not given in those days to Irish entrepreneurs who, with assistance, could have made a major contribution to the industrial development of their own counties. That has happened in particular, in County Tipperary. I am glad the IDA now give the same, if not more, preference to Irish industrialists provided they have the ideas, expertise and the capital to start up industries, particularly those which have an export content. This of course, is one of the ways in which we can improve our eternal earnings. I am glad that the IDA nowadays tend to give at least the same recognition to Irish people who need assistance. In the past they assisted a lot of multinationals and will continue to do so. They make a major contribution in their own way, but it is nice to see Irish people capable of doing the same.

I am pleased that the Minister, in his speech, identified a project in which I have an interest, coming as I do from one of the greatest agricultural producing areas in the country, the Golden Vale, which stretches from most of the south-east down to the mid-west region and includes Counties Limerick and Clare. This project involves the production of food. In the past we have tended to depend totally on the Common Agricultural Policy and on the intervention system of setting prices for our agricultural production. I am delighted that SFADCo has spearheaded a pilot project to address itself to the whole process of food and how it can be processed, packaged, sold and exported. As we produce the best and purest food in the world we have a major plus for any sales team wanting to export our food and sell it within the Community or outside it. A great deal has been done in this regard but I am glad to say that SFADCo has been briefed by the Department of Industry and Commerce, to identify new products and develop them. We can do that as good as the Danes or any other member of the EC.

The Spaniards are also colleagues of ours now in the Community and their entrepreneurial spirit will also have to be respected and regarded. The fact that they want to set up an industry in Ireland must be welcomed. Likewise, the facility is available to us to set up industries in Spain if we so wish. Now that competition is tougher I hope Irish people who have benefited from ten years of membership of the Community will attack these markets which are there for them. We are, and have proven to be, as good as if not better than most, provided we realise the market is there and is unlimited. We might have to adjust the system we have adopted in regard to food, that is, it must always be available and fresh. Our system might be acceptable on the home market but when exporting we must consider processing, packaging and a pleasant presentation of our excellent food so that customers abroad can identify it as being Irish and consume it without there being any problems about its freshness. That can be achieved through the new processing pilot that SFADCo have identified.

Shannon is a major development, of course, and something which we must have regard to in this House. The Government should also have regard to it. Whatever other airports might have started in the west of Ireland — we wish them every blessing and success in the future. Any developments in the future in that part of the country will have to have regard to the existing facilities at Shannon. Shannon Airport is an international airport servicing the North Atlantic route and indeed many other routes to the European Community. In wishing all other airports good luck in the future and continued prosperity, the Government's first commitment must be to the continuing success of Shannon Airport. That is recognised in the legislation and it is recognised by international airlines which are using Shannon — Aer Lingus, Aeroflot of the Soviet Union, Pan Am and Delta from America, and Ryanair, which I hope will be using Shannon as a tourist boost in the future not alone coming into the mid-west region but into the south-east region. They are running package programmes which will fly people into Shannon and include other facilities including race meetings in Tipperary and overnight accommodation. All these will be linked with Shannon.

Planning approval has been granted for a major complex in Newcastle, County Tipperary. I compliment Eamon McGrath for his entrepreneurial spirit in developing a new owner-sharing and time-sharing complex of over 70 houses there. This complex will have every facility and will create a tremendous demand in the local area in the service industry. Shannon will be used as the location for Americans who own property in County Tipperary to fly to every month of the year in the future. One of the airlines will enter into a contract to fly these Americans here on a regular basis. The people of Shannon will benefit from the spin-off effects such as car hire and so on. These Americans will not just be tourists; they will have an affinity to the area, owning property in south Tipperary. I welcome that type of development. It will benefit the SFADCo area and I know they will be able to match the challenge that a development such as that will bring with it.

SFADCo have not confined themselves to industrial development. They have spearheaded tourist development in their medieval banquets at Bunratty Castle and Knappogue Castle and other archaeological gems in the mid-west region. They have stimulated a whole concept in travel, duty-free and rent-an-Irish-cottage developments throughout the region, including Puckane in north Tipperary. It is a tremendous concept that a regional company — which is really a limited company — can pinpoint the developments which are best suited to their own region, whether it is industry, transport, infrastructure or tourism and all the other spin-offs from it.

As a result of this experience the IDA have learned a lesson. The IDA are a national organisation with an excellent sales team selling Ireland throughout the world, but they realise that within Ireland itself more can be achieved by regionalising the decision-making progress, that in that way start ups can be stimulated and grant approvals given without having to wait for the larger board of the IDA to sit down and consider them within the required process.

Senator Honan mentioned Guinness Peat Aviation and it would be remiss of me if I did not join with her in congratulating the people involved in that venture. It is probably one of the greatest success stories of modern Irish industrial development. Some of the people involved in that are from Tipperary and are party colleagues of mine. All the people involved in the GPA industry came through the semi-State sector. Most of them worked in Aer Lingus and it was from working in that company that they got the ideas. They had the spirit to go ahead with the idea, to sell it themselves in the first instance, and to generate capital. They are now one of the most successful companies in the world. They have shareholders in Japan and elsewhere. This is an example of what Irish people can do. They started in the semi-State and public sectors and have gone into the private sector with tremendous success. I am glad to have had association with the people involved in that enterprise. They are an example of what Irish people can do with a little assistance from the State and with the incentives that can be given by way of this type of legislation which in this case will stimulate further activity in the area of the development of the mid-western region and will have a spin-off effect in my own area.

There has been always an interest in Tipperary town and in Cashel because we are between two stools there, as it were. We are between the major south east region which benefits from Cahir and Clonmel down to Waterford and across to Wexford and at the west end of south Tipperary we are caught between that activity and the activity of SFADCo. We often want to be part of what is being done in the mid-west region. I know that the boundaries were drawn for development purposes on the existing county development organisational areas which take in particular counties. At times this is not the right way to do it. The normal rivers or county boundaries should at times in this type of context be overlooked. People in my area would welcome any assistance from organisations like SFADCo. I am sure it would not be too far out of their area if they moved four miles down the road and took an active interest in the development of Tipperary town and Cashel.

I am pleased that the Minister is looking for our authority, so to speak, to raise the limits. As other speakers have said, the Minister will have the full co-operation of this House. We did not want to let the opportunity pass without commenting favourably on SFADCo and how the company have developed and increased the number of people they employ and the number of firms they are responsible for. In economically difficult times they have shown an overall increase of 190 per cent in employment within companies that have been assisted by the overall development company.

Mr. Hourigan

I, too, welcome this Bill warmly. I congratulate the Minister, the Minister of State and the Government for their positive initiative in ensuring that SFADCo move forward and are in no way restricted or inhibited in the future. It is encouraging to see that the Government are increasing substantially the amount of grant-in-aid to SFADCo from £60 million to £105 million. That indicates the confidence the Government have in SFADCo. This confidence is shared by Members of this House and by many other people as well. The increase in share involvement by the Minister from £120 million to £130 million is a further indication of the Government's confidence in SFADCo for the future.

Another point which is very salient to this legislation is that the provision made for the level of remuneration, allowances and conditions of the officers and servants of the company shall be subject to the approval of the Minister and the Minister for the Public Service. That is in common with a lot of new practice.

Mr. E. Collins

On a point of order, that section has been removed from the Bill by agreement of the Dáil.

Mr. Ferris

And appropriately so.

Mr. Hourigan

The Government have demonstrated by their positive approach towards helping SFADCo that they recognise the performance of the company over a number of years. As other speakers said, the company's achievements have been many, their ability to raise the confidence of the people of the area has been quite dramatic and they have instilled a great measure of hope and belief among people in the region. There was a review of the position three years ago and it is appropriate that we are looking at it again today.

I should like to refer to the involvement of SFADCo in the food processing and agri-business sector which is moving forward at present with the recently opened plant at Raheen in County Limerick. Nevertheless, there is a great need for SFADCo or an organisation of the competence of SFADCo — and I cannot think of any more suitable organisation to handle it — to get into that area in far greater depth. Frankly, that area of diversification of food production, processing and marketing, encompassing as it does the whole area of added value has much distance to go before the potential which exists is exploited.

Therefore, I urge the Minister and SFADCo to put a greater effort into this vital area. As is recognised by everybody, the area with which SFADCo are concerned covers quite a fertile agricultural hinterland. They operate in an area where many agricultural goods are produced, where there is beef processing and the manufacture of dairy products. For that reason, an even greater amount of research and performance of the work needs to be carried out. What is happening in the present pilot project is very good. I fully support it but I do not think it is sufficient to meet the needs of the sector quickly enough.

There has been much talk in both Houses in recent years about the question of import subsitution. This is an area we have not done enough about. We must increase, quite significantly, the efforts in this regard whether in the SFADCo area or in any other area. I strongly urge the Minister and those concerned to pay more attention to this area because it has a very vital spin-off potential effect in the area of employment and in helping our balance of payments. We know that import substitution in the food sector can reduce our balance of payments position by some hundreds of millions of pounds when we include animal feed and food for humans.

This raises the vital question of market research and of endeavouring to find out precisely what the consumer wants. We have not sufficiently investigated this question. We have tended to produce something and then market it to the best of our ability, with good marketing expertise on many occasions, but we have not done enough investigation into what the customer needs. We must produce for the market place and then market it in the best way possible. There has been a greater realisation of this yet there is some distance to go before it is fully realised. The whole area of food development should be looked at. There could be merit in having more food centres in parts of the SFADCo area. For example, County Clare has a high level of agricultural production, particularly milk and its by-products. There could be some merit in an in-depth examination being undertaken with a view to establishing such a centre in that county.

I should like to be associated with the tribute paid to Paul Quigley who has retired recently from SFADCo. I compliment him on his magnificent contribution during the past 25 years in the Shannon area. His input has been enormous. He has inspired people and has instilled confidence and motivation. He did everything that needed to be done during some difficult times. At times it was less difficult but overall his performance has been magnificent.

I congratulate Tom Dunne, the new chief executive, and I wish him well in his role. From my knowledge of the man and his expertise and competence I am satisfied he will do an outstanding job in his new position. I am sure that new ventures and new imaginitive processes will come under the ambit of his role and that he will take on board many ventures which have not yet been envisaged. I wish him well for many years to come in this role in the SFADCo area.

There are many other people one could refer to individually but suffice it to say that there is an excellent team of people working within the SFADCo organisation. They have done a great job to ensure that people are given every encouragement and every opportunity to promote worthwhile ideas. SFADCo have helped many small businesses and small companies in getting off the ground. This is an area which has good potential but it needs a lot of motivation because it is hard for people to realise that the creation of two or three jobs will make a significant difference. The creation of jobs in small numbers can add up to quite a lot.

Obviously, SFADCo's main concern is the Shannon free airport zone. They are concentrating also, in conjunction with the IDA, on the whole area of the small business development. That has added enormously to the employment situation in that region but there is a great deal more potential in that regard in the time ahead. At present, employment in the free zone area is of the order of 4,500 persons while small industry employment accounts for 5,300 jobs, involving over 700 firms. It is significant to note that there has been a change in the number of firms from 350 in 1978 to 700 at present. There has been a change in the number of person employed, from 3,000 to the figure I have mentioned.

There is one matter which I have raised before and while it is outside the area of grant aid as such, it is worthy of consideration. The whole service area is not eligible for any great aid whatsoever. There should be further investigations to see if some assistance can be given in that direction. There are a number of small service businesses operating in the Limerick, Clare, north and south Tipperary areas with which I am familiar. They do not qualify for any grant aid. There is merit in their being properly screened and perhaps given some assistance. I am fully aware — I am sure the Minister may have some comments to make on this — of the present ground rules whereby if a venture is a non-creative project or business it does not qualify for grant aid. Many of these service industries are fairly borderline and perhaps a wider interpretation might be possible to take them on board for the purposes of grant aid. I am talking about relatively small money which would make a great deal of difference to people who are trying to get a business started.

There has been, as has been stated by one of my colleagues, a good deal of risk-taking involved in the whole scene of SFADCo. That is very welcome in that good commercial practice is the order of the day, whereas in any State or semi-State operations it does not seem to exist at all.

Another very important point I would like to mention is that in their report SFADCo have clearly talked, as was stated by some speakers here this morning, about progress development and growth in the context of an assessment of what has been achieved in these areas and, more importantly, in the context of the potential for the future in these various areas. I support the remarks made already by the various Senators in relation to the performance generally of SFADCo in the region. It has been an inspiration, not alone there but throughout the whole country. It has increased the number of top level entrepreneurs operating, in many cases small business. They are doing a very good job. If they are not giving a great deal of employment in their businesses they are indirectly contributing substantially to the development of the whole area.

The stimulation of new products which I talked about in the agricultural sector, is also very important right across the board. These various programmes must be developed a great deal more. In my view SFADCo have done a great deal, but there are two areas that they must get involved in even more deeply. One area is the agricultural sector. They must realise the potential that exists here for producing the right product for the market place. They should also see if the interpretation of service industries might be stretched a little bit to include certain very worthwhile projects. At present the Limerick, Clare and Tipperary regions do not qualify for any grant aid whatsoever.

Mr. Deenihan

As a representative just outside the periphery of the region, I can only look on with admiration and indeed envy at times at the achievements and performance of SFADCo in the mid-west region. The north Kerry area has far more affinity to Limerick and has far more contact with Limerick over the years, traditionally and historically than it has with Cork. For that reason we have lost out enormously in north Kerry through the Cork connection. Arguments have been made in the past for the inclusion of north Kerry in west Limerick. A former Minister, Deputy Desmond O'Malley was very favourable towards the idea. I hope some time in the future that SFADCo will be expanded to include north Kerry.

North Kerry has been neglected by the IDA regarding the setting up of small industry and the encouragement of small industry in the area. There may be a twofold reason for this. It could be said that the ideas are not coming from north Kerry to the IDA officials. As the Minister probably knows, the IDA have a permanent office now in Tralee with a permanent official there. Nevertheless, due to the fact that he has to support Cork, any suggestion that comes from the north Kerry region means that we are being directed from Cork. As a result of this people are not inclined to come forward with ideas to the same extent as they would if our region was involved with SFADCo.

Senator Hourigan mentioned the whole agri and food processing business. In north Kerry we have North Kerry CoOperative, probably the biggest food producer and processor in the country. There is far more scope in north Kerry for other types of food processing industries, especially small industries, if this could be encouraged. The nature of the population structure of north Kerry would lend itself to this small type industry, because we are very much made up of parishes and villages within the parishes. It is an ideal structure almost readymade for the encouragement and development of small industry in the area. According to the 1985 report SFADCo set up 164 small industrial projects. The number set up in north Kerry, for example, which covers a wide region is a very small percentage of that. There must be some reason for that. Traditionally, north Kerry people have been entrepreneurial in spirit and creative as well.

Now that the Shannon Ports Authority is coming on stream there is an additional reason for the north Kerry region to be governed and directed by SFADCo. If any development is to take place in the Kerry region of the estuary, advice, financial aid and so forth will be fragmented, because if development is to take place along the west bank and our bank, SFADCo will be looking after it on one side and grant aiding and developing it, whereas our side will be directed from Cork. That will give rise to much unnecessary duplication. There is even a greater argument now to have north Kerry included in the SFADCo region.

I would like to refer to the town of Abbeyfeale, which is just on the borders of Kerry and Limerick, and to look at the achievements of SFADCo there in encouraging small cluster industries etc. I feel that really supports the arguments that I have been making about the performance of the IDA in north Kerry. In the future, while I will be involved in politics, I will certainly be making the case for the inclusion of north Kerry in SFADCo because of the reasons I have mentioned. I feel that the sooner it is included the better for the people of north Kerry and for the future of the area.

Minister of State at the Department of Industry and Commerce (Mr. E. Collins)

I was pleased at the number of Senators who took part in the debate and who, in a constructive manner, welcomed the introduction of the Bill. I was very impressed with their commitment to their own regions. It is obviously a reflection of the positive impact which SFADCo have made in the region. Indeed the support that has been given to the Bill here today is also a reflection of the wish of the House to continue to encourage and support the activities of SFADCo.

The Bill provides for the continuing funding of the company's capital expenditure in the Shannon zone and in the mid-west, and west and south-west Offaly, and for their financial assistance to companies in the Shannon zone. When this matter was being debated on Committee Stage in the Dáil doubts were expressed that the provisions being made would suffice until 1990 and, indeed, the reservation was expressed that three and a half years is too short a time between Bills. I, therefore, share Senator Howard's satisfaction that this is not the case.

In relation to the first of these I can assure the House that the sums provided have been carefully calculated in consultation with Shannon Development and on the basis of the most up to date estimates of likely developments up to 1990 and that they will suffice for that period. I reject the view that the period is too short and does not allow for planning. That is not the case, nor is it the intended case. We are trying to allow Deputies and Senators the opportunity to review the affairs of SFADCo at fairly frequent periods. That does not in any way controvert or interfere with the long term planning philosophy of SFADCo. It is a positive aspect of democracy that the Government allow a debate such as this today at fairly regular intervals. It reinforces democracy as I know it. It is a mechanism that should be welcomed by Senators.

Shannon Development have in any event submitted a detailed corporate plan for the period 1985-89 to the Department of Industry and Commerce. The rolling over of that plan will coincide very closely with the period which the current legislation is intended to cover. In addition, of course, there is the fundamental principle that a State agency should be subject to regular and frequent review by their effective owners, the Oireachtas. As I said earlier that is being done here today and will be done at fairly regular intervals.

In my opening contribution I covered most of the significant developments relating to SFADCo in recent years. One omission was urban renewal, an activity in which the Government had a successful track record, most prominently evidenced by their work on the Granary project in Limerick city. More recently they have tended to be less active in this area as manpower resources were directed to more pressing areas.

The announcement earlier this year of the package of incentives for inner city development in cities, including Limerick, alters this situation. The Minister for Industry and Commerce has asked Shannon Development to work with Limerick Corporation with a view to ensuring that the new incentives are exploited to the maximum benefit of the redevelopment of the city. I am quite sure that Shannon Development will be very interested in being fully involved in that activity.

All Senators have justifiably paid tribute to Paul Quigley, who has retired as chief executive and have welcomed the appointment of Mr. Tom Dunne. The Minister has already paid tribute to both these gentlemen in the Dáil. I would like to take the opportunity to add my best wishes to both of them.

In relation to points raised in the course of the debate, I would like to refer in the first instance to Senator Honan. While I cannot detail where individual units were built in 1985, the Senator may like to have the details I have here regarding the geographical spread of allocated and non-allocated small industry units. It is available and with the permission of the House I will have it given to Senator Honan. In fact, pages 36 and 37 of the annual report provide broadly similar information in terms of the 1978-85 progress and units under construction. Perhaps I could refer the Senator to that.

The potential of mariculture to create employment, a question which Senator Honan raised, in the mid-west region has not been exploited fully. The objective of the company has been to investigate the possibility of developing and processing fish products using the natural resources, which exist, particularly in the Shannon Estuary and off the coast of Clare. The use of Shannon Airport as a means of flying to foreign markets has also been studied. There are, however, difficulties in developing this sector not least being the licensing regulations and the timescale involved in establishing projects. The company's strategy has been, as the Senator knows, to involve all relevant agencies in a joint planning exercise designed to clearly identify constraints and agree to a plan of action.

I can assure Senator Honan as regards SFADCo's role in the promotion of traffic at Shannon Airport that it is not the intention of the Minister, myself or the Department to in any way dilute the role of SFADCo in this regard. The Minister made it perfectly clear in the Dáil and I want to repeat it here in this House. Senators could support the Minister and myself in that regard.

Regarding Senator Howard's contribution I regret that I cannot guarantee that SFADCo's is the first annual report of a State-sponsored body for 1985. Certainly Shannon Development are a model for other agencies in this regard. They have always been quite effective and efficient in the manner in which their reports are published.

Senator Kiely commented on the imbalance, as he alleges, in the distribution of new small industrial projects. I can say that while Shannon Development are conscious of difficulties in peripheral regions they would emphasise that they cannot dictate the location of projects. The start up rate in any region depends on the availability of local entrepreneurs. There is a misconception regarding the IDA and SFADCo in this regard. I have often heard time and again at Question Time or in the course of debates "my region is being unfairly treated, neglected, done down by this Government". That is not a fair or justifiable comment. The IDA and SFADCo are there to assist industrialists, entrepreneurs and promoters. They are not there to dictate the location of industries. It is the promoters' right to dictate where they wish to place their industries. Of course, we have different incentives available and, by and large, they are reflective of the location of the industry. It is the promoter who has the primary right to decide where he or she would locate the enterprise.

Regarding what was said by Senator Ferris and Senator Deenihan on this point, it is not proposed to extend the remit of Shannon Development at this time in terms of their geographical responsibility. I would merely say that the company's success has been responsible for the regionalisation of the IDA'S small industry programme. A further expansion of the company's remit would significantly dilute their ability to pioneer new concepts which can subsequently be adapted nationally. The challenges facing Shannon Development are great, worthwhile. They are innovative at the frontier of research and industrial development. They are welcome but it would not be possible for me to say in this House at this time that it would be in the best interests to widen their geographical remit.

I would emphasise in any event that the IDA'S regionalisation of their small industries office has just been established. It is now in place. There is no reason to suggest that the regional offices for small industries will be less effective in promoting small industry within their own region. We must give them every opportunity to succeed. My personal contact with them is that they have been successful. The plans they have laid down, which I know of, are being closely met and they should be encouraged and receive the praise of the House and given time to be seen to be effective.

Senator Hourigan referred to the food processing industry. I can assure the Senator that this is something that the Minister and myself are equally convinced about and we are having discussions with the company as to how their efforts in this area can be intensified. We are satisfied that this is a major area of priority as was outlined in the White Paper. The problem with grant assisting service industries, referred to by Senator Howard, is that they are not internationally trading. They are the new ones that might become established. To grant aid them would confer an unfair advantage on new operators vis-á-vis existing businesses. It may be a bit difficult to see how effective this will be but we are at the frontier of this activity and we will have to take time to see how effective the policy is.

Senator Deenihan took up the case of Kerry. I can only repeat, as I said earlier, that the extension of the remit of Shannon Free Airport Development Company Limited is not envisaged but that I have every confidence in the effectiveness of the regionalisation of the small industries programme and in the establishment of regional offices. I am quite sure that in time these will be seen to be most effective. I am very grateful to the Members who contributed and I hope that we can conclude the Bill soon.

Mrs. Honan

As it will not come up on any section — I certainly would be the last one to delay the Minister — he did not make any reference to a six marker that I asked about the larger fuel terminal cost. It is costing £1 million and a lot of the funding of this will be by way of other agencies. I should like to know if the Government are giving a commitment to this fuel terminal for Shannon. We are asking here that there would be keen priced aviation fuel to protect and strengthen all traffic to and through Shannon. I understand from experts — I am far from one — that that fuel terminal is needed in Shannon. Because I cannot take it on a section and because the Minister did not make any reference to it at all in his reply I would like to say something about it now. I do not want to embarrass the Minister in any way. If he wants to talk to me again some time, although I do not believe in this talking in corridors, he can do so. I would not dare to put the Minister in a spot. I would like to know if this is all Government money.

Minister of State at the Department of Industry and Commerce (Mr. E. Collins)

I cannot respond to Senator Honan here simply because I understand that this primarily may be a matter for Aer Rianta. That is not within the remit of the Bill. That is not to say that I will not make the proper inquiries. I will undertake not to discuss the matter with the Senator in the corridor but to have a formal reply sent to her from my Department.

Mrs. Honan

I did not mean that for the Minister.

Mr. E. Collins

I am sorry that the Senator does not wish to talk to me in the corridor. I find her a charming lady.

Question put and agreed to.

Agreed to take remaining Stages today.