Dáil Éireann Debate, Tuesday - 27 January 2004
252 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department has provided FÁS with an additional budget in 2004 to cover the cost of the registration charge placed on apprentices attending institutes of technology; and if she will make a statement on the matter. [1869/04]
View answerI am aware that the Minister for Education and Science has approved the introduction of a registration charge for apprentices attending institutes of technology. The administration of the charge is a matter for the institutes of technology. No additional funds have been provided to FÁS arising from these new arrangements.
253 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment the position regarding the securing of a tenant for the IDA advance factory in Athy, in view of the fact that it was indicated in previous Dáil replies that they expected a decision on a possible tenant for the factory by mid 2003, and this week another factory in Athy (details supplied) has announced that it is to close in February 2004 with the loss of 24 jobs; and if she will make a statement on the matter. [1875/04]
View answerIDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment to Ireland and its regions. The agency, through its project divisions and network of overseas offices, is actively marketing its factory in Athy to overseas investors as a potential location for foreign direct investment.
A profile of the facility has been circulated to IDA Ireland's overseas offices informing them of its competitive rental rate in comparison to locations like Dublin. Ultimately decisions regarding where to locate a project, including what areas to visit as potential locations are taken by overseas investors.
There have been four site visits to the factory over the past 12 months. Feedback from IDA clients suggests that the facility is attractive as a potential location for foreign direct investment. A possible tenant who expressed interest in the advance factory in 2003 has been in communication with IDA Ireland again in early January 2004 regarding plans to set up in Ireland. The project is slow to get to fruition as negotiations are still taking place between the company and a locally based multinational to secure a contractual supply agreement.
As regards the other named company, Shuttleworth, I am told it made a commercial decision that it was not sustainable to continue its business in Ireland. Over the past five years the overall challenges for IDA supported companies have been difficult and involve a period of transition from dependence on the more cost competitive sectors into the higher value added activities. Part of this transition has involved job reductions and losses in long established companies and reinforces the importance and urgency of attracting the more modern industrial and higher value added activities.
The success of our economy during the 1990s and into this decade means that Ireland is now much less competitive as a location for low wage manufacturing projects. As such Ireland, must now gear itself towards attracting a different type of investor. The focus for the future must be to attract investment requiring high skill levels, that is, as far as possible, innovation rather than production orientated, and that links in to an increasingly sophisticated business environment.
FÁS, the national training and placement authority, which also operates under the aegis of my Department, is making available its full range of support services including skills analysis, jobs placement, guidance and counselling interviews, identification of training needs and suitable training courses to assist those made redundant to find suitable alternative employment.
I am confident that the strategies and policies being pursued by IDA Ireland and FÁS, together with the ongoing commitment of Government to regional development, will yield results in terms of attracting additional sustainable overseas investment and jobs for Athy.
