Dáil Éireann Debate, Thursday - 24 February 2005
7 Mr. P. Breen asked the Minister for Enterprise, Trade and Employment the recent initiatives which have been undertaken to promote job growth in Clare and the mid-west region; and if Shannon Development is in active discussions with businesses with a view to having them locate operations in this region. [6112/05]
View answerIDA Ireland has statutory responsibility for the attraction of foreign direct investment to the mid-west region, except for the Shannon free zone which falls within the remitof Shannon Development. Shannon Development is also responsible for supporting indigenous enterprises in the mid-west region. The city and county enterprise boards located in the region also help develop indigenous enterprise potential and stimulate economic activity at local level.
In 2004, Clare County Enterprise Board approved a total of €374,830 in grant assistance to 36 micro-enterprise projects at start-up or expansion stage with an employment potential of 67 jobs throughout the county.
IDA Ireland's sectoral emphasis in the mid-west region is on attracting new knowledge intensive projects in information communications and technology, international services, medical technologies and life sciences. Between 2001 and 2004, IDA Ireland companies in the mid-west committed to research and development projects worth €37 million.
Last year was a successful one for the mid-west region. Cook Incorporated announced its intention to establish its European shared services centre in Limerick which will add 50 new high quality jobs. Power-One Ireland Limited announced plans to expand its design team and establish its European customer and technical support centre which will create 29 jobs. Organic Lens announced a €6.5 million investment for the development of its manufacturing operations which will create 100 jobs. Monster Cable announced its intention to establish a shared services centre in Ennis which will create 50 jobs.
There was a net gain in the Shannon free zone of 147 jobs and a significant increase in the number of firms undertaking research and development. Shannon Development is in discussion with a number of organisations with a view to first-time investment in the zone. In addition, Shannon Development is in discussions with its existing portfolio of client companies to secure more of their parent company group activity for Shannon.
Shannon Development works with existing client companies throughout the remainder of the Shannon region to help develop the competitiveness of indigenous industry clients and to provide the services, infrastructure and support for aspirant high potential start-ups. This is done through the provision of financial supports and through individual programmes such as venture start, WCM programmes, Design Shannon and through the establishment and encouragement of business networks such as Supply Network Shannon.
The Minister referred to Shannon Development six times in his statement. With such praise, why has he removed its industrial development function? Employment levels in the Shannon region are at their lowest since 1998. The Minister referred to a number of industries that have set up in the region. However, it was 15 years ago that the last real industrial company, Organic Lens, located in County Clare. The Minister also referred to Monster Cable that set up there three years ago. While it claimed it would employ 50 people, it now only employs ten.
There is a view in the region that IDA Ireland only concentrates on the gateways and the eastern regions. Analyses in the past have shown a regional imbalance in foreign direct investment. Does the Minister have confidence in Shannon Development given the way he has been speaking about it? He spoke about information technology on which Shannon Development is concentrating, including investment networks and broadband. Is there a regional imbalance and a focus on the gateways and not on the hubs?
The Deputy has imagined things I have allegedly said about Shannon Development because I have not said any of the things he has suggested.
The Minister is taking away its powers.
It is almost as if the Deputy wants me to say negative things about Shannon Development——
I asked the Minister what role he sees for it.
——so he can go back to the constituency and proclaim my alleged denunciation of it.
I asked the Minister what role he sees for it but he still has not told me.
I will not provide content for any potential leaflet the Deputy may wish to distribute in the Shannon area or, indeed, in County Clare. I went out of my way to praise the performance of Shannon Development in China and the presentation it made to the Chinese authorities. The mid-west is doing quite well and, as I said, it did quite well last year in terms of foreign direct investment and the number of new companies which have come in.
The Minister has different figures from those we have.
New companies, such as Power-One, Cook Incorporated etc, are important. We know what happens when companies become embedded in our economy. They grow and evolve and new functions come on stream. This confirms the capacity of the region to attract foreign direct investment in the first instance, which is positive.
In terms of the restructuring of activities, I explained that the advent of the new independent airport authority is a significant development for Shannon and we need to work out the optimum structural arrangements to facilitate ongoing job creation in the area. Discussions are ongoing in that regard.
