Dáil Éireann Debate, Tuesday - 5 November 2013
383. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation the recommendations or agreements reached to enhance co-operation and limit competition between Invest NI and Industrial Development Agency Ireland with respect to attracting inward investment. [45693/13]
View answerOne of the principal statutory functions of IDA Ireland is to promote the establishment and development, in the State, of industrial undertakings from outside the State. On the other hand, the remit of Invest Northern Ireland, an agency sponsored by the Department of Enterprise, Trade and Investment in Northern Ireland, is to support new and existing businesses in that region to grow and compete internationally, and to attract new inward investment to Northern Ireland. It should be appreciated that both IDA Ireland and INI are confined in their grant giving powers to funding investments within their own jurisdictions and, in the pursuit of internationally mobile Foreign Direct Investment (FDI,) each agency must operate on an individual basis for their core marketing work.
However, IDA Ireland, recognising the opportunity to pursue mutually beneficial cross border co-operation on aspects of economic policy and infrastructure/spatial planning, does cooperate with Invest Northern Ireland on a number of initiatives in the context of regional and all-island economic development. Both agencies also share a strategic focus on attracting companies from the targeted sectors of ICT, Financial Services and Clean technologies.
One of the success stories of this co-operation between the two agencies is the jointly developed North West Business and Technology Zone (NWBTZ). The fundamental aim has been to capitalise on the combined strengths of Letterkenny and Derry City as an economic corridor. The focus has been on developing compatible infrastructure and property solutions, which are now in place, and make the Region more attractive for investment.
The North West NOW project involved a total investment of €35.25 million in Letterkenny, of which IDA committed to a direct investment of €15.2 towards Advanced Technology and Office Buildings, construction of Letterkenny Outer Relief Road and improvements in telecommunications infrastructure including the installation of the Letterkenny Metropolitan Area Network (MAN). Overall the joint project has drawn down €10 million in EU Interreg IIIA funding (IDA €4M and Invest NI €6M) toward the required development of property solutions and research facilities.
The North West NOW initiative provided the catalyst for Eircom, Bytel and BT to invest independently in the telecoms infrastructure between Letterkenny and Derry. Consequently the telecoms infrastructure and capacity has been improved significantly.
Also arising out of the work of IDA and INI was the development of Project Kelvin, which is the first direct International Communications link of its kind into the North West of Ireland and Northern Ireland. It has been a cross-Border venture, costing €43m, between the Department of Communications, Energy and Natural Resources (DCENR) for Ireland and the Department of Enterprise, Trade and Investment for Northern Ireland (DETI NI) and co-financed by the European Union (€32.25m) to construct a direct international telecommunications link between North America, Europe and the North West of Ireland. The North West of Ireland, including Letterkenny now has access to the same international services as found in major cities including Dublin, London, Amsterdam and New York.
The economies of Northern Ireland and the Republic of Ireland both have a highly educated workforce and IDA Ireland highlights this competitive advantage to prospective investors. The skills available on both sides of the Border are presented to potential investors as a key competitive advantage of investing in the Border region of the island of Ireland. Up to 15% of IDA Ireland client companies in the Border region employ staff living in Northern Ireland. One of the factors which influenced Paypal in deciding to make such a major investment in Dundalk in early 2012 was the availability of a pool of skilled staff, in the large catchment area incorporating both sides of the border from which it could recruit.
