Dáil Éireann Debate, Thursday - 9 February 2017
3. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation when there will be a tender for a new Succeed in Ireland programme; if none is planned, the reason therefor; and if she will make a statement on the matter. [6508/17]
View answerThe Minister will recall that the Succeed in Ireland programme was developed on foot of the calls for additional job creation that were made at the Global Irish Economic Forum, which was established after this country's economic crash. Will there be a tender for a new Succeed in Ireland programme following the expiry of the current contract?
The Succeed in Ireland initiative has operated on the basis of a contract with IDA Ireland that was originally agreed in March 2012. The contract, which was extended by 12 months early last year, is now set to conclude on 26 March.
When the board of IDA Ireland considered the long-term future of the initiative at its meeting last November, it decided that the agency would not re-tender for the continuation of the Succeed in Ireland programme at this stage.
I have asked my Department to commission a review of the initiative, to include a full assessment of its costs and its contribution to employment generation in the State. Such a review may also consider the development of a new programme, for example through an examination of the experience of similar initiatives in other jurisdictions.
ConnectIreland, which is a self-funded company that was set up by an entrepreneur, secured a five-year contract for the Succeed in Ireland programme from IDA Ireland in 2012. Seventy-nine international companies have been approved by IDA Ireland under the programme, with 2,411 jobs being created over three years. It is noteworthy, given that regional job creation is a big issue for us, that 66% of these jobs are in 15 counties outside Dublin. ConnectIreland has 78,285 connectors based in 147 countries. Some 44 of its 84 projects have involved 20 jobs or fewer. It is getting into our communities. ConnectIreland claims that IDA Ireland has not given it credit for many of the projects and jobs I have just mentioned. It is clear that there is a bit of a dispute between the two. The point is that ConnectIreland is delivering jobs at a fraction of the cost at which IDA Ireland is delivering jobs. The Minister has said she will commission a review of this matter. How long will the review take? Does she agree that the current Succeed in Ireland programme should be extended until that review has been completed? It is bringing in jobs and linking into a huge global network. If we do not use every avenue we have to create employment, particularly through a scheme that creates jobs more cheaply than IDA Ireland does, we will cut off our nose to spite our face.
As the Deputy knows, the Succeed in Ireland initiative operates on the basis of a comprehensive agreement between ConnectIreland and IDA Ireland.
I understand this agreement, which was mutually entered into by both parties, sets out the process by which jobs are verified as having been created. I am informed that as it currently stands, 527 jobs on the ground have been created. I make it clear that IDA Ireland oversees and manages the operation of the initiative. I certainly have no reason not to rely on the data and information provided. I am carrying out a review and it is clearly in the interests of good governance that such a review would be undertaken before determining the future of the programme. We must fully understand how the initiative has functioned, its strong and weak points and how we could potentially improve it in future. This is in the interests of the taxpayer, the State and, ultimately, the programme itself.
It does not make sense to discontinue the programme, do the review and then possibly continue it. It would make perfect sense to my mind to keep the programme running and use those worldwide connections. There are more than 80,000 connected people around the world in the Irish diaspora. It is a large network and we would lose all of it. DKM Economic Consultants has reported that ConnectIreland has created an estimate of 1,028 jobs. The figures are in dispute but the operation of the client companies arising from the scheme has added €123 million to the Irish gross domestic product, GDP, benefitting the Exchequer by €26 million. Those figures are in the DKM report. It is a positive initiative. There is a dispute between the operator and IDA Ireland, which is fine, but it does not merit not agreeing to continue the programme until the review concludes. The review could indicate that the process could be improved or changed but parking it on one side or discontinuing it would be very silly.
ConnectIreland created plenty of jobs in Ireland and the Deputy is correct that there is a dispute. I understand that this week a meeting was held between the chief executives of ConnectIreland and IDA Ireland. It is, however, prudent to do a review as there is much taxpayer money involved. I must understand exactly how that initiative functioned, as well as its strong and weak points, as I mentioned. The experience of IDA Ireland in this area is unparalleled and we must be careful not to risk defusing expertise and awareness of multiple entities and governance arrangements. I want to see the review and the figures.
How long will the review take?
We are appointing someone and I am going to get it done as quickly as possible. A decision on who will author the review, as well as its precise start date, will be taken very shortly.
