Dáil Éireann Debate, Thursday - 23 March 2017
1. Deputy Niall Collins asked the Minister for Jobs, Enterprise and Innovation if she will ensure the continuation of the Succeed in Ireland programme before the result of the current review has been published and examined; if not, the reason; and if she will make a statement on the matter. [14746/17]
View answer2. Deputy Maurice Quinlivan asked the Minister for Jobs, Enterprise and Innovation if, in view of the fact the review of the ConnectIreland Succeed in Ireland programme will be commissioned shortly after the current contract with IDA Ireland expires on 26 March 2017, she will continue this scheme in order that IDA Ireland can extend ConnectIreland’s contract to operate the Succeed in Ireland initiative; and if she will direct IDA Ireland to take action to avoid the loss of the jobs currently being sourced by ConnectIreland and take action to avoid the loss of the global network built by ConnectIreland. [14457/17]
View answerI raised this on Leaders' Questions in the last hour. The Minister is well aware of the Succeed in Ireland programme. I am asking the question because I want to impress on the Minister that there can and should be a way to ensure the continuation of this programme while the review, which has not yet commenced, is going ahead.
I propose to take Questions Nos. 1 and 2 together.
The Succeed in Ireland initiative has been operated by ConnectIreland on the basis of a contract with IDA Ireland that was originally agreed in March 2012. The contract was extended by 12 months in March 2016 and is now set to conclude on 26 March 2017. It would not be permissible for any further extension to be granted on account of public procurement law.
The board of IDA Ireland, at its meeting in November 2016, considered the future of the initiative. It decided the agency would not re-tender for its continuation at this stage.
However, a definitive decision was not taken on the ultimate future of the Succeed in Ireland initiative.
I have asked my Department to commission a review of the initiative after the conclusion of the current contract. This will help to provide us with a better understanding of Succeed in Ireland's results and its wider contribution to employment generation. The review may also consider the development of a new initiative. It is important that this review be undertaken before a determination is made on how we proceed.
No one disputes the fact that there will be a review. In fact, ConnectIreland welcomes the review because it has a good story to tell and all of its outcomes have been positive. Some 80,000 members of the diaspora in more than 147 countries are connected and almost 80 new businesses have grown in Ireland, creating in excess of 2,000 jobs. It has been a positive story, but the problem is that IDA Ireland feels threatened by this. ConnectIreland creates jobs at a cost of €4,000 per job whereas an IDA Ireland job costs €10,000 to €11,000.
What is the problem with allowing ConnectIreland to continue the initiative while the review is under way for a few months? The contract was extended a year ago to allow for the review, but it has not got under way yet. ConnectIreland's clear legal advice from solicitors Arthur Cox is that there is no reason that the contract cannot be extended for that purpose. ConnectIreland is happy to take its chance in any retendering process.
The Minister will lose all of the initiative, goodwill and contacts. It does not make sense.
IDA Ireland's board decided this matter in November. I understand that this was partly because it had received legal advice about the difficulties associated with retendering in the midst of a legal dispute with the current contractor, ConnectIreland. IDA Ireland would also have considered the fact that the programme had only achieved approximately 10% of its target of creating 5,000 jobs. I respect the decision of the independent IDA Ireland board and have no reason not to.
It is not an option for IDA Ireland or my Department to enter into a further contract with ConnectIreland without first undertaking a new tendering process, as the maximum number of extensions to the contract has already been granted under public procurement law. Any further extension would constitute a breach of that law. My Department will be commissioning a third-party review of the Succeed in Ireland initiative.
It is simply not the case that the figures cited by IDA Ireland are the programme's outcome. As the Minister knows, the Oireachtas committee held a full session on this matter on Tuesday, and it was disrespectful to the Houses of the Oireachtas that representatives from IDA Ireland failed to appear. It did not give an adequate reason for that. There is a dispute, but there is no litigation and the matter is not sub judice.
I implore the Minister. There is a precedent for extending the contract. There is no reason for it not being extended for a further three to six months in order to allow the review to be conducted and the programme to continue. Arthur Cox has confirmed that it "is both legally permissible and entirely appropriate in the circumstances; and we cannot identify any legal impediment whatsoever to the IDA doing so".
The Government devised what was a very good initiative and we support it, but we want to see it continued. Will the Minister please see common sense and find a mechanism to allow for that while the review is under way?
First, we extended the contract.
We know that.
Let me continue, please. It is stated in black and white in that contract between ConnectIreland and IDA Ireland that the last six months of the extension were to be a wind-down period. That is how it is.
Second, extending the contract would break procurement laws, which we will not do. IDA Ireland has legal advice and I have advice from the Department's legal adviser.
We have not decided in any way to get rid of the Succeed in Ireland initiative, which has been good. As to the figures that have been thrown out, the verified number that I have seen is 535 jobs. As part of the contract, ConnectIreland signed a verification clause. IDA Ireland has complied with exactly what is in the contract.
What about the red lighting?
I will revert on that matter in a moment as I am over time.
I keep hearing about jobs in the regions. A total of 58% of the jobs created, or 312, are located in Dublin, 30 jobs are in Cork and 42%, or approximately 220, are in the remainder of the country. I will revert to the Deputy on the other point.
