Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Thursday, 21 May 1970

Vol. 246 No. 12

Shannon Free Airport Development Company Limited (Amendment) Bill, 1970: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time".

Before I reported progress last night I had dealt at length with certain provisions of this Bill. However, as a Deputy representing a constituency that has fared badly in the matter of industrial development and whose constituents will be expecting great things from this Bill, I consider it right and proper that I should examine the Bill in a detailed way.

The extension of the responsibilities of the Shannon Free Airport Development Company to embrace the mid-western region, comprising County Clare, Limerick city and county, and North Tipperary, is a logical development and one I have continually advocated in the past ten years both in the Dáil and elsewhere. This policy has also been advocated by many people in Limerick who are concerned about the lack of industrial development. I am hopeful that the fact that people in Limerick can now avail of the expertise and experience of officials at the Shannon Free Airport Development Company would help to attract much needed industry to Limerick city and the surrounding areas. Taking into account the natural advantages of Limerick city in the matter of industrial development, there is no doubt that given the proper incentives and assistance major industry could be attracted to this area.

Many people have commented on the fact that in the past decade there has not been any major industrial development in Limerick city. This is not for want of effort at local level; all public representatives and local organisations have been doing their best in recent years to attract new industry to our city. Unfortunately, success has not come our way and a certain amount of responsibility for this lack of industrial development must be placed on the Government. The incentives available to industrialists proposing to establish industries in Limerick city and the facilities available there could not compete with those available at the Shannon industrial estate.

I have on many occasions tabled questions to the Minister for Industry and Commerce regarding the lack of industrial development in Limerick and the Minister's predecessor, Deputy Colley, expressed the view that many people would regard Limerick city as being in an extremely fortunate situation by reason of its proximity to the Shannon industrial estate. I accept the fact that the existence of the Shannon industrial estate within 14 miles of Limerick city has been advantageous from the point of view of providing employment for people in Limerick city and county, County Clare and County Tipperary. However, I have always held the view that if an industrialist wishes to establish a plant in Limerick city the same incentives should be available there as are available in the Shannon industrial estate.

The only criticism I have of this Bill is the fact that provision does not seem to be made for a standard scale of grants throughout the entire region. Up to now the grants available for new industries in the industrial estate at Shannon were very much greater than those which applied in Limerick city. This put us at a considerable disadvantage when we were competing for new industries. It has been represented very strongly to me by people in a voluntary, and even in a professional way, engaged in the promotion of industries in the mid-western region that if this concept of regionalisation or industrial development is to work out properly a common scale of grants should operate right through the region. This would mean that an industrialist examining the possibilities of setting up a factory anywhere in the mid-western region who selected Limerick city, Nenagh, Ennis or Shannon Airport as suiting him best would get the same rate of grant and the same facilities as he would get in the Shannon industrial estate.

This extension of the functions of the Shannon Development Company to embrace the mid-western region has in fact been operating for some time past. I am aware of the exploratory work which has been done and I am also aware of the assistance which the Shannon Free Airport Development Company have given in the establishment of industries in Newcastlewest and Limerick city. There is no doubt that nowadays the building of advance factories is an absolute prerequisite for industrial development. These advance factories make it very easy for an industrialist to get into production in the shortest possible time. They also have the advantage that the industrialist will have the choice either of purchasing the factory or leasing it. Therefore, if industrial development is to expand, not merely in the mid-western region but in other regions, the building of advance factories for sale or for lease to potential industrialists is an absolute prerequisite.

I look forward then to seeing much needed new industrial development, particularly in Limerick city. I have first hand knowledge of the tremendous work of the officials in the industrial section of the Shannon Free Airport Development Company and I have every confidence that with their assistance and provided of course that local initiative and co-operation is forthcoming, and also provided that we get a fair crack of the whip in the matter of grants and incentives, much needed new industry can be attracted to Limerick city and the surrounding area.

The Minister referred to the sections of the Bill dealing with housing. I notice that there is a new development here. The Minister said:

Sections 5, 6 and 7 are designed to make it clear, in the first place, that the conditions on which State finance has been provided for the erection and subsidisation of dwellings at the airport do not oblige the company to confine lettings to persons employed in the industrial estate and, in particular, do not imply that widows and dependants of such persons or an unemployed worker cannot continue as tenants.

Hitherto the moneys voted by the Oireachtas for housing development at Shannon Airport were to provide houses for people employed in the estate, particularly, and also at the airport. It is now intended that housing at the airport will be available for leasing to people who may not be employed on the estate. At first I could not see the reason for the change here but I take it that with the development of the town and the community facilities at the airport, and particularly in view of the objective of building up Shannon to a town of 6,000 there is a demand now from people who are not employed in the estate but who wish to live at Shannon. Perhaps the Minister might throw some further light on this.

I also want an assurance that if it is intended to lease houses to persons who are not employed in the estate this will not have the effect of depriving persons who are employed in the various factories from getting houses there. As late as a week ago two young men employed in factories in Shannon sought my views. They were both contemplating marriage and wished to get housing accommodation at Shannon. I contacted the Shannon Free Airport Development Company and I was informed that for a certain type of house there was a very long waiting list and while in the case of the cheaper type of house the waiting list was not so long there was still a waiting list. If houses at Shannon are being made available to persons other than industrial workers is this going to create problems or is it intended to accelerate the building——

It is a question of finishing the sentence which the Deputy read from my speech. It is really to protect widows.

I thought I should mention this matter as housing has been very much in my mind because of these recent inquiries. In conclusion, I want to say that I welcome the Bill and I sincerely hope that it is the Minister's intention to have a common or standard scale of grants operating in all parts of the region. I also want to ask the Minister, even allowing for the fact that he may not be in a position to do so now, but at the earliest possible moment, will he define clearly the functions of the IDA, the Shannon Free Airport Authority, the Regional Development Authority, the County Development Scheme and the Small Industries Division? These five agencies all have a certain function in relation to industrial development in the mid-western region but I want to know which of these agencies an industrialist should go to if he wishes to establish a factory in Limerick?

I want, first of all, to pay tribute to the Minister for what he has done and to the national heroes who developed Shannon. When these men embarked on this task several years ago most of us were dubious about whether their dreams would ever be realised but because of their foresight, in spite of the setbacks which occurred, their dreams have come true. The only criticism I have is in the industrial relations field, because as a result of bad industrial relations we did suffer some setbacks, but I am glad to say these have been cleared up.

We in Limerick city welcome the development of Shannon but we would like to see some industrial development take place in and around the city itself. Some time ago we were promised that a major industry would be set up in the city employing something like 500 or 600 men but that never materialised.

Much has been said about the different agencies and groups operating in this region. I have had long and close experience with these groups. They understand each other's movements because they are in close consultation and the unity and co-operation between them is an example to the whole country. I happen to be a member of the mid-west region committee and as a result I know how these committees work. I have nothing but the highest admiration for them.

At a meeting last Monday we agreed to set up an estuarial authority for Shannon which will unite all ports from the mouth of the Shannon to Limerick city. To give credit where it is due—I know I should not use that word—perhaps, I should say to give credit where it is deserved, this was only possible because of the close guidance of the chairman of the committee, Mr. O'Regan.

We must ensure that industries are not all located on the Shannon. I know workers who have to drive some 40 miles to Shannon every day and arrive at work by 8 or 9 o'clock in the morning and then drive the same distance back home in the evening. These people have very little opportunity for social development when they are tied to such long hours away from home and for that reason now that Shannon has reached its peak I think we should concentrate on building new industries in other parts of the region.

We have been trying to get the co-operation of the Minister for Local Government, the Minister for Finance and the Minister for Industry and Commerce to develop King John's Castle as a tourist attraction. The plans for the development of this castle as a tourist attraction have been prepared; it has been estimated that over £1 million per year will be brought to Limerick city through this development. Unfortunately, the improvements we want to make to the castle will necessitate the demolition of eight houses which were built in the castle yard. We have made representations to the Minister for Local Government to provide housing accommodation at the same rates for the people who will be dispossessed. We have a site ready about 100 yards from where these houses stand but the Minister for Local Government has not given his consent to the demolition of the houses, which, I must say, should never have been built in the castle yard in the first place. I hope the Minister will be in a position to devote some of his money to rehousing these people who are now in King John's Castle.

My only regret is that the Minister did not see fit to ask for more money for this because, whatever is spent, will give a healthy return as well as providing employment and the other social benefits that go with employment. We welcome the Bill and I should like to emphasise once more the unity that exists on the part of everyone in the region and the co-operation extended to all groups associated with the development of the region. If pushing is needed then the public representatives in the area will push. The day will come when the history of the Shannon free airport and the estate there will be written and only then will it be appreciated that we are living at the moment with truly great men.

We are moving into an era of regionalisation. We have it with the health authority. We have it with the estuarial authority. We are glad this movement is taking place because it is broadening our horizons generally. But we must be fair and that is why I say every part of this region must be treated as an entity and what is given to one part must also be given to every other part. We are thinking big and looking big and, as I said, I am happy to come from this area, a little disappointed, perhaps, that the city and its environs do not benefit to the same extent as Shannon. However, were it not for Shannon and for the industrial estate there, Limerick would be just another small town. We must be honourable enough to give credit to the men who had the foresight to develop this area and I only hope they will continue similar development throughout the entire region.

I congraulate the Minister on what he is doing for this area. My only regret is that he did not ask for much more because he would have the support of everyone from the region in this House and on the various local authorities. If we can go ahead with the extension of our tourist industry in Limerick city we will guarantee over £1 million a year and that can be estimated on the achievements in areas such as Bunratty Castle. I know the bookings there. It is practically impossible to get in there. The fare provided is excellent. I would impress on the Minister the need to provide the necessary money to rehouse the eight families to which I have referred so that we can go ahead with our plans. The only obstacle is the Minister for Local Government. I am sure the Minister for Industry and Commerce will take this in his stride and give us the green light to go ahead with the development of Limerick generally.

I agree entirely with what Deputy Coughlan has said. I come, too, from that region and I should like to congratulate the Shannon Industrial Development Company on the great work they are doing in the mid-west. I speak for Clare. Deputy Coughlan spoke strongly for Limerick. The only regret I have is that more money is not being made available. I congratulate the Minister on his efforts to develop industry in the mid-west.

I appreciate the manner in which this Bill has been welcomed by the Dáil. The Bill is specifically designed to extend the overall domain of the Shannon Free Airport Development Company which, up to now, has been concentrated on the Shannon area. The idea is to extend it now to Clare, Limerick and North Tipperary. I took the opportunity in my introductory speech to congratulate the company on the progress they have made and I should like, at this stage, to acknowledge on their behalf the complimentary remarks made about them by both sides of the House and to welcome the enthusiasm evinced for this development. As a Minister in a Fianna Fáil Government I am extremely pleased to acknowledge the praise extended to the pioneers of this whole idea from both the Fine Gael and the Labour benches. It is very welcome from Fine Gael in particular remembering the doleful predictions made initially with regard to the airport and the industrial estate there.

There was never any doubt at all. Every time in the last ten years a Bill was introduced in respect of Shannon I, in particular, welcomed it and supported it fully. There is no doubt about the Fine Gael attitude towards industrial development.

I welcome this change. I notice the Deputy spelled out the "last ten years". I appreciate that. Reference was made by Deputy Donegan and Deputy O'Donnell to the creation of this estate in order to save the airport. I do not accept that that was the idea behind its foundation. The idea was the development of an area in the west of Ireland and successive Ministers for Industry and Commerce were very mindful of the need for development there.

When the Minister for Finance, whose successor I am in the Department of Industry and Commerce, completed his speech on the Budget yesterday evening he was attacked by Deputy O'Hara for not having made any specific reference to the west of Ireland. From my point of view, acting as his successor and bringing a Bill to the House for which he was responsible and accepting at the moment the praise, particularly of Deputy Coughlan, of myself as Minister for introducing the Bill, I must concede that this Bill was conceived by the present Minister for Finance. It is proof of his interest and the overall interest of the Government in the further development of the west. It indicates to everybody, including the Opposition, who do not seem inclined to accept it, that the Government have a continuing interest in western development and in this case in the area described as the mid-west.

Many matters were raised. Deputy O'Donnell, while stressing that the Limerick area—and in this he was supported by Deputy Coughlan—has been neglected, at the same time accepted that over 55 per cent of the people employed at Shannon are domiciled in Limerick which shows that the development of the Shannon industrial estate has conferred great benefits on Limerick. This was confirmed in his concluding remarks by Deputy Coughlan.

The views expressed regarding this Bill on all sides of the House were, I think, intended to be helpful and I accept them in that spirit. If there were criticisms I want to say that it is my intention to check with IDA and SFADCO on these criticisms. I was particularly concerned about the reference by Deputy Barrett, a local Deputy, to the sort of unhappiness, not amounting to dissatisfaction, of the local community group in Shannon town itself. He said they were suffering from a feeling that they were frozen out in relation to the company there giving full consideration to general community development or community opinion.

Something that must be said is that this Bill widens the scope of influence of SFADCO and, of necessity, therefore, SFADCO will not be as localised in its interests and the advisability of putting a representative of the local committee on the company's board cannot now be urged with the same pressing local influence as heretofore. Mindful of the seriousness of Deputy Barrett's point, however, I want to assure him that I shall be very anxious to discuss it in an effort to ensure that there will not be any kind of dissatisfaction and that all reasons for such dissatisfaction will be eliminated as far as possible.

Deputy Donegan, Deputy Barrett and Deputy O'Leary, I think, referred to the fact that there seems to be a disincentive towards private builders investing money in the estate or in providing houses within it. Some Deputy said it was rather surprising that in introducing the Bill I did not refer to an announcement which had appeared in the papers on the previous day. This fact was spelled out in my opening remarks when I said: "The company hopes shortly to complete negotiations with a property developer in relation to town centre developments." I cannot be responsible for announcements that appear on the day I am making a speech or the day before. Very often final details are not ironed out before some press publicity is given to a matter. Certainly, I know the company have been most anxious to encourage private development of this nature. My information, as conveyed in my opening speech, is that the general town centre is well on the way to being properly created. There is a constant effort to create facilities for a type of community development which will make people in this new town a complete urban entity so that they can feel that they have all necessary services in their area to keep them there and make them a happy and contented urban group.

While I know that people in the Limerick area feel that the emphasis on industrial development at Shannon has militated against industrial development in Limerick, Deputy Coughlan made the point that were it not for Shannon, Limerick might not be the successful commercial town it now is and Deputy O'Donnell agreed that over 50 per cent of the employees at Shannon are domiciled in Limerick. We can take heart from the general satisfaction with the progress so far made by SFADCO and look forward to major industrial development in the Limerick and North Tipperary regions resulting from the extension of the influence of SFADCO to those areas.

Deputy Coughlan raised the question of tourism development in regard to John's Castle.

Something similar to what was done at Kilkenny Castle.

I have not the same knowledge of John's Castle as I have of Kilkenny Castle where they had great material to work on. I am not trying to wash my hands of this matter but it is one which specifically comes under the jurisdiction of the Minister for Transport and Power.

Is the money not available now?

Again, it would be for administration from the tourism side. I have no doubt that all the money that is being made available here can, with the enterprise and enthusiasm that has been responsible for the success of SFADCO, be absorbed in overall industrial development. This has to do with Transport and Power specifically. Having been Parliamentary Secretary to the Minister for Transport and Power and having had responsibilities in relation to harbour development and industrial development, I was more than pleased to hear Deputy Coughlan say there will now be unanimity of effort from an estuarial authority down there.

Deputy O'Donnell referred to the section relating to company lettings to workers within the estate. There is no ulterior motive behind this. We want to avoid the type of situation that might arise in the case of the two young men about whom he spoke who were hoping to get married and were looking for houses on the estate and were told there was a long list. I am trying to visualise the type of situation in which those two young men find employment on the estate, get married, start to raise a family and then one of them dies leaving a widow with one or two children. She would not be an employee on the estate.

The interesting thing is that in both cases the fiancées are also employed on the industrial estate.

There is no problem if the widow is still an employee. It was never the intention that that type of person would be displaced or removed from the house. Section 6 is not a permissive section to enable the houses to be set to somebody who has retired and wants to go down there to live. It is not intended that the company will provide a type of summer holiday resort at the airport for people who want to rent houses. I am aware of the reason why the Deputy raised this point.

There are a number of matters which possibly could be dealt with more adequately on Committee Stage. Deputy M. O'Leary and Deputy Coughlan drew attention to the fact that SFADCO or the State agencies do not seem to impress sufficiently on incoming industrialists the situation in regard to our labour organisations. All new industrialists coming in are advised by the IDA to contact the organisations representing the workers. As Deputy Coughlan said whatever little difficulties existed down there have been cleared up. There is no reason for apparent non-awareness on the part of any incoming industrialist of the labour relations problems that may or may not arise. I do not think the IDA or SFADCO should be blamed for not making industrialists aware of the position before they come in.

Deputy M. O'Leary said there was a very small investment from private sources in the industrial estate. So far private sources have, in fact, invested £12 million in Shannon industry. Like everybody else Deputy O'Donnell was looking for equal grant assistance all over a wide area. As he said, even prior to the introduction of this Bill, SFADCO have been taking an interest in development in this area. As I stated in my opening remarks, we have two projects in hand in Limerick city at the moment and one in Newcastlewest. As the Deputy said himself, local interest and initiative coupled with the SFADCO dynamism will attract industry into this mid-west region without any additional incentives. I believe that the incentives in this area will prove to be sufficient to attract industry especially having regard to the recent development of the amalgamation of estuarial interests in the area. The general overall goodwill that can be created from this——

I do not want to interrupt the Minister but I certainly did not want to advocate that additional or special incentives should be made available. The point I made was that the grants available should be the same in Shannon, Limerick, Ennis, Kilrush, Killaloe, Kilkee or North Tipperary. A common scale of grants throughout the region has been advocated by Buchanan.

This is the type of thing I am referring to. Deputy Donegan, if you like, attacked me as Minister for Industry and Commerce for not spelling out where we want to have industrial estates developed. He said: "Have an industrial estate in Sligo and it is all the same to the people of North Leitrim where the industry is situated so long as they can get employment in Sligo." Deputy Donegan is a front bench Fine Gael man and he says this and Deputy O'Donnell does not agree with him.

We have agreed on this; we do not want to have Shannon——

——expanding and becoming top heavy because housing and various other things enter into it. SFADCO has operated very successfully in an area where the idea of industrial development of any nature would have been scoffed at ten years ago. I believe that SFADCO can extend its domain over Clare, Limerick and North Tipperary and make the same success of industrial development over that wide area. I think it is a vote of no confidence in SFADCO to suggest that they should not be allowed to look after the small industrial development of that area as well. Deputy T. O'Donnell praised SFADCO for its achievements but, at the same time, suggested that the small industries section of IDA be not allowed to operate through SFADCO. He also made the point that there were too many organisations with the same sort of work to do.

The record will show that I said I feared overlapping and duplication. I asked for a clear definition of the functions of each of the five agencies.

Yes, but the Deputy asked that the small industries division be still left as the direct channel from IDA to potential small industries. I was quite surprised at that. SFADCO will have responsibility for investigating all industrial inquiries within the area. Deputy T. O'Donnell inquired how this would affect the regional development organisation there. The regional development organisation includes the county development teams and the other main interests represented in the region.

I mentioned that they must all dovetail into one another and that there should be no clash.

That is exactly the position.

In this Shannon-Clare-Limerick-North Tipperary area——

Or region.

——there is an organisation through which all of those things can channel. This may be a problem in any of the other regions but it is not a problem in the mid-west and should not be allowed to become one.

I did not say it was a problem. I asked the Minister to define the exact functions and responsibilities of each of the five agencies. I also asked that question of the Minister's predecessor.

There is some misunderstanding here. We have in the region a regional director, Mr. McHugh, for the whole region. All developments are channelled through him and down to us on the different committees.

I think that point has been cleared up.

I do not want any confusion here. We are united on this issue.

Deputy T. O'Donnell is reading too much into my opening remarks. I think that whatever difficulties may seem to exist in this matter can be dealt with on Committee Stage.

The Minister's predecessor said he was examining the exact position of the agencies and that he hoped to be able clearly to outline their respective functions and responsibilities.

I cannot spell out what the county development team is doing. It is an arm of local government. There is no doubt but that it is on SFADCO's competent shoulders that the industrial development of the mid-west region will lie.

When this Bill goes through the Oireachtas and I am in a position to make the order which will set the provisions in operation, the great benefits to be conferred on the Clare-Limerick-North Tipperary areas should become very obvious within a very short time.

Would the Minister talk with his confrère in Local Government about the demolition of houses in the King John Castle development?

That is a matter for the Department of Transport and Power.

Would the Minister use his good offices?

I am constantly talking to them.

Question put and agreed to.
Committee Stage ordered for Tuesday, 26th May, 1970.
Barr
Roinn