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Dáil Éireann díospóireacht -
Wednesday, 6 Jun 1984

Vol. 351 No. 3

Ceisteanna—Questions. Oral Answers. - Vacant Factory Premises.

7.

asked the Minister for Industry, Trade, Commerce and Tourism if he will provide details of the amount of unutilised factory space throughout the country which could be adapted for the establishment of small units and which could be used as "start-up" workshops or offices for the creation of new employment.

I am informed that the Industrial Development Authority have 212 small factory units totalling 771,000 sq. ft. ranging in size from 200 sq. ft. to 9,000 sq. ft. available for small industry at 71 locations throughout the country. Of these, 84 units totalling 302,000 sq. ft. are at present reserved for industrial projects. In addition, Shannon Development have 111 small industry units totalling 257,000 sq. ft. available at 36 locations in the mid-west region and west and southwest Offaly. Forty-six of these units totalling 133,500 sq. ft. are reserved for industrial projects. The remaining units are being actively promoted for suitable projects.

The Deputy will already be aware that Shannon Development have pioneered the provision of low cost space to small industry based on the sharing of facilities and overheads in a single building. This is known as the workspace concept.

In 1983 the IDA also commenced construction of 46,750 sq. ft. of small industry "incubator units" ranging in size from 500 to 1,000 sq. ft. at 14 locations throughout the country. These units are particularly suitable for the start-up phase of the typical small industry project. There is also a significant volume of privately owned factory space available principally in the larger centres of population which is suitable for small industry development.

The demand for small industry units is being constantly monitored by the industrial development agencies. As there is an adequate volume of small industry factory space available at present these agencies have no plans to adapt bigger factory units which are required for medium to large-sized industrial projects.

Would the Minister not agree that the information we have got here today would indicate that we are proceeding to erect factories and failing to purchase at a very low price factories at other locations? Would the Minister not agree that it is time for a complete re-examination of industrial development generally following the reply to those questions?

In regard to the first two questions posed by the Deputy I would not agree. The advance factory building programme has been suspended for the time being until we can fill the many advance factories that are already available and are not filled. As to the question of buying additional factories at what the Deputy claims is a low price — and I do not necessarily disagree with him — this would make sense if we were running short of advanced factory space, and it might be worth considering at some stage in the future. Before we recommence an advance factory building programme we should look at the possibility of buying existing space. However, some of this existing space is not particularly suitable for modern industry and this will have to be assessed on a case by case basis. However, I agree with the last part of the Deputy's question which suggests that there should be a radical review of industrial policy, and this is in train.

Is the Minister saying that no building programme whatsoever is being carried out by the IDA this year?

Is he not saying that?

What is he saying?

I can repeat what I have said already, which was that advance factories are not being built. The IDA building programme continues under two major headings: (1) small incubator units for small industries which are of a type not sufficiently served at the moment; (2) what are known as special buildings where, rather than build advance factories on spec, they are building factories as part of a grant package for a particular project. That part of the programme, of course, continues but those factories never remain empty because they are being built for a particular industry.

Will the Minister tell me if he has carried on a review of the whole building programme of the IDA which I initiated when I was there, and if he would agree with me that the use of selective tendering at a time of total depression in the construction industry is a foolish way to do their business?

The review referred to has been completed and I have adopted the recommendations. I have conveyed them to the IDA and they will be published.

Does the Minister agree with doing away with selective tendering?

I would not like to get into detail on the recommendations that have been made but, as I have indicated, they will be published in the relatively near future.

Would the Minister agree that selective tendering is the way to get ——

I would not wish to either agree or disagree off the top of my head with the suggestion made by the Deputy and I do not wish my reluctance——

The Minister has not a mind of his own.

I have a mind of my own.

8.

asked the Minister for Industry, Trade, Commerce and Tourism if he will consider, in consultation with the IDA expanding the enterprise centre concept to all counties in Ireland and thereby utilise some of the large number of vacant IDA advance factories.

I am informed that the Industrial Development Authority have provided an enterprise centre in Pearse Street, Dublin, and also plan to construct a centre in Cork. 10,000 sq. ft. of small industry incubator units are being provided within the IDA's East Wall development which will embody some of the features of the Pearse Street centre. Enterprise centres of this nature are sustainable only in large centres of population. However, the IDA will monitor the progress of these centres and will review the question of establishing other centres as appropriate.

Shannon Development have provided two workspace centres at Limerick City and centres at Abbeyfeale and Kilfinane, County Limerick and Nenagh, County Tipperary.

In addition, the industrial development agencies have a range of small industry units available throughout the country suitable for the needs of the typical small industry and crafts project.

As there is an adequate volume of small industry factory space available at present, the industrial development agencies have no plans to adapt bigger factory units which are required for medium to large industry.

I think I heard the Minister correctly to say that it is the belief that enterprise centres are not suitable except in large areas of population. Would he not agree with me that those enterprise centres can be made applicable in areas of much less population than the ones he spoke about? Craft industry surely can be developed in the more remote parts of Ireland and, rather than leaving factory space as it has been, vacant for quite some time and probably will be vacant for a long time in the future in the absence of any policy here to do anything about it, the Minister should consider the adaptation of them as enterprise centres on a temporary basis and see how they go. We would be better off making some use of them than leaving them idle. There is a great deal of talent in the craft and small industrial areas. Surely if you make the effort and give the opportunity to young people instead of having them roving the streets and getting into all sorts of vandalism——

There is a need to show leadership and direction in that area and let the people know that you will provide them with the facilities if they want to apply their talents.

I would be quite happy to extend the enterprise centre concept to other locations as experience indicates that this would be wise. However, I should indicate to the Deputy what is provided in an enterprise centre.

As if I did not know.

Essentially a centralised share support service is provided by the IDA including common secretarial services, common accounting services, shared conference facilities and a common canteen. Clearly, to make sense of these economics one requires that a number of projects would be located in relatively large centres in order to make them economical. In that context one would tend to locate such centres in larger areas of population.

Would the Minister agree there are plenty of opportunities around the country for young people to put their talents together? Would he not provide the use of estates lying vacant around the country for such projects rather than indulging in this bureaucratic nonsense?

I agree fully, and that is what we are doing in regard to smaller projects in areas where additional space is required. The IDA are still continuing to build incubator factories suitable for such small projects. SFADCo and the IDA will give plenty of opportunities for such projects and any lack of space will be responded to immediately by the building of new units.

Nobody is talking about building. Would the IDA make use of what is there?

Would the Minister agree that the concept that enterprise projects are suitable for larger centres has been the downfall of regions such as mine? The IDA are concentrating their efforts in large centres of population to the neglect of others.

I have already explained why enterprise centres would be suited to larger centres of population. I expect there is a case for regional development.

What is the Minister doing about it?

Question Time is about getting information. If a Deputy gets information which he does not agree with and which is good material for a speech, so be it, but he should make that speech elsewhere.

Could the advance factories not be developed for these projects rather than building new ones?

First of all, it is my intention to restructure the entire policy, and that will be done. I encourage the industrial development agencies to make arrangements in the regions, when that is suitable. I believe there will be a significant number of larger projects coming in which will use the large units available. I intend to make sure that we will have such factories available for large as well as small projects.

In view of what the Minister has said, would he encourage the IDA to establish an enterprise system throughout the country in the many thousands of square feet of factory space unoccupied? Surely the unemployed throughout the country are entitled to get the same opportunities as those in Dublin and Cork. The Minister has been selective in regard to the enterprise idea.

I want to stress that it is the policy of the Government to encourage the development of small industries in every way, and for that purpose the IDA staff are being decentralised in each region precisely to achieve the objective the Deputies have in mind.

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