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Dáil Éireann díospóireacht -
Wednesday, 27 Jan 1988

Vol. 377 No. 1

Ceisteanna—Questions. Oral Answers. - SFADCo Staff.

65.

asked the Minister for Industry and Commerce if, in view of its newly acquired overall responsibility for industrial development in the mid-west, SFADCo will: (a) be locating additional staff overseas; (b) be arranging overseas industrial promotion visits by Ministers on its own account; (c) be offering the full range of grants now offered by the IDA and taking sole responsibility for assessing eligibility of firms for such grants on its own account without requiring the consent of the IDA in any circumstances; and (d) be establishing sectoral advisory committees, similar to those advising the IDA on grants to particular sectors.

Following its newly acquired overall responsibility for industrial development in the mid-west, I understand that Shannon Development will locate three additional staff officers overseas. Two of these will be based in the United States and will be in addition to the two existing employees of the company who currently operate from the IDA offices in New York and Boston. In addition, one person will be based in Germany and will work from one of the IDA offices there.

As in the past, Shannon Development executives will be working closely with the IDA in promoting Ireland as a key location for industrial investment with personnel from both agencies arranging site visits to Ireland by potential investors. I can assure the Deputy that I will be carefully monitoring the situation to ensure that there is no disruptive competition between the two agencies in the locations where both are represented. In addition, I should stress that SFADCo's action in this regard will result in no net addition to the number of staff promoting Ireland, from an industrial point of view, located overseas.

I am informed that from time to time, Shannon Development will be arranging overseas industrial promotion visits by Ministers. Full co-ordination with the Industrial Development Authority will, of course, take place to ensure that the maximum potential, from a national viewpoint, is exploited from such visits.

As has been the case to date, Shannon Development will continue to implement national industrial policy as outlined in the Industrial Development Act, 1986. In doing so it will, as in the past, provide the full range of grants now offered by the IDA. Shannon Development will continue with its existing practice of assessing the eligibility of firms for such grants in accordance with the criteria laid down in section 21 of the Industrial Development Act, 1986. IDA representation on the board of Shannon Development and the Industrial Buildings and Grants Committee of the company provides for continuous coordination between the two development agencies in the practical application of industrial policy.

In addition, the recent appointment of a SFADCo representative to the board of the IDA will further strengthen the very close working relationship between the two bodies. IDA representation on SFADCo boards provides a mechanism which enables the IDA to have a direct input into decisions on the provision of grant packages to firms located in the mid-west region and west and south-west Offaly. In addition, a detailed Memorandum of Understanding will set out the precise principles which will govern the provision of grant assistance to companies to ensure that practice in the mid-west is consistent with national practice.

By sectoral advisory committees, I assume the Deputy is in fact referring to the IDA's International Service Committee, Research and Development Committee and Enterprise Development Committee. The position is that R & D projects in the Shannon zone will continue to go to the specific R & D committee already in operation under SFADCo's aegis. R & D projects for the rest of the region will continue to be processed, as in the past, by the IDA R & D committee for the present.

Enterprise development projects will, as in the past, be considered by SFADCo's Industrial Buildings and Grant Committee. Equally, international services projects have in the past been submitted to the board of Shannon Development. It is intended that this practice will continue.

The Deputy will appreciate, of course, that the changes have only just been implemented — beginning on 1 January in fact — and it would be unrealistic to expect that SFADCo will not adapt its policy in regard to these committees should circumstances warrant.

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