We now come to deal with one minute statements on matters appropriate to the Ministers for Agriculture and Food and Industry and Commerce. I propose to call on Deputy Michael Finucane to make a one minute statement appropriate to the Minister for Agriculture and Food, in the first instance, to be followed, by a statement appropriate to the Minister for Industry and Commerce. The same Deputy is involved in both cases. The Deputy has one minute to present his case in each instance and the Ministers concerned have some five minutes to reply. They may apportion that time between themselves as they think fit.
Adjournment Debate. - Agriculture and Food and Industry and Commerce Matters.
My question to the Minister for Agriculture and Food relates to the famous disadvantaged areas extension. A statement was recently issued that the proposed appeals system would only extend to 1.5 per cent of the entire country. If this is true it will be a derisory extension. I ask the Minister to clarify whether this is actually true. Rumours are now prevailing that it is possible it may be more than 1.5 per cent. I would appreciate it if the Minister would clarify that point. When does the Minister anticipate the disadvantaged areas extension will be finally approved by the EC?
I call the same Deputy for his statement to the Minister for Industry and Commerce.
As the Minister for Industry and Commerce is probably aware, I live in Newcastlewest and I am very much aware of the lack of industrial development in that area. Since 1979 Newcastlewest, the county capital, has not received any overseas industrial project. The people of Newcastlewest welcomed the announcements over a period by SFADCo — these announcements appeared in the local media — that the Bartizan Corporation, an American engineering company, would set up a project in one of the advance factories in Newcastlewest and that Gogi, an English company, would set up a knitwear project in the other advance factory.
Those factories have been enhanced and refurbished in recent times to the tune of £350,000 to make them aesthetically more pleasing to industrialists. I want to ask the Minister when those promises will come right? Can he clarify when those projects will start in Newcastlewest, if they will start and when recruitment of workers will commence?
The results of the 1989 survey constitute both the largest extension and reclassification of our disadvantaged areas ever proposed to the EC. Almost 2 million acres are being proposed for extension compared to the previous largest extension of only 415,000 acres. The proposed reclassification of 1½ million acres approximately is almost twice the previous largest proposal for reclassification of 869,000 acres.
We are asking the EC Commission to allow us to introduce an appeals procedure to deal with genuine anomalies and are seeking EC approval to be allowed to add up to 1½ per cent of the country — 255,000 acres — to our disadvantaged areas by Commission procedure without having to go to the EC Council of Ministers. The 1½ per cent is the limit allowed under EC legislation for this purpose. This approach is in line with the commitment given in the Programme for Government in September 1989. Until our submission is approved, however, it would not be possible to set up an effective appeals system or decide its terms of reference.
In this regard, Deputies can rest assured that we will continue to press our case with the EC to set up an appeals procedure as soon as approval is obtained. I might add that, while the EC services have limited staff resources and are also under pressure arising from submissions from other member states, they have made substantial progress and expect to complete their examination of the technical aspects of our case in the very near future to clear the way for a proposal to be put to the Council of Ministers to secure their approval for the proposed 12 per cent extension of our areas.
In December 1988, Shannon Development approved an offer of grant assistance to Bartizan Corporation to establish a credit card imprinter manufacturing operation at Newcastlewest, County Limerick. However, early in 1989, there was a worldwide fall in demand for Bartizan's products for several months when the company decided that the proposed manufacture of the credit cards would not be financially viable and could not be justified.
However, Bartizan decided to proceed with a smaller project than originally envisaged. Shannon Development approved new industry, rent reduction and training grants in July 1990. Discussions with Shannon Development and the IDA are continuing with a view to Bartizan finalising a decision in the near future to establish in Newcastlewest.
In regard to the Gogi factory, Shannon Development have informed me that they approved a grant aid package in December 1989 for a project to be undertaken by UK firm Gogi Brothers Knitwear for Newcastlewest, County Limerick. It was intended that the project would start up in 1990. However, due to problems encountered by the firm in sourcing production equipment, allied with a need to firm up on market outlets in some European countries, the promoters notified Shannon Development that they were delaying start-up of the project. Efforts by Shannon Development to get the promoters to sign legal agreements have not been successful and they have recently contacted the promoters and informed them that if a formal response was not received from them, it would have to be assumed that the project is not going ahead and that the reservation on the building would have to be released.