I thank Deputy Kitt for raising this important matter and note his continued interest and concern for the provision of advance factory facilities and his genuine concern for job creation in Tuam and its environs.
The decision by the Government on 2 August 1990 to restructure the Irish Sugar Company stipulated that the company should give an undertaking to provide a free site and a contribution of £2 million towards the establishment of a new industry in Tuam. As a consequence of the Government decision an agreement between the Sugar Company and Tuam Community Group was arrived at on 13 November 1990 and was revised in February 1992. Under the terms of the revised agreement, the Irish Sugar Company undertook to submit a planning application for the construction of a standard 20,000 square foot factory on an IDA serviced site at Dunmore Road, Tuam and to underwrite the rent of the factory for three years. In the absence of private funding the company agreed to pay directly for the construction of the factory out of the £2 million fund and to assign two of its executives to work with the IDA to ensure that the factory is occupied.
The company also agreed that following the placing of a tenant in the first factory it would develop another similar type factory on the IDA site on the same basis as the first one. Following the occupation of the two factories the company will meet with the Tuam Community Group to consider further investment taking into account progress and expenditure to date.
In addition should other sites be required for factories the company will allocate 22 to 30 acres for development at the old Sugar Company factory site in Airglooney. The contribution to Action Tuam Limited of £250,000, from the £2 million commitment for the construction of an enterprise centre at Weir Road, Tuam is retained in the revised agreement. The company will also favourably consider further investment in Tuam additional to the £2 million committed, where viable and suitable projects are proposed.
As private funds were not forthcoming, Irish Sugar is to have a factory constructed on the IDA site at Dunmore Road. The company will own the factory and so will be renting it out to the occupier, that is it will not be underwriting the rent for three years as set out in the agreement, which only applied in the case of a private developer having developed the site and serviced it as necessary. Notification of a decision under Article 28 of the Local Government (Planning and Development) Acts, granting planning permission was sent by Galway County Council to Irish Sugar on 3 June 1992. I understand that Irish Sugar will be inviting tenders next week from suitable applicants for the erection of the factory, and it is hoped that building will commence by the end of August next. The factory will be marketed by the Industrial Development Authority and it is expected that the factory will be ready for occupation early in 1993.
The amount allocated by the company from the £2 million commitment to Action Tuam Limited to go towards the purchase and construction of the enterprise centre at Weir Road, Tuam is £250,000. To date, about £200,000 has been paid over to this organisation.
In so far as employment prospects generally are concerned, IDA supported manufacturing and internationally traded service companies in the west region, both large and small, performed well in 1991 despite the difficult economic climate and in the process created almost 800 new first-time jobs in counties Mayo and Galway. In a year which saw the continuation of the international recession and employment decline amongst our main trading partners, the numbers of people in manufacturing and international service businesses actually increased in the west region. The IDA are operating a number of specific programmes with Irish companies to achieve defined growth targets. The continuing growth of several companies around the region is testimony to the success of this approach — Poldy's Fresh Foods in Portumna, one of the most successful companies in the region, Dubarry Shoes in Ballinasloe, who are operating in both the national and international markets very successfully and Connaught electronics at Tuam who manufacture a range of car alarms for a number of European markets.
Despite the turbulence of the international marketplace, the electronics and engineering sector also saw progress during the year with many companies recruiting additional employees around the west region. In Tuam, Pulse Engineering have shown their commitment to enhancing their business with further expansion of their research and development activity. The IDA have assured me that they will continue to promote Tuam as a location for investment and to work closely with local industry and local groups to increase industrial development in Tuam.
The Dáil adjourned at 11.45 p.m. until 10.30 a.m. on Thursday, 2 July 1992.