Written Answers. - Economic Development in Border Counties.
Rory O'Hanlon
Ceist:
34
Dr. O'Hanlon
asked the
Minister for Enterprise and Employment
the economic developments that have taken place to date in the Border counties as a result of the peace process; the number of new jobs created; and if he will make a statement on the matter.
[17080/95]
In response to the Deputy's question, let me first say that my Department and its industrial development agencies, as well as other public and private organisations, have been working hard for many years to promote development in the Border counties. I am pleased to say that there have been some notable successes recently — particularly in the inward investment area — which I will mention in a moment. The Deputy will, of course, appreciate that it is somewhat difficult to assess how much of the development is due to the peace process alone, or to say precisely how many jobs have been created as a direct result. There is no doubt, however, that the benefits of the peace process, in terms of improved stability and economic confidence, have contributed greatly to recent developments and I expect that this trend will continue.
Within the last few weeks, I have announced two major new inward investment projects for the Border counties.
The American Power Conversion Corporation which manufactures power supply devices to protect computer equipment from power distruptions, has completed negotiations with IDA Ireland for a £14 million investment in Drogheda, County Louth. The project will create 300 new jobs within three years and over 150 of these will be for skilled or semi-skilled operators who will be trained by the company. Recruitment is expected to commence in mid-1996.
In addition Boston Brace International Inc. of Massachusetts is to establish its European manufacturing location for spinal bracing products in Dundalk. The project represents an investment of £800,000 and the company is expected to employ 30 people, which it is already recruiting.
The developing peace process was also of enormous benefit in securing the Masonite project in County Leitrim, which otherwise might have gone abroad. This project involves an investment of approximately £90 million and will lead to direct employment of over 300 people as well as resulting in major spin-off benefits for the region in terms of local purchases and services.
As a result of the peace process a number of pan-Atlantic partnership programmes have been funded through the US Department of Commerce, the International Fund for Ireland and Forbairt with the objective of helping Irish firms, particularly in the Border counties, to grow through technology acquisition and/or strategic alliance with US partners.
The programmes, which include the Forbairt-IFI North American Partnership Programme, the Forbairt-Small Business Administration (US) Partnership Programme and the American Management and Business Internship Programme, were all launched during 1995 and I anticipate that they will contribute to the growth of participating companies from the Border counties in the medium to long term.
There are, in addition, a number of initiatives specific to the Border area in which Forbairt is actively involved. Recently the US Assistant Secretary at the Department of Commerce, Mr. Chuck Meissner, led the Business Matchmaker Mission to Northern Ireland and the Border counties of 16 US companies who were seeking Irish partners. During their visit they met a range of companies from the Border counties and I have no doubt that positive results will emerge from this initiative.
In the past few months there have been active visits by companies and representatives from Omagh and Coleraine Chambers of Commerce into our northwest region — Counties Donegal, Sligo and Leitrim.
In the opposite direction a number of smaller Republic of Ireland companies are now beginning to focus their attention on markets in Northern Ireland. This, they would claim, is an area which they would have neglected in the past.
I should also add that 26 Irish companies from the software, electronics, engineering, healthcare and food sectors were in the US last week meeting with 100 American companies on a trade mission which I led. The visit was organised by Forbairt and co-ordinated by the US Small Business Administration. Each of the Irish companies met a number of US companies which had been pre-selected, pre-screened and contacted by Forbairt and the SBA over the past few months. During last week's visit, three companies from Border counties established strategic alliances with US companies involving five separate deals in all. Details of these were given in the newspapers last week.
Subsequent to this initial visit, both Forbairt and the SBA will support the companies on both sides of the Atlantic to finalise negotiations and implement business deals which will, I have no doubt, prove mutually beneficial. In spring 1996 the SBA will lead a similar group of dynamic US companies on a visit to Ireland to meet with Irish companies.
This initiative builds on the announcement made by President Clinton during the Washington conference earlier this year. On that occasion a commitment was made that the Irish and US Governments would work together to promote strategic alliance and business partnerships between Irish and US companies.
Finally, I might add that the county enterprise boards in the Border counties have also been very active since their establishment in 1993. Grants worth more than £5.5 million have been approved by the Border boards for small business projects, of which over £2 million has been drawn down to date. These projects are projected to create over 1,000 full-time and 275 part-time jobs, of which over 200 full-time and 40 part-time jobs had been created by the end of 1994, according to figures supplied by the boards.
