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Dáil Éireann díospóireacht -
Wednesday, 10 Dec 1997

Vol. 484 No. 4

Adjournment Debate. - Regional Industrial Development.

A Leas-Cheann Comhairle, I am grateful to your office for giving me the opportunity to raise this matter on the Adjournment. My Parliamentary Question No. 91 of 20 November 1997 asked the Tánaiste and Minister for Enterprise, Trade and Employment the special measures, if any, which would be taken to attract inward investment to County Cavan; if her attention had been drawn to the fact that a number of centres throughout the county need new employment opportunities; if a special effort will be made to create much needed employment in County Cavan in view of the difficulties Border counties had endured in the past 28 years; if she will instruct her Department and the industrial development agencies to undertake special promotional programmes to ensure that County Cavan would obtain at an early date some of the welcome inward investment coming to this country; and if she will make a statement on the matter. The Tánaiste replied that she intended to actively implement the Government's policy of regional industrial development and job dispersal. I welcomed the Tánaiste's statement that regional development is now a primary industrial objective.

I take this opportunity to renew my appeal to the Tánaiste, the Minister of State and the State development agencies to give special consideration to the needs of the Border region, particularly County Cavan. Fortunately for this country, there has been substantial inward investment recently but, unfortunately, none has come to my county or constituency.

The information age offers this country an enormous opportunity to enhance our economic future, and that opportunity needs to be properly grasped. All regions of the country deserve to benefit from such opportunities as new technologies can be used to encourage economic activity, particularly in rural areas such as Cavan. IDA Ireland has made provision for the construction of an advance factory of 23,000 square feet near Cavan town and this is a welcome measure.

Cavan, with a population of 53,000, is predominantly an agricultural county. Its industrial base is built around the indigenous food sector which represents the largest sector of manufacturing employment. The development of the county's economic potential has been impeded in the past due to a number of factors, including over-dependency on primary agricultural activities, lack of inward investment, absence of suitable work space and industrial buildings and a negative perception due to its Border location. With our heavy reliance on agriculture, quota restrictions and other measures to control production will have a negative effect on employment in the county. Rationalisation in the dairy co-operative sector and other areas continues to have a negative impact on the performance of our traditional secondary industries which represent the core industrial base of Cavan. Consequently, effective measures are necessary now to meet the future labour market needs of the county.

Cavan has had limited investment over the past 15 years from international mobile corporations. In fact, no inward investment of any consequence has come to the area in more than ten years. The area is thus entirely dependent on local entrepreneurship and indigenous development generally. Foreign investment, accounting for 27 per cent of the county's manufacturing employment, is substantially below the State average of 46 per cent. This limits the potential for development in the sub-supply sector of the local economy.

Cavan has suffered socially and economically as a result of the negative impact of more than 25 years of troubles in the North. Cross-Border trade and inward investment have been seriously curtailed and the development of our natural resources, particularly tourism, was undermined in those years. All too often in the past we were told by Governments and State agencies that it was particularly difficult to attract industry to the Border region. With the cessation of violence in the North, we in County Cavan and others deserve the economic dividend of the establishment of peace. Our people need work and they want those employment opportunities in their own county.

I mentioned earlier that a new advance factory is being constructed near Cavan town, and I appeal to the Tánaiste, the Minister of State and the industrial development agencies to market that facility as vigorously as possible. I hope that a project providing employment in the information technology or knowledge industries will be attracted to that site.

A number of towns in the county need new job opportunities. Another advance factory should be provided in the county and such a facility should be constructed to European Union food standards. The county has a strong and highly regarded tradition in the food industry and a town like Killeshandra, which is synonymous with the dairy industry, should be chosen for such a facility. Obviously, there will be further opportunities to develop our food industry and centres such as Killeshandra should be targeted and marketed in that direction.

I sincerely thank Deputy Smith for giving me the opportunity to debate this important issue. Our Department intends to continue to actively implement the Government's policy of regional industrial development and job dispersal. This is now a primary industrial policy objective and, in this regard, IDA Ireland and Forbairt are making renewed efforts to encourage new inward investment in Cavan.

As part of these efforts, IDA Ireland has swapped several of its smaller sites and factory units in the county, which over time have not facilitated the attraction of inward investment, with Cavan County Council in return for approximately 40 acres of the council's landbank near Cavan town, the capital of the Deputy's county. IDA Ireland has now undertaken a comprehensive site development programme. This includes major site levelling works, the provision of a new access road network and further ancillary works.

To underline its commitment to refocus new inward investment in County Cavan, IDA Ireland has arranged for an advance factory of 23,000 square feet to be constructed by private investors on the Cavan town site. Planning permission has been granted by Cavan County Council and construction of the new facility is now under way, with completion anticipated by mid-1998 at the latest. Promotion of the new advance factory by IDA Ireland has already commenced in this regard. IDA Ireland will continue to actively promote regional locations, including County Cavan, for new overseas investment.

Forbairt is also seeking to win new inward investment from overseas food processing companies for County Cavan, with counties Louth and Monaghan, which are well placed to take advantage of current opportunities in the convenience food sector. The Deputy will be aware of the Government's decision to designate seven counties for special capital allowances for the hotel industry and other tourism facilities in the budget. That will continue to be the type of policy we will pursue to ensure an equalisation of investment opportunities for counties such as Cavan.

To date, more than 30 companies have been assisted through a number of pan-Atlantic partnership programmes, such as the Forbairt-IFI North American partnership programme, the US-sponsored Forbairt administered AMBIT programme and the Forbairt SBA programme. A range of such alliances, including joint ventures and technology transfers, are currently being explored or negotiated and their successful outcomes will help accelerate the growth of local companies, with its attendant employment opportunities in the medium term.

I welcome Deputy Smith's contribution. He has a major interest in industrial development in County Cavan and one of its adjoining counties, as have the Leas-Cheann Comhairle and his colleagues. I know Deputy Smith has a particular interest in information technology facilities which we believe will provide major assistance to further ensure equal opportunities for rural and urban areas. As a result of many of the initiatives we have taken and proposals we have put forward to the European Commission, we are confident we will be able to harness some of those opportunities for rural as well as urban areas in the years ahead. I am also confident that given the efforts we have made County Cavan will be a beneficiary in at least the medium term.

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