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Dáil Éireann díospóireacht -
Tuesday, 6 Feb 2001

Vol. 529 No. 4

Adjournment Debate. - Industrial Development.

While I am grateful this matter was selected, I draw the House's attention to a similar question I posed for written reply today. I asked the Tánaiste and Minister for Enterprise, Trade and Employment in Parliamentary Question No. 113 if she would consider introducing a scheme of grant-aid to facilitate the relocation of small industries which by virtue of their nature and expansion are now inappropriately located in residential urban settings; her views on whether such grant aid should be revenue neutral for the companies involved; and if she would make a statement on the matter.

Whoever was responsible for drafting the reply to that question is a disgrace. The reply did not address the issues I raised. It was a rambling ráiméis on the series of grant aids available to industry from State agencies and it did not address the issue of industries inappropriately located in growing urban centres which need some assistance for relocation.

The Tánaiste and those responsible in the Department for drafting such replies should reflect on difficult lessons that have been learned about our failure to appropriately answer questions which have been tabled in the House.

It is fortunate that in many settings around Ireland industries with humble origins are prospering, thriving and expanding but the regrettable reality in many instances, particularly in smaller urban locations outside the Pale, is that many of these expanding industries are inappropriately located and by virtue of increased residential development in these areas are entirely inappropriate to a residential setting.

Two such companies in my constituency, both in the timber processing industry, are making valiant efforts to provide employment and have potential to create increased employment but because of understandable and legitimate concerns of residents adjacent to those companies there is a constant battle between the companies and residents. It cannot be forgotten that many companies generate in the heart of towns, valuable employment, not just in timber processing but in the hardware and milling industries, which would be more suited to the outskirts of towns.

The Tánaiste and her Department should consider making grant-aid available to these companies so that they can relocate from where they are inappropriately located on a revenue neutral basis. Some of their tax liability could be written off or the value of the land they vacate, which would have development potential as it is in the heart of residential area, could be taken into account. Such companies should be facilitated in some innovative way through capital grants or a combination of capital grants and tax waivers or deferrals so that it is a win win scenario for the residents in the local community and the companies at the end of the day.

If we are committed to framing such an initiative, we should also provide that the companies should not be allowed or facilitated when they relocate to move an inappropriate distance relative to those employed by the company. This will be a growing problem in many industries. It is stifling additional employment opportunities. Many of these companies are snarled up in the planning process and are engaged in hostilities with local residents, something which is understandable. An innovative approach by the Department could go a long way to resolving the problem.

I assure the Deputy the Government is committed to supporting the development of the indigenous sector and that commitment was given new impetus by the establishment of Enterprise Ireland in 1998. At that time we set out clearly the basis on which the Government should intervene in industrial policy and we have put in place agencies, programmes and schemes to specifically address these issues.

We recognise that while the creation of the pro-business climate which underlines Ireland's rapid economic progress has eliminated the need for certain Government interventions and while the new EU State aids policy has significantly reduced the amount of assistance which can be given to individual firms, especially in the form of capital and employment grants, it has not entirely eliminated the need for such interventions. Underlying all these policy interventions we recognise the need to constantly question whether the impact of any policy intervention is sufficient when judged relative to other areas of Government activity competing for funds.

In line with its mandate Enterprise Ireland concentrates on helping and supporting client companies to achieve sustainable competitive advantage leading to growth in profitable sales, exports and employment. Enterprise Ireland's approach to the development of the indigenous sector focuses on identifying the business needs and challenges facing its client companies in the competitive global market. It provides a streamlined and sensible response to those needs and challenges by offering support and advice on a basis which relates directly the key strategic business functions of firms i.e. strategy assessment and formulation; research; development and design; production and operations; marketing; and human resources and finance.

On a point of order—

There is no point of order, Deputy. You took six minutes. You are not entitled to raise a point of order.

This is a repeat of the Tánaiste's reply to the parliamentary question I tabled earlier.

That is not a point of order. Deputy Creed, I ask you to resume your seat.

It is a disgrace. It is a virtual repeat of the Tánaiste's ráiméis.

It is entirely relevant. Whether the Deputy's contribution remains relevant is a moot point. Enterprise Ireland's approach involves a stepped approach to company development which includes a detailed analysis of a company's requirements against specific goals determining the level and need for State support and targeting funds towards providing solutions to the needs of client companies rather than the administration of many diverse programmes.

Did the Minister hear anything I said?

Enterprise Ireland's approach is focused on meeting the needs of companies as identified by them within the context of the mission of the agency to grow sales, exports and jobs.

Was the Minister listening to me?

Would the Deputy please have the decency and courtesy to allow me to reply? The Deputy can make his own observations in the reply afterwards if he so wishes.

Rubbish. That is irrelevant.

The Deputy will not even allow the Minister to reply.

If one tables a question, one should get an answer.

Deputy, if you interrupt once more you will leave the House.

The Government through its enterprise support agencies is committed to ensuring the most equitable distribution of job opportunities and to encouraging the establishment of indigenous industry in rural Ireland. The development agencies are strongly focused on achieving this aim and resources are being deployed to reflect this new focus.

In this regard the Tánaiste yesterday launched a new Enterprise Ireland initiative to support regional development by indigenous firms. The initiative is built on a four pillar approach which is focused on developing the competitiveness and export potential of existing businesses in the regions; enhancing the operating environment for business, particularly in facilitating companies to develop and access new technologies and, by working with other key players, to address the telecommunication and other infrastructure needs of companies throughout the country; supporting an increased level of new high potential start up companies throughout the country and facilitating the expansion of east coast companies to regional locations.

In support of this new approach Enterprise Ireland has reorganised its network of regional offices which are now aligned to the new EU regions. The 100 strong regional team has expertise across all areas and sectors, including general business, development, finance, human resources, marketing and other specialist skills. In addition specific teams have been established to increase the number of high potential companies in regional locations.

Under this initiative the agency has set ambitious targets for achievement over the next three years.

These include assisting the establishment of 50 high potential start-up companies, 30 expansions of Dublin-based companies into the regions, assisting 150 companies from outside Dublin to become exporters for the first time and making 360 major investment commitments outside the Dublin region.

This strategy has been specifically tailored to meet the unique needs of each of the individual regions, to maximise their strengths and overcome their weaknesses. It will make a real difference to enterprise development in the regions and will help to create a much more equitable and sustainable economic balance across the entire country.

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