Written Answers - Regional Investment.
Denis Naughten
Ceist:
72
Mr. Naughten
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the measures which her Department is taking to encourage investment in the BMW region; and if she will make a statement on the matter.
[11690/01]
The Government, through its enterprise support agencies, is committed to ensuring the most equitable distribution of job opportunities and to encourage the establishment of industry in the regions. The development agencies are now strongly focused on achieving this aim and resources are being deployed to reflect this new focus. The BMW region is a priority location for IDA Ireland for the attraction of suitable inward investment projects and the further entrenchment of existing projects.
Over the past 18 months IDA Ireland has radically changed its policies with the aim of delivering half of all new greenfield jobs into Objective One regions in the coming years. This involves doubling the proportion of greenfield jobs negotiated for these regions.
In an effort to ensure that the objective will be achieved IDA Ireland initially reorganised its internal structures. This restructuring included an allocation of additional staff to its regional offices, opening new regional offices in Cavan and Limerick and the allocation of regional responsibilities to key executives in its HQ project divisions.
Recently IDA Ireland announced that further additional posts would be transferred to Athlone bringing the staff complement there up to 30 and to Sligo bringing the staff complement in that location up to 15. The purpose of these moves is to drive growth from within the regions and to develop these centres as magnets for growth for these regions.
Other IDA Ireland initiatives for promoting the BMW region include putting a greater focus on marketing of specific sectors and improvement of marketing material for the region.
IDA Ireland's incentive package is also strongly geared in favour of the Objective One region which is in line with the EU State aid code. The new State aid rules were introduced at the beginning of 2000 and will run until 2006. They divide the country into two distinct regions with different limits regarding the level and types of incentives that can be provided.
The Objective One region is allowed grant rates up to a maximum of 40% during the 2000-2006 period plus a 10% top-up for SMEs. These differentiated rates make the BMW region more attractive for potential investors.
In the Objective One region IDA Ireland has also acquired a number of additional sites and upgraded many of its sites to business park standard. Furthermore, the agency, in partnership with private developers, has arranged to provide advance factories and advance offices in a number of key locations throughout the region.
Improved access is crucial to attracting new overseas investment to the regions. This has been recognised in the National Development Plan 2000-2006, which includes plans to improve our roads, railways and air services. Availability of high quality telecommunications and energy supplies are also essential. Expenditure under this heading in the national development plan is significantly biased on aper capita basis in favour of the Objective One region and should help to close the infrastructure deficit which exists in most of this region. IDA Ireland and the other development agencies will keep in close contact with relevant infrastructure providers to ensure that they are aware of the needs of enterprises.
As a result of the above initiatives 50% of all jobs negotiated by IDA Ireland during 2000 in new greenfield investment projects have been secured for the Objective One region. During the year 2000 there was also an increase of 2,155 in the total numbers employed in IDA Ireland assisted companies in the BMW region to 29,520. These are strong results and came from intensive and radically changed marketing approaches by the IDA Ireland team working in close partnership with the local authorities and the third level colleges and universities across the region.
Enterprise Ireland has also been active in the BMW region. On 5 February 2001 Enterprise Ireland launched a new regional development strategy. This strategy highlights the strengths of the BMW region, in particular the availability of skilled labour at a time of national skill shortages and the expertise available in, and from, the institutes of technology in the region. These are particularly attractive both to new start-up companies and to expansion minded east coast companies which are experiencing staff shortages at their existing locations. Enterprise Ireland will continue to endeavour to ensure that indigenous industry in the BMW region reaps the benefits of these strengths and expands and grows in a considered and sustainable manner.
Enterprise Ireland, IDA Ireland and Forfás have set up a system to ensure a co-ordinated approach to regional development which is being driven by a senior manager from each agency. This will result in the identification of a series of specific actions to be taken to help drive the development of each of the regions set within a succinct, contextual, descriptive framework of each region covering past and expected future trends, strengths and weaknesses. The objective will be to push the actions identified on a combined cross agency basis.
Finally, I would point out that the county enterprise boards, which fall under the remit of my Department, are also active in the BMW region and are continuing to contribute positively to the growth of micro industry in the region.
Question No. 73 answered with Question No. 33.
