Dáil Éireann díospóireacht -
Tuesday, 3 Jul 2001

Vol. 540 No. 1

Adjournment Debate. - IDA Supported Companies.

Cecilia Keaveney

I thank you for the opportunity to raise the IDA report 2000. I welcome the Minister of State, Deputy Treacy, but I wish the Tánaiste was here because she is very familiar with the scene in Donegal and very sympathetic to it. I would have liked her to have heard my impressions of the current report. "Simply counting job numbers is no longer the best measure of success in the economy, as Ireland moves into a new era of development. That was fine when unemployment was the key issue", so began the chairman of IDA Ireland, Mr. John Dunne, at the launch of the IDA annual report for 2000.

Unemployment is still a key issue in my constituency even though the IDA does not seem to know. Simply counting jobs is a fairly easy task in my peninsula, particularly those jobs lost to females. Some in Donegal say that it is those jobs lost that are the best measure of success in the economy of my region as Ireland moves into a new era of development. Mr. Dunne went on to say: "the value of a job to the economy, the skills and knowledge levels required to operate that job, the regional location of the job as well as the levels of innovation and research and development in companies are all important measures from now on." He stated "from now on", but each year I hear of the new strategy and the new focus that is being given to the regional locations, to the black spots, to the Border and Objective One regions. This week even Wexford was included.

In 2000 when we counted the numbers in the north west Donegal area, we saw reduced numbers employed through IDA companies from 5,486 to 5,390. What was worse was that this was not even a blip on a healthy screen as the preceding year, 1998, had delivered a drop from 6,461 to 5,486. In five years, IDA Ireland has managed to reduce employment from 6,630 to 5,390 at a time when the IDA is saying it is focusing on us. I would hate to think what it would be like if it ignored us.

We have the optimism of Mr. Dorgan to rely on for the incoming year as we see with the downturn in the American economy, "it certainly would be a very different year compared with the past few years".

IDA staff are due to move into three regional economic centres to stimulate their development as magnets of growth. Yet, in spite of the difficulties experienced in Donegal, there is no plan to locate any of this one-third of IDA staff in the county. Where is the special status and focus?

I concur completely with Mr. Dunne's comments that Irish people now expect not only to have jobs but to have well paid and satisfying jobs, preferably in their own region. He believes these are legitimate aspirations based on the levels of growth and development achieved in recent years and that new responses are required from development agencies such as the IDA and infrastructure and service providers.

We hear on a daily basis of hundreds of jobs being created in other areas and of small numbers of job losses compared to those experienced in Donegal. Immediate replacements and remedial action are provided for job losses elsewhere. It is very difficult to reconcile this with what is happening in Donegal.

The people of Inishowen are among the people to whom Mr. Dunne refers. We need jobs to be delivered in Donegal and we want to see the decentralisation of State mind-sets. State agencies must deliver real jobs to Inishowen and must put in place proper infrastructure to assist our region to make progress if only, as Mr. Dunne states, from the point of view of equity.

Let us stop hearing dreadful statistics such as those outlined in the IDA's annual report of 2000. We must begin to hear fewer excuses and more positive messages for Donegal and the north-west, particularly Inishowen. I will not rehearse the litany of job losses suffered as I have done so on many occasions. Neither will I raise the slow progress made in regard to the sale of IDA land in Moville to Donegal County Council which wishes to facilitate the development of a community enterprise unit. I take this opportunity to commend Donegal County Council on its real efforts and direct actions to make job statistics in Donegal in some way decent.

The challenge remains. I trust I have proved this evening that I have kept informed of the IDA's views and I would now Iike it to react to my views. I await the IDA's 2001 report and await equity for Inishowen and Donegal north-east.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The Government, through the enterprise development agencies, is committed to ensuring the most equitable distribution of job opportunities and to encouraging the establishment of industry in the regions. A key factor in the achievement of this objective, and a primary objective of this Government, is the creation of a business environment in which job opportunities continue to flourish and, equally, in which job applicants have the requisite skills requirements. In line with commitments contained in the national development plan, the enterprise development agencies are strongly focused on achieving this aim and resources are being deployed to reflect this new focus. The new 12.5% corporation tax rate and initiatives on matters such as education, physical infrastructure and technology under the national development plan, allow Ireland to remain competitive both in developing indigenous industry and securing inward investment projects.

In an effort to ensure that the objective of balanced regional development will be achieved, IDA Ireland has, over the past 18 months radically changed its policy, under the direction of the Government, with a commitment to delivering half of all new greenfield jobs into the Objective One regions in the coming years. As regards the north west-Donegal region, IDA's Donegal regional office was re-established in Letterkenny. In addition, IDA is in the process of relocating a number of key operating units into the region. Engineering and consumer products, together with a section of international services, are relocating to Sligo. This move is designed to stimulate and support growth from within the region.

While it is acknowledged that the north-west Donegal region has shown some decline in IDA supported jobs in recent years, IDA considers that the area is beginning to show recovery. This recovery will be more apparent as the new projects which have been announced make their impact in the years ahead. In this regard, phase 1 of the development of Letterkenny Business Park has been completed. PacifiCare, which currently employs 180 people, now occupies Building One. The company recently announced an expansion project to create an additional 160 jobs at full development. Work is nearing completion on the provision of a second 25,000 sq. ft. advance factory at the park and planning permission has been sought for a third advance factory. Prudential Insurance Company of America has occupied a new office facility at Letterkenny Office Park and currently employs 150 persons. Prumerica has announced an expansion of its operation which will result in the creation of an additional 450 jobs. The project will be located in a second office facility in this park.

Other job expansions in the area include Kirchhoff Ireland which recently announced an expansion of its automotive components operation in Letterkenny. The company currently employs 53 people and the expansion will employ an additional 50 people at full development; Interventional Technologies – IVT – which is now owned by Boston Scientific has announced plans to create an additional 90 jobs through the expansion of its existing operation in Letterkenny; and Abbott Laboratories in Donegal town, which employs 550 people, announced plans to invest £50 million, with the support of IDA Ireland, for the development of its operation, which will secure the future of the facility.

In Ballyshannon, work has commenced on the development of a business park and it is planned to provide a 20,000 sq. ft. factory on this park. Buncrana is the focus of IDA efforts on the Inishowen peninsula. Additional land has been purchased in Buncrana and planning permission has been sought for a 20,000 sq. ft. building. Work will commence shortly on the development of this site. The research facility of Claddagh Resources, formerly Network Resources, at Lisfannon, plans to create 35 new jobs, the majority for people with third level qualifications. Recruitment by the company is ongoing. The previously vacant Fruit of the Loom facility at Malin has been sold to Donegal County Council to facilitate the development of an operation by Forward Emphasis which is due to be opened later this month.

Lands surplus to the needs of IDA for inward investment purposes are in the process of being sold to Donegal County Council to assist in the development of local projects with job creating potential. IDA is also marketing vacant facilities previously occupied by Fruit of the Loom at Ballymacarry and Lisfannon, Buncrana, as well as Milford and Raphoe. In addition to the above positive developments, the implementation of the Donegal employment initiative task force's recommendations has been allocated to the Donegal County Development Board. IDA's participation on the county development board involves the provision of information on inward investment and sharing with the board national-regional strategies and policy on foreign direct investment. The county development board's brief is to prepare a ten year strategy for the development of County Donegal. IDA has been invited to participate in the strategy together with many other agencies including social partners, farming interests and local councillors.

IDA Ireland and IDB Northern Ireland have also put in place a joint marketing programme for the north-west region which includes Counties Donegal and Derry. The initiative involves the marketing of the region by overseas executives to potential investors and some of the work to date has included the setting up of a joint database of information. Familiarisation trips for the relevant executives in IDA and IDB have also been arranged. Other areas of co-operation are being explored, including the development of a website and a cross-Border business park.

Allied to above IDA job creation initiatives, Enterprise Ireland and the county enterprise boards are actively promoting the development of indigenous enterprises and have been successful in creating good quality and enduring employment in the region. We are confident that the ongoing co-ordinated job creation efforts by the industrial development agencies in the north-west Donegal region will bring positive results to the area in the year ahead.