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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Written Answers. - Industrial Development.

John Perry

Ceist:

81 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans for a review of Ireland's high technology internationally traded services; her current policy on regionalisation and plans to encourage high-tech, high-opportunity indigenous enterprise; the number of technology hubs which have been established; and her plans regarding the Digital Media Centre in Dublin. [20089/02]

Government policy in this regard is articulated through the strategies devised and executed by the development agencies. Enterprise Ireland's policy on the internationally traded services sector is based on ITS 2007, a major study of the sector commissioned by Enterprise Ireland in 1999. The report presents a range of specific initiatives to be undertaken by Enterprise Ireland aimed at developing high value-added, knowledge intensive industries and helping them to achieve fast growth. The strategy prioritises specific sub-segments for development. It is subject to ongoing review as this is a rapidly changing sector. The key elements of Enterprise Ireland's regional development strategy are developing the competitiveness and export potential of existing businesses in the regions; enhancing the operating environment for business; supporting an increased level of new high potential start-ups throughout the country; and identifying new opportunities for economic development in the region, including investments by expansion-minded Dublin-based companies.

The strategy covers the period between 2001 and 2003, but it is being continuously monitored and a major review will begin early next year. The regional and ITS strategies are linked by Webworks, a facility that will provide the environment to create and sustain the development of high-tech industries. The planning process has commenced for all four Webworks facilities in phase one, in Sligo, Galway, Waterford and Cork, and it is expected that construction will commence in 2003. Enterprise Ireland has also supported the development of technology hubs such as the Galway Technology Centre and the National Software Centre in Cork.
Foreign direct investment can also assist in regional development. Although the challenge of locating high-value FDI regional locations is considerable, progress is being made. For example, substantial software development activities have been attracted to Letterkenny and Mullingar, and financial services back offices have been attracted to Wexford, Kilkenny, Galway and Mullingar. With regard to the Shannon Development Company, high-tech internationally traded services are a key component of the agency's efforts to develop the Shannon region where the balance of activity has moved in favour of services, rather than manufacturing. This type of activity will remain a key focus of its efforts to attract and retain foreign direct investment in this sector.
In terms of high-potential indigenous enterprise and the number of established technology hubs, Shannon Development has developed a number of initiatives, including the Shannon Development Knowledge Network, VentureStart and AlumniStart. The digital hub project aims to cluster research and development-based companies, both Irish and multinational, in the key growth field of digital media, in the Liberties and Coombe area of Dublin as part of the ongoing effort to make Ireland an international centre for high-tech research and cutting-edge digital industry. While the project is now well into its operational phase and draft legislation to put its management on a statutory footing is before the Oireachtas, I should point out that lead ministerial responsibility at Government level in this matter rests with my colleague the Minister for Communications, Marine and Natural Resources.
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