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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Written Answers. - Job Creation.

John Deasy

Ceist:

88 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment the efforts made by the agencies under her aegis to promote a factory (details supplied) in County Waterford; and if she will make a statement on the matter. [19810/02]

Irish Business Against Litter sponsored the building of a 28,000 sq. ft. advance manufacturing facility in 1998. The facility is located at the IDA business park in Dungarvan, County Waterford. IDA Ireland is responsible for property marketing in this area. The facility was designed to offer a large open production or manufacturing floor of 25,000 sq. ft. and a smaller office area of 3,000 sq. ft.

The facility is being actively marketed by the IDA's south east regional office, along with its property division based in Athlone, to new and existing foreign direct investment companies. There have been a number of meetings this year between IDA Ireland and Waterford County Council, involving the Waterford County Enterprise Board, concerning the marketing of the building. Full details of the building are available to the staff of the IDA, including their overseas network, on the IDA's property database. The starting point of a potential itinerary is to agree on the regions, cities or towns that the company will visit. Suitable property based on the company's requirements is shown as part of the itinerary.

The climate for inward investment has changed significantly since the building was designed and completed in 1998. Foreign direct investors now tend to be advanced manufacturing companies in the pharmaceuticals and health care sectors, or services companies. The property requirements of these companies tend to favour purpose-built developments. However, the IBAL facility continues to feature on the itineraries of all suitable companies and it remains an important part of the IDA south east region's property portfolio to attract inward investment to Dungarvan. There have been five site visits to the facility since January 2000 and nine site visits to Dungarvan in total during this period. The most recent visit was in September 2002 when a shared services facility visited the site. I am confident that the measures being adopted by IDA Ireland, as well as the continuing commitment of the Government to regional development, will bring positive results to Dungarvan.

Paddy McHugh

Ceist:

89 Mr. McHugh asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent comments attributed to the chief executive of IDA Ireland in which he infers that towns with a population of circa 5,000 people cannot expect to obtain any worthwhile inward investment due to the fact that the IDA's competitors for such investment are city regions such as Amsterdam or Manchester; her views in this regard; and her further views on the future which towns of a population of circa 5,000 people have in this regard. [20341/02]

Paddy McHugh

Ceist:

127 Mr. McHugh asked the Tánaiste and Minister for Enterprise, Trade and Employment the Government's policy in relation to ensuring that towns with a population of circa 5,000 become thriving ambitious locations; the provisions being employed by the IDA to achieve Government policy in this regard; and if she will make a statement on the matter. [20342/02]

I propose to take Questions Nos. 89 and 127 together.

I assure the Deputy that the Government is committed to ensuring the most equitable regional distribution of job opportunities. I have impressed on the industrial development agencies – IDA Ireland, Enterprise Ireland, Shannon Development and the county enterprise boards – the crucial importance of making greater efforts to provide employment throughout the country. The industrial development agencies work in conjunction with each other on the ground and through the county development board system.

In 1999, IDA Ireland set a target of locating 50% of all new greenfield jobs in the Objective One region in the period to 2003. As part of this policy, the IDA is seeking to attract defined sectors into specific regions. This year, key operational units have been moved from Dublin to Waterford, Athlone and Sligo, to assist the development of these centres by helping them to develop as magnets of attraction or regional hubs. The IDA has developed a number of new business parks and office buildings to the best international standards to provide a range of property options for overseas investors. Such developments are generally in gateway, or institute of technology, towns with smaller developments in other centres. The designation of larger towns as regional hubs or growth centres should not hinder the development of smaller regional towns. On the contrary, smaller towns should benefit from the growth of larger centres. Some of the small towns are likely to attract companies in the subcontracting or service sectors providing goods and services to companies in the larger centres.

On 18 September last, during an address to a conference at the Waterford Institute of Technology, the chief executive of IDA Ireland, Seán Dorgan, put into context the infrastructural and other requirements which regions must have to continue to attract high quality foreign direct investment projects. Regions must offer a distinctive reason to attract inward investment, as if competition is global, companies will demand world-class facilities. Frequently, they will choose between options available in Ireland and in a number of other countries. Critical mass is required for the provision of world-class facilities. Ultimately, overseas investors will choose the most competitive locations which are best suited to their particular needs. We must continue to strive to offer the best possible location for high-level activities.
Enterprise Ireland implements its regional development strategy based on a four pillar approach: to enhance the operating environment for business; to support an increased level of new high-potential start-ups throughout the country; to identify new opportunities for economic development in the regions, including investments by expansion-minded Dublin based companies; and to develop the competitiveness and export potential of existing businesses in the regions. As 35% of Enterprise Ireland's client companies are located in towns of 3,000 or under, the agency's remit is very widespread and is not confined to large urban areas. Enterprise Ireland assigns a development adviser to work with each client company to assist clients in achieving profitable growth. A tailored package is then developed for each company.
Enterprise Ireland is committed to achieving balanced regional economic development. This commitment involves facilitating the expansion of Dublin based companies to regional locations, an option that Enterprise Ireland is continuing to promote to larger Dublin based companies. While Shannon Development does not use a 5,000 population delineation in terms of categorising towns and activities, it implements a mix of interventions for each sub-regional centre under its control. Shannon Development targets key centres, county towns, outside its key growth areas of Limerick and Shannon.
The 35 city and county enterprise boards provide dispersed economic development throughout the country, including urban areas, developing indigenous enterprise potential, stimulating economic activity at local level and promoting micro-enterprises. The boards provide a single point of contact at local level and complement the activities of the other industrial development agencies. They support individuals, firms and community groups, provided that the projects have the capacity to achieve commercial viability. I am confident that the measures outlined above, which are currently being adopted by IDA Ireland, Enterprise Ireland, Shannon Development and the county enterprise boards, as well as the continuing commitment of the Government to regional development, will bring positive results to the country. Along with the industrial development agencies, I will continue to promote Ireland with international firms for suitable industrial development projects.
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