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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Written Answers. - Job Creation.

Jan O'Sullivan

Ceist:

103 Ms O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will request the industrial development agencies to initiate an intensive job creation programme for the mid-west region, having regard to serious job losses at a number of companies (details supplied); and if she will make a statement on the matter. [20375/02]

I have no plans to request the industrial development agencies to initiate an additional intensive job creation programme for the mid-west region as I am satisfied that the efforts of Shannon Development and IDA Ireland, which are the relevant agencies in this context, are continuing to show results in terms of job creation and maintenance of existing jobs in the region.

The 2002 employment survey is currently under way and while preliminary indications are that job numbers may be slightly down on 2001, both Shannon Development and IDA Ireland believe that the economic prospects for the mid-west region remain positive. Shannon Development considers that the key to development of the indigenous industry sector is through the development of international markets. Small and medium-sized enterprises must harness all the potential competitive advantages they can gather if they are to be successful in these markets. Shannon Development has two fundamental approaches to supporting the indigenous sector: development of new indigenous industry and maintenance of existing indigenous industry.

A number of new approaches have been taken by Shannon Development to improve the indigenous sector's competitiveness and efficiency. Among these are the world-class business programme designed specifically for small businesses seeking improvement in their business and manufacturing processes; the e-cluster pilot initiative targeted at small businesses with the objective of making companies aware of the benefits of e-business and e-commerce; the exporters' club focused on a small number of SMEs who have just started or who are planning to enter export markets; and AlumniStart, a new programme specifically designed to assist Irish graduates to research and develop new business opportunities.

There were 17 first time visits by overseas companies to the mid-west region between January and October this year, compared to 16 first time visits by such companies in the same period last year. IDA Ireland continues to market the mid-west as a location for foreign direct investment. The global climate for inward investment is experiencing a slowdown and there appears little sign of a recovery in the immediate future. Much of the new investment will be sourced by a combination of developing existing clients and seeking emerging investors in existing or new activities or sectors.
Approximately half the new projects in manufacturing and international services currently negotiated by the IDA each year come from the existing base of overseas companies in Ireland. Given the critical mass of foreign direct investment established in the mid-west, the greatest potential contribution is likely to come from existing clients. For example NETg based at the National Technological Park in Limerick since 1998 expanded its e-learning product development and innovation centre operation, creating an additional 270 jobs over the next three years.
The focus on developing existing clients is, therefore, critical. The IDA is actively seeking to facilitate a progression in the sophistication and breadth of existing client's Irish operations. This means not only increasing value added in their manufacturing operations, but also adding corporate level innovation, such as research and development, and service, logistics and supply chain management functions alongside manufacturing. The objective is to create more rounded and strategically important operations within the overall corporation. Such operations are better embedded and more suited to the competitive characteristics of the Irish economy in the medium to long term.
Under the micro-enterprise measure of the regional operational programme, the city and county enterprise boards in the region continue, with EU funding, to support micro-enterprises employing under ten people, with financial intervention and entrepreneurial development of management and e-commerce skills, and enterprise education in second level schools. While any deterioration in these figures is disappointing, the fundamentals of our economy remain strong. I am confident that, given the commitment of the industrial development agencies, we can withstand the present downturn and remain an attractive location for both foreign direct investment and indigenous firms.
Question No. 104 answered with Question No. 71.
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