Vol. 561 No. 6
71 Mr. B. Smith asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures that will be taken by her Department and the industrial promotion agencies to attract a new industry and additional job opportunities to County Cavan in view of recent job losses; and if she will make a statement on the matter. [5132/03]
The attraction of new foreign direct investment to Ireland is statutorily charged to IDA Ireland. Despite the global economic turndown, the level of foreign direct investment in Ireland, relative to the size of the economy, remains one of the highest in the world. Ireland competes with many other countries for new projects and, indeed, the relative attractiveness of one regional location in Ireland to another is often the decider for a company as to where it will locate. This makes the challenge in Cavan even greater.
The designation of Cavan town as a hub in the national spatial strategy confers on it a strategic position in the overall development plans for Ireland, acknowledging that it can support development in both the gateways and rural areas which surround it. Cavan town with Dundalk, Monaghan and Drogheda, is one of the four towns of emphasis in the north east region for the IDA and is strongly marketed for new investment. The IDA is investing €1 million in Cavan in enhancing the 35 acre business park at Killygarry. This will bring the park up to "Flagship" standard and will greatly enhance its attractiveness for new inward investment. The work is already under way involving the extension of internal roads, services and extensive landscaping. IDA Ireland has also sought and received planning permission for two 2500 square metre advanced technology units from Cavan County Council, which will be constructed on a roll over basis by the private sector.
The announcement on Friday, 14 February 2003 by Teradyne Incorporated that it will close its manufacturing facility in Cavan town presents a challenge to try and secure a replacement industry. The announcement three years ago that Teradyne was to establish a major facility in the town represented the culmination of many years of work by IDA Ireland and others in promoting Cavan for new inward investment. The decision by the company to locate in Cavan highlighted the fact that the smaller regional locations can support significant industry. It is significant that the Cavan location did not impact on the decision to consolidate the company's operations in Dublin, but rather the general downturn in the worldwide telecommunications industry. Teradyne acknowledges that the decision to close the Cavan operation is in response to a continuing worldwide electronics manufacturing downturn. This initially caused the company to abandon its plans for the major manufacturing facility in Cavan. It now sees consolidation as the best way of cutting costs and contributing to the viability of its operations in Ireland.
