Written Answers. - Job Creation.
Cecilia Keaveney
Ceist:
21
Cecilia Keaveney
asked the
Tánaiste
and Minister for Enterprise, Trade and Employment if the job creation strategy for the north-west is proving successful, particularly for north-east Donegal; and if she will make a statement on the matter.
[12251/03]
The issue of job creation is a day-to-day operational issue for the enterprise development agencies of my Department and is one in which I have no direct function.
IDA Ireland, Enterprise Ireland, and the county enterprise boards are the agencies under the aegis of my Department with responsibility for industrial development in the north-west region. IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment to Ireland and its regions. Since 2000, almost 2,600 jobs have been announced for the north-west region and 1,722 new actual jobs have been created by overseas companies. A total of 812 of these jobs have been created in County Donegal. Unfortunately, during the period 2000 to 2002, net employment in overseas firms fell by just 78 people. I also learned with regret recently of Unifi's announcement that it is to reduce its workforce at its Letterkenny facility in Donegal.
These job losses, in which I share the Deputy's concern, arise largely as a result of the globalisation policies of multinational companies on the one hand, and also due to the restructuring process which is going on in indigenous companies in Ireland whereby activities, and hence jobs, at the lower end of the value-added scale are being phased out as these activities become uneconomic in an Irish context.
IDA's overall strategic response to this new competitive circumstance has been towards a broader vision of what constitutes FDI, with less emphasis on job numbers, and a much greater focus on job quality, higher value-added activities, and making Ireland a centre for innovation and the strategic management of value chains rather than just a manufacturing or basic service location.
A number of key developments by IDA Ireland for the area include the construction of a new IDA 80 acre business park in Letterkenny, which is near completion, and the availability of new advanced buildings. This activity has resulted in an increased level of visits by potential investors and a number of companies are in active negotiation. Successful companies such as Prudential and PacifiCare continue to grow and both are actively recruiting at their Letterkenny locations.
In addition, the agency is working with Invest Northern Ireland – formerly the Industrial Development Board – to promote the north-west region as a single location for inward investment. A joint website has been compiled to promote the region. I am pleased also that the chambers of commerce in the north-west cross-Border region have combined forces to progress agreed themes of common economic interest under the umbrella of the "North West Chambers of Commerce Initiative".
Enterprise Ireland, the agency with responsibility for indigenous industry development, continues to foster an enterprise culture in Donegal and the north-west. The strategy, which Enterprise Ireland is pursuing in the north-west region has proved to be successful in terms of creating new jobs and driving economic growth in the region.
Although net job losses for Enterprise Ireland clients stood at just over 400, for the three years ending 2002, it should be noted that during the same period nearly 1,800 jobs were created in Enterprise Ireland supported companies across the north-west region. Indeed, specifically, with regard to north-east Donegal, 41 more people were employed in Enterprise Ireland supported companies in 2002, compared to 2000. Enterprise Ireland will continue to work closely with existing clients in Donegal companies across all aspects of their business, from strategy to production, research and development to marketing and finance in order to grow and increase sales, exports and employment.
At the micro-enterprise level, Donegal County Enterprise Board is actively promoting job creation activities throughout the county, through the range of supports that it provides to small businesses. The board provided financial support to 14 projects in north-east Donegal in 2002 and 20 in 2001. These projects have resulted in the creation of 122 potential jobs. To date in 2003, five projects in east Donegal have received a total of €145,675 in funding with the potential for creating 17 jobs.
The board is a partner on a number of cross-Border programmes with agencies such as Business in the Community, in Derry, Workspace Draperstown and Roe Valley Enterprises, Limavady. These programmes, which all aim to improve and increase the level of cross-Border business, will be available to all small and micro businesses in the county but will be particularly suitable to businesses in the east and north-east of the county.
I am confident that the strategies and policies being pursued by the industrial development agencies in the north-west region, together with the ongoing commitment of Government to regional development and the Objective One designation of the north-west, which facilitates the payment of higher grant levels in the BMW region, will bear fruit in terms of creating additional sustainable jobs in the region.
Question No. 22 answered with Question No. 10.
