Written Answers. - National Spatial Strategy.
Gerard Murphy
Ceist:
139
Mr. Murphy
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
her views on whether the objective of directing industries to the regions, as envisaged in the national spatial policy, is not working.
[24577/03]
The national spatial strategy, NSS, is a framework designed to reorientate the balance of development across the country, a framework in which existing and future investment and development plans must work. Redirecting the established force of development and investment preferences is not a straightforward issue, nor one that can be achieved simply by Government edict and completed in a matter of months. The NSS is a 20 year strategy designed to enable every place in the country to achieve its potential.
A catalyst to regional development is putting in place important enterprise supporting infrastructure as a strong counterbalancing force to make regional locations viable and attractive options when businesses make investment decisions. My Department is overseeing this regional emphasis through the enterprise support agencies, which have prioritised regional development as part of their strategic development plans.
For example, IDA Ireland has developed a broader vision for helping both foreign firms located here and new potential investors. Its key objective is to encourage firms to be more innovative rather than production-led, as well as focusing on regional economic development that is broader than industrial development and takes account of quality of life factors. The objective of the strategy is to create a strongly sustainable magnet in each of the regions for enterprise development.
IDA has established strong connections with regional educational institutions in areas of skills, specialised training and research and develop ment and in support of its regional strategy the agency now has nine offices outside Dublin – six of which are in the Objective One region. Furthermore, key business units such as the regions and property division, ICT and health care divisions and engineering and consumer products have been decentralised to Athlone, Waterford and Sligo. On the employment front, for example, IDA Ireland has been successful in delivering 44% of new greenfield jobs in the BMW region. This is a creditable achievement in the face of the global contraction in the international mobile investment market.
Implementing NSS supporting strategies is also clearly present in the regional activities of Enterprise Ireland's strategy for balanced regional development that is built on four pillars: developing and sustaining existing businesses in each region; enhancing the environment for business in each region; identifying and encouraging new start up companies with strong growth potential; and identifying new opportunities for economic development in the regions, including investments by expansion-minded Dublin based companies
These pillars have formed the blueprint for Enterprise Ireland's activities over the past three years. In 2002 56% of total approvals were to regionally based clients. So far this year, 65% of approvals are for regional clients. In 2002, 35% of new high potential start up – HPSU – companies were located in the regions. This year, 51% of HPSUs are located outside Dublin. Enterprise Ireland is implementing well thought out activities in each of the regions to ensure that technology and innovation supports are in place to develop the capability of companies regionally.
Enterprise Ireland targets existing companies and high potential start ups, to accelerate their growth by linking with regional research centres. Regional third level colleges are in turn supported in business-related programmes around basic and strategic research, promoting campus companies and in collaborating with industry. Enterprise Ireland has committed over €27 million to provide incubation space in 12 colleges throughout the country. This support strengthens all important links between business development and third level education. The following centres have been assisted. Athlone IT, Carlow IT, Cork IT, Dún Laoghaire, Dundalk IT, GMIT, Galway and Castlebar, Tralee IT, Waterford IT, St. Angela's College, Sligo, National College of Ireland, Dublin, DCU, UCD and NUI Galway.
Under the webworks programme, regional development hubs will be set up to generate initial mass in the regions for firms that will be strong research and development and export performers. Webworks are state of the art buildings for high tech, office based indigenous projects. Enterprise Ireland is developing centres in four locations – Sligo, Galway, Cork and Waterford – and a fifth will be located in Limerick. Work is expected to commence on all five locations in 2004.
At the micro enterprise level, the funding of community based enterprise centres is a crucial part of the drive to create new regional enterprise. Over the past two years, Enterprise Ireland has committed €8 million to assist local communities to develop their own enterprise space. Some 35 projects have been helped in this way and they are located as follows: north-west, five; west, five; mid-west, six; south-west, three; south-east, four; mid-east, three; north-east, four; Dublin, two; and the midlands, three.
While earlier expectations of regional employment expansion may be hampered in the short-term because of the poorer economic climate worldwide, essential enterprise infrastructure improvements are making a difference and contributing to making regional business centres more attractive for the technologies and entrepreneurs of the future.
