Dáil Éireann díospóireacht -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Job Creation.

Aengus Ó Snodaigh

Ceist:

101 Aengus Ó Snodaigh asked the Tánaiste and Minister for Enterprise, Trade and Employment the action which has been taken to fulfil the commitments in the programme for Government to encourage a better spread of jobs throughout the country; and if she will make a statement on the matter. [29849/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

Regional development is an important strategic objective for my Department. The enterprise support agencies each have specific operational activities and programmes tailored to encourage enterprises and to attract new jobs to regional locations. These help drive the delivery of core elements of the national spatial strategy. The Government's decentralisation initiative also demonstrates a commitment to help regional towns build scale and create opportunities that will increase their attractiveness for investment.

There have been fundamental changes in the operation of individual agencies that reflect a serious intention to address regional development from an enterprise perspective. In the realm of planning and advice, Forfás provides important guidance concerning national development investments. This is essential analysis that contributes to making regional centres more competitive and attractive locations. Forfás also provides the secretariat to the enterprise strategy group under the chairmanship of Mr. Eoin O'Driscoll. One of the tasks of the group is to consider new enterprise policy options, which, among other factors, recognise the desirability of regional balance.

In early 2001, IDA Ireland outlined its commitment to regional development in its strategy document. This initiated a regional development process whereby it strengthened its network of regional offices by allocating key sectoral responsibilities to regional locations such as Waterford, Athlone and Sligo. About 100 staff are now based in ten offices whose functions are aligned with regional development priorities, such as building flagship business parks and strategic sites to provide high-quality facilities to accommodate high-value, large-scale projects.

On the employment front, 44% of new greenfield jobs were delivered in the BMW region during 2002, representing a creditable performance given global business difficulties. The agency is currently reviewing its strategy. Regional development and programme development options to meet national spatial strategy objectives have featured prominently in the planning work undertaken to date.

Enterprise Ireland and my Department recently reviewed its funding guidelines for companies and launched a revised schema in May this year. These align financial incentives with the national aim of balanced regional development. Location is now a key determinant of the level of aid available to Enterprise Ireland's clients. All categories of financial support provided by Enterprise Ireland now reflect a preferential bias for companies located outside the Dublin and mid-east regions. Enterprise Ireland also launched the competitiveness fund this year, which is a new €10 million fund targeted at SME competitiveness. It specifically addresses the needs of companies that have not undertaken a major development project within the past three years. This very relevant policy initiative will positively impact on the regions.

Enterprise Ireland is currently revising its regional strategy priorities post 2003. New strategic policies will focus on three main areas, which include the existing client base, new start-up activity and regional development/business infrastructure. Programmes under these themes will be a further catalyst to expanding regional employment and wealth creation.

Directed by Shannon Development, the Shannon region 2020 strategy aims to expand regional employment and enterprise opportunities. It takes a 15 to 20 year view to developing the critical mass of the Limerick-Ennis-Shannon region, while networking the major centres of Limerick, Galway and Cork through the Atlantic Alliance initiative. This regional "vision" aims to stimulate investment in key county towns and use regional natural resources for rural development.