Vol. 827 No. 3
1. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the way Industrial Development Agency, IDA, Ireland's presence can be enhanced in emerging economies, particularly Brazil, Russia, India and China; and if he will make a statement on the matter. [3089/14]
Further to our discussion at the meeting of the Joint Committee on Jobs, Enterprise and Innovation on Tuesday on how we might increase the profile of IDA Ireland which does fantastic work, we need to increase its footprint in emerging markets. Are there plans in place to facilitate this, particularly in view of the economic importance of these markets and the job creation and investment potential to which they might give rise in the years to come?
One of IDA Ireland's high-level targets is that by the end of this year 20% of all greenfield investments will come from growth markets. To achieve this target, the Government provided IDA Ireland with the resources to establish offices and hire staff in emerging markets, including Brazil, India, Russia and China, the BRIC countries. In total, 17 people support the overseas marketing of Ireland for foreign direct investment in the growth markets area, with 11 staff working in the BRIC markets. In China IDA Ireland’s first office in Shanghai has been supplemented with new offices in Shenzhen and Beijing in partnership with the Department of Foreign Affairs and Trade. An ICT specialist has been appointed in Shenzhen and a financial services specialist in Beijing. The intensity of engagement between Ireland and China in recent years is evidenced by the number of memorandums of understanding, MOUs, signed in respect of areas of mutual interest. In India IDA Ireland established its first office in Mumbai and it has been complemented by a second office in Bangalore. An experienced IDA Ireland executive has been appointed to lead the team in India. Representative offices have been established in Brazil and Russia and are staffed by highly experienced local individuals. The overseas marketing staff are supported by a dedicated high level team in Dublin which works to attract investments specifically from these markets. This team includes two members of IDA Ireland's executive committee and one member of the management team.
The Government has supported this work by stepping up the number of trade missions to emerging markets. IDA Ireland also proposes that regular intensive marketing trips be made to the region by the global heads of its main operating divisions, including ICT, financial services, life sciences and content, consumer and business services. IDA Ireland also works in close co-operation with other Departments and State agencies, namely, the Departments of Foreign Affairs and Trade and Finance, Enterprise Ireland and the National Treasury Management Agency in these particular locations. I am glad to report that to date this strategy has resulted in 17 projects from the BRIC countries. Results indicate that IDA Ireland will achieve or exceed the target of 20% of all greenfield investments this year.
IDA Ireland has five staff in China to deal with a market of 1.3 billion people, while it has 21 in the USA to cater for a market of 528 million. Given that the 21 in the USA are doing super work, imagine what could be done if an additional five staff were deployed in China. The key to doing business lies not in regular intensive visits but in maintaining a constant presence and building relationships. In the Asian markets, in particular, confidence is built on trust. As a result, there is a need to foster relationships and connections on a continual basis. In the context of the traditional markets, particularly pharmaceuticals, the figures for 2013 show that our exports were under considerable pressure. If we are to be where the action is happening in the next ten to 15 years, we must put in place the foundations now to allow us to establish the links necessary to do in the BRIC countries the work done in the USA in the 1960s, 1970s and 1980s in building relationships. Is IDA Ireland still subject to the recruitment embargo or does it have the capacity to employ new staff? What level of co-operation will there be in emerging markets between it and the new consulates which were announced earlier in the week and which we welcome?
IDA Ireland has approached this challenge in a strategic way. As the Deputy is aware, a target was set for 2014 and resources have been allocated in such a way as to ensure it will be met. The strategy is under review and we will be looking afresh at growth markets. Clearly, there is a need to balance resources against outcomes and look to the long term. On a man-for-man basis, the emerging markets would not deliver the same return as the United States. IDA Ireland still attracts the bulk of its investments from North America. However, as the Deputy observes, we must anticipate where the growth markets are. That has been the approach.
The Department is bound by the employment control framework. During my term as Minister we have protected IDA Ireland staff within it. In other words, all other areas of the Department have taken the hit in order to protect IDA Ireland. We are looking to the future in the context of developing a new strategy. The Deputy is correct in stating there will be a need to increase the resources allocated for the markets to which he refers. We will try to identify creative ways in which this might be achieved.
I welcome the Minister's reply and take the opportunity to pay tribute to Mr. Barry O'Leary who steps down from his position as CEO of IDA Ireland this year. I presume there are plans in place to recruit a new CEO to replace him. In setting targets for the new CEO will the Minister insist on the BRIC countries being placed at the front and centre in the context of his or her plans for the organisation in the coming years?
As I stated when IDA Ireland launched its annual report, Mr. O'Leary's leadership of the organisation has been exceptional. He leaves behind a fantastic legacy of achievement and an organisation that is both professional and extremely strong. I recently appointed a new chairman of IDA Ireland and the process to recruit a replacement for Mr. O'Leary is getting under way.
I agree with the Deputy in that 90% of growth in trade will occur outside the European Union. That is the new reality. Much of this growth will occur in emerging markets. It is clear that we must build on the target for 2014 which I am sure IDA Ireland will be successful in delivering on. There is only one way in which the target can go, that is, upwards. Obviously, however, we must also ensure we match our resources with the opportunities that arise, both in the short and long term. That is the balance which must always be struck.
2. Deputy Jonathan O'Brien asked the Minister for Jobs, Enterprise and Innovation the new timetable for the delayed workplace relations legislation. [3011/14]
The Government is committed to the reform of the State's existing workplace relations services. The system that developed during the past 80 years has become unwieldy and complex and is no longer fit for purpose. There was universal acceptance of the need for a root and branch reform of the existing structures. The Minister's objective is to deliver a world-class workplace relations service which is simple to use, independent, effective, impartial, cost effective and provides for workable means of redress and enforcement within a reasonable period. A new two-tier workplace relations structure, comprising two statutorily independent bodies to replace the current five, will be established. There will be a new single body of first instance - to be called the workplace relations commission - and a separate appeals body which will effectively be an expanded Labour Court.
A significant amount of work has been completed on the preparation of the legislation which will give statutory effect to the new structures and associated processes. The draft scheme of the workplace relations Bill has been approved by the Government for priority drafting. The Office of the Parliamentary Counsel has assigned resources to ensure the earliest possible publication of the Bill and drafting is under way. The Minister's intention is to publish the Bill as early as possible during the spring-summer Dáil session, with a view to the new structures being put in place during this year. The legislation will provide for the services of the Equality Tribunal, the National Employment Rights Authority, the Labour Relations Commission and the first instance functions of the Employment Appeals Tribunal to come together within the remit of the workplace relations commission. The appellate functions of the Employment Appeals Tribunal will be amalgamated into a reconfigured Labour Court.
Significant progress has also been achieved to date, in advance of the enabling legislation, in so far as the technological, structural, administrative and staffing changes required are concerned to underpin the workplace relations reform programme, including the following measures which have already been put in place: the transfer of the Equality Tribunal to the Department, to be part of the workplace relations commission; a single contact portal; an e-complaint facility; a staffing and structures plan; a new workplace relations website; an early resolution service; adjudicator training and recruitment plans; and enhanced technologies and processes, including the publication of a request for tender for a customer relationship management solution.
With respect to the Minister of State, I have heard that reply before. This legislation is a long time coming. In March 2012 a consultation document was issued by the Department and a commitment given that the Bill would be published in the third quarter of that year. We are still waiting. The Minister of State has indicated that the drafting of the Bill has been given priority and that it will be brought forward before the summer recess. I hope that is the case. The proposed Bill has been included in every legislative programme since the end of 2012 and it is critical that it be progressed without further delay. Economic recovery cannot be premised on the erosion of workers' rights. We have seen many cases in recent years, during the Government's term of office, where workers have had to fight for their entitlements. We see it again this week in the case of Ivan's in Limerick where workers have found themselves obliged to engage in a sit-in in order to secure their rights. I hope the Minister of State will adhere to the timetable he has indicated to have the Bill published before the summer recess. We must provide a legislative basis to ensure workers receive their full entitlements.
I accept the Deputy's point. Reforming a complex system takes time, but we are committed to that reform and the associated legislative process. From a public service delivery point of view, we must consider the situation as it stands. Prior to 2012, there were more than 100 possible first instance complaints involving 30 complaint forms which could be lodged with five separate bodies. The process of bringing everything together under a workplace relations commission is complex. Practitioners in this area have acknowledged that complexity. We must ensure the legislative approach we adopt is robust and will stand up to scrutiny. It is a case of kicking the tyres, so to speak, before we proceed. The workplace relations Bill will give statutory effect to the reforms we are bringing forward, but the enactment of the Bill will necessitate amendments to 22 primary Acts, 12 specified Parts or sections of Acts and 71 statutory instruments. We are committed to implementing these reforms.
I do not underestimate the complexity of devising this type of legislation. The point I am making is that we have been assured in every session since the third quarter of 2012 that the Bill would be published in that session. Every time that does not happen it damages the Minister of State's credibility in this matter. If this legislation really is a priority for the Government, it should get on with drafting and publishing the proposals that are necessary to protect workers.
I assure the Deputy that drafting is under way.
3. Deputy Richard Boyd Barrett asked the Minister for Jobs, Enterprise and Innovation in view of the recent job losses at Lufthansa Technik Airmotive Ireland, if he will step in to ensure the protection of skilled Airmotive jobs, keep the plant viable as an aircraft engine overhaul facility and ensure that all redundancies owed will be paid; and if he will make a statement on the matter. [3146/14]
In the Visitors Gallery there is a delegation of workers from Lufthansa Technik Airmotive Ireland, 400 of whom have learned in recent weeks that they will lose their jobs. Sixty-five were laid off last week, with the remainder to go in the coming weeks and months. I am asking on their behalf whether the Government intends to do anything to seek to save and maintain this highly skilled workforce and the skills base they represent in an industry the Government has designated a priority. In addition, will the Minister address the question of the pension deficit left behind, in a context where, as the workers understand it, €40 million of IDA Ireland money was given to the company? What has become of that money and can some of it be retrieved to fill the pension gap or maintain the plant and the jobs it provides, thereby facilitating Ireland's involvement in this industry?
Prior to this very unfortunate closure decision, I had kept in close contact with this case. In fact, I met senior company executives several times, including just before the announcement. The position is that the company has had to undertake a global review of its operations in the light of shrinking revenues and declining market opportunities. This decision was taken by the parent company on strictly commercial grounds in the face of a declining business that had also caused the closure of some of its plants in Germany.
The plant to which the Deputy refers carried out skilled maintenance on the engine casings of jet engines, which requires a particularly skilled and high value level of expertise. This work is crucial for the ongoing safety and efficiency of aircraft engines. Lufthansa has several plants worldwide engaged in this aspect of engine maintenance. However, owing to changes in the industry worldwide, including modern engines requiring less maintenance, over-capacity in the industry, increased competition from Asia and contractual obligations imposed by both aircraft and engine manufacturers, the company is facing over-capacity which necessitates the closure of several of its operations worldwide, including the plant at Rathcoole.
The Government is committed to the retention and expansion of skilled manufacturing jobs in the economy. Our new manufacturing strategy document which I launched last year sets out an ambitious target of creating an additional 20,000 jobs in the sector by 2016. Key recommendations of the strategy have been incorporated into the Action Plan for Jobs and are being pursued by my Department and the enterprise development agencies. While employment in the overall sector has increased by almost 8,000 jobs in the past year alone, parts of the aircraft maintenance sub-sector are under severe pressure owing to the changing dynamics of that industry. Nevertheless, we have several vibrant companies involved in various aspects of aircraft maintenance, employing some 4,000 staff. The strategy for the new Shannon Airport operation envisages the development of a vibrant aerospace sector at that airport. Part of that strategy has identified maintenance, repair and overhaul activities as a potential sector for development. Lufthansa's two other maintenance operations at Shannon employ a total of 770 staff.
IDA Ireland, in conjunction with Enterprise Ireland, has been actively seeking to pursue new employment opportunities for workers being made redundant by Lufthansa in Rathcoole. The agencies have been targeting and engaging with existing and prospective clients, highlighting the skills and capabilities of the Irish-based employees as a key attractor. The agencies have had ongoing engagement with the relevant education and training bodies to evaluate potential training and upskilling supports for Lufthansa employees.
The question of settling the level of redundancy payments to the former employees was considered in the Labour Court recently. Payment of the recommended terms is now a matter for the company.
This is a strategic closure by Lufthansa. The idea that we have a contracting market opportunity is nonsense. The reality is that the aircraft industry is booming. The Government's commitment to seek investment and expand employment in this area is proof of that. The Government is taking that approach because it knows it is an industry that is expanding. Therefore, we should not take too seriously what Lufthansa is stating. This is a strategic closure in its own interest by a company which, at a large meeting in Hamburg on 10 December, spoke about the ambitious growth plans to be implemented in the coming months and referred to its dominant position in the market and so on. That is the reality.
I am glad to hear of the Minister's commitment to protect skilled jobs in this industry. In that context, it makes absolutely no sense to allow these jobs and this skills base to be lost and for the plant to be stripped down, as it will be, if we do not intervene in some way. The workers particularly want to know about the €40 million that was put in. They understood that €40 million was conditional on the plant being maintained. The State is a shareholder in Aer Lingus. The workers also tell me that a load of CFM engines will come on the market soon for maintenance and overhaul and that this work could be done in Rathcoole if we were to maintain the plant and these jobs.
Grants provided by IDA Ireland are always subject to legal conditions. If a grant is provided and the company does not fulfil the conditions, the grant is repaid. The obligation to repay grants ceases when a company that spends many years in Ireland fulfils its programme of activity. That has always been the approach.
In any sector there are parts going down and rising. For example, some pharmaceutical plants have got into difficulty because their product sub-sector is in decline, but other areas are growing. It is not dissimilar in the aircraft sector: there are areas in difficulty and this is one of them. The evidence is strong and it is backed by our advisers in IDA Ireland that this sub-sector is in difficulty globally. Other areas, as the Deputy rightly says, are growing. In every sector our challenge is to make sure we can move our resources into the areas that are growing. It is not possible to keep every plant open if part of its business is no longer viable. That is the reality with which we must work in all companies.
In the short time available I will not get into an argument with the Minister on this issue, except to say the workers have a different perspective, wide knowledge of the industry, skills and so on. They tell me there could be a glut of the engines in which they specialise in the market soon and that work could be done in Rathcoole but not if the plant is stripped down. I appeal to the Minister to meet the workers and hear their side of the story to see if there is anything that can be done. The Government is a stakeholder in the aircraft industry and these were Aer Lingus workers. It seems that where there is a general commitment from the Government to this industry and maintain the skilled jobs in it, we must do everything we can to see if these skilled jobs can be maintained.
What can we do to fill the pension deficit about which the workers are very concerned, given that a large sum of public money was given to Lufthansa? Can we put pressure on it to fill that gap? Can the State intervene in some way? I urge the Minister to meet the workers to discuss what can be done.
I am very conscious of the difficulties any closure poses, but a company has to make decisions about its position. We seek and have sought to work with Lufthansa to put transformation programmes in place to support it. That has been a constant feature in recent years. I have met Lufthansa to make sure this offer is always on the table. Decisions of this nature are made ultimately by the company, not by me or IDA Ireland. The Labour Court recently considered the issue of redundancy payments and the conditions of former employees and payment of the recommended terms is now a matter for the company.
Will the Minister meet the workers?
I have met all of the Deputies. Unfortunately, a decision has been taken on this issue.
Will the Minister meet the workers?
I will have to consider that request. Unfortunately, I do not have a role at this point. The company has made a decision. That has been passed.
What about the jobs?
The challenge for me now is to find new opportunities. If proposals are forthcoming from workers that would help me and IDA Ireland to find an alternative, we will be delighted to receive them.
4. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation his views on the cost competitiveness in the Irish economy; if his policy is assisting businesses to reduce costs; and if he will make a statement on the matter. [3090/14]
As the economy begins to grow, I am concerned that costs will grow with it and undermine employment and growth potential. I would like to work through the Minister’s position on cost competitiveness in the economy and hear what plans the Government has in place in that regard.
The Cost of Doing Business 2012 report, published by Forfás in April 2013, showed that Irish cost competitiveness had improved markedly in the past few years. Between January 2000 and April 2008, Ireland recorded a 22.5% loss of competitiveness, fuelled by an unsustainable consumption and property boom. Since 2008 it has regained some of the cost competitiveness it had lost. Much of the improvement in Ireland's cost competitiveness since 2008 is accounted for by the favourable exchange rate movements. However, there have been falls in relative prices in a number of areas. Labour is the most significant cost for most businesses and the latest EUROSTAT figures show that the labour cost index in Ireland fell by 1.6% in quarter 3 of 2013, compared with quarter 3 2012. In the two year period 2011-12 there was a very significant improvement of almost 20% in our unit wage costs relative to the rest of Europe.
Construction and rental costs for both office and industrial space have fallen dramatically for new businesses since the collapse of the property bubble. Rental costs for office space, for example, declined by 45% between 2007 and 2011. Similarly, the Forfás report shows that the cost of the majority of business and professional services in Ireland has fallen since 2006. The cost of legal services is a notable exception, but the Government is continuing to press for reform in this area through the Legal Services Bill.
My Department has identified measures to simplify the administrative burden on businesses to the potential value of over €207 million per annum. Programmes such as Enterprise Ireland’s LEAN Business offering and innovation supports are helping companies to address competitiveness issues and improve productivity. Through the Action Plan for Jobs 2012 and 2013, the Government has focused on creating a supportive environment for businesses operating in Ireland. The action plans have included a range of concrete measures to address issues which impact on our competitiveness position. The implementation of these actions, combined with the Government’s exit from the troika programme and its return to international funding markets, will play a key role in improving our competitiveness further and realising our ambition of making Ireland the best small country in which to do business.
Additional information not given on the floor of the House
The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, is finalising the 2014 Action Plan for Jobs on behalf of the Government which will build on the progress made in recent years and will include further measures aimed at reducing costs for business.
I thank the Minister of State. Deputy Jonathan O’Brien and I were spokespersons on justice in December 2011 when the Legal Services Bill was first brought into the House and it is still meandering its way through the Houses. The Tánaiste said yesterday that it would be finished “when we are ready,” that is, when the Government is ready to finish it. It is a serious cost issue for small businesses, as the Minister of State said. We have welcomed the potential of the new Companies Bill in this area. When will we see the impact of that Bill or the Bill itself?
Our energy costs are still out of sync with those of our international competitors. A survey of businesses in Waterford shows a potential increase of 60% in rates after the Government’s revaluation of rates which is under way, for which they get nothing in return. Health insurance costs have increased by 10% in the past 12 months, much of it driven by tax changes. Small changes are happening quietly, but when they combine, it is too late and they are costing jobs. The rates increases are costing jobs. For what people will have to pay in rates they might have to pay somebody to come to work in their premises in Waterford. They cannot do this now that they have to pay increased rates.
Several local authorities have put in place arrangements to allow businesses to pay their rates in two instalments. Rates have not increased in all local authorities, even though their budgets are being agreed. Across the country rates have remained the same. One of the key features of local government reform is that there will be derogations.
It will be important for local enterprise offices that there will be critical involvement of local government in the establishment of the development of towns and villages. They will have discretion to encourage development where there is vacant property.
Most important, I am conscious of the pressure on business. Fully 87 out of the 88 rating authorities have either reduced the annual rate on valuation, ARV, or kept it at the same level as 2012, with an average decrease in the ARV from 2012 to 2013 of 0.34%.
The Minister of State might come back with his thoughts on the Legal Services Regulation Bill and the view of the Department on the slowness of progress.
The rates issue is connected in some way to the rates that have been agreed. The Minister of State referred to the Local Government Reform Bill. As the Minister of State is aware, many rates will increase in the coming years as town and borough councils merge with county councils, where rates are higher. The rates problem is with the revaluation process that is under way. The valuations are being changed. There is a limited appeals process. There is no sharing of information. I accept this is outside the Minister of State's jurisdiction but perhaps he will offer his thoughts on the Legal Services Regulation Bill from the point of view of his Department.
The rates will not change because the valuation of properties and rates was carried out in 1988. That was when the rates were decided based on the value of properties. The rates will not change but perhaps property valuations may change. However, they will not change dramatically in towns and villages. There may be a different value on property in large urban centres. That is taking place throughout the country.
The Legal Services Regulation Bill is very much a priority for the Minister for Justice and Equality, Deputy Shatter.
It is not for the Tánaiste.
Let us consider the country solicitors dealing with businesses at the moment. There are many new legal offices which have opened up and which are competitive. In recent times many start-up solicitor firms have emerged and people have started their own businesses. I spoke to a gentleman during the week in Ballina who has set up a small practice there very effectively. He has been given effective rates. There is a good deal more competition coming into the market. People have seen the pressure in offices and they are now establishing sole practices, which, in one sense, is bringing competition to the market, and that is welcome too.
5. Deputy John Halligan asked the Minister for Jobs, Enterprise and Innovation to outline the number of jobs created by IDA Ireland in County Waterford in 2013; the net increase or decrease in the number of jobs created in 2012; if he considers this figure to reflect a success under the target set out in the Horizon 2020 document for regional development, which aims for 50% of all jobs created through the IDA's dealings in 2013 to be located outside of Dublin and Cork; his plans to review the targets originally set out in the Horizon 2020 document; and if he will make a statement on the matter. [3181/14]
Waterford is one of the worst affected areas in the country for unemployment, a fact that has been acknowledged by the Government on several occasions. The latest live figures show that there are now almost 24,000 people unemployed in the city and county out of 52,000 unemployed in the entire south-east region. Since 2008 some 2,441 IDA Ireland jobs have been lost in Waterford and only 581 jobs have been created. Last year more than 1,100 IDA jobs were created in Cork, 700 were created in Galway, almost 300 were created in Limerick and more than 500 jobs were created in Dundalk. Will the Minister explain why Waterford is always lagging behind the other major urban centres when it comes to foreign direct investment?
The Forfás annual employment survey, which reports on job gains and losses in companies supported by the enterprise development agencies, shows that 172 new jobs were created in IDA companies in Waterford in 2013, an increase of 55 on the number created in 2012. There are currently 28 IDA client companies employing more than 5,000 people in Waterford city and county. The number of net IDA jobs in Waterford increased in 2013, the first increase in six years.
During 2013 there were two significant IDA investment announcements for Waterford. In February, Sanofi announced plans to invest €44 million in Genzyme's biotechnology campus in Waterford. As the Deputy is aware, that will gear the company up for a new and diverse range of products. In March, Nypro Healthcare announced plans to establish an additional state-of-the-art medical devices facility in Waterford. This will result in the creation of over 200 high-quality jobs in the coming years.
As the Deputy knows, following the closure of TalkTalk in Waterford, I have put a particular focus on the south east. I published a south east employment action plan and established a forum of all state agencies and local players to set out actions to increase employment in the area. I have met regularly with IDA, Enterprise Ireland and the forum to review progress.
IDA has announced plans to build new advanced manufacturing facilities in Waterford to enhance the offering in the area and win new business. To support its marketing efforts for the region, IDA Ireland has rolled out a dedicated digital marketing initiative for inward investment focusing on the south east region and Waterford. The number of site visits by prospective IDA clients to the south east and Waterford has increased substantially.
The employment strategy for Waterford and the south east has not only focused on foreign investors. Companies such as Eishtec, Dawn Meats, FeedHenry and Danone have been supported by my Department in creating almost 900 jobs.
IDA has ambitious targets of 50% of investments in regions outside Dublin and Cork, but this has proven to be a difficult target to meet. There are complex factors influencing investor location decision-making, such as the increasing preference for big cities with large-scale populations and significant challenges from lower cost locations.
Additional information not given on the floor of the House
I have called on IDA and Enterprise Ireland to work with my Department in order that we can explore what further initiatives to take to ensure a better approach to enterprise development in regional locations. This exercise will complement the in-depth analysis of our foreign direct investment strategy, which is currently being undertaken by Forfás and which will take account of factors such as key trends emerging in FDI best practice internationally, Ireland's strengths in attracting FDI and any changes to the EU state aid rules, which will come into effect on 1 July 2014. The results of these two exercises will form the basis of IDA's strategy from 2015 onwards.
The IDA Horizon 2020 project was published in March 2010. It aims to have 50% of new jobs based in locations outside Dublin and Cork. Will the Minister admit that this plan has since been quietly shelved? Research at NUI Maynooth has found that many of the 82% of jobs created here by overseas firms in recent years have been centred around Dublin, Cork and Galway. Surely the obvious way to achieve the targets of Horizon 2020 would be to improve the regional aid for foreign companies investing in areas of high unemployment.
We invest vast sums of money in IDA Ireland, whose job description is to attract and create companies in the south east and to direct them there. I am referring specifically to the IDA in the south east. Many people in Waterford consider that the agency is not doing its job and I agree on the basis of the statistics I have given to the Minister, which are reasoned statistics that have come to light from Government sources in recent weeks. They indicate that jobs are not being created in Waterford and that the IDA Horizon 2020 project is a failure when it comes to the south east.
The strategy that the IDA published set a target of 50% job creation outside Dublin and Cork. It has not been possible to achieve that. That is not because the company has not been seeking to deliver it. The agency reports and makes efforts to promote the other regions. Unfortunately, the nature of mobile foreign investment has changed. We can see this in the type of wins the agency is getting. The sector has shifted and unfortunately that shift has favoured large cities in particular, such as Dublin and Cork.
The reason I put the spotlight on Waterford and the south east was in recognition of the difficulty. The site visits of prospective IDA clients have almost trebled since I put that spotlight on. Undoubtedly, there is a new emphasis by IDA on the south east and Waterford in particular.
We do not have it open to us to set different regional aid packages for Waterford as against other areas. Regional aid packages are set by EU strategy and we must comply with the rules. I am reviewing the foreign direct investment strategy and I will be looking at how we seek to achieve it. One of the things we have done which, I believe, is innovative, is the development of ConnectIreland, which uses the resources of regions and their international contacts to help lever new investment into those regions.
I do not direct my criticism directly at the Minister. The Minister has a difficult situation and I recognise that it is remarkably difficult for him. My criticism is directed primarily at IDA. We are told by IDA that it cannot direct companies to locate in any particular region. Surely the logical thing to do would be to examine why companies are not locating in places such as Waterford and then address that. For example, it has been acknowledged repeatedly that university status for Waterford Institute of Technology, WIT, is a key marker for the development of the city and region. Yet we have still to see the Government keep its promise to fast-track this development.
We pay the IDA substantial amounts of money and the staff get high salaries in particular regions for a job description that amounts to directing jobs into those regions. If the Minister speaks to any Member, councillor or person from Waterford he will ascertain that we believe we are not getting our fair share and that the IDA is not doing its job.
I reject Deputy Halligan's allegation that the IDA is not putting the effort in. This is borne out by the increase in site visits and additional activity. The IDA is correct: the agency does not direct companies on where to invest. The companies come with a well-known list of what they need. Typically, they use advisers to identify where they can get the right fit. The IDA does not move the pawns around the board, so to speak. That is not the way international investment works.
Through the forum, we enhance the promotion of Waterford's assets more effectively. The WIT is a major asset, which has spawned FeedHenry, for example, and has very good technology. We need to leverage that sort of asset to attract additional investment, which is what we are seeking to do here. It is not fair to criticise individuals or organisations. This is a team effort and we have created a sense of teamwork within the south east. That is the route to resolving these problems and not an alternative.
