The purpose of this meeting is to discuss Enterprise Ireland's annual report and accounts for 2005 with its chief executive, Mr. Frank Ryan, whom I welcome. He is accompanied by Mr. Feargal Ó Moráin, executive director; Ms Julie Sinnamon, manager, corporate development and human resources; Mr. Paddy Hopkins, manager, corporate services; and Ms Rosemary Sexton, director of Enterprise Ireland, north-east region. Before Mr. Ryan makes his presentation, I draw attention to the fact that while members of the committee enjoy absolute privilege, the same privilege does not, unfortunately, extend to delegates. Members are also reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official by name or in such a way as to make him or her identifiable. I welcome Mr. Ryan and his team and invite him to make his presentation.
Enterprise Ireland: Presentation.
Mr. Frank Ryan
I thank the Chairman and the joint committee for giving me the opportunity to present an overview of the 2005 annual report of Enterprise Ireland and the activities in which it engaged last year. The report summarises its activities and the performance of its client companies last year. It also outlines the various ways it worked in partnership with those companies and other relevant bodies such as other development agencies, Departments and the third level sector to drive the development and growth of the Irish enterprise base.
Enterprise Ireland is committed to accelerating the development of world-class Irish companies in order that they achieve strong positions in global markets. In that context, the organisation has been mandated to work with manufacturing and internationally trading service companies and offers a range of financial and non-financial supports to help their development. In working with our client companies we are focused on assisting their export growth and improving their innovation capabilities to ensure they can compete successfully in overseas markets. We are also focused on creating new jobs by supporting entrepreneurs to establish companies with high growth potential and creating the conditions for new job growth in existing companies. The development and sustained growth of Irish-owned companies will be the foundation on which future regional and national prosperity will be based. This vision will only be achieved if the challenges faced by Irish enterprises are met head on.
The enterprise strategy group's report, Ahead of the Curve — Ireland's Place in the Global Economy, and the Government's subsequent enterprise strategy group action plan outlined the actions required to secure and build on Ireland's position as a developed economy. It focused clearly on the need to accelerate the development and internationalisation of the Irish-owned business sector as a priority for future economic development. It was in this context that in 2005 we launched our strategic plan, Transforming Irish Industry 2005-2007, in which we moved quickly to implement the Government's enterprise strategy action plan. The plan recognised that the internationalisation of Irish-owned companies and their ability to compete successfully were essential for Ireland's future economic success. It outlines clearly the activities in which we are engaged to transform Irish enterprises into market focused and innovation driven businesses which have the ability to compete successfully in world markets.
In 2005 Enterprise Ireland was repositioned to better meet the needs of its clients and focus on achieving five high level strategic targets specified in its strategic plan which were designed to support the development of indigenous industry to end-2007. These were as follows: achieving a figure of €3 billion in new international sales in the three years 2005 to 2007; doubling to 1,050 the number of firms engaged in meaningful research and development by 2013, defined as in excess of a sum of €100,000, and trebling to 100 the number of companies engaged in significant research and development, defined as a spend of €2 million or more on an annual basis; creating 210 new high potential start-up, HPSU, companies nationwide by end-2007; and driving productivity and competitiveness improvement projects in 300 plus firms in the same three-year period. Significant progress was made in 2005 towards achieving these targets.
By continually repositioning and strengthening its overseas network, Enterprise Ireland will maximise its support for its client companies in their marketing and export drive. As part of its strategic plan, its 34 overseas offices report to a central international sales and partnering division and are subdivided into five key territorial or regional splits, namely, northern Europe, the Americas, southern Europe, the Middle East and Africa, Asia, Germany, central and eastern Europe, and the Balkans. In all these export markets Enterprise Ireland client companies performed very strongly in 2005, achieving a €1.275 billion increase in new international sales, leading to net growth of 7.2% in overall client exports to €10.7 billion.
Exports to northern Europe, including the United Kingdom, increased by 6.4% to €6.2 billion. The United Kingdom remains the strongest export market for client companies with €4.8 billion in exports, an increase of 6.1%. Exports to the Americas region increased by 13.6% to €1.2 billion. The US market delivered strong business for Irish companies, while South America continues to develop as an export market. Southern Europe, the Middle East and Africa also provided strong sales opportunities for Irish companies, with exports growing by 6.1% to €1.1 billion. Exports to the German, central and eastern European and Balkan markets increased by 6.5% to €755 million. Exports to Asia reached €564 million, an increase of 14.6%, making it the largest growth market for Enterprise Ireland client companies in 2005.
On a sectoral basis, strong export growth was evident in 2005 across the key industry sectors of software and financial services, industrial and life sciences and food and consumer markets. Food and retail consumer markets continue to be our largest export sector, achieving a figure of €7 billion in exports, a rise of 6.4% over the figure for 2004. Industrial and life sciences market exports grew by 8.5% to €2.2 billion. The largest percentage growth figure was demonstrated in the software, services and emerging sectors, which increased 9.1% to €1.5 billion.
At home and overseas Enterprise Ireland works intensively with companies, creating and implementing successful strategies for market entry. During 2005 a variety of trade fairs, trade missions and buyer meetings to promote Irish companies were held. Enterprise Ireland clients won 733 new customers, distributors or partners in export markets during 2005. Enterprise Ireland arranged 7,384 buyer meetings and 27 inward buyer missions. Our client companies participated in 29 international trade fairs and 18 major trade missions. Some 187 companies entered new markets, 74 of which were first-time exporters. Moreover, 157 Enterprise Ireland client companies established an overseas market presence during 2005.
One of Enterprise Ireland's highlights in 2005 was the trade mission to China led by the Taoiseach. The mission visited Beijing, Shanghai and Hong Kong and was the largest in the history of the State. Some 121 Irish companies and organisations, primarily involved in ICT, education services, environmental and engineering services, medical devices and the food and drinks sectors, participated. Approximately 300 people in total travelled. Over 1,800 meetings were held by the Irish participants with potential and existing customers, while a total of 41 contract signing ceremonies were held. Contracts entered into between Irish suppliers and Chinese customers amounted to approximately €126 million. In addition, four Irish companies signed investment contracts worth over €46 million. Building on the success of the China trade mission, as well as the India trade mission earlier this year, Enterprise Ireland is organising a Gulf trade mission to Saudi Arabia and the United Arab Emirates which will be led by the Taoiseach in January and include visits to Riyadh and Dubai.
Another notable initiative aimed at driving the sales and marketing capabilities of Irish-owned companies that began in 2005 was the international selling programme which was initiated in response to the enterprise strategy group’s action plan recommendation and developed in conjunction with FÁS and run through the Dublin Institute of Technology. The programme is aimed at companies which are currently exporting and seeks to develop their current and long-term sales strategies. The first international selling programme ended this month and a second is due to begin in January.
To continue to grow and develop Enterprise Ireland's client companies face major challenges and nothing short of a transformation will be sufficient. Driving research and innovation to the benefit of Irish enterprise is central to achieving this change. To respond to this challenge Enterprise Ireland has focused its activities on a number of key areas. It undertook a range of activities to ensure companies, whatever their size, sector and stage of development, would clearly see what research and development could do for them. To this end, it continued to encourage sustained levels of research and development activity through its RTI scheme and research and development initiatives. Research and development awareness campaigns are also run to ensure companies are fully aware of the benefits of undertaking such activities.
Enterprise Ireland also set up panels of research and development advocates. These are experienced individuals who managed research and development functions in similar companies in the past and consequently can explain the potential rewards of research and development to companies and possible issues that may need to be faced. A successful pilot initiative took place in Donegal and Waterford in 2005 and the initiative is now being rolled out nationally.
Enterprise Ireland's innovation management initiative provides training in innovation and research and development management. Nine training programmes and 11 workshops and networking evenings took place. They were attended by 534 participants from 381 companies. A total of €44.6 million was approved to support 156 in-company research and development projects in 2005, resulting in a total investment of €120 million.
As part of Enterprise Ireland's strategic in-company research and development targets to 2013, interim targets were set to 2007 to increase to 596 the number of companies investing over €100,000 in meaningful research and development and increase to 42 the number of companies investing over €2 million. In 2005, 516 Enterprise Ireland client companies engaged in projects involving research and development investments of €100,000 or more and 33 were engaged in significant research and development projects involving investments of €2 million or more.
In order to drive industry collaboration with the third level sector it is imperative that greater interactions between companies and research groups in colleges across Ireland are forged. To achieve this, Enterprise Ireland is working closely with the colleges and our partner agencies to ensure that the major investment in the research infrastructure made in recent years is sharply attuned and accessible to enterprise needs. To this end, Enterprise Ireland's innovation partnership initiative offers financial support to enable companies to undertake collaborative research with universities and institutes of technology in order to develop innovative and commercially viable new products or processes. In 2005, €5.1 million in funding was provided to 79 projects across the country.
Enterprise Ireland also rolled out its applied research enhancement initiative on a nationwide basis in 2005. This began as a pilot project in 2004, encompassing Galway-Mayo Institute of Technology, Sligo Institute of Technology and the institute of technology in Donegal. The main objective of the initiative is to encourage and enhance regional research capabilities by supporting projects in Ireland's institutes of technology. In 2005, five projects received funding of €1.25 million.
Enterprise Ireland's industry-led research projects sees the agency work closely with groups of Irish companies to develop medium-term research and development agendas that will benefit their sector and develop their international competitiveness. Two major industry-led research projects were approved in 2005. One project related to power electronics, the other was an e-learning group initiative. The power electronics project involves 25 of the 40 indigenous and overseas companies in power electronics in Ireland and it addresses issues relating to efficiency and power density in power supplies for electronic devices.
Under the heading of realising the commercial potential of Ireland's research community, in tandem with the direct connection to enterprise, Enterprise Ireland continued to leverage publicly-funded research by developing a supportive commercialisation process so that investments deliver optimal returns to the Irish economy. Technology developed as part of academic research is being identified, protected and transferred to companies through an active managed process, with Enterprise Ireland working in close collaboration with academic institutions. This is now happening through a central support office and a network of key Enterprise Ireland staff on-campus. The organisation is working with researchers to develop their projects through a comprehensive and responsive financial and advisory support system. In 2005, total expenditure of €23.4 million was approved through relevant phases of Enterprise Ireland's commercialisation fund and 142 new research projects were approved.
Under the heading, starting and scaling companies, an environment conducive to entrepreneurial activity is critical to national competitiveness. Our focus is on assisting and developing a cadre of vibrant, ambitious enterprises to harness the abundant creativity of Irish entrepreneurs. Enterprise Ireland has shown a strong record in supporting the creation and scaling of new high potential start-up enterprises. These new businesses will be the employers of the future and the drivers of regional and national prosperity. In 2005, 75 high potential start-up companies were established with Enterprise Ireland support in areas as diverse as biotechnology, photonics, medical devices, functional foods, ICT and entertainment. The total investment in the 75 companies was €83 million of which Enterprise Ireland invested €17 million. These companies aim to create approximately 1,464 new jobs over the next couple of years. Of the 75 high potential start-up companies established with Enterprise Ireland support in 2005, 34 are located outside Dublin and 17 are based in the BMW region. The level of start-up activities over recent years has been dynamic. Enterprise Ireland's challenge in the future will be to drive the growth of these start-ups and other established companies to significant scale. To this end, Enterprise Ireland established a scaling division as part of its strategic plan, Transforming Irish Industry 2005-2007, dedicated to working with eligible companies.
Maximising the factors and opportunities that will drive cadres of sustainable companies of global scale and significance is a key strategic priority of Enterprise Ireland. By the end of 2005, 40 small and medium-size, SME, companies from a range of sectors were engaged with Enterprise Ireland in this scaling initiative. Two thirds of these are from outside Dublin with one third located in the BMW region.
Under the heading of driving productivity and competitiveness improvement projects, a range of initiatives to drive competitive advantage among Enterprise Ireland client companies were run over 2005. These included initiatives around supply chain management, e-business development and technology roadmap seminars. The most notable initiative was the productivity improvement fund, launched by the Minister, Deputy Martin, in May 2005. The fund is an initiative aimed at driving sustained improvements in productivity in fund recipient companies thereby increasing exports or establishing a base from which they can develop their exports. To the end of 2005, €8.5 million in funding was approved for 39 projects primarily in the engineering, food and print and packaging sectors. Up to the beginning of November 2006, approximately €29 million has been approved since the inception of the fund.
Under the heading of driving regional enterprises, achieving balanced regional development is not only a national objective but is explicit in the core mission statement of Enterprise Ireland. It has been a guiding principle in the provision of Enterprise Ireland supports to client companies and in the formulation of initiatives to improve business infrastructure in the regions. The funding offer from Enterprise Ireland reflects the need to boost activity in the regions with a weighting of support in favour of less economically developed regions. In employment terms, Enterprise Ireland client companies employed 138,118 in 2005 with job gains at 11,661, resulting in a net change of minus 734. Dublin and the mid-eastern region accounted for the larger proportion of the reduction, with smaller losses in the south east and south west. The north east, north west, west and midlands regions all enjoyed job gains with the most significant gains recorded in the north east with an increase in employment of 1,258.
Enterprise Ireland continued to work closely with local industry and research organisations to stimulate start-up activities throughout the regions. Initiatives included a variety of knowledge sharing and networking activities including Enterprise START programmes and Enterprise platform programmes. Enterprise Ireland, in partnership with InterTradeIreland and the BICs, also established a two-year pilot business angels partnership programme.
Establishing essential business and technology infrastructure is a priority for Enterprise Ireland. Significant strides have been made to date to put in place enterprise space, third level enterprise incubation facilities and specialised staff to further the development of new businesses. Enterprise Ireland's focus is on improving the business climate for enterprise and influencing the conditions which facilitate increased levels of entrepreneurial activity and sustainable business development in the regions. In 2005, Enterprise Ireland carried out a review of its community enterprise centre programme with very positive results. To the end of 2005, over €34 million was approved for 137 projects that involved building or extending community enterprise centre facilities. These centres accommodate around 840 enterprises employing approximately 3,800 people in locations throughout the country. By the end of 2005, Enterprise Ireland had invested €38 million in incubation centres in 16 institutes of technology. In 2005, seven incubation centres were completed in Blanchardstown, Dundalk, Castlebar, Limerick and Waterford, representing a €14.2 million investment. I again express my thanks for the opportunity to present an overview of Enterprise Ireland's 2005 annual report. My colleagues and I would be delighted to answer any questions committee members might have.
I thank Mr. Ryan. That was certainly a very bullish report and contained considerable detail. I am pleased exports to America increased by 13% in 2005 and exports to Asia increased by 14.6%. We heard that Enterprise Ireland clients won 733 new customers, distributors or partners in export markets during 2005 and that an additional 157 companies established an overseas market presence. I have witnessed at first hand the great work Enterprise Ireland is doing in China and India as I had the pleasure of representing this committee with the chief executive along with the Taoiseach and Ministers in the past two years. I wish Mr. Ryan well in his visit to the Gulf states in January.
I ask Mr. Ryan to give more detail on the pilot schemes in Donegal and Waterford. Does he envisage these being extended to the rest of the country? My next question is particularly relevant to those of us who represent rural constituencies. Is he happy with the roll out of broadband? We all know of the importance of the broadband technology and I would like to hear his views on the matter, as he is the brain of the enterprise, trade and employment sector for the Government. We want to play our part working between Government and the broadband industry. We played a major part in the insurance reform and I am happy to report that insurance costs are back to 1988 levels — a reduction of almost 50%. Availability of broadband is a serious issue that we are considering.
I have seen the success of incubation units on various trade missions. I was particularly impressed by what I saw in Toronto. Are incubation units planned for the institute in Athlone? The great success in the 1960s was Donogh O'Malley's initiative of free education and transport for schoolchildren. In the 1980s, 1990s and into the 21st century the institutes are really driving the regions. Multinationals locating in regional areas will focus on areas where the brain pool is. As I said to IDA Ireland representatives when they appeared before the committee, a new 68-acre flagship industrial park is about to be opened in Mullingar. All the services are in and even a bus stop is in place. It is 30 miles from Maynooth and 30 miles from Athlone and following the success of the Castlebar experience, it would be nice to have an outreach of one of the institutes in Maynooth or Athlone located in a portion of that 68-acre site and have a brain pool available. Some 22,000 people live in Mullingar and 6,000 people from the town and north Westmeath commute to Dublin every day. This is because Mullingar does not have a third level institute and has no brain pool. Members have expressed concerns about IDA Ireland sites regarding activities that should be happening in such areas. Enterprise Ireland works hand in hand with IDA Ireland on such projects.
Mr. Ryan
Enterprise Ireland is increasingly open to new ways to approach difficult problems. A major challenge exists in that we are engaged in a policy of transformational change within Irish companies and are increasingly encouraging them to be innovative. Sometimes they take that message from the State well and sometimes they do not. We launched a pilot programme, which we call research and development advocates. We recruit on a short-term basis consultants who have worked in industry who have recently headed up research and development activities and know the challenges involved in introducing into companies an innovation process and a research and development activity. We find many of the smaller SMEs take the message better from them than they do from us when we say, "We're from the State and we're here to talk to you about innovation".
We want to be flexible in our approach. We have had very good results. We started in Donegal and Waterford, taking two geographic extremes to see if it would work. Experience has taught us that just because something works in Dublin is not a good indicator that it will necessarily work in the regions. We have had very good response in Donegal and Waterford. A number of companies have established small research and development projects and a number have been approved under our productivity improvement schemes. It leads to other discussions which are beneficial for the development of the company. The board of Enterprise Ireland took a decision earlier this year to establish the scheme on a national basis. It started earlier this month in County Cork. During the next 18 months 1,800 SMEs will be contacted by our research and development advocates team to get them on the road to innovation and introducing the other supports we can give them, including the assistance we can give to companies to reach markets overseas.
Broadband is a particular challenge for us because of the location of our clients. We cannot afford to focus on gateway locations within the State. We have clients in every part of every county, which is how we want to keep it. Otherwise large rural areas would be devoid of start-up companies as they drift to where the infrastructure is in place, the large urban towns. I wish to recognise a number of initiatives introduced by the Department of Communications, Marine and Natural Resources in this regard. Its success in establishing the metro loops is very helpful on a regional basis. However, the issue of the last mile remains to be resolved.
We have a dual approach to incubation facilities. The first approach is that we back community enterprise centres, which are very important. We have either constructed or started to construct an incubation centre at every institute of technology in the State. Earlier this year we announced financial support for an additional 24 community enterprise centres, ten of which are new and 14 of which are expansions of existing centres. In the midlands, €400,000 was approved to support the Portarlington enterprise centre and €300,000 was approved in support for the Granard area development company. Not everybody lives within a stone's throw of a large urban area and jobs need to be created in less populated areas. The creation of 3,800 jobs in county enterprise centres since their inception indicates that it has been a good scheme and represents good value for money for the State.
I welcome Mr. Ryan and his delegation from Enterprise Ireland. I compliment him on the great work he is doing. I acknowledge the recent funding for community enterprise units in Ballinasloe. I hope that will keep the ball rolling as regards industry. I welcome the doubling of funding for research and development. Any company not involved in research and development has a bleak future. A delegation — I cannot recall from where — appeared before the committee and mentioned the problems for small companies getting involved in research and development. Large companies are able to fund research and development. Small businesses with five or ten employees which want to get involved in research and development may collaborate with universities and institutes of technology but it should be possible for them to have someone involved on site.
Mr. Ryan referred to growth products on export markets, including drugs, food and software. Given the quality of our food, is more research and development necessary on products such as cooked meals? It is no longer possible to rely solely on selling beef or lamb on the carcass. New products must be developed which are more accessible to customers.
What is the delegation's view on companies relocating to countries with lower labour costs, while maintaining their headquarters here? I am informed the quality of management here is not on a par with that of other countries and that further training programmes are required to enable senior executives to manage companies better.
Mr. Ryan
We were pleased to have received applications from Ballinasloe seeking funding for community enterprise centres. Funding of €300,000 was approved. The west did particularly well in the most recent scheme, with expansion approved for Kiltimagh and support provided for two new centres in Castlerea and Boyle.
I have noted Deputy Callanan's comments on the process by which smaller companies get involved in innovation and research and development. I referred to the research and development advocates programme. I also draw members' attention to the Government's recent announcement on the implementation of the recommendations of the small business forum. This body focused on ensuring companies were able to secure smaller amounts of money, perhaps through a scheme with a wider brief which offered better opportunities for smaller firms to participate. The result has been the knowledge acquisition grants under which an increasing number of small companies will be able to benefit from grants to cover the first €50,000 of expenditure.
The innovation voucher scheme was also announced in recent weeks. This will assist small companies by giving them access to the first €10,000 in expenditure. The criteria are less rigorous and do not require them to develop large, detailed plans. The scheme takes a more customer and user friendly approach to helping companies take the first step.
ICT audits were also announced as part of the small business forum. Many small and medium enterprises which have invested significant sums in ICT may not be making the most productive use of their investment.
The food sector has performed well. Enterprise Ireland has an excellent working relationship with Bord Bia and the Department of Agriculture and Food and works closely with both bodies, including on major overseas trade missions. We want more companies to develop more innovative products. As regards the ready meals sector, I draw the Deputy's attention to the support given to Kepak in Cork where the company is implementing a major expansion of its heat and serve added value products. The estimated increase in sales will be €70 million and the investment has delivered an additional 155 jobs.
The strength of company management is an issue here. Overseas companies in Ireland have access to more money to pay for the best managers. We have met this problem head on by introducing a new scheme called Key Skills for Key Skills, under which we will give companies financial assistance for two years following the recruitment of senior managers to enable them to compete in the marketplace and attract the best possible talent for Irish companies. Enterprise Ireland's strategy for 2005-07 focuses strongly on the strength of management teams and boards because they exert considerable influence in setting the strategy direction of companies.
Outsourcing is a global issue. Ireland has been a major recipient of foreign direct investment, from which it has greatly benefited. When foreign direct investment leaves its source, which in our case has been primarily the United States, it is not called FDI but outsourcing. US companies have built up their international presence in overseas markets by ensuring their people are in these markets servicing the needs of their customers worldwide. Equally, if Irish companies are to develop they must have resources overseas. This means some senior management personnel will have to reside abroad because their main customers are overseas. We live in an age in which the development engineers of a company must work with the development engineers of its customers to design new products and services for its customers' customers. Companies must think that far down the line.
Enterprise Ireland does not expect outsourcing will be a particularly strong issue in the next few years. However, the internationalisation of our companies will require locating resources overseas because Irish companies must become multinationals if they are to become globally competitive.
I welcome Mr. Ryan and his colleagues and admire the difficult job they have done in reorganising State enterprises and pulling together CTT, An Foras Forbatha and the IIRS. Of all the reorganisation jobs, this was probably the most difficult and I compliment Mr. Ryan and his team on completing it.
The delegation should not confuse the brevity of my contribution with superficiality. In joined up government terms, investment in education, Science Foundation Ireland, applied technology and science skills require us to reconnect science teachers in the secondary school system with local companies. Work experience in the summer and short-term contracts are also needed to create a fully linked loop. At the moment, trains are travelling in different directions on different gauge tracks which do not appear to meet.
Will the delegation comment on the possibility of linking a technology or science company or any company with a laboratory to a local school where the science teacher is probably still using a laboratory that reflects practices in the last century? Such a move would deliver synergic benefits. Science Foundation Ireland has scholarships or placements to enable science teachers to work in state-of-the-art companies in the summer and re-energise and renovate their skills before returning to the classroom with newly acquired enthusiasm.
My survey of people in business suggests we do not have sufficient skilled workers to meet the job needs of many of the companies locating here, particularly science companies. Will the delegation comment?
What is the position regarding the lease Enterprise Ireland has taken out in East Point? How does it fit in with decentralisation? What is the logic of the move?
A Buncrana based firm, Clubman Omega, has announced it will outsource to Latvia. This is a solvent company which has received funding from Enterprise Ireland and its predecessors. It has refused to comply with a Labour Court recommendation on redundancy payments for its workforce who are now picketing the company. It did not argue it could not afford to make the payments but simply refused to pay.
The company is trying to sell its premises in Buncrana. The Office of Public Works considered purchasing the site for a Garda station but has since declined to proceed. According to the SIPTU official in Letterkenny, Mr. Sean O'Reilly, an attempt is under way to transfer ownership from the current company owners to an intermediary company at a cheap price to enable the company to show it has no surplus in its accounts. Therefore, it would be able to plead inability to pay. I bring this to the attention of Enterprise Ireland, although I suspect Ms Sexton may be aware of some of this information. I seek an assurance that there is money available at that round table, some of which is due to the taxpayer through Enterprise Ireland's accounts. I have copious details from Mr. O'Reilly if they are required.
I welcome Mr. Ryan and his team. It is a worthwhile exercise for representatives of Enterprise Ireland to come before the Oireachtas Joint Committee on Enterprise and Small Business, as it gives us an opportunity to consult Enterprise Ireland and vice versa. The 2005 report is most impressive and I compliment Enterprise Ireland on the progress it has made. I am slightly biased in that I was in the Department for a time as a Minister of State and dealt with enterprise issues and the trade board.
What is the view of the delegates on the amalgamation of the IDA and Enterprise Ireland? This possibility should be examined. In the past the trade board was amalgamated with Enterprise Ireland.
That is outside the report.
Okay, but it is no harm to air the issue.
For "Oireachtas Report".
As Mr. Ryan is probably aware, I have been commissioned by the committee to prepare a report on international trade. I express my thanks to Enterprise Ireland and its trade section for their assistance to date. I have received views from various organisations on the performance of Enterprise Ireland and where we should go from here. I note that Enterprise Ireland has moved into South America through the recent opening of an office in Brazil. I commend this step.
I thank Mr. Ryan for his assistance with a trade mission to Milan, of which I was a member. From my previous experience, the approach of Enterprise Ireland has worked well to date. Outward missions have been successful, especially those led by the Taoiseach, whom the Chairman accompanied to China. Committee members should also be represented on such missions, as we represent the Oireachtas and have a different view to express. It should be policy that the committee be represented on overseas trade missions to give of view of what is happening on the ground. Missions led by the Taoiseach, the Minister for Enterprise, Trade and Employment and especially the President are worthwhile. I wish Mr. Ryan well with Enterprise Ireland's next mission in January.
The Chairman can go.
I referred to the fact that he went to China. I hope we will also be represented in the Middle East in January.
I thank the Senator.
Deputy Quinn aired his grievances regarding an issue in County Donegal.
The Olympic Games are to be held in the United Kingdom in 2012. It will be part of my recommendation that Enterprise Ireland target this event as an opportunity for Ireland Incorporated, only 50 minutes flying time from London. Forward planning is important, as 2012 is a short time away in terms of international planning. We must ensure our companies are promoted overseas. London should be used as a location to showcase Ireland during that time; trade missions could also visit here from the United Kingdom. A captive market is being provided for us and the sales opportunities are enormous. I strongly recommend to Mr. Ryan that a group within Enterprise Ireland plan ahead.
In my experience the Department of Foreign Affairs has been most helpful in recent years. Ambassadors are extraordinarily useful when it comes to export trade. The Department took the view that it represented the President and that it was not its business to worry about trade but I made it clear that without trade, it would not be in business. Trade pays for the salaries and lovely houses of its staff, as well as cars with drivers. The Department and its ambassadors have now come to this realisation. Ambassadors are a major asset on trade missions. I compliment our ambassador to the United States, Mr. Noel Fahey, who happens to come from Roscommon. The fact that he has hosted events in the United States has been vitally important.
I have taken the decision that following trade missions I attend, I will arrange a meeting with the ambassador of the nation concerned. Accordingly, we held a meeting with the Indian ambassador a month after my return from India. The ambassador addressed the committee and spoke about achievements and the trade action plans of both countries. We will take up the Senator's suggestion.
That is a good point.
I commend the Kepak development in Watergrasshill, County Cork. As Deputy Ned O'Keeffe would say, it is vitally important that we develop the food industry. Kepak also has an investment in Athleague, County Roscommon. Mr. Seamus Butler from Butler Manufacturing Services Limited comes from County Longford, the Chairman's constituency, and is developing a niche market. I commend Enterprise Ireland for its work in that regard.
The international mentor programme has been promoted a great deal. This is an important aspect of the work of Enterprise Ireland. Mr. George McCourt is the young manager of the enterprise centre in Galway. He built a good enterprise in County Roscommon and then moved. He has excellent experience.
In my former constituency of Roscommon, now amalgamated with south Leitrim, the closure of Polar West has resulted in the loss of 80 jobs in Boyle. When I was Minister of State, I recall that the company received significant grant aid. We approved an innovation grant of £500,000 at the time and invested heavily in the company. I am extremely disappointed, therefore, that it is leaving Boyle and transferring operations to the United Kingdom. It was bought by a company from Northern Ireland, Northern Foods. This is a major blow to a town such as Boyle. I cannot understand how such companies can walk away, leaving 80 staff in the lurch. I ask Mr. Ryan, as chief executive, to ensure jobs are created in Boyle, although I accept there is an enterprise centre in the town. In this regard, reference was made to the provision of a sum of €250,000, for which I thank him.
Jobs have also been lost in Ballaghadereen. One of our own companies, Glanbia——
Deputy Quinn wishes to return to the Dáil Chamber for the Order of Business.
He can stay if he wishes. I am not stopping him.
I allow everyone to ask about three or four questions.
I am sorry.
No Second Stage speeches are allowed.
Glanbia has pulled out of Rooskey, resulting in the loss of 85 jobs. This Irish company has left a large enterprise behind.
I welcome the new industry and technology park in Roscommon but the question of providing advance factories should again be considered, given that planning matters have been resolved and buildings are already available for companies to move into without delay.
I thank the Chairman for his indulgence.
Senator Leyden would be an ideal member to have on the board of Enterprise Ireland.
I was never invited to be a member.
That will not be the order of the day. Members have been co-operative up to now. Just because an election is in the offing I do not wish anyone to ask too many questions. Three or four questions are enough for any chief executive appearing before the committee.
I am not running for election.
I am glad to hear that because I may have to occupy the vacancy.
It was an honour to be in China with Mr. Seamus Butler when Butler Manufacturing Services signed its contract.
Mr. Ryan
On the queries raised by Deputy Quinn about the number of qualified science teachers and links with industry, it is important that there be integration in the context of expenditure by Science Foundation Ireland and Enterprise Ireland on research and development activities. The Deputy mentioned the programme for the renewal of knowledge of science teachers. Forfás has a schools programme, whereby the issue of science is addressed in every school. The availability of individuals with the right skills set is important to overseas investors and also to indigenous companies. This will remain a key focus point.
The recently established organisation Technology Ireland brings together the main State agencies and Departments involved in science and research to ensure arrangements are choreographed such that matters do not slip between two stools. We have ground to make up regarding the practical application of the knowledge being developed. This involves identifying where the companies involved in research and development are sourcing their key staff and the programmes with which they are working. I refer to programmes such as those involving our industry-led research networks, whereby indigenous companies work in the same room as overseas companies on the development of technology.
The Deputy asked about the leasing of property in East Point. The Government's position on decentralisation and the move to a single site location in Dublin are two separate issues. In early 2007 we assume responsibility from Shannon Development for the development of indigenous industry in the Shannon region and look forward to welcoming our new colleagues into the organisation.
We are transferring our national headquarters from Dublin to Shannon. The Minister has asked us to establish a support unit for the county and city enterprise boards which will also be located at Shannon where by the end of 2007 we will have a substantial presence of up to approximately 70 personnel.
The primary objective in consolidating the Dublin base into a single site is to enable us to support our staff and client companies better. We currently have four buildings in Dublin. Our head office is located in Glasnevin, while the furthest of the four buildings is located in Sandymount, to which it takes 50 minutes to travel in traffic. If one agrees to attend a meeting in Sandymount, one must essentially write off a morning or afternoon considering the time it takes to get there, have the meeting and travel back. It makes sense to integrate the offices within one building.
We are particularly aware of the circumstances of Clubman Omega and are dealing with the company. That is all I should say on the matter at this point.
Will property surplus to Enterprise Ireland's requirements be disposed of?
Mr. Ryan
It will. The State owns the Enterprise Ireland site in Glasnevin and we are working with the OPW to determine the best return for the State.
Senator Leyden referred to the possible amalgamation of the IDA and Enterprise Ireland. I cannot comment on that issue today, as I know the Senator will appreciate.
It is probably just as well.
Mr. Ryan
The two agencies work very closely together and a number of our research programmes are conducted jointly to support overseas and indigenous companies, particularly in the area of research and innovation.
We welcome the involvement and interest of the committee in our trade matters in Italy. We have established a representative office in Sao Paulo in Brazil, arising from one of the recommendations in the committee's report. Overseas trade missions are important to Irish companies, particularly small and medium enterprises which do not have sufficient credibility in their own right to enter overseas markets. We are very fortunate that the Taoiseach and three senior Ministers are to put time aside for Enterprise Ireland. For one week in January we make the best use possible of this time. We have used it to establish the desired contact network in China. The Chairman has participated strongly in this regard, which we welcome, and we look forward to his participation in the forthcoming visit to the Gulf region. We organised a trade mission to India and are now organising one to the Gulf region.
Senator Leyden made a comment on the Department of Foreign Affairs, with which Enterprise Ireland has a strong working relationship. It is extremely good to work with. I echo the Senator's comments on Ambassador Fahey. Ambassador Kelleher worked with us on the China programme.
We are awake to the opportunity the Olympic Games of 2012 will present. Approximately three weeks ago a meeting was held involving all the Ireland-related construction companies. These include the Irish construction companies which commenced operations in the Untied Kingdom perhaps 30 years ago and have earned their current status, as well as the new Irish construction companies which have learned their business from building major plants for the pharmaceutical or electronics industries and can now undertake major projects. The meeting was attended by 150 people and addressed by the Minister for Enterprise, Trade and Employment, Deputy Martin. The chief executives of Think London and the Olympic Delivery Authority, including its construction side, were present. The group will spend £7 billion on construction for the Olympics Games between now and 2012. We are confident that Irish companies will gain contracts worth hundreds of millions of euro from this exercise. We have allocated dedicated resources, both in Dublin and London, to ensure Ireland will benefit as much as possible in the approach to the Olympic Games.
Is there no room for architects?
Mr. Ryan
We are very much aware of the situation in Polar West and the recent development at Rooskey. We are working with the companies concerned and, more importantly, the local community and other development agencies to ensure we respond in the best possible way to the two developments in question.
I was not aware of the work being done in London when I posed my question. I commend Enterprise Ireland and thank it for being ahead of the posse.
Mr. Ryan
I thank the Senator.
As a Deputy from the mid-west region, I welcome the Enterprise Ireland delegation. I hope the organisation's operations in the region will be successful when it relocates there in January. Some 300 staff were to decentralise to Shannon when the Minister for Finance announced his decentralisation programme in 2003. We now expect 70 to decentralise before the end of the year. Will all 300 staff members move? If so, what is the timeframe?
Now that Enterprise Ireland is assume responsibility for the functions of Shannon Development, does it envisage further benefits for the mid-west, particularly County Clare? Last year Shannon Development created approximately 1,300 jobs outside the Shannon free zone. Does Enterprise Ireland expect to match this very good job creation record in the region? The Chairman touched on this point in respect of the poor roll-out of broadband in the Republic compared with that in Northern Ireland. Does this affect Enterprise Ireland, especially in villages and small towns where it would like to set up small industries employing between ten and 12 people? This must have a negative impact on such plans.
Would Enterprise Ireland support the idea of Government funding wireless Internet service providers? This could add infrastructure to remote areas. There is 98% broadband cover in Northern Ireland compared with the poor roll-out in the Republic.
Are the rising fuel and electricity costs detrimental to our competitiveness?
I was glad to see the Chairman in the roll of honour in the Enterprise Ireland annual report for 2005. Usually only Ministers get their names in those reports. I am delighted with that and I wish the Chairman well in his trip to the Middle East.
I come from an area where farming is important and the food industry was a magnificent industry. Now it has lost the sugar beet industry and has practically lost the dairy industry. Agriculture and the food industry have been overtaken by biofuels, biodiesel and ethanol production. There is a trend in Brazil to use sugar cane to develop biofuels and ethanols. Now there is a trend towards soya bean in that area and technology is changing.
In America and Europe the change is affecting wheat. This will change the structure of the food industry. I read an article recently about Tyson in the United States which is involved in meat processing but in four or five years time there will be a shortage of meat arising from the trend for growing grains and meals. This country has become very dependent on imported meat. I listened attentively to Enterprise Ireland when it said it would open an office in Brazil. Irish farmers are at war with Brazilian farmers.
I welcome Ms Sinnamon with whom I had the privilege of working as a Minister of State in the then Department of Agriculture, Food and Forestry where I was responsible for the food industry. She started in forestry and moved into food. I wish her well and am glad to see her back in the front line, which is an important place to be.
Enterprise Ireland encourages secondary processing but it is the lowest quality. In America the major food companies operate from the crop to the shelf. That is quality. I am committed to the pig industry which is a major employer in rural Ireland and towns but our brands, Kenny, Dennys and Galtee, are only secondary processors. Glanbia is the major processor in the commodity area. There is something seriously wrong with a policy that allows this to happen with State investment going into those companies. I am concerned equally about the consumer and the producer.
I do not want to see pet projects supported because some chief executive or researcher has an idea in the dairy industry. Milk will become a scarce commodity. There is a trend in the United Kingdom such that there will be only 12,000 farmers in this industry within the next few years. A similar trend will happen in this country. Britain will soon be importing milk. Enterprise Ireland must work closely with the Irish Dairy Board, not the industry. The processors have their own ideas and will abuse taxpayers and grant purposes for pet projects.
This country has only 5 million tonnes of milk and the Government will make substantial investment in this area. This is taxpayers' money and Enterprise Ireland should work with the Irish Dairy Board, which knows the business. For the dairy industry to work properly it should fade into the Irish Dairy Board and there would be one structure. This is happening in New Zealand where there is 14 million tonnes of milk and production this year will increase by only approximately 1%. The trend is down rather than up.
We hear a great deal about rationalisation but we must consider the spread of the country because we have major transport costs. One can consider the real model of the dairy industry in west Cork and Ballineen where there has been a successful development. I read in the financial pages of the newspapers that these companies had no borrowings but had to develop a new industry.
We should note what happened to Northern Foods in the United Kingdom. It might have been too dependent on Marks & Spencer or Tesco but it was a secondary processor, that did not work from birth to shelf and the company is now failing. That will happen in this country because the consumer will ask where the packet came from. Ms Sinnamon has responsibility for the food industry, but I do not know whether that is to Enterprise Ireland or the Department of Agriculture and Food because there appears to be a division in that respect.
We are wild for research and development and there are so many agencies in the country, between the universities, Teagasc, and in-house research and development within companies that it is hard to know where it will settle. That also involves a cost to the taxpayer. Nothing, however, is happening with all this research. There must be some co-ordination. I said this to the Taoiseach at a parliamentary party meeting and he took up the issue.
Enterprise Ireland recently announced a research and development project in my constituency. I did not attend the meeting because I knew nothing would happen and I was proved right. That was in Dairygold. Some wild decisions have been taken which Enterprise Ireland has partly supported, probably because it was walked into it. Good talkers and people who have control of the English language can often sell themselves well. Nothing has happened with that research and development.
I have a press release stating that it would not happen because the company was being divided in two. We knew at that stage that the company was being divided and that the division was in its embryonic stage. Why mislead a Minister into making a statement like that? Why allow it to happen to one of the most credible Ministers we have, Deputy Martin? There are many new players in the food industry and that is major employer in rural Ireland. There is a new opportunity because farming is turning around with the new bio-fuel and ethanol crops. There will be a scarcity of meat production in four or five years. This is a world trend and Enterprise Ireland is one of the trendsetters.
I wish to be associated with Deputy Quinn's remarks congratulating Mr. Ryan on his work and expressing his admiration. I too have great admiration for the work of Enterprise Ireland and have considerable experience of working with it at local level. Mr. Ryan is probably familiar with the Wexford Enterprise Centre and Dr. Seán Mythen.
Deputy Quinn also mentioned the link between education and enterprise. I was a teacher for between 35 and 40 years and finally principal in the Enniscorthy vocational college. We introduced various post-leaving certificate courses which increased the teacher enrolment from 34 to 74 within three years. As a teacher I was struck by the lack of preparation for entry into business. We tend to think of a business person as somebody who inherited Daddy's business or went to university. I spent my life teaching the block layers and carpenters who drive industry in Wexford.
There is little there apart from farming, fishing, tourism and building. We are good at building and several Wexford firms are building in London. Many of those people leave school after the junior or leaving certificate without any introduction to entrepreneurial education. The second level curriculum does not include that but Enterprise Ireland could successfully run courses to address that lack. If one is a hairdresser, a block layer or carpenter who left school at the age of 14 or 15, the bureaucracy of tax laws and keeping accounts to stay out of jail is almost insurmountable. Large fees are paid to people to keep one on the straight and narrow but people starting in industry cannot do that. It is different for a graduate who has worked for a large company for seven or eight years and then goes out on his or her own. This is an area in which Enterprise Ireland can play a role.
Enterprise Ireland must also play a role in changing our enterprise culture. People must learn that one does not have to be born into wealth to become a business person. In secondary school, pupils must take mandatory subjects, Irish, English, Maths, and a foreign language for university, leaving a choice of two subjects. Unfortunately, enterprise is not going to be one of those. This must change.
I chair a small group, the Enniscorthy Enterprise Centre. We received tremendous help from Dr. Mythen in setting it up. The board includes the principal of the local vocational school, members of Enterprise Wexford and the Waterford Institute of Technology. This is a voluntary organisation which rents spaces at a peppercorn rent to people starting their own business and gives them advice.
More could be done in alternative energy production. The Wexford economy lost €15 million when the beet-growing industry collapsed. It could easily be replaced by wheat growing, tapping into the opportunity to develop the bio-fuel market. Waste management is another area that has not been sufficiently developed.
White's Hotel, owned by the well-known Cork footballer, Mick Burke, has a cryotherapy clinic, the first in Ireland. During the Ryder Cup, the American golfers used the clinic. At Christmas the hotel will open an ice rink. This is the kind of innovation we need and it is the gospel that Enterprise Ireland must preach to business people.
As a politician, I have found acquiring planning permission — be it for a snail farm or a golf course — most difficult. The ordinary people are not sufficiently represented by people like me and the other parties. We allow a minority to dictate what should happen. The Athy bypass was held up for a few snails that subsequently drowned. In France they might have been eaten. I accept we must be eco-friendly but when a young fellow is looking for a job, a snail becomes less important. The Dáil is meant to make the laws but the planning laws do not serve industry properly.
Mr. Ryan
Enterprise Ireland has identified a site in Shannon which is in the ownership of Shannon Development. Some 300 posts have been nominated in the decentralisation programme. In our organisation, 19 staff have expressed an interest in relocating to Shannon. The wider CAF figure is 52 people. It is difficult to put a finite timeline on when the move will occur.
Shannon Development has a solid track record in job creation in the area. We recognise the bar we must reach in taking over responsibility for the area. In the new year, when our plans and structures for Shannon are announced, it will be obvious we are taking the mid-west seriously. We have had a good response from companies in the mid-west. Access to our 34 offices overseas is a large advantage to any Irish company. We look forward to extending that to companies in the Shannon area. Other jurisdictions, including Northern Ireland, may compare more favourably in terms of broadband provision. Shannon Development has done a good job in pioneering broadband availability in the mid-west.
Fuel and electricity costs are of major concern to all SMEs. It is not sufficient to lobby or complain about escalating costs. It must be tackled practically. We want companies to have an annual productivity improvement plan. Deputy Ned O'Keeffe raised the opportunities for Ireland in developing its biofuel market. The technology involved in the production of bio-fuels is well-known. Enterprise Ireland does not believe there is any particular obstacle to bio-fuel plants being established. The issue is demand and usage and how people might be incentivised to use these fuels. If it results in new crops being used for production, it would give a much needed boost to many areas.
Enterprise Ireland works closely with Bord Bia which is responsible for the marketing of food produce overseas. I agree with Deputy Ned O'Keeffe that we need to be more successful with our food brands. There have, however, been several successes. The most profitable and successful part of Northern Foods is the Irish operation. One in three pizzas consumed in the United Kingdom is supplied from Ireland. The number one company in the UK pizza market is Green Isle from Naas, County Kildare. The Minister for Agriculture and Food, Deputy Coughlan, has taken welcome initiatives with the dairy, beef and sheep funds. We were disappointed with the structural changes that have occurred in Dairygold, to the extent that they have delayed the company proceeding with its research and development plans. When that was approved by the Government in June 2005, we were not aware of the structural changes. We had to play it as it was presented.
Enterprise Ireland supports research and development and innovation. Too often innovation is seen as research and development when in fact innovation is much wider. Some expect research and development to transform the way a company does business. It is an important help, but it is not the whole situation. Certainly under Technology Ireland, we hope there will be better co-ordination. We are certainly committed to full participation in Technology Ireland and in co-ordinating what the State is doing in terms of research and development.
Deputy Tony Dempsey raised a number of issues about education. Certainly the introduction of the transition year has helped in that business projects are being undertaken by students now, and that is changing the mindset. Most successful entrepreneurs in Ireland today were not born into wealth, it should be emphasised, and perhaps need is a greater motivator than being born into luxury. In that regard I draw attention to the largest ever employment project which was supported by Enterprise Ireland, this year, with the announcement by the Seán Quinn group of 1,000 jobs to be based between Cavan and Meath. The story of Seán Quinn and how he built his business empire is fascinating and he is a great role model for other entrepreneurs in the State.
As regards our role in work with micro-industry, certainly the establishment of the support unit to help in the co-ordination of the county and city enterprise boards should also help to move matters forward. We are aware of the work being done in the Enniscorthy enterprise centre and in the Waterford Institute of Technology. The Chairman referred to this in his comments earlier, and it is very important. The more outreach that can take place in the existing institutes and universities, the better. It facilitates inclusion. There are a number of examples. The Chairman referred to Castlebar, which is probably the best known in terms of the very successful development working with the Galway-Mayo Institute of Technology. Obviously we should like to see more initiatives of this type.
On innovation and as regards waste management and the wider opportunities that exist, two weeks ago we held our annual chief executive forum. This was the first time we have taken it out of Dublin. It was held in Dublin and Cork. In Dublin it was attended by more than 400 chief executive officers of our companies and in Cork by more than 200. It is interesting that 95% of the attendees in Cork had never been to one of our sessions in Dublin.
There are other markets from within which we can expose trends to our chief executive officers. The trend we exposed them to this year was innovation and its importance for the wider business front. All the empirical studies on innovation cite co-operation by companies with their customers as the richest source of possible new ideas in terms of co-operation with suppliers. Fourth on the list is co-operation with universities and institutes of technology. We therefore should not define innovation narrowly as something that happens in a research and development environment or can only occur in a relationship with a university. It can happen in all parts of the value chain and it is Enterprise Ireland's intention to encourage innovation in its widest sense so that it becomes a mindset within companies as opposed to projects they must try to implement.
I thank Mr. Ryan. This committee visited many areas of the country. Experiences varied in different areas. When we went to Wexford we were told that 37% of farm workers had left the land over the past ten to 15 years. The alternative employment they turned to was in the construction industry. The fear among all the good people that addressed us in Wexford in all sectors, including the council, IDA Ireland, Enterprise Ireland, etc., was where this 37% would get employment if the construction industry were to level out or decline.
I have been meeting people on the subject of alternative fuels. In relation to biodiesel I understand there is a tremendous opportunity for people in the farming sector. Deputy Ned O'Keeffe and I have discussed this because he knows this industry inside out. There is nothing as good as talking to people who know what they are talking about. We may not agree on everything, but I want to put it to Enterprise Ireland to see if it is possible.
I know of people who wish to invest heavily in the bio-fuels area and have expressed this in confidence to me as Chairman of this committee. Their thinking is that the two sugar beet factories should be retained and that we should offer the 3,700 farmers contracts again for growing crops that will be used in the production of bio-fuels. They expressed a view that a pipeline could be run from Mallow to the oil refinery in Cork. I am told that up to 10% of bio-fuels can be used in the mix of diesel and petrol, which we all buy at filling stations every day. If this is the case, it would be an ideal opportunity for us to cut down on energy costs and would have massive potential for the employment of farmers.
Deputy Ned O'Keeffe and I as well as a few like-minded parliamentarians are of the opinion that the tide could be turning for people in the farming community, especially given current land values, etc. Is there any way this thinking might be speedily progressed and researched through Enterprise Ireland? I read in the newspapers that the former sugar plants in Carlow and Mallow are being looked at for other uses, but these uses could be located elsewhere.
If the committee can be a conduit to Government, Enterprise Ireland or industry, we should make it a priority within the next few months to see whether this proposal may be advanced. The money and the investors are in place. If there is any possibility that this suggestion might be enhanced through Enterprise Ireland, I believe it would be enormously worthwhile. It is a win-win situation for so many. Every person in Ireland could benefit from this if it were possible.
Mr. Ryan
To give the Chairman a quick response, we are aware of the situation in Wexford. The Wexford enterprise centre is the role model for community enterprise centres. We were pleased to support its expansion recently to the tune of €300,000. However, the Chairman's central comment relates to the issue of bio-fuels.
I should respectfully put on record Enterprise Ireland's role in this area. Our role to date has been to encourage research and development, particularly at the process level and to work with any companies that are established to assist them in addressing the export markets for products. Given our level of consumption domestically and the capital intensity of this particular activity, the expert dimension should be considered in the development plans because of the size of the facilities that are needed to produce these fuels efficiently. I obviously cannot comment on any particular sites in the State, but I can say that is being very actively discussed among ourselves, IDA Ireland, the Departments of Enterprise, Trade and Employment and Communications, Marine and Natural Resources. There have been a number of recent meetings at ministerial level. The Ministers, Deputies Noel Dempsey and Martin, are actively involved in this area at present. That is all I can say on the record at this stage.
As Chairman of this committee, it is my view that, in the national interest, the sale of these two sites in Carlow and Mallow should not be allowed to go ahead because they are too important for the future of the economy. Some 5,000 to 7,000 farmers and their families could gain from this and could have a future. Moreover, we could all be assured that 10% of supply at the pumps comes from alternative energy. I will leave it at that. We will see where we can take the issue from here.
With regard to the beef industry, a number of years ago Enterprise Ireland put a rationalisation plan before the country and the Government. It was beaten by the Competition Authority and came before the Supreme Court recently. Enterprise Ireland spent much time on that plan. Is the issue behind us? It is seven or eight years since it was relevant and it is not relevant today. Many plants have closed. A lot of time was invested and a lot of money was wasted. Enterprise Ireland should put that behind it, move on and let the industry do its own business.
Mr. Ryan
That action in the courts was taken by a number of beef processors. It is still before the courts. The High Court gave its judgement and the matter has been referred to the Supreme Court by the Competition Authority. As it is sub judice, I cannot comment further. I draw the Deputy’s attention to the welcome recent announcement by the Minister for Agriculture and Food, Deputy Coughlan, about the funds which will now be available for the development of the beef industry.
I thank the Chairman for raising the issue of bio-fuels and the Mallow beet factory.
Do I take it that the decision of the Labour Court and the attitude of the Government with regard to the relocation of FÁS is a precedent that also applies to Enterprise Ireland staff in terms of voluntary and compulsory relocation under the decentralisation programme?
A good footballer will place himself where the ball is going to be, not where it is at. What are Enterprise Ireland's plans for the new industries, especially in the area of health care, given that genetics will be a factor through the use of adult stem cells, and foodstuffs such as Benecol, whether in butters or yoghurts, will allow people to eat themselves healthy? This seems to be a fast developing area for people who have high levels of disposable income.
Mr. Ryan
With regard to Deputy Quinn's question, the scheme as presented to us is voluntary and we regard it as such. I will ask my colleague, Mr. Ó Moráin, to comment on the other issue.
Mr. Feargal Ó Moráin
From our point of view, the value that can be created from the raw materials we have in the country, particularly on the food side, is critical. Part of that is the area of nutritional foods, to which the Senator referred. To that end, we actively support and encourage research projects involving Teagasc, the universities and the companies to explore different areas and markets and opportunities.
As Mr. Ryan noted, Enterprise Ireland is concerned with the practical end — commercialisation. We want to see not the basic research but rather support for the emergence of products which people want to and will buy. All the indications are that there are enormous opportunities in the nutritional foods area, for example. We have supported a number of projects and are in the process of working with the industry on a major initiative in that area which we hope to be able to announce in the coming year.
I thank Mr. Ryan and his team for attending. It has been an enlightening experience and their report is very impressive. To be frank, it is a difficult area and Mr. Ryan and his team are doing an outstanding job in the national interest. Our country is fortunate to have them leading us at this time.