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Action Plan for Jobs

Dáil Éireann Debate, Wednesday - 27 November 2013

Wednesday, 27 November 2013

Ceisteanna (5)

Tom Fleming

Ceist:

5. Deputy Tom Fleming asked the Minister for Jobs, Enterprise and Innovation the number and location of industrial units and warehouses that are vacant in County Kerry that are the responsibility of Industrial Development Agency, Ireland, Enterprise Ireland and local authorities (details supplied); the progress that is being made in attracting investment to these plants; if he will provide an update on the national jobs action plan relevant to County Kerry; and if he will make a statement on the matter. [50842/13]

Amharc ar fhreagra

Freagraí ó Béal (5 píosaí cainte)

I am informed by IDA Ireland that the agency does not have any units or warehouses, which are vacant in County Kerry. Enterprise Ireland does not have a property portfolio as IDA Ireland provides property solutions to Enterprise Ireland clients when required. The responsibility for local authority properties lies with my colleague, the Minister for the Environment, Community and Local Government.

The property to which the Deputy refers is not in the ownership of IDA Ireland. I understand from IDA Ireland that the premises itself was formerly a manufacturing facility and the options for the building in its current format are limited. I am informed that Killarney Town Council is assessing what options may be available for the building, including converting it into an enterprise centre. Both IDA Ireland and Enterprise Ireland have assured me that they are available to provide any assistance that may be required.

IDA Ireland owns approximately ten acres of land at the IDA business and technology park, Killarney, which is available for marketing to both overseas and indigenous industry. In addition, the agency has approximately two acres of land at the IDA estate in Killorglin and 1.41 acres in Annascaul, which is also available for marketing.

Enterprise Ireland, IDA Ireland and client companies employ in excess of 4,900 people across County Kerry, while Kerry county enterprise board has processed 37 projects during 2013 which have the capacity to generate 116 full-time and 53 part-time jobs by 2015. Enterprise Ireland activity in Kerry is focused on the creation of new jobs through supporting entrepreneurs to set up new high potential start-up companies. There are 132 Enterprise Ireland client companies in the county, employing 3,318 people.

Additional information not given on the floor of the House

There are 12 IDA Ireland supported companies in Kerry with total employment of approximately 1,600 people. IDA Ireland engages with these companies on an ongoing basis and the key areas of focus are to encourage operational sustainability, job retention and, in certain cases, expansion. IDA Ireland also endorses and supports the initiatives driven under the Succeed in Ireland agenda which also engages key stakeholders in the regions regarding opportunities for investment. Additionally, the existing base of overseas companies located in Kerry brings spin off benefits right across the south-west region through direct and indirect employment, for example, indigenous suppliers, logistics, security, catering companies, etc. The Action Plan for Jobs can benefit enterprises in Kerry. For example, the county would particularly benefit from initiatives that have been targeted at supporting the tourism and agrifood sectors.

Many of the initiatives in the Action Plan for Jobs will also be very relevant to enterprise in Kerry. These include the introduction of new financing models for SMEs, such as the microfinance fund for start-ups and the temporary partial credit guarantee scheme; the development of an integrated first stop shop for small enterprises through local enterprise offices; new schemes to help small businesses recruit via JobBridge, Springboard and MOMENTUM and the introduction of the JobsPlus scheme that provides an employment subsidy of over €70 per week to employers who recruit a person who has been unemployed for 12 months; the appointment of business development managers to 37 community enterprise centres across the country as part of a €2 million programme aimed at protecting and growing businesses in the community; and expanded support from Enterprise Ireland for start-ups, first time exporters and the establishment of a first time exporters division.

I thank the Minister of State for his response. However, the statistics demonstrate that Kerry is the poor relation in the south-west region in regard to job creation by both Enterprise Ireland and IDA Ireland in particular. IDA Ireland created almost 4,000 jobs in Cork in 2011 and 2012. In those two years, IDA Ireland created just 163 jobs in County Kerry in 2011 and 74 jobs in 2012, a total of 237 jobs. In those two years, Enterprise Ireland created almost 2,000 jobs in Cork in 2011 and 1,700 jobs in 2012. In comparison, it created 232 jobs in County Kerry in 2011 and 194 jobs in 2012. This is a ludicrous position for a peripheral county in comparison to the neighbouring counties in the region. How does the Minister of State intend to address this.

The Deputy mentioned County Cork. From the intercounty perspective, there are strong pharmaceutical and ICT sectors in Cork. The Deputy said IDA Ireland had created 163 jobs in 2011 in Kerry. However, it is not IDA Ireland but the companies that come in and conduct site visits which make the final decision as to where they will locate their business. Perhaps we could explore further the dynamic that exists in regard to the number of prospective companies or creators of employment, the number of site visits that take place and the analysis of the visits in terms of the decisions they make as to where to locate their business.

Over the past two years in particular we could count on one hand the number of IDA Ireland-led investment visits to County Kerry. Such visitors to the county are almost as scarce as the corncrake, which is almost extinct. This is a ridiculous record. IDA Ireland has utterly failed County Kerry. I believe it is time for the Government to step in. We are basically on a par with the south east, where there is a jobs plan in place to deal with the crisis situation there. We have an unemployment rate of almost 20% in County Kerry and but for the tourism industry, much of which involves part-time jobs, it would be higher. I compliment all of those involved in the retention of the VAT rate for that sector. We need sustainable jobs and I call on the Minister and Minister of State to promote some activity to help the county.

The Deputy mentioned the tourism sector and there has been significant investment by State agencies, such as Fáilte Ireland, to ensure the tourism package in County Kerry is maintained. This supports and creates jobs. The recent decision by the Government to retain the VAT rate for the sector has had a significant impact in terms of job creation and the maintenance of the sector in the Kerry region.

The story is not all bleak in County Kerry. The IT in Tralee has a major competence centre and there has been serious investment in companies like Dairymaster, which is seen as an exemplar for the agrifood and business sector. Also, through the centre for intelligent mechatronics and sensors at the Institute of Technology Tralee, ITT, and through the Kerry technology park, there is a strong emphasis and mood towards supporting high potential start-ups and towards ensuring we can concentrate on areas where Kerry has strong sectoral comparative advantages, particularly in the dairy or machinery sector. We will continue those investments. Enterprise Ireland, through the Department, is investing in the competence centre in ITT and that will create jobs in the long term.

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