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Economic Growth

Dáil Éireann Debate, Thursday - 16 October 2014

Thursday, 16 October 2014

Ceisteanna (87)

Bernard Durkan

Ceist:

87. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which it can be expected to encourage economic recovery broadly throughout the country; and if he will make a statement on the matter. [39637/14]

Amharc ar fhreagra

Freagraí scríofa

Ireland's economic success, creating jobs and growth throughout the country will depend on our ability to build up centres and regions that have the critical mass to compete internationally. Today, location decisions by companies (both foreign and indigenous) are not only considered in terms of the relative cost base, but also across a broader range of competitiveness factors. These include access to skills and talent, access to markets and customers, the innovative capacity and capability of the locale and a dynamic environment offering an attractive quality of life for a mobile workforce. These place based factors are important both from an FDI perspective and for our indigenous companies (including those who trade on the domestic market but increasingly come up against international competitors).

We need to ensure that the Greater Dublin Area continues to perform strongly as a key attractor of FDI and dynamic environment for internationally focused Irish owned firms and entrepreneurs. It is also vital that we enhance the competitiveness of our regions, and of the gateways as key drivers of regional development.

As set out in the Action Plan for Jobs 2014, my Department is developing action-oriented Regional Enterprise Development Strategies, starting with the Midlands and South East. The enterprise development agencies will continue to focus on stimulating business investment and on supporting enterprises throughout the regions. They deliver a range of programmes focused on the needs of the enterprise base, with the aim of addressing structural weaknesses and building capabilities in exporting and innovation and enhancing productivity. We will continue to work with other agencies and Departments to maximise each region's potential across a range of sectors and activities, including tourism, agri-food and retail. Earlier this year the Government, launched the nationwide system of 31 Local Enterprise Offices (LEOs), which reforms the system for delivery of State supports to micro and small enterprises and provides a first stop shop for local businesses. It is also important that national policies, including labour reactivation programmes and re-skilling translate into regional action.

My Department is working closely also with the Department of the Environment, Community and Local Government as they develop a new National Planning Framework (successor to the NSS) and prepare regional spatial and economic strategies (RSESs), as envisaged under the Local Government Reform Act 2014.

Following hard negotiations with the EU Commission on Regional Aid Guidelines, we increased the proportion of the country that is eligible for the full range of Government investment aid to businesses, meaning in effect that only Dublin, Cork, and areas directly bordering Dublin are excluded, a significant win in the context of the original proposals from the EU Commission.

Finally, one of the mechanisms by which we will directly support enterprise development at regional level is by building new property capacity in regional locations to help cater for FDI projects. IDA Ireland has started a number of building projects in Waterford and Athlone, and Letterkenny where the private sector is unable currently to provide property solutions.

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