Mr. Michael Walsh:

I will be brief as both Mr. Crockett and Ms Widger have covered a lot of the ground. Waterford and the south east general are under-performing economically. Relative to other regions there has been a decline. In some respects that is not rational because the region has a lot of natural advantages. As Mr. Crockett outlined, there is fertile land and an agri-industry which is at the forefront nationally and is world class by any standard. Equally the region is proximate to internal and external markets. It should not be the case that it is under-performing. It seems to be a systemic weakness, something that is not right. I will not over-elaborate on the reasons because there is a multitude of them and the situation is complex. Some of the reasons include a reliance on traditional industries up to relatively recently. That transition is now happening and it needs to be given even more energy to bring about a new economy. There is a little bit of an issue with educational attainment and there is talk of a technological university but the statistics do not lie in that context. External competition is a catch-all I use but the reality is that the external competition is very near, the two big brothers in Dublin and Cork are now within one and a half hour's journey. They are pulling at the edges of the region which has a population of 500,000 but the two big beasts are attracting the population on either side of the region. Internal competition may be over-egged but the region is unique in the country in that it contains four significant urban areas within a 30 mile range which are competing with each other.

That is a good thing in some respects, but it sometimes means we are all fighting over the same cake and must be alert to the danger of somebody else coming in and stealing it. I do not wish to overemphasise that aspect, but it does happen.

The south east's relatively poor performance in terms of attracting foreign direct investment is a significant challenge. In the past ten or 15 years, Waterford and the south east have been outperformed by most other regions. Again, there is probably no simple answer to this problem. IDA Ireland is applying significant energy to addressing it and there have been several wins recently, which are more than welcome. In the case of Waterford city specifically, in the 13 years or so since Genzyme opened its facility, there has been nothing in the realm of foreign direct investment where there was not a distinct Waterford connection, either in the form of the expansion of a local enterprise or a personnel connection, for example.

Another problem we are facing is that branding has been an issue for the region historically. When one thinks of the west or south west, for instance, a very concise image comes into one's head. The south east, on the other hand, is lacking a distinctive branding. That is a challenge for us. In the case of Waterford itself, as the gateway city, there have been specific issues with branding, whether arising from industrial strife or other issues that fed into it. We are doing significant work to rectify that.

I was careful in choosing my wording when I referred to political priority. If I were to be kind about it, I would say that taking a long-term view, a period of 20 or 30 years perhaps, we did not always have sufficient weight in the scrum of political decision making on the national stage. That has negatively impacted to some extent over the longer term.

In terms of actions that can be taken to address these problems, Mr. Crockett has touched on many of them. Any analysis of recovery for regions and cities as a generality would suggest that collaboration is the key. In our case, this would involve collaboration not just across individual local authorities but across a whole range of sectors, including the private sector. That is a challenge we are determined to meet. We have convened a south-east forum which includes representation by Mr. Crockett, my other colleague managers, the institutes of technology and enterprise agencies. We are looking to develop that as an action forum which could function as a catalyst for recovery.

The Cabinet decision to establish a technological university in the south east is extremely welcome. As Mr. Crockett observed, there must be a close relationship with business, not only in terms of the provision of the academic and professional skills which feed enterprise but also in terms of a research relationship which fits the distinct role and functionality of a technological university. The provision of technological university status is a psychological game changer in many respects and one that must be delivered as soon as possible.

Another area where there is no conflict whatsoever in terms of our collective goals is food and tourism. There is an opportunity in the south east to build a serious tourism proposition around heritage and culture. Mr. Crockett mentioned agrifood as a particular area of strength. We have, in addition, a distinctive pharmaceutical and life sciences presence in the region as a whole, as well as significant activity in the area of engineering. While some aspects of engineering are seen as old school, the reality is that innovations in that sphere are very new school indeed. Aerospace technology, for example, is represented in the region, and there is activity in the area of technical standards and so on. There are certainly opportunities in that regard.

I have already referred to the problems with branding. The rebranding work is an ongoing effort, with a particular focus on culture and festivals. We have engaged in several initiatives with Waterford Crystal, the visitor centre being an important aspect of that, as part of a package of rebranding measures for the city. That rebranding effort is also taking place at the regional level.

In terms of public sector prioritisation, the question is whether the south east needs help. We are saying that it does and, moreover, that it deserves a degree of priority at Government level. In fairness to the Minister, he has personally chaired the action plan on jobs for the south east. I would like to see that engagement transition into a scenario where leadership would be given at departmental and cross-departmental level. Going back to the issue of collaboration and joined-up Government, there are very few initiatives that can be delivered by single entities working independently. A cross-representational approach is usually required. Such would be a natural transition in this case, but I am not sure it is fair to expect the Minister to lead it on an ongoing basis in the context of the required time commitment.

We are working to make the local realignments work across the region, in conjunction with the enterprise boards and community development organisations. We have developed an economic strategy which we hope the Minister will publish in the coming weeks. We have no agenda other than to obtain the best possible output in economic development terms. In Waterford city we are seriously engaged in the effort to resource economic development. We have appointed a dedicated director of services for economic development and we intend, as part of the amalgamation, to resource that role very significantly. We are also looking to build on external relationships, including the connection with our twin city of Rochester in New York state. That city is an interesting case in terms of how it has managed the transition of Eastman Kodak from a company which employed 70,000 people less than ten years ago to 7,000 today. We have much to learn from that engagement.

In the shorter term we could do with a few wins, and we are working hard with the enterprise agencies and others in that regard. As I said, the establishment of a technological university is a game changer and we must immediately commit ourselves to its delivery. It will be a resource for enterprise and for the region as a whole in terms of economic development. It also offers scope for additional labour activation measures for unemployed people in Waterford and elsewhere in the south east. Another short-term measure that would be of help would be the provision of enhanced broadband connectivity. I have mentioned the efforts to improve our foreign direct investment, FDI, performance. In addition, any assistance in the infrastructure area would be very helpful. In short, we are seeking to invest very significantly in the regeneration of Waterford city centre, and any support in that regard would be most welcome.