Oireachtas Joint and Select Committees

Tuesday, 18 June 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

South-East Economic Development Strategy Report: Discussion

2:10 pm

Photo of David CullinaneDavid Cullinane (Sinn Fein) | Oireachtas source

I will be as brief as I can, to be helpful. I welcome the witnesses and thank them for coming here today. I met some of them already as part of the consultation process and there are some I have not met.

Mr. Michael Walsh clearly set out the challenges the south east faces. Any of the research we carried out into examining the south east economically, and the Forfás report was the most recent one, showed that, unfortunately, the region has underperformed in terms of educational attainment, entrepreneurial activity and economic activity generally, and that it has a high level of unemployment. Equally, there are huge strengths in the region, and Mr. Michael Walsh hit on a key point when he said that there is no good reason the south east is underperforming to the extent that it is. There is probably a myriad of reasons that is the case. During my consultations across the region, it struck me that there is huge potential in the region, and if we exploit that and can make things work, we can certainly turn things around. The key factor here is integration and cohesion at a regional level.

I agree with the Kilkenny county manager, Mr. Joe Crockett, that we need to join up policy from national to local level. That is one of the problems. We have not had that. We can all be critical of enterprise agencies in terms of perhaps their perceived failures in the region, but what we need to do is identify the strengths of the region and the key areas, and some of those have been identified, and how we can develop an integrated strategy that is rooted in the needs of the community and, more importantly, in the region, but also that is rooted in the needs of enterprise and industry. We do not have that to the extent we need it. We need to do a bit more work in that area, and we need to take that on board in terms of vision and policy.

I have a few questions on some issues that arose during the consultations. One of the criticisms is that the enterprise agencies are not doing enough, and whether that is fair or unfair or that is a perception or reality, that is an opinion. The IDA has produced its own reports and a breakdown, on a county by county basis, of the number of site visits there have been for each county and region and the number of jobs that have been created and lost. Unfortunately, during the past four to five years, the south east has not faired all that well. One of the reasons the IDA offers for this is that while it has a job of work to do to bring jobs to the State, equally it would cite a lack of property solutions as a problem in the region. Is that the case? I know that might be different in certain counties. It seems to be more of a problem in Wexford and there may be other areas. Is that a problem and, if it is, local authorities have a responsibility also to be part of that solution.

Is there merit in the IDA having a regional office in the south east? How important would that be and would that be something the mangers present and the chamber of commerce would support?

Regarding the university issue, we all accept that would be a game changer. I am very supportive of a technological university. I know there are people who would have a different view and they make comparisons with Trinity, UCC and UCD, but it comes down to the needs of the community in the region. I would favour a university that is based on innovation, research and development, creating that critical mass of research and development and fostering creativity. That is what it is about for the region and we are certainly very strong on that. I know that Waterford IT will address us later and the Telecommunications Software & Systems Group, TSSG, is first class in terms of research and development.

I could not speak more highly of it. It has expanded into the Kilkenny area as well. It is doing significant work that goes unnoticed and, if we can, we must sell what is being done there more. This is an opportunity for us to do it. I would see that as an advantage. If we are going to have a technological university it must be based on the needs of the region and be clearly aligned to industry. What are the witnesses' views in that regard?

In terms of research and development capacity, a hub could be created linking in with Clonmel. There are links with Limerick IT and Wexford and there is a new relationship between Carlow IT and Waterford IT. What more could be done to ensure we have enough research and development capacity to meet the needs of industry? In what industries do we not have sufficient research and development capacity?

Reference was made to two ports – Rosslare Europort and Waterford Port - by Ms Widger. Unfortunately, both of them have seen a drop in activity. Rosslare Europort, which is a roll-on roll-off port, has seen a 30% drop in freight since 2008, which is a considerable number. The situation in Waterford Port is worse than that. It has gone from 20% of the national share of lift-on lift-off traffic to 5%. We must identify the challenges and see what can be done. A review of ports is currently ongoing. The situation in Rosslare is unique because of the complication of the relationship with Fishguard. There was a call for a single independent authority for Rosslare. I would welcome the views of managers and others on the issue.

How important is the Belview site? We have received good news from Glanbia. Its announcement is positive but there is still considerable potential for the site, with its abundant water supply. Mr. Crockett referred to that. What more could we do to exploit the potential of the Belview site?

My next question relates to the airport and is aimed at everyone. One could argue whether the airport is in the right location. However, it is where it is and it is the regional airport. There is a need to expand the runway to allow for different types of aircraft, which would open up new opportunities for the region. How important is the airport economically?

In response to what Mr. Crockett said about agriculture, there is significant potential in the context of Food Harvest 2020. With the abolition of milk quotas and the expansion in dairy and beef production there will be significant opportunities, and that is one thing on which the south east must focus, because we can benefit enormously. I referred to the Glanbia announcement. What supports must be put in place to allow farmers to capitalise on the opportunities? Mr. Crockett previously mentioned compliance with the EU water framework directive and the nitrates directive, which are important, but farmers will also require practical supports from the banks if they want to expand their businesses. All such issues will be important and we must plan now. We can have all the targets we like but if we do not plan for it, it will not happen. We must do some work in that regard. What is Mr. Crockett’s view?

With regard to regional tourism, the south west and the west have been very good in terms of marketing and branding. What more can we do in the south east to provide a regional offering?

My final point relates to life sciences, which has been mentioned. We face challenges in terms of the expiry of patents and competition with eastern European countries and Asia. How relevant is that to the south east?

I support Mr. Cooke’s contribution on community enterprise, which is hugely important. Co-operatives are another matter we must examine. I endorse everything he said about the importance of community enterprise.

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