Mr. Joe Crockett:

I thank members for their questions. I will try to go through them as briefly as possible. With the permission of the Chairman, I will leave the Waterford Airport questions to my colleague, Mr. Michael Walsh. While we both are on the Waterford Airport board, I would be most grateful were Mike to deal with that.

Like the other members, I thank Senator Cullinane for his work as rapporteur in highlighting the issues. He asked a number of questions and I agree with all the points he and all the other speakers made on the need for an integrated strategy, which for me is critical.

On the question of property and property solutions, it is the case at present that for any place in which the Celtic tiger had been roaring, the property boom took place and there are leftover office buildings, there are particular commercial advantages to taking up such buildings at present because they can be let at such a low rent. In the case of any city or place that does not have major office facilities in place, it is not possible to compete with the very low prices that are available in locations such as Dublin, Cork and Limerick, and this is a difficulty.

In respect of other property solutions, it is the case that I suspect there is plenty of zoned land around the region. As to whether there is plenty of serviced land and with regard to the supply that is needed, that is another question. One thing we did collectively with regard to, for instance, Belview as a strategic site was to state it did have the strategic resource of having a block of land, a huge supply of water, a huge wastewater treatment capacity, a port and the railway right on the dockside. This is a strategic advantage which, for example, Cork does not have and is one reason the Port of Cork was refused permission to expand. Consequently, we have strategic advantage and it is a case of following through on the strategic advantage that exists.

On the question Senator Cullinane asked regarding what steps could be taken to support the education sector, I suggest there are two key steps. The first obviously pertains to the follow-through on the technological university. In addition, I refer to the allocation of research funding by bodies such as Science Foundation Ireland. If, for example, the State recognises the south east is to grow in areas such as agriculture and agribusiness and the related technology as well as in areas such as medical devices or the life sciences, then the resources must travel with it. If one is to be serious about economic development, there must be a fair sharing out around proven leaders such as Waterford Institute of Technology and Institute of Technology Carlow that in turn link and work collaboratively with others.

For example, Deputy Calleary asked what is the specific thing the south east does better than everyone else, and that thing is food and agribusiness. This is something on which the south east leads the world. We will be supplying into Europe and into China and our companies such as Glanbia, Keenan or Dawn Meats supply the world. Therefore, it is my contention that we should do everything we possibly can to be world leaders in everything to do with agribusiness, agribusiness development and support, research and development, technology and so on. The same point applies in respect of the other big area we have, which is medical devices.

Again, every region has its strengths. In the case of the west or the mid-west, it may be aviation, for example, or in the case of Dublin, it might be financing. However, every place has its strengths and there will be some overlaps, such as can happen in respect of tourism. In the whole, however, everyone will contribute. For example, because the west has a very good tourism offering, as does the south east with regard to, for example, Kilkenny or the Viking past in Waterford, we can all contribute nationally to this. I hope I have dealt with the three principal points made by Senator Cullinane.

Deputy Calleary also raised questions on Belview and on the skill set. The Forfás regional competitiveness agenda report sets out the full data he sought and we can supply that to him, if he wishes. However, the key thing to note about the region is that it has a population of approximately 500,000, which is a viable economic market in its own right. Therefore, from my point of view, the south east as it currently stands should have its own subregional development. I note the Minister for the Environment, Community and Local Government has proposed that there be three super regions but that within this, there should be room for subregional development. On the question of Belview, in my view it is a strategic national asset as well as being a regional asset and an asset for Kilkenny and Waterford. We work collaboratively to make that what it is today. Many members have mentioned that Glanbia has gone into that site and there is no doubt in my view that once Glanbia has put in its €160 million worth of investment, others will follow. Consequently, I am interested in getting ready for the next wave of development.

Another point to bear in mind in respect of the Harvest 2020 proposals is that agricultural development will not stop at 2020. This was one of the surprises to me. It will continue to grow post 2020, as there still is a lot of capacity post 2020 for agriculture and agriproducts, and this is something we must bear in mind as we think about potential and where we should put our research and development money.

Deputy Deasy raised the specific question of critical infrastructure priorities, and I agree completely with his assessment on the need for the State and the region to agree on the key infrastructure drivers we must have to drive strategic economic growth. For me, the airport is one of the elements of strategic infrastructure, as is the port. In place-making terms, the city of Waterford and the two hubs of Wexford and Kilkenny are equally important economic considerations that we must develop because place-making in its own right is a key requirement for economic development. In respect of foreign direct investment or indigenous development, it is known that a place must have all the services and must be attractive. It must appeal to tourists and citizens and to investors at national, regional, international and local levels. These are the things we must bear in mind. I take what Deputy Deasy said about the need for airport expansion and I agree with him completely.

Deputy Coffey raised the question of the lack of regional coherence and asked what is the best regional model. My hope for the reform programme or the next level of announcement from the Department of the Environment, Community and Local Government or from the Government is a new model of regional economic development that aligns objectives and focuses on the new energies that might be possible by bringing in the cutting-edge thinking of the chief executive officers in the key sectors and which sets out high level strategies on which each region and subregion must agree, whether it pertains to the port and the airport or Waterford city and the hubs, as well as one's key sectors. This for me is the way ahead and I really hope this is what will emerge next. Consequently, I agree completely with Deputy Coffey's view on the need for a new model of regional development that overcomes the current levels of disparity that exist.

Deputy Ann Phelan asked what barriers the chief executive officers identified in the discussion. The key points to emerge from those discussions were the need for closer alignment with the State sector in respect of regulatory issues, specifically on the water framework directive and on the nitrates directive, and to come up with new solutions to overcome the potential business risks these two issues present, Clearly, we must hold the nitrates derogation we have at present.

We have to comply with the water framework directive, not alone as a regulatory requirement but also as a contractual requirement for major international buyers. If one examines the contracts for major bulk-buying for Dawn Meats, Glanbia or anybody else, the contract might be the thickness of two or three telephone directories approximately one third of which will be on environment requirements. Therefore, there is a need for a fundamental shift in our understanding of water and the ownership of water to ensure high performance and compliance with the water framework directive.

On the food side, the CEOs raised the offer of the major companies being able to support SMEs in that sector. Glanbia, to give the company its due, set out a strategy for export growth for 12 to 14 small food companies across the region and it is a model that other major companies could adopt. I would commend Glanbia for its support for this development. Those were the two particular matters identified.

Deputy Lyons raised the question of the airline and the predominance of the great economic powerhouse of Dublin, plus all of its considerable critical mass in labour force, services and infrastructure, including the airport. If, however, one is serious about regional economic development for a region that is experiencing difficulty, one must look at the services such as key infrastructure, such as airport, port, cities and technological universities, to ensure there is a platform for growth.