John Lyons (Dublin North West, Labour)
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We are joined this afternoon by Mr. Terry Clune, who is the chairman of ConnectIreland. He is here to discuss how the ConnectIreland initiative has been operating since its establishment. He is joined by Mr. Michael McLoughlin. I need to go through some formalities before we begin.

By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to this committee. If witnesses are directed by the committee to cease giving evidence on a particular matter and they continue to do so, they are entitled thereafter only to a qualified privilege in respect of their evidence. Witnesses are directed that only evidence connected with the subject matter of these proceedings is to be given. They are asked to respect the parliamentary practice to the effect that, where possible, they should not criticise or make charges against any person, persons or entity by name or in such a way as to make him, her or it identifiable. Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the Houses or an official either by name or in such a way as to make him or her identifiable. I ask Mr. Clune to make a presentation to the committee on how ConnectIreland attracts companies to locate in Ireland and on related issues.

Mr. Terry Clune:

I was invited to attend the Global Irish Forum in 2011. Many people in the audience, including people from overseas with Irish connections, were looking to do something to support the Irish economy. I was involved in proposing an idea to the Government on foot of that. The idea developed to become the Succeed in Ireland initiative, which was rolled out a few months later. ConnectIreland is doing something simple but powerful. We ask people to use their connections abroad to help us find companies that might expand to Ireland. Everybody here has family members, friends or business contacts abroad. They might hear about a company that is expanding into Europe. When companies expand into Europe, they typically go Germany, France or England. They do not necessarily consider Ireland. If we have connections in a company who can tell us when it is expanding, we can use that lead. In such circumstances, ConnectIreland works with IDA Ireland to approach the company and explain the many advantages of locating in Ireland. That is the simple premise.

As part of the Succeed in Ireland initiative, the person who introduces us to the lead, or their preferred charity or club, is offered a Government reward of €1,500 per job that is created by the company in question. The programme was launched last year and will have been in operation for two years in March of next year. We have already announced many success stories involving jobs that have been created in Ireland through this programme. The person on the cover of the document that I sent to the joint committee as an example is the CEO of a Michigan-based company, Magni Group. He was looking to set up a company in the Czech Republic. He was flying there via Dublin because he had heard that Ireland is a great place to play some golf. He flew into Dublin Airport and got a driver to bring him to the Heritage golf club in County Laois. He played some rounds of golf with his colleague. When they were having their dinner and a few drinks in the bar afterwards, they met a local businessman from Portarlington - Mr. Kieran Leavy, who is shown on page 2 of the document - who knew about ConnectIreland through his local GAA club.

After Mr. Leavy spoke to the CEO about the golf, he asked him what he did for a living. The CEO mentioned that he intended to travel to the Czech Republic the following day to try to set up an office or a factory there. Mr. Leavy asked him whether he had thought about doing the business in question in Ireland and said he knew someone who would love to speak to him. On foot of those two sentences, he put the CEO in contact with ConnectIreland. We met him when he returned from the Czech Republic a few days later to give him the pitch on Ireland. Four or five months later - two months ago - the company announced that its new factory will be located in Portarlington rather than in Prague. Some €15 million is being spent at present on the construction of the factory, which will create 50 jobs. It will take a while for the factory to be finished. This is a great example of how simple this initiative is. Fifty jobs are coming to Ireland thanks to Mr. Leavy. If we had several hundred or a few thousand people like him, we could create thousands of new jobs in this country. That is essentially what the programme is about. It is working.

We have rolled out key partnerships with certain bodies, such as the GAA. We have piloted this scheme with various GAA clubs. As members may be aware, one of the big challenges being faced by the GAA is that its players are emigrating. It is difficult to find funding for clubs. When the GAA presented this initiative to its board last year, the logical simplicity of it was apparent to all concerned. We are now piloting it with certain clubs, which are simply asking their members to spread our message of keeping one's eyes and ears open for Ireland.

One may have a daughter in Florida who is working for a small medical device company. That company, ultimately, will plan to set up an operation somewhere in Europe. Ireland is a great location for it but the CEO of the company may not know that. The person's daughter or son or brother or friend working in the company can be a great conduit to help us find companies that are expanding. We all know that Ireland is a fantastic location for business. IDA Ireland has done a tremendous job during the past 40 years at selling Ireland to major multinationals and attracting thousands of jobs as a result. There are thousands of smaller, medium-sized companies who do not yet know the advantages of Ireland. By harnessing our diaspora, our connections around the world and incentivising them through a reward we can build and create many more new jobs for Ireland and build on the great work IDA Ireland has done. That is what ConnectIreland is doing.

The funding model is unusual. In my day job I run a financial service company called Tax Back Group. In Ireland we have 160 people, worldwide we have 1,000 people and we have locations in 22 countries. I proposed at the outset that given the funding model I fund this project in total. We have a team of 26 people. As the company sets up in Ireland and as jobs are created, we get paid by the State. It is a no foal no fee model which is new. It has never been done previously by any country that we have seen. We are already off to what we think is a good start. Our target over a five-year period is 5,000 jobs. We anticipate that by March we will have 1,000 jobs. In regard to the companies we are helping to attract, the connectors, people like Kieran Leavy, can let us know about the companies and can be very influential in bringing the jobs not only to Ireland, but to the regions. Recently, we had a company announced in Kells, County Meath, where the connector got to know the company quite well and explained the advantages of Ireland, but also explained the many advantages of Kells. As a result it has announced 70 jobs in Kells, County Meath, and a new factory there.

Some time ago, when giving a talk in Seattle, an individual in the audience had a connection to Ireland. We asked the audience what connections they had to companies and this individual said he did not know any businesses but we suggested that he ask his neighbours. His next door neighbour in Seattle, who was not Irish, knew of a company that was expanding. It was originally seeking to set up in Holland. He told us about the lead and we gave the pitch for Ireland and it set up five weeks ago in Ringaskiddy, County Cork, with 55 jobs. That is the simplicity of the model and it is working.

We are approaching the end of year two. It takes a while to get started from absolutely zero, with nothing in one's Excel spreadsheet, and no names of companies to get the message out there. Committee members may have seen us at Dublin Airport where we have a stand and explain to people as they are leaving the simplicity of the initiative and how they can benefit their charity or themselves through their reward and also their country through the jobs that come. We are extending the initiative to universities. The other document I gave to the committee is on an alliance with Notre Dame University. It has a huge network of business people, past pupils, all around the US who can help us find companies that are expanding. This is a new channel for IDA Ireland and a new channel for job creation in Ireland. We are only in the early stages but I look forward to explaining more as time progresses.

John Lyons (Dublin North West, Labour)
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Does Mr. Michael McLoughlin wish to add anything to what Mr. Clune has said?

Mr. Michael McLoughlin:

When we started, our year one model was to go out and identify connectors, those individuals who would be the eyes and ears for Ireland and who could potentially put us in contact with international expanding companies. To date, just under 1,500 people have registered with us to be the eyes and ears for Ireland and they are introducing companies on a daily basis. The process is to work in conjunction with IDA Ireland. We submit those companies' names to IDA Ireland to ensure it is not in pre-existing dialogue with those companies. If not, we go back to the connector and ask him or her to give us an introduction. It is incremental to what is already being done in the system. Any companies we are dealing with are new from a State perspective.

An issue of note in terms of approvals is that we have had another approval at IDA Ireland. All our business cases go to the management investment committee of IDA Ireland at a minimum and, in some cases, higher if grant aid is involved. We had another approval yesterday for a further 20 jobs. We are at the stage where we have 318 jobs, 266 of which are in non-Dublin locations. We have been able to do a drive from a regional perspective working with the connectors, as Mr. Terry Clune mentioned, such as Kieran Leavy or Hugh Morris, locally in helping sell their location. Based on personal connections, the early stages of influence can be very important.

John Lyons (Dublin North West, Labour)
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We have a number members wishing to put questions.

Dara Calleary (Mayo, Fianna Fail)
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I welcome Mr. Terry Clune and Mr. Michael McLoughlin. I had the pleasure of meeting Mr. Clune a few weeks ago. The model is phenomenal. So many people say they will do something but the witnesses did it and are still doing it and putting their own resources into it. During the summer I came across Mr. Tom Dowling, a member of the board of ConnectIreland, who was adjudicating the Pride of Place competition. He told me about this project and said they should link up so that the pride of place in one's country, where one is willing to put one's own buck where one's mouth is, gets behind this really successful initiative. The initiative has absolute substance behind it in terms of progress. I say, well done and continue the progress. What can we do in terms of promoting the scheme or spreading the gospel?

Mr. Terry Clune:

Everybody can play a role in helping to create jobs in Ireland, because everybody has family and friends abroad, by simply spreading the message of what we are doing on the website of ConnectIreland.com. We ask people to ask their friends if they know of any companies that are expanding. It is simple; that is it. With Mr. Tom Dowling we are planning a launch for next year. In addition to helping attract jobs, the reward can benefit communities, community groups or charities. For example, in the Kieran Leavy case, he can help create jobs for Portarlington but also in his case an element of his reward will be given by him to his local GAA club. With one piece of information he can help a community group from a funding point of view and create jobs. In the new year we are planning to develop a significant roll-out of our initiative to community groups right around the country. For Deputies who are interested in supporting the initiative, they can play a part in helping to assemble those community groups and to spread the message. That would be tremendous for us.

Feargal Quinn (Independent)
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I thank the witnesses for an interesting explanation. I have been involved in the tourism business for some time to the extent that it is interesting how individuals can do the same for tourism. What the witnesses are doing is admirable. Some ten or 15 years ago I was bringing a congress from around the world to Dublin. Some came a few months early before they had made a decision. They asked the restaurant to get them a taxi to take them back to the hotel but they were told they could have to wait two or three hours for a taxi. In those days there were two or three hour queues galore. What are the hurdles we can do something about overcoming? We overcame that taxi hurdle. On that occasion we nearly lost that congress of 1,500 people coming to five star hotels. They almost did not come because the two bosses who were going to make the decision said they would not go to a city where one cannot even get a taxi at night. I was thinking particularly of the potential ESB strike on 16 December. Are there hurdles and things that could go wrong, where somebody could say he was thinking of coming to Ireland until something or other happened and then decided to go to the Czech Republic, Holland or elsewhere? Are there steps that we in the Oireachtas can take to ensure that people who are tempted to come to Ireland will definitely come?

Are there hurdles we are not thinking of and about which we have not done anything? I think particularly of an ESB strike or a taxi difficulty, which would have deterred investors in the past. If I was planning to come to Ireland to open a factory and there was an ESB strike, I would question whether I should come. I have a concern with regard to how we handle the various hurdles that could stop people from coming here.

I found the witnesses stories very interesting. I read their documentation and about the awards for people who bring jobs here. In some cases people do not claim the award, but others do. The award system is certainly an incentive that encourages people to bring in jobs. However, I am more interested in what we can do to remove the hurdles.

Mr. Terry Clune:

We are carrying out a pilot programme in Dublin Airport with Dublin taxi drivers, because for people coming into the country taxi drivers are probably the most influential people they meet during their first hour or half hour in the country. In our pilot we are developing a simple slip of paper for taxi drivers informing them of some of the simple, positive features about Ireland. Until I became involved in this area, I was not aware that over the past five years Ireland was twice voted the friendliest country in the world by Lonely Planet. That is a positive point we should be aware of as a people, because we have gone through challenging times over recent years.

There are many positive points and reasons that companies choose to locate in Ireland and we should all become familiar with these. This would also help improve our self confidence as a country. Developing a simple top ten list of what is so good about our country would be a great starting point. If we all carried that list in our wallets and had simple positive messages to give to visitors, whether family or business friends or customers, that would greatly improve our ability to promote our country. We could provide the simple facts on why some of the big foreign companies are choosing Ireland. There are financial reasons for choosing Ireland, but there are also many other positive reasons.

When my business expanded internationally, where we expanded was very much to do with the encounter one had with the people of the country. This is a significant factor in deciding whether to choose a location. Making everyone aware of the positives about Ireland would be a good first step.

John Lyons (Dublin North West, Labour)
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I get the point being made about taxi drivers as they are often the first port of call. In that regard, what about the hotels in the immediate vicinity of the airport? I assume people who are fairly high up in businesses often stay in these hotels before they leave Ireland. Is there any initiative in that regard or is there space for these hotels to be incorporated in the plans?

Mr. Terry Clune:

That is a very good idea and we discussed it recently, particularly in regard to the four and five-star hotels. We propose the document we have supplied to the committee would be available in all the bedrooms of the hotels to deliver the simple positive message about Ireland and point out what Ireland is doing to fight back in terms of economic recovery. We have also met with people from the top golf clubs in the country with regard to how to inform golfers and caddies about this positive message. Caddies are there with the big businessmen who come here to play golf and they spend four or five hours with these people. After a while they get bored talking about golf and talk about business and other stuff. If the caddies are informed on our ideas, they are the perfect conduit to inform the golfers of X, Y or Z about Ireland and to suggest that if they are looking to set up a European operation, they could talk to this or that person. This is the simple model and if we can extend it to this and other areas, it will be very effective.

Mr. Michael McLoughlin:

To respond to Senator Quinn said, the biggest issue for us is finding companies we can engage with. The more companies we can identify, the greater our success will be with this programme. We find people are very pleasantly surprised by what Ireland has to offer. They are not always aware of some of the advantages and benefits. Once we are engaged and have the opportunity to talk about the availability of our young, educated workforce and can show them the demographics in terms of the percentage of the population under a certain age - their future workforce - the availability of facilities, the infrastructure etc., we find we get a very positive response.

Our biggest challenge now is to get the word out to more people and companies so that we have an opportunity to pitch to those companies. We are quite confident that once we engage with them, we will succeed. Our success rate is very good. In one of the brochures Mr. Clune has passed around, Ted Berry is quoted on the announcement made for the operation in Portarlington. His first comment related to the welcome he received in Ireland and to how he was led to understand that people wanted the jobs here. This was very important. He was well down the road towards investing in the Czech Republic and had identified a site there and was engaged there, but from the outset he was made feel that we wanted his company and jobs in Ireland. His opening comment on the day of the announcement was about the warm feeling he got, not just from ConnectIreland or the IDA, but from dealing with people locally in regard to the availability of land, from working with recruiters, accountants and legal people. They all wanted to sell Ireland because they felt they had something to play for in getting these people to come to Ireland. Their engagement was key and remains a crucial role. It is something at which Ireland Inc is very good.

Our biggest challenge is to identify more companies. We would love to be back here next year saying that as a result of this meeting, we have identified 100 or 200 more companies due to the committee helping us spread the word.

David Cullinane (Sinn Fein)
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I thank Mr. Clune and Mr. McLoughlin for coming before us today. I welcome their enthusiasm and positivity for what they do and the potential ConnectIreland has in terms of supporting the creation of jobs.

The target of 5,000 jobs over five years is ambitious, but ConnectIreland would argue it is realistic and deliverable. I welcome every job that has been created through the connections made through its work. I understand that the first announcement from ConnectIreland indicated that seven projects had been approved, with the potential to create 215 jobs. The second announcement indicated there were four investments and 83 jobs in Cork and Dublin. How many of these investments and jobs have materialised? How many companies are in situ?

What is the target for this year? Does ConnectIreland have annual or quarterly targets? A general target over five years is great, but it was suggested we would have 1,000 jobs by March next year. How many jobs have been created up to now? What is coming down the tracks to make up the 1,000 it is hoped will be created by March? Is ConnectIreland making a profit? Please do not take this question as a negative, but why do we need an organisation like ConnectIreland? Is this not the type of work Enterprise Ireland or the IDA should be doing? Can ConnectIreland justify what it does and explain how what it does is different to what the IDA or Enterprise Ireland should be or are doing anyway? What extra does ConnectIreland bring to the table that they do not?

Mr. Michael McLoughlin:

I will deal with the last point first. For many years, the IDA has successfully targeted international companies and brought them into Ireland and helped them establish operations here. The idea of our programme is to leverage off the expertise and capabilities that exist in the IDA and to try to bring new incremental opportunities through. As Mr. Clune mentioned earlier, there are many leading companies in the world, a number of which have substantial operations here. However, there are many thousands of SMEs and emerging sector companies and emerging country companies coming up.

To be fair to the IDA and Enterprise Ireland, they cannot be everywhere, but Irish people are inclined to turn up everywhere, from Peru to China, to Australia, to Russia and further. What we are trying to do is to leverage off who these people are, where they are and their affection towards Ireland.

As they come across opportunities relating to companies that are growing, they plant the idea that as they come to Europe or expand in Europe, they could do so in Ireland. Our programme is over and above what IDA Ireland does. IDA Ireland's target and approach is, by and large, direct to companies. We have been recognised by the fDi Intelligencemagazine, which is owned by the FT Group. We were recognised at the global IPA innovation awards as identifying and creating a new channel into markets. What we have done, potentially, is create a new channel for the State in the world of foreign direct investment and that has been recognised now in the industry. That is where it sits.

Is it something that would have been done naturally in IDA Ireland or Enterprise Ireland? I am unsure, given the nature of the model. We have a strong customer interaction. It is almost the retail end, which is the connector side. It is probably not something those organisations would have been as au faitwith in that sense. It was a totally new programme. It has never been done before not only in Ireland but anywhere on the globe. There was a strong element of experimentation, especially during the first year. I hope that addresses that issue.

"No" is the straight answer to the question on profitability. We are pre-revenue at the moment. We receive a payment up to two years after what are deemed to be sustainable jobs have been created. The payment comes from the State through IDA Ireland to ConnectIreland. It is based on employment that is in place 12 months and 24 months after the job has been created. From that perspective, we are not even two years in operation. The first year of operations was based on trying to identify connectors who can host introductions to companies. That is what we have stuck to and, I believe, that is what we have done successfully. This year we have been looking at more conversions.

We have approved 12 companies to date this year. Reference was made to some that were announced. Not every company has made an announcement. It is the company's right not to make an announcement and we have to honour that process. We can inform the committee of the number of overall jobs approved but we cannot say who they are. From a profitability perspective, we are pre-revenue and we are a long way off. To be fair to Mr. Clune, who is behind this financially, this is about giving back to Ireland as well. This is not a traditional business model by any means.

The final issue is related and is based on employment created. Our companies were all included in most recent Forfás employment survey. They have put in returns. We expect approximately 35% to 40% of the jobs announced are in place at the moment. There are other projects, including The Magni Group, which currently has indirect employment. The opening date for the Magni facility in Portarlington, with 50 people on board, is September next year. It is going through an approval and build process. That operation will be in place. The group has a capital investment of €15 million. There are other companies such as Mafic going through. That company now has in excess of 30 employees. Flagship Management has five people in Kinvara, County Galway. There are different companies at different stages, depending on when they were announced. The company that was approved this week will have eight people by the end of the year and is in the process of making the offers. Different companies are at different stages.

Reference was made, rightly, to our target, which is 5,000 jobs over a five-year period. Within that, our target is to have 1,000 jobs approved and as many as possible in place by March next year. We are currently working with several projects in terms of conversions. They range from eight jobs upwards. The majority of the projects are in the region of 20 to 30 jobs but we have some projects in excess of 100. The bigger projects will help us get to the larger number of 1,000.

David Cullinane (Sinn Fein)
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I welcome the responses. I gather Mr. McLoughlin said approximately 35 or 40% of jobs announced are in place. What is the figure? How many jobs are actually in place?

Mr. Michael McLoughlin:

When I get the official form back from Forfás-----

David Cullinane (Sinn Fein)
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What is the rough number?

Mr. Michael McLoughlin:

The companies have to do an approval and give an official count to Forfás. We will give feedback on our companies that are in place at that time. Our companies adhere to the same rules as Enterprise Ireland and IDA Ireland. They must make a submission at the end of October in respect of the Forfás national employment study. Since then, some of our companies would have taken on employees but that will be the figure announced from a State perspective and we have to adhere to that figure.

Áine Collins (Cork North West, Fine Gael)
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I welcome Mr. Clune and Mr. McLoughlin. I do not really have any questions, save to say it is a fantastic idea. I congratulate the witnesses. I wish we had more people like them in Ireland. The positive message that comes from this is fantastic. It is a great idea to work with some of the communities. We have serious issues in Ireland with philanthropy, where it is going and where new funding will come from. Communities working in this way with ConnectIreland is a good idea.

We are involved with the Cork Foundation and we go back and forth to America several times a year. We meet American business people. We are certainly keen to work with ConnectIreland. I suggest American Ireland Fund could be an organisation of benefit to ConnectIreland. Representatives from the fund are always meeting people and they have a huge database. If ConnectIreland has not done so I would be pleased to make an introduction. Well done to them.

John Lyons (Dublin North West, Labour)
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There will be plenty of Deputies and Senators putting this news in leaflets in future. ConnectIreland is coming to the committee today with a good story.

Deirdre Clune (Fine Gael)
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I welcome Mr. Clune and Mr. McLoughlin. My comments are similar to those of Deputy Collins. Well done to ConnectIreland. It is a great idea. The fact that ConnectIreland developed it at the forum was also great. Rather than simply put a hand up and throw out an idea, the witnesses followed through. That is important because often these fora can produce great ideas but it is left to the initiators to carry them out. Well done to them.

I particularly like the idea of using networking through the GAA, taxis, hotels and caddies. These areas are under the radar and would not be on the desk of IDA Ireland. ConnectIreland is doing the work in conjunction with IDA Ireland. It is a simple idea but one that has proven to be very effective among others. I congratulate ConnectIreland.

I hope that by appearing today Mr. Clune and Mr. McLoughlin will trigger us to spread the word. This Christmas I have one member of my family coming home from the United States and another from the United Kingdom. Christmas time is probably an opportunity to get the message out. The Irish communities tend to communicate well when they are abroad. I hope that by being here today ConnectIreland will give it another kick-start. I imagine the challenge is to get the word and the message out. We would be pleased to do whatever we can to help.

Seán Kyne (Galway West, Fine Gael)
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I missed the presentation but I heard the programme before and I have read some of the material. Like my colleagues, I commend, compliment and congratulate the representatives from ConnectIreland. I hope that the organisation goes from strength to strength. We will do our best to spread the message to try to promote Ireland.

Reference was made to the welcome and appreciation shown in certain communities, especially communities that do not have the level of investment of a capital city such as Dublin. That is not to suggest that the people there are not appreciative, but there is probably a higher level of appreciation in certain parts of the country for new jobs. Even a relatively small number of new jobs would be very welcome in many communities. I commend the representatives from ConnectIreland on the work they are doing.

John Lyons (Dublin North West, Labour)
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I wish to clarify a point. Is it necessary for an individual or group to register with the ConnectIreland before they can pursue any communication?

Mr. Michael McLoughlin:

Basically, we look for the individual to register with us. We have made the registration process simple.

John Lyons (Dublin North West, Labour)
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By the way, it is not for myself. I am not looking for €75,000.

Mr. Michael McLoughlin:

Given the nature of the contract with IDA Ireland, you are ineligible. The individual must register.

Áine Collins (Cork North West, Fine Gael)
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The Chairman does not need it.

Mr. Michael McLoughlin:

Ultimately, the individual makes the introduction for us to the suggested company. A colleague, Hugh, introduced a company, Mafic. He had been registered with us for several months. He had heard about the programme and liked it. Through an encounter he had subsequently, he suggested the company name and then we were in a position, after we received approval from IDA Ireland to the effect that it was not in dialogue with that company, to proceed. Then we entered into a dialogue with the company. Thankfully, we have been successful in getting the company over the line and it is currently taking on several good employees.

John Lyons (Dublin North West, Labour)
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Does the pilot scheme cover GAA clubs nationwide or is it confined to a few? It is a really good idea, as the quality of facilities at GAA and other sports clubs varies around the country. Many people have connections abroad and hope that perhaps in some shape or form they might be the nuggets with which the clubs connects. It seems to be a great idea for clubs and large voluntary groups. How extensive is the scheme?

Mr. Terry Clune:

There are 600 or so GAA clubs internationally and they have given us great help in spreading the word. In the new year we will start with a pilot group of clubs in each county rather than rolling out the scheme across every club and county. We will pilot the scheme with a certain number and extend it in the way we are doing it with community groups. Rather than go to every community group we are piloting the scheme with approximately ten to 12 in ten counties in the first quarter of next year. Based on that experience we will roll it out to a much wider audience.

John Lyons (Dublin North West, Labour)
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On behalf of the joint committee I wholeheartedly thank Mr. Clune and Mr. McLoughlin for coming. They were a breath of fresh air and brought very positive news. There will be no shortage of people here willing to support their work. If there is anything they wish to communicate to any Member of the Houses, I invite them to, please, do so. Everybody in the Oireachtas will be more than happy to support them in what they are trying to do.