Oireachtas Joint and Select Committees

Wednesday, 6 December 2017

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Foreign Direct Investment and Jobs Growth: Discussion

5:00 pm

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I remind members, visitors and those in the Visitors Gallery to ensure their mobile phones are turned off completely or switched to flight mode for the duration of the meeting, as they interfere with the broadcasting equipment, even when left in silent mode.

By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the joint committee. However, if they are directed by it to cease giving evidence on a particular matter and continue to do so, they are entitled thereafter only to qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and asked to respect the parliamentary practice to the effect that, where possible, they should not criticise or make charges against any person or an 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.

Apologies have been received from Deputy Stephen S. Donnelly and Senators Paul and James Reilly.

The Minister for Business, Enterprise and Innovation is welcome to what is her first meeting with the committee. I also welcome her officials. I congratulate the Minister on her recent appointment to the Department. As this is a busy committee, we will be seeing plenty of her. I speak for all members when I say the committee looks forward to working with her in a constructive manner, as was the case with previous Ministers. We decided that the committee would go into private session after our discussion with the Minister so as not to keep her and her officials waiting outside.

I also welcome from IDA Ireland Mr. Martin Shanahan, CEO; Ms Mary Buckley, executive director, and Mr. Leo Clancy, global head of technology, to discuss direct threats to foreign direct investment in Ireland.

I remind our guests that their presentations should be no longer than five minutes. Members have received copies of the presentations submitted. I invite the Minister to make her presentation.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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On my first appearance before the joint committee as the relevant Minister, I acknowledge the important contribution it makes to the development of enterprise policy. As we know, Ireland's reputation as a fantastic country in which to do business has been hard earned and owes much to our long-held, national, cross-party consensus that innovation, entrepreneurship and investment are in everyone's interests. We all share a desire to see the economy continue to grow and prosper and I look forward to working with members in the time ahead on the key issues of concern to the people.

One such matter which the committee is keen to discuss is Ireland's competitiveness in attracting and sustaining foreign direct investment. Concerns have been raised that certain infrastructural challenges may be adversely affecting our capacity to win more such investment.

Before I address some of those issues, I want to emphasise that the Government fully appreciates how important FDI remains to our development and economic growth. Overseas companies create opportunities, export tens of billions worth of goods and services annually, contribute to Government revenues and drive research and innovation all over Ireland. Those same businesses also employ more than 200,000 people and support job creation at our indigenous firms. We therefore clearly want these multinational companies to remain here and to attract even more of them to our shores.

These firms come to Ireland, of course, for many different reasons. Chief among them is our talented and flexible workforce, which is globally recognised as one of the best in the world. Our education system, our demographics and track record as a successful home to global business are also all significant attractions. Ireland’s continuing membership of the European Union and eurozone is another key selling point.

The quality of our economic and social infrastructure is undeniably important as well when it comes to FDI. That is because businesses need to know that a jurisdiction has the necessary transport networks, connectivity, telecommunications systems, schools, universities and housing stock that can sustain investment and the jobs that go with it. Ireland, it is fair to say, has made great strides over the past several decades in improving our own national infrastructure, which is partly why overseas firms continue to locate here. At the same time, the Government recognises that our economic and social infrastructure requires further investment. This is important in its own right, but also because it helps to sustain FDI flows into the country.

I know that IDA Ireland, with which I look forward to working in the time ahead, actively engages with its client base about challenges to further investment here. The IDA also co-operates on a virtually daily basis with my own Department in responding to those issues and ensuring they are addressed as best as possible. One such matter which I know was comprehensively addressed by a recent American Chamber of Commerce report is the supply of domestic housing. We in government agree that we must improve the availability of quality and affordable houses and apartments to people living in Ireland. This is a national priority on every level - social, demographic, environmental and indeed economic. I certainly understand that if we want to continue growing FDI at the record levels of recent years, there must be adequate housing in place for the workers who take up positions in multinational firms. The actions that the Minister for Housing and his predecessors have taken to address the problem of housing supply are well documented. I will briefly recap a sample of them. A national plan, Rebuilding Ireland, has been put in place to increase the delivery of homes nationwide. This is already producing results. Since it was launched just over a year ago, planning permissions are up 49% and commencement notices have increased by 47%. In July this year, a new An Bord Pleanála fast-track planning permission process entered into force and in early October some restrictions were lifted to make apartment building more viable and affordable. The budget within the Department of Housing, Planning and Local Government for specific housing issues in 2018 was increased by 46%, meaning there will now be almost €2 billion directly aimed at the housing shortage and homelessness crisis. The overall funding earmarked for the Rebuilding Ireland plan was also increased to over €6 billion.

The effort to satisfactorily increase housing supply in Ireland will take more time - there is no disputing that. However, progress is being made. In terms of the particular FDI angle, I know that overseas firms that are responsible for tens of thousands of jobs here have welcomed the steps already taken. IDA Ireland continues to manage the relationships with these companies very carefully and ensures that any infrastructure concerns they may have are brought swiftly to our attention.

In terms of the broader steps the Government is taking to address infrastructural challenges to FDI, I want to underline the importance of the draft national planning framework, NPF. The draft NPF, which has already been published, provides an essential economic development framework for us to follow up to 2040. It will ensure that a long-term co-ordinated approach is in place so that infrastructural bottlenecks and hurdles can be avoided and, by extension, enterprise development supported. The NPF, once it is in final form and fully agreed, will be accompanied by a new ten-year investment plan. The plan will not only detail the State’s investment in significant projects up to 2028 but will also set out a new institutional framework to deliver a major improvement in Ireland’s public capital infrastructure and the public services provided through it. In terms of the more immediate future, there is an additional €4.1 billion allocated for public investment over the current capital plan up to 2021. These resources will continue to be deployed to bolster and improve infrastructure all over Ireland.

I want now to turn to the issue of the planning process in Ireland, given that this and the Apple data centre project in Athenry were specifically referenced in the committee’s invitation to me to speak here today. I can be very clear on this issue. The delays that beset that project in Galway have underlined the need to have a more efficient planning and decision process in place in this country. That is why the Government has already been taking steps to avoid a repeat of that situation. It intends, for example, to designate data centres as strategic infrastructure developments for planning purposes. That would have the effect of changing the planning process for such developments from the current two stage process to a more streamlined single stage mechanism. On the broader subject of data centres, an interdepartmental working group, on which my own Department is represented, has been established by the Department of the Taoiseach to examine our strategic approach to the development of such projects. That group is examining a number of cross-departmental policy issues connected to this subject, including a possible national policy statement on data centres.

The general positives we have witnessed in recent years in terms of economic growth, job generation and increased Government spending capacity are largely driven by the enterprise base on our island. All firms that are located in Ireland, be they foreign or indigenous, multinational or micro, manufacturing or medtech, therefore need a positive operating environment in which to continue to thrive. The Government is focused on providing just that and I will certainly do my part to improve our economic infrastructure. While we are facing some challenges, we should remember that we nevertheless remain very competitive compared to other jurisdictions. Indeed, the IMD’s world competitiveness yearbook ranked us number six globally in 2017. Another recent World Bank report on doing business placed Ireland at 17th out of 190 countries. We obviously have room to improve, not least when it comes to critical issues like the supply of quality and affordable housing. I will be approaching that particular challenge from an enterprise angle to help ensure that workers across Ireland have better access to homes for them and their families. I look forward now to discussing these and other issues with the committee in more detail.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Go raibh maith agat, a Aire. I now invite Mr. Martin Shanahan to make his presentation.

Mr. Martin Shanahan:

I thank the committee for the opportunity to present here this evening. The committee has indicated that the focus of this session is competitiveness threats to Irish foreign direct investment and jobs growth. Despite increasing international competition, Ireland has maintained a strong performance in terms of per capitaFDI levels and is number one in terms of the value of investment projects. The contribution of inward investment to employment, innovation activity, expenditure in the wider economy and taxation revenue remains vital.

2016 marked the second year of record growth from an FDI perspective. There were 19,000 jobs on the ground. The level of FDI employment at the moment in IDA supported companies is currently just under 200,000, which is the highest level in the history of the State. In addition to direct employment, it is estimated that an additional 170,000 jobs depend on those FDI companies. In 2016, 52% of all jobs created by IDA clients were based outside of Dublin. Overall, 59% of all IDA-supported employment is located outside of Dublin. Final full-year employment results for this year will not be available until January 2018. However, IDA Ireland has witnessed a strong pipeline of projects in the first half of the year. We reported in July that job approvals were up 22% at 11,000, against a figure of 9,100 for the first half of the previous year. The investment figure of 114 was on a par with the previous year's record.

Ireland is and continues to be a highly competitive location for inward investment. This is best illustrated by our results in the year to date and our progress in delivering against the targets set out in our five year strategy, "Winning: Foreign Direct Investment 2015-2019". However, this strong performance cannot be taken for granted. There are a number of international developments that have the potential to negatively impact the Irish economy, but they are largely outside of our control.

We must focus on those issues which we can influence.

Ireland’s value proposition is based on offering investors a safe and stable investment location with access to an EU market, an educated and skilled workforce and an attractive environment where people want to live and work, a competitive, consistent and transparent corporate tax regime and an excellent return on investment. This value proposition remains valid, but we must re-emphasise different elements and work to improve others in order to remain relevant in the changing global environment.

From a competitiveness perspective, other areas requiring attention include prioritising capital investment in infrastructure. Increasing levels of industrial unrest and uncertainty in the planning process also impact on Ireland’s international reputation for stability and consistency. Vigilance in public finances is needed to protect the hard won gains already made, as well as continuing to address the entire enterprise cost base, and to deepen and broaden productivity growth. The National Competitiveness Council has outlined the key areas in which action is required to safeguard Ireland’s competitiveness. Addressing these issues is central not just to winning FDI but making the country an attractive place to live and work for all citizens.

Ireland has areas which require attention and improvement, however, competitiveness is relative and there are competing jurisdictions which have similar challenges in these areas in addition to other challenges.

On residential property, the most pressing capacity issue in Ireland is that of residential property supply. The current availability and cost issues associated with the residential housing market are raised by our clients, through different channels, and they do factor into the ultimate location decision made by our client companies as well as Ireland’s competitiveness. However, it should be noted that these are among a long list of factors that influence decision making. The attraction and retention of skilled workers and graduates is fundamental to the winning of foreign direct investment and these employees need housing, so its provision and affordability are critical. As the American Chamber of Commerce report that the committee has referred to in its invitation points out, labour costs make up a significant element of the cost base of the typical FDI service-based operations and with housing costs accounting for a significant component of disposable income, there are clear implications for Ireland’s future competitiveness as a result of escalating housing costs. Therefore, the effective and speedy implementation of the Government’s action plan for housing coupled with a sustainable long-term policy for housing are critical to the delivery of IDA Ireland's strategy and Ireland’s attractiveness for FDI.

On the planning permission process as it relates to residential housing, we note the strong take-up by developers of the fast track planning process that allows strategic housing developments to be brought straight to An Bord Pleanála since the related legislation was introduced by the Government in July. We also note the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy’s commitment to publish revised guidelines which will facilitate the building of greater numbers of apartments, higher density development in urban cores and the setting of building heights. IDA Ireland notes that planning permissions and completions are increasing annually and communicate this to clients.

Overall, Ireland’s planning system has met the needs of FDI client companies over many years. In its invitation letter, the committee referred to the “the long-running saga to get planning approval for the €850 million Apple data centre in Athenry”.

Ireland’s status as a global technology hub has underpinned much of its success in attracting FDI in recent years and is a major contributor to Irish economic growth. Data centres play a key part in the infrastructure and ecosystem of technology hubs. Data centre investment in Ireland has grown significantly over the past decade against stiff international competition, with large global multinationals making very welcome investments in capital goods and services during the construction and operation of these data centres, creating significant numbers of direct and indirect jobs. The vast majority of these investments have proceeded successfully without issue.

In February 2015, Apple announced a significant €850 million data centre investment for Athenry, County Galway, projected to provide 300 jobs during its multiple phases, including construction and employment on site. The matter is still before the courts and the subject of an appeal. Apple has stated that it will continue to consider Athenry in the context of its future business plans, however the company has not made a definitive commitment to proceeding with the project. As the Minister has outlined, the Government has asked relevant Departments and agencies to consider issues related to data centres and related major infrastructure developments. Several actions are under way as part of that including amendments in the classification of data centres as strategic infrastructure developments, officials from relevant Departments are considering issues related to judicial review of major infrastructure projects and will bring back proposals to Government in due course, and officials are preparing a policy paper on data centres for consideration by Government.

IDA Ireland will continue to proactively engage with all clients both at corporate level and in Ireland on the execution and extension of their mandates and on Ireland’s competitiveness.

My colleagues and I welcome any questions on these issues.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I thank Mr. Shanahan. Deputy Neville has to leave for another meeting so if he wishes to ask the first question, he may do so.

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael)
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I welcome the Minister, Deputy Heather Humphreys, in her first engagement with this committee. We have met with IDA Ireland on many occasions.

There are many lessons to be learned from what has arisen over the proposed data centre in Athenry. There is a business park of 130 acres in my own constituency, in Askeaton, county Limerick. I understand it would be a prime location for a data centre, given the move towards 5G and automated driving. We will need very large acreage data centres located in stable climates. All the major IT infrastructure providers which would be involved in the networks, servers and so on, have their headquarters here. In terms of the future and sustainability, this is a market we can pursue. I am putting a word in for Askeaton because it has been empty since I was a child, when it was first established. There have been proposals through the years for smaller, more indigenous businesses going in there, however I believe that since it was established as a site for foreign direct investment, there was a view that this should not be interfered with. We have seen booms and busts since then, but that site remains empty. If IDA Ireland seeks suggestions for attracting business to Ireland, this is a prime example of a site that would be suitable for a data centre, and we could have a major data centre for County Limerick. We should put our heads together and formulate a process whereby we would not repeat past mistakes. There could be a roadmap or marketing approach by which we could secure another investor to come to Askeaton. It is a question of how to market these things. If that site in Askeaton was tailored towards a certain sector and targeted at that, it could help. People in County Limerick have been asking for years why there is no business in there. I believe it was established during the 1980s. I hope this idea might be taken on board.

Mr. Martin Shanahan:

I thank the Deputy. Once the Apple case has finished there will be lessons to be learned, some of which we are already aware of. As the Minister and I have outlined, there are several actions in train which should obviate something similar happening again, namely changes to the planning procedures and providing certainty on the timing outcome of decisions, rather than trying to influence the decision itself. Second, on data centres, I agree that they represent an opportunity for Ireland. It is something IDA Ireland continues to market. We have been very successful in recent years in attracting multiple data centres from different global brands. We are undertaking a national exercise to identify the most suitable sites, particularly with power available to them and the necessary utilities that would be ready for data centre occupation.

We will take the Deputy's comments on the Askeaton site on board. On Limerick more generally, the Deputy knows that Limerick has benefited significantly.

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael)
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I agree.

Mr. Martin Shanahan:

In the past two years, in particular, we have seen significant investment going into Limerick due to the the marketing efforts we have undertaken. It has certainly been more than in the past and it is probably more than any other region at this point.

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael)
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In the third quarter of 2017 Limerick had a 43% increase in the index and it is one of the top performers at the moment. However, I do not want to take the foot off the pedal.

Mr. Martin Shanahan:

I appreciate that.

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael)
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I am not having a go at Mr. Shanahan but I know from my time as a councillor that we harped on about the Askeaton site for years. This happened with successive Governments. If I am not mistaken, clear running water is needed for data centres.

Mr. Martin Shanahan:

Utility is important but, particularly, power and its availability.

Photo of Tom NevilleTom Neville (Limerick County, Fine Gael)
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The power generation is right beside it as well.

Mr. Martin Shanahan:

Yes.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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I do not mind who answers the question, but, with regard to the Apple case in Athenry, what is the timeline for designating data centres as strategic infrastructural developments? It was mentioned that the matter is still before the courts. In terms of the lessons that could be learned, has the Government considered establishing an infrastructure court? It would be similar to the commercial court where commercial disputes are resolved one way or another in a timely manner. Is there merit in the Courts Service examining the establishment of an infrastructure court? As we experience a ramping up of our capital and infrastructural development up and down the country over the next few years, there will be further disputes. We hear and read about them every single day of the week. There is a time lag and a delay associated with them. I have further linked questions but perhaps those matters could be addressed first.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Would the Minister like to deal with that?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Yes. The Department of the Taoiseach established a high level working group, comprising representatives of the relevant Departments, on this issue earlier in the year. The group is examining the many cross-departmental policy issues associated with these projects. My Department is represented on the group and we are bringing the enterprise development perspective and related analysis to the group to aid its discussions. The group will seek to develop a strategic national policy approach to the development of such projects in the future in Ireland. It is examining, among other things, the possible designation of areas suitable for the development of data centres and the identification and resolution of planning issues and infrastructural requirements related to such investments. My predecessor, the former Tánaiste, Deputy Frances Fitzgerald, has with the Taoiseach already brought an update on the issues raised by the group to Cabinet. We are determined to ensure that these issues are dealt with as quickly as possible. The Deputy mentioned an infrastructure court. If these data centres are designated as strategic infrastructure, which I understand is the plan, that would speed up the planning process.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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From his experience, does Mr. Shanahan think there is potential to secure other inward investment in the form of data centres?

Mr. Martin Shanahan:

Yes, I think there is. It is important to point out that the proposed Apple data centre in Athenry is an outlier in terms of the experience of the planning process. We have had any number of these types of infrastructural investment proceed without a hitch. The majority go through An Bord Pleanála and are not appealed to the courts and so on. From our perspective, we see the potential for further data centre investment. I refer again to anything that provides certainty to investors around the timelines. The time is pretty clear and it is up to An Bord Pleanála where the amount of time allowed is designated. After that the issue arises.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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Given that we share the constituency, I also have a good knowledge of the example Deputy Neville raised. Would it be of merit for the likes of IDA Ireland to have it as a ready-to-go data centre site? Could IDA Ireland apply for outline planning permission for a data centre on the site and take away some of the hurdles that were experienced in Athenry?

Mr. Martin Shanahan:

There is merit in the approach. We have done it elsewhere, although not necessarily in relation to data centres but in relation to advanced technology buildings or advanced office buildings. We would have brought them to the point of having planning permission but do not proceed to build them. However, we can say to a client that all the permitting is done. The project I referred to earlier and to which the Minister alluded is to identify the most suitable sites available. Some of them will be in public ownership while others may be in private ownership. We have to understand what is the optimum that we can market. As I already said to Deputy Neville, we are happy to consider the Askeaton site in that context.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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I have a number of questions on the Apple data centre as well although Deputy Collins has covered most of it. First, let me congratulate the Minister on her appointment and welcome her to our committee. As other Deputies said, we hope to see her here on a number of occasions. I also wish to reinforce our thanks for the jobs that have come to Limerick in recent years. It is appreciated. I have been at a number of announcements in Limerick since I was elected. As Deputy Neville said, we do not want to take our foot off the pedal. It is the case that we refer to this as the Limerick committee because there are three of us on it.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Do not worry. The south east will be coming shortly.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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We also have Senator Gavan, so there are actually four of us from Limerick on the committee.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Deputy Eugene Murphy and I are from the northern part.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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There are four of us from Limerick on the committee and we think it might be no coincidence as to why we are doing so well. We will keep it up anyway.

To come back to the data centre issue, will a new Bill be brought forward to progress the idea of strategic investment? Obviously, we will be changing the planning laws. Is it a good idea to call data centres strategic investment? I do, but is it something the Minister wants to do? Are there other categories that would be added in trying to encourage FDI into the country? I have one planning concern about it. Is it a good idea to bypass the local authorities?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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As I said, we have established a high level working group. When it has considered all the issues and comes forward with its report, we will review what we need to do. That is the plan. If data centres are categorised as strategic infrastructure, it would speed up the the planning process considerably. The group will deal with that in due course.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Would Mr. Shanahan like to contribute?

Mr. Martin Shanahan:

The Minister has covered it. The objective is to reduce the number of steps involved and to take out time and give as much certainty as possible. If we are to designate them strategic, taking out some steps makes sense. Going straight for the result in terms of definitive timelines is the objective.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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Would IDA Ireland like any other categories to be classified strategic?

Mr. Martin Shanahan:

Not at this point in time. This is an anomaly and the only area really where we have issues. We have any number of large infrastructural investments, particularly, as the Deputies will be aware, large biopharma and large micro-electronics plants. While there may be issues from time to time, they are nothing of this order. At this moment, it is related to data centres.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Deputy Eugene Murphy is welcome here today. If he has any questions, he is more than welcome to ask them.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I welcome my old friend whom I know well from Shannonside Northern Sound radio and congratulate him on his appointment. I have no doubt he will do everything to attract more jobs to the region. I also welcome Mr. Martin Shanahan and his team. We have met on numerous occasions. I acknowledge really good work is done by the IDA. When one hears how hard it has worked to bring in FDI, one feels proud of a lot of the work it does. However, it is not all roses in the garden. I have a big issue with the lack of emphasis on regional development. In my county of Roscommon, for example, we had one IDA visit up to the second quarter of 2017. There were one or two in Leitrim and very few in Longford. While naturally enough cities such as Dublin, Cork and other places will have more visits, one wonders why there is not more of an effort to attract FDI to the regions. If one stands on a railway platform in Athlone, Longford, Carrick-on-Shannon, Dromod or Roscommon town any morning, Monday to Friday, at 6.30 a.m., it is packed with neighbours and friends all heading to Dublin for work. It is extremely stressful for families. It is a 4.30 a.m. start. They get on a train at 6 a.m. or 6.30 a.m. and are not home until about 9 p.m., like members of my family.

There is absolutely no doubt that unemployment is down in many of the counties I have mentioned. People are leaving those counties. There are still stubbornly high unemployment rates whether one looks at Longford, Roscommon, Leitrim or Longford. They have not reduced as much as in other parts of the country. One may say the issue is infrastructure. I acknowledge that we need the bypass finished along the N5 through County Roscommon, particularly from Ballaghaderreen to Tarmonbarry on the Longford border. We have a good N6 road and a good N4 road and parts of the N5 are great. We do not seem to be able to get jobs. There has been an absolute haemorrhage of jobs in that region. Natural changes have taken place with regard to ESB and Bord na Móna and those jobs will not be there in such vast numbers as they were in the past. We all know and recognise that. Over the bridge from Tarmonbarry in Roscommon is Clondra which is in Longford, where we lost 800 jobs from the Burlington plant. I am sure the witnesses know where that was. We lost the Glanbia plant in Rooskey and over 600 jobs, a few miles down from my own home in Roscommon. Recently we lost the ECMI cigar plant in Ballaghaderreen. The haemorrhage of jobs out of that region is a huge concern and has been going on for years. While I admit that part of it is a result of the lack of broadband or a good road network, there are still many good industries operating in the area so the infrastructure is sufficient in parts of the region. What is the IDA's policy on that? Can we have any more hope for the future?

Mr. Martin Shanahan:

I acknowledge the points the Deputy made on the difficulty for those commuting and for those who do not have employment. There is a desire to have employment in all counties and areas. I fully recognise that. I come from rural Kerry and I absolutely understand it. From an IDA perspective, we have set out very clear targets for regional development. After I joined the IDA in 2015, we published our new strategy and for the first time we set regional targets to increase regional investment by 30% to 40% in each region over a five-year period. That is what we are working towards. It is extraordinarily challenging; there is no question about it. I will come back to the why of that in a moment. That is what we are trying to achieve. We are making steady year-on-year progress. The Deputy mentioned a series of towns in the midlands. He left out Athlone-----

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Athlone is doing okay.

Mr. Martin Shanahan:

That is why I am reminding the Deputy he left it out. Athlone is doing okay. It is important that it is because it is part of the strategy to make sure there are hubs in regions and that we can build out further from those hubs. An important point is we start every year with no investment and we have to go out and win it. We have to go out and win it for Ireland and increasingly we are trying to target regional locations. There are some investments that will never come to regional Ireland. That is the reality of it. It is not a choice between Dublin and the midlands or even Limerick and the midlands. There are certain investments that will only come to Dublin or Cork. Increasingly we are swimming against the tide because larger investments are migrating to larger urban areas and that is the big challenge. They will come to big cities. That is the challenge and we will try to work around it. We have increased our emphasis on manufacturing because it is more likely to go to rural Ireland. We will build out from hubs. We have, as the Deputy pointed out, some extremely good reference investments in the midlands, not just IDA investments but also indigenous ones. We have to harness all of that, point to them and say it can be done. Up to quarter three, there were a significant number of site visits to the midlands but we can do more. There have been some good investments. I mentioned Athlone already. In Longford the Center Parcs investment is a huge transformative investment for that area. The Deputy should not doubt our commitment to try to do this in rural Ireland. I cannot wave a magic wand. I cannot do it for Longford or Leitrim any more than I can do it for Kerry. It does not work like that. The Deputy should not doubt our commitment to try to achieve this. The largest IDA office outside of Dublin is in Athlone and every IDA marketing executive overseas and every individual in Ireland is committed to trying to win regional investment.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I paid tribute to the IDA at the beginning of my contributions because I know it does a tremendous job but I have to ask Mr. Shanahan why the number of site visits are so low in counties such as Roscommon and Leitrim. They are not happening. There has been an IDA park in Roscommon town for donkeys years. I do not see it being promoted. In all of the towns I mentioned, there are lots of units. There is quite good broadband in a lot of the towns so what are the criteria the IDA uses when it is trying to bring foreign direct investment in? Does it go to these people and tell them where in the country it wants to bring them? Surely it must have criteria. If there are criteria, why can investors not be brought to the counties I am referring to in greater numbers?

Mr. Martin Shanahan:

Clients decide where they want to go. We can influence them and showcase certain places but ultimately clients sometimes have preconceived ideas and sometimes they want to be located next to a particular sector or, in some cases, next to a particular company. We do not have a free hand. We are not moving them around like pieces on a chessboard. They have preconceived ideas coming in. Our challenge is to try to influence them and showcase the opportunities particularly in regional Ireland, including the cost differentials. I acknowledge the infrastructure in the midlands is quite strong. There are always things we can do better. The fact we have an institute of technology in Athlone is a great plus. We will showcase all of those. We do not have a free hand. One might argue about the location of them in Roscommon but Jazz, Alexia and Moss Vision have all announced operations in Roscommon in the past two years.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I will make one final point before I hand over to whomever wants to contribute. Surely not every investor is telling the IDA they know where they want to go in Ireland. Surely the IDA can say it can bring an investor to Roscommon or Longford, for example, where there is a site that might suit it. Is it a case that the criteria have changed and that the IDA is no longer inviting an investor in to spend three or four days at a site? Are investors now ringing up and asking the IDA to get them a suitable site and the IDA looks for that site and gets back to the investor to see if it is suitable?

Mr. Martin Shanahan:

No. It is a combination of clients coming with a reasonably set understanding of what Ireland is about and where they want to be located. That might be based on knowledge or research they have done themselves and, in some cases, they ask the IDA to showcase what we have available. It tends to be an iterative process where we put forward something and they say "yes", "no" or "maybe". We have moved to a situation where some companies do not visit the site at all. I always caution about using the number of site visits. There could be one site visit and one investment, and there could be ten site visits and no investment. We have an increasing phenomenon where, in a connected world, companies can do any amount of due diligence from the west coast of the US or Germany. We have had investments where there have been no boots on the ground at all. It is a combination of factors.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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The emphasis of the meeting is on competitiveness and jobs growth. I welcome Mr. Shanahan's comments that Ireland has areas which require attention and improvement. Recently, this committee travelled to Waterford, where I am from. We decided the committee would visit the regions for perhaps one visit per quarter. As my colleagues will testify, there is a Limerick bias on the committee, with four members from Limerick, and that is just the way the cards fell. However, we also feel that a lot of the information we are getting is a Dublin narrative. I felt it was important that we would get out into the regions. We paid a visit to Waterford and ten Oireachtas Members attended what was a very worthwhile meeting. As Mr. Shanahan will be aware, unemployment figures for Waterford and the south east are, unfortunately, 2.5% above the national average and they have remained stubbornly higher than all other areas.

Several issues were raised at that meeting. There is no doubt the IDA has had a bumper five years and it has added in excess of 50,000 net new jobs but, unfortunately, as we heard at the meeting, only 457 of those jobs, or less than 1%, came to the south east. According to the figures I have, the south east is home to 11% of the population. We have to contrast this with the transformative performance in Limerick. Do not get me wrong; I welcome all the business that is being received in Limerick. Unfortunately, however, despite the work of those involved in the south-east action plan for jobs, with whom we spent a lot of time, and who are doing fantastic work and are great industry champions, they are still falling short of their own targets.

I want to highlight the point raised by Deputy Eugene Murphy in regard to IDA visits. I know an IDA visit does not mean there will be a company there afterwards, but the figures I received from the previous Minister were from January to September and showed only two visits to Wexford. I was astonished that, with Brexit looming, there would not be more emphasis on the port of Rosslare. We had six visits to Kilkenny, seven to Carlow, seven to Tipperary and nine to Waterford, despite the south east being known for having the highest unemployment. I know we have come from a very high base and I know huge work is being done in the pharma area. However, what focuses my mind, and I have raised this on several occasions, is that the south east returns just 45% of PAYE income tax per head and just 40% of VAT per head according to Revenue figures for 2016. This shows that we have jobs, but low paying jobs. When the PAYE return is 45% per capitathere and 100% in other areas, it shows something is not working. My husband works in Bausch & Lomb. Genzyme is located there and West Pharma will soon be open, so I know good work has been done. We need to do more, however.To go back to what Deputy Murphy said, some areas are doing extremely well. I know the IDA cannot pick them and land them where we want to put them, as there are other regions involved. A huge amount of our discussion was spent around the technological university and the fact we do not have one in the south east, but that Bill is now moving through the Dáil, which is fantastic. I would appreciate it if Mr. Shanahan could refer to some of those issues.

Mr. Martin Shanahan:

When the Chairman says there is more work to be done, we absolutely agree with her. I never envisage a day where every county or region is happy with what they have. I would also remind the committee that the IDA is one part of the enterprise development story. Obviously, there is agriculture, tourism and indigenous investment, and it all adds up. An overall picture of a region is required.

The Chairman alluded to some of the investments we already have. As she knows, there are 35 companies in the region employing more than 6,000. She referred to Bausch & Lomb, which had a huge announcement recently. We have built an advance technology building in Waterford, for which, thankfully, we secured an applicant, Opko Health. We are about to go again with an advance building in Waterford and another in Carlow. We have had investment in Carlow through MSD and there is also Red Hat in that region.

We will continue to market the region. I agree there are some strong assets. With the board of IDA, I was in Wexford recently to review all that is happening there in an engagement with the CEO of the Wexford local authority. We are well aware of the offering and we will continue to market the region. I am also confident that we can make progress because of areas like Limerick. It is not an either-or. There was a period when Limerick was not doing as well as it is and, thankfully, it has turned around. Whether it is one or multiple investments, investments beget more investments. There is an element of that involved and I accept we need to build more clusters. We spend a lot of time working with local authorities trying to figure out what the cluster might be, what the benefits are, and what else they can do in addition to what we can do. We are marketing a region, but we obviously need the regions to support themselves in terms of making the best of themselves.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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To be fair, there has been great collaboration between the five local authorities and their chief executives who have come together, and they attended that meeting we had. To go back to the point I made, 45% of the PAYE income tax per head is the average that comes from that region. Those figures do not lie and they point out that everything is not rosy in that particular area. The committee is currently looking at the cost of doing business in Ireland and that is the main body of our work at the moment. We did quite a body of work earlier in the year in regard to Brexit but we are concentrating on the cost of doing business, and we see huge discrepancies between the regions. We heard from Deputy Murphy about his region in the west. It is great to hear that some regions are doing extremely well, but we need to see the balance. There is a fantastic road network from Dublin to Waterford. Waterford and the south east want to act as a release hub or release valve for Dublin, which, as we all know, is overheating in regard to the cost of accommodation, while we are only two hours down the road.

I want to highlight the issues. There is a lot of good work being done, although it is not all for the IDA and there are a lot of other elements at play. I would like to get a comment from the Minister. I do not want to throw her in at the deep end, given she is only in the job a week.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I thank the Chairman. Regional development remains a priority for the Government. I am very much aware that an important part of unlocking the potential of regional Ireland is ensuring that foreign direct investment is spread as evenly as possible throughout the country. The regional action plan for jobs is a key mechanism to ensure this regional development succeeds. As the Chairman knows, I am from a very rural constituency right on the Border. I am very conscious that we need to get the spread right across into all of the regions. We will certainly focus on those areas that are lagging behind.

It is important that we do this. There is a big focus under the Action Plan for Rural Development on getting jobs into the different regions.

Of the 200,000 jobs that are planned under the Action Plan for Jobs, 135,000 of those jobs will be created outside of Dublin. I believe that there is a much greater focus on the regions. I am only in this post a couple of days but I have spoken to Mr. Shanahan and know that IDA Ireland is very much focused on looking outside of the Dublin region. Some companies want to locate their enterprises in Dublin and we would rather have them in Dublin than not have them at all. There will be increased focus on the regions.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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I want to discuss regional disparities. All Deputies continually mention the number of site visits made by IDA Ireland and how some counties get more visits. Limerick has done well over recent years. I remind the Minister that eight out of the ten unemployment blackspots are in Limerick city and 17 of the 79 unemployment blackspots in Limerick are still in the city. I remind her that not everything is hunky-dory.

There has been talk about attracting companies to locations outside of Dublin. Does the cost of housing in Dublin make it a less attractive proposition for businesses? Businesses have told us that rental costs are an issue. Has it put pressure on wages for people? Does the cost of housing and, therefore, wages in Dublin make the regions more attractive to businesses? Businesses could locate outside of Dublin yet still benefit from an educated workforce and a good tax base in the State. Has the housing issue meant that IDA Ireland has lost companies that have tried to come to Ireland?

I have raised the issue of the lack of broadband in rural Ireland with Mr. Shanahan before. Northern Trust has delivered more than 1,000 jobs at a location on the outskirts of Limerick city. A number of towns such as Cappamore, Caherconlish and Murroe circle the area. As I have said to Mr. Shanahan, the area is appealing because a person can get to work in ten minutes. However, when that person returns home, he or she cannot send a text or an email. Has a lack of broadband put people off developing more businesses, especially in the areas that Deputy Eugene Murphy mentioned?

Mr. Martin Shanahan:

I want to make sure I put the following in context. As every Deputy and Senator knows and everybody else knows, housing is an issue and that is why it is a Government priority. We have a policy document called Rebuilding Ireland, and earlier the Minister here referred to the actions that are being undertaken as part of the policy. We have seen progress. The increase in planning permissions, completions and the plans that are in place give companies comfort that there is a plan and that it is being executed.

The immediate situation puts pressure on prices. This is as much about the availability of talent as anything else. Companies need employees and employees must be able to afford a place to live. Ireland is not unique in this area, which is an important aspect that may be missed at times in the broader discussion. Ireland must compete for investments against other locations. I will give the committee a sense of what has happened in other places. One headline that I read in August and was broadcast by the CBS channel said "California Mayors Urge Lawmakers to Fix Housing Shortage". Last month in November, the Financial Timeshad the headline: "Amsterdam returns Dutch house prices to 2008 highs". The headline: "Property Prices in Paris Soar to an All-Time High" appeared in the French Tribunelast November. All of these examples show that the issues that exist here also exist in many of the places that we compete with. Does the matter have to be resolved? Yes, for many reasons and not alone because we are trying to attract foreign direct investment. Are there plans in place? Yes. Does that give comfort? Yes.

I do not believe that we have lost investments specifically because of housing. Typically, companies consider multiple factors that they put on an Excel spreadsheet. Some things will be positive and some things will be negative but they get an answer. Does it represent an opportunity for places outside of Dublin? Yes, because the cost differential outside of Dublin is definitely less and we can make that case. If one wants to come to Ireland, we can play up the fact that there is a cost differential. That is why we have seen an increased investment in some areas, including Limerick, Galway and Waterford. We do need a supply of residential housing in those locations.

In terms of broadband, the Government has a clear plan on which the Minister may wish to comment. Broadband is being rolled out. Obviously the better the broadband, the better we can sell a location. I may have pointed out that we also consider new models of investment. For example, all of Shopify's business is done through home working. Shopify set itself up in the west using a home working model and all of its employees are distributed around the area. A large proportion of employees who work in some of the tech companies work from home. The better and more robust the broadband, the more we can distribute workforces.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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We recognise the importance of high-speed broadband connectivity. I appreciate the frustration experienced by businesses and communities that have no access to such a service. The improved connectivity is delivered through the national broadband plan, which remains a key Government priority. My colleague, the Minister for Communications, Climate Action and Environment, Deputy Naughten, is leading the implementation of the plan.

I am pleased to say that over the past year there have been significant improvements in the level of broadband connectivity in rural areas. I understand that continued increases in coverage and capacity are planned over the coming years. The roll-out of broadband to rural areas, especially by operators such as Eir and Siro, has resulted in enhancements such as fibre to the home being deployed. Over a fortnight ago I attended the launch of a national gigabit hub at Cavan Innovation & Technology Centre where Siro provides high-speed fibre broadband to the business centre. Companies there service other companies from right across the world and provide a data management service. Broadband is essential for such work and the roll-out is happening. It is important that companies can locate their operations in towns like Cavan and similar towns in counties Kerry, Donegal and Roscommon. Deputy Murphy mentioned that there is good high-speed broadband in Roscommon.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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Yes.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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It is important to make people aware that these towns have this level of connectivity, which should help to attract businesses to the areas.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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I apologise to the Minister for forgetting in my opening remarks to wish her well in her new role. I sincerely wish her well in her new role.

The Minister mentioned the national planning framework in her opening statement. My part of the country is Limerick and people there believe that the Government has got things completely wrong. Outside of Dublin and Cork, the view is that centres of population will be unable to grow and expand adequately and as they had planned heretofore. That realisation has begun to dawn on them and the chief executive officer of Limerick City and County Council has made some alarming comments. The city and county council is preparing an impact analysis on how the national planning framework, NPF, will have a hugely negative and long-term impact on the plans to develop Limerick, and the same applies to Galway. Yesterday, this matter was discussed at a meeting attended by Fianna Fáil's Front Bench and by a collection of people from throughout the country.

The view is that the national planning framework will impact on Galway, Sligo and Waterford. The impact will not be as great on Dublin or Cork because there is greater headroom, in addition to the recent boundary extension. Let me flag for Mr. Shanahan the views we are picking up. My understanding of the process is that ultimately it will be a Cabinet decision.

I will now comment on the linked issues of the impact the provision of housing has on inward investment and the data available on site visits. I understand the first objective is to get those who make decisions on foreign direct investment to visit Ireland and then to try to accommodate their preferences. From the figures we have available for the numbers of site visits to the end of the third quarter of 2017, the tale they tell is that rural Ireland - areas outside the major population centres of Limerick, Cork, Galway and Athlone - do not receive enough attention. I know that staff in IDA Ireland are trying to do their best, but they will have to try to find a way to do do better and get more people to visit, in particular the Border counties. If the Minister will allow me to do so, I will speak on behalf of her constituency of Cavan-Monaghan. There were two site visits to Cavan and one to Monaghan. I am sure that is a source of concern for her as a constituency Deputy in the first instance. When one looks at the CSO statistics for the numbers of vacant dwellings throughout the country that formed part of the recent census, they should be a further argument to make on the attractiveness of locations outside Dublin and the major centres where affordable housing is available. Will Mr. Shanahan comment on this? Why are the Border counties, with the exception of County Louth, to which there were 14 site visits, at the lower end of the scale when it comes to site visits? There have been two site visits to counties Cavan and Donegal and one to County Monaghan. Is Brexit a complicating factor? Will Mr. Shanahan comment on how he intends to address the imbalance? We accept that he has to get the decision makers into the country, but many of them look at locating in the capital. If one looks at the underlying statistics, one will see that 40% of GDP is generated in the greater Dublin area, whereas in the United Kingdom only 20% of GDP is generated in the greater London area. We are experiencing a big imbalance which I know presents a huge challenge to IDA Ireland, but how will it try to rectify the figures? There were 34 site visits to County Westmeath, effectively to Athlone which spills into County Roscommon, to which there were only two site visits. Would it be possible to structure itineraries in such a way that delegates visiting Limerick would also visit County Tipperary to locations outside the main hot spots?

Mr. Martin Shanahan:

I thank Deputy Niall Collins. There is a differential in that Dublin is still extremely attractive, but there are capacity constraints due to our rapidly growing economy. Clearly, that is something we use to market other parts of the country. I remind Deputies that companies also have alternatives elsewhere. It is not just about making a decision to locate in Dublin, Athlone, Mullingar or Limerick but in Dublin, Frankfurt or Paris or remain in the United States. It is the nature of these deicisons that companies consider international locations and they have other options. They look at the availability of talent, which means that they look at population size. They also look at the supply of talent within a particular region, which speaks to the availability of third level institutes - an institute of technology or a university - as well as the attractiveness of the location in terms of whether it is an attractive place in which to live and work, as well as the availability of other amenities on the doorstep. At one level there is no great science involved as to why certain areas do very well and others less well. It is an issue of population distribution. It is also more difficult when there are multiple population centres in a region, rather than having everybody concentrated in one part of it, as is the position in Dublin and the east.

What are we trying to do to address the issue? The first priority is to continue to attract investments to Ireland, to target the investments that might be more amenable to being made in regional areas. I have mentioned that manufacturing is one of the activities that is most likely to be engaged in outside Dublin. We have rolled out a property programme to provide buildings in advance in order to attract investments to areas. We work with local authorities on a regional basis to try to improve the attractiveness of a region in order that we can give companies confidence that they will be able to attract employees and that it is an attractive place in which to live and work. It is true also to say, in regard to the differential between Dublin and the rest of the country, that while there is a cost differential in the availability of housing, other regions outside Dublin are also challenged.

Deputy Niall Collins has highlighted the areas that are doing well. They include Athlone, Galway, Limerick and Cork, but their success is to the benefit of the entire region because the more companies we can get to locate in a region the more it helps to build a cluster. Let me give an example. The more investments are attacted to Limerick the more likely it is that Shannon will attract investment in the future. We have worked with local authorities on the offering. We have new marketing material for the regions which we have rolled out internationally. It is continuing the grind and the hard work that will get us results, while at the same time ensuring the overall competitiveness of the country is maintained. Without that competitiveness, we will not be discussing the regions but Ireland versus the rest.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The national planning framework is still in draft form. The comments made indicate very clearly why it has to be the subject of consultation. I expect many submissions to be made on it. It falls within the remit of the Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy. It is important people make submissions in and I am sure we will all be making them.

On the question of regional development, particularly in Border areas, in the context of Brexit, it will be a key focus of mine in working with all of the agencies - IDA Ireland, Enterprise Ireland, the local enterprise offices and InterTradeIreland. As we know, Brexit presents many challenges. Therefore, we need to look at promoting the strengths of the Border regions. As Mr. Shanahan said, IDA Ireland is putting marketing packages together. We need to put our best foot forward and encourage investment by outlining what the different local authority areas have to offer. They have unique skill sets that are attractive in seeking inward investment. We should be working closely with the local authorities across the country to ensure they will put forward their best foot and highlight the good reasons companies should locate in their areas, investments from which everybody would benefit. Some Border locations have attracted more multinational investment than others. They include Letterkenny, Dundalk and Drogheda.

Two companies have relocated to Dundalk as a result of Brexit - one from the UK and one from Northern Ireland - which shows that the many challenges posed by Brexit are accompanied by opportunities. JP Morgan and a number of other big finance companies have already decided to locate their European bases in Dublin, which is more good news. We need to put our message out there and sell the regions. I take the Deputy's point about the visits. I thank him for raising it.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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Does IDA Ireland intend to make a submission to the national planning framework?

Mr. Martin Shanahan:

We have already made a submission to the framework.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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Can Mr. Shanahan update the committee on the additional moneys that were voted to IDA Ireland to hire additional staff to help it to deal with the challenge of Brexit? Perhaps he can give us a quick overview of the position in that regard.

Mr. Martin Shanahan:

There have been two developments on that front in the past year. We had 35 additional resources in the market associated with the Winning Abroad programme, which was introduced in 2014. The Government has given us leave to keep those resources in the market on an ongoing basis. This will help us as we respond to Brexit. In the most recent budget round, we received funding for an additional ten resources, all of which are now in place.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I often feel proud of the great work done by IDA Ireland. I hope those working for IDA Ireland understand the job we have to do in representing our local areas.

Mr. Martin Shanahan:

Of course we do.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I remind the committee that the Monksland project, which has been mentioned by Deputy Niall Collins, was commenced by Roscommon County Council 37 years ago. It was very small, but it has grown significantly. The Minister spoke about increasing the links between the local authorities and IDA Ireland. The north Roscommon area, which Mr. Shanahan knows pretty well, could do with a development like that in Monksland. It was commenced by Roscommon County Council and it has been a tremendous success. I acknowledge that pharmaceutical companies like Jazz have set up there recently, which is tremendous. I have to mention that Monksland will be staying in County Roscommon and not going into County Westmeath. I am being somewhat parochial.

Everyone in business accepts that Galway city is bursting at the seams. Ballinasloe, which is a few miles out the road, has been completely neglected. I wonder what level of focus IDA Ireland has on it. I remind the committee that companies like AT Cross, Dubarry and Glan Agua have moved out of the town. There was a major rendering plant there as well. I am not exaggerating when I say that more than 2,000 jobs were lost in a town with a population of 7,000. Ballinasloe has the spaces, the community and the will to work with IDA Ireland. Why is there no emphasis on places like Ballinasloe, particularly in light of the outrageous situation in Galway city? I am sure Mr. Shanahan is aware that getting space in Galway city is a big problem. Why are people not being attracted out to places like Ballinasloe?

I heard the answer that was given to Deputy Niall Collins when he made the case for this activity being spread out. Many of the people who contact IDA Ireland about setting up in Ireland do not know where Roscommon, Galway or Sligo are. Surely IDA Ireland has a role in telling them that it will take them to such locations. The Roscommon-Galway region has Athlone Institute of Technology on one side and Institute of Technology, Sligo on the other side. There is a university and an institute of technology in Galway city. County Roscommon has one of the highest numbers of graduates per capitaof any county in the country. The workforce is there. People can be taken from the region. There are no housing issues. The people are there. Other people will come back to work in the region. I am not happy about the lack of focus on parts of counties Roscommon, Galway, Leitrim and Longford. This area needs to be re-examined with a new focus. The people and the local authorities are willing to work with IDA Ireland to get jobs into this area. I acknowledge that the Minister, who is a good Minister in any role she has, and Mr. Shanahan will work to bring jobs to this region. We need to focus on getting jobs into the area. It is very frustrating for people.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Would Deputy Quinlivan like to make any closing comments?

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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No.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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We will conclude shortly. I was going to ask the same question about the Brexit staff.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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I would like to ask a question on a different matter.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Okay. The Deputy can ask it now. We have to start the other meeting at 7 p.m. We will get all the answers together

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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As the Minister will be aware, the issues in ConnectIreland have exercised this committee in the past. Where are we with the review of the programme? When we last spoke to the Minister's predecessor about it, we were informed that the review had not got under way and that the terms of reference were still being drafted.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I am aware of the ongoing dispute and the issues regarding the conclusion of the Succeed in Ireland initiative. I intend to review all the facts shortly. I will discuss the matter in more detail with those involved. At that point, I will be in a position to determine how I intend to proceed, including with regard to the review of the programme. I have not had a full briefing on it yet. I will examine everything at that stage to determine the best way forward.

Mr. Martin Shanahan:

The Minister has covered the question that was directed to her. I fully understand the frustration expressed by Deputy Eugene Murphy. I am trying desperately to put jobs into east Galway. The €850 million data centre is a case in point. It would be going to Athenry if planning was in place. It is not the case that we are ignoring certain locations. There are challenges in this regard, as I said earlier. I would respond to the Deputy's point about the local authorities' willingness to work by emphasising that we are willing to work with the local authorities, the chambers of commerce and anyone else who is in a position to help us to win jobs in a region. We need to build the case for every region so we can go out and market it.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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Earlier in this meeting, Deputy Neville spoke about the potential for developing the Askeaton site as a data centre. I understand that IDA Ireland intends to examine that site. Will it do a feasibility study on it? I ask Mr. Shanahan to give us a commitment that IDA Ireland will return to this committee to tell Deputies Neville and Quinlivan and myself, in particular, whether it intends to advance the site as a potential data centre.

Mr. Martin Shanahan:

I will revert to the committee. I understand that the site is not owned by IDA Ireland. The owners of the site have a vested interest here. It is not up to IDA Ireland to tell any other entity that owns land what to do. We will be happy to look at the site if Shannon Group is interested in that.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I will join everyone else in being parochial here today. I would like to draw the attention of the Minister, and of Mr. Shanahan and IDA Ireland, to the plans for the strategic development zone at the north quays in Waterford. Some €61.5 million, which is a substantial amount, is being sought from the Government to drive Waterford forward. Are Mr. Shanahan and his colleagues familiar with this project? Has Waterford City and County Council been in touch with IDA Ireland in this regard?

Mr. Martin Shanahan:

We are familiar with the project. My colleague, Ms Buckley, will speak about it.

Ms Mary Buckley:

We are familiar with it. My colleague, Anne-Marie Tierney, who is IDA Ireland's head of regions, received a briefing on it from the chief executive officer of Waterford City and County Council on 2 November last.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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Thank you very much. I thank the Minister and her officials and Mr. Shanahan and his officials for attending this good meeting. We probed many issues and we learned a great deal.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I thank everybody for their good wishes.

I look forward to working with the committee. Together, we can come up with ideas and progress the issue of more jobs in the regions.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I thank the Minister and other witnesses for attending. We will now go into private session.

The joint committee went into private session at 6.31 p.m. and resumed in public session at 6.37 p.m.