Jimmy Deenihan (Kerry North, Fine Gael)

I thank the Ceann Comhairle for allowing me to raise this matter. Kerry's economy has a strong traditional foundation built on tourism and agribusiness. Over the past 40 years, manufacturing companies have been attracted to the county with a particular focus on engineering, textiles and electronics. The profile of business is complemented by pharmaceutical and medical device companies and a growing technology sector fostered by the development Kerry technology park and the Institute of Technology Tralee.

However, global competitiveness and the decline in national competitiveness have resulted in massive upheaval in the business sector in the county. More than 2,000 redundancies have been notified to the Department of Enterprise, Trade and Employment since 2000. For example, since 2002 only 335 jobs have been created in IDA-supported companies but 1,275 jobs have been lost. These figures were supplied by the Department of Enterprise, Trade and Employment. Between February 2001 and February 2005 the number of people on the live register has increased by almost 1,000. In February 2001 the number was 5,860 and in February 2005 it was 6,803.

Furthermore, poor infrastructure provision accentuates the peripherality of Kerry, making it less attractive to potential sources of foreign direct investment. Kerry is not attracting foreign direct investment. Of greater concern is the absence of visits by potential investors. No targets for foreign direct investment appear to have been set for Kerry. Feedback from companies reveals that there is no apparent plan of action to attract investment to the county. IDA Ireland has organised few itineraries to County Kerry which is a cause of great concern.

The lack of foreign direct investment in the county sets it apart from other areas which have benefited significantly from investment by multinationals. The provision of modern infrastructure is crucial to changing this situation. The attraction of foreign direct investment and the modernisation of the county's infrastructure will not only increase employment in Kerry but will also result in more balanced regional development.

Industrial activity in County Kerry is far smaller in scale than that in Cork and in most other Munster counties. For example, in 2002, the most recent year for which relevant Central Statistics Office data are available, Kerry accounted for 1% of all industrial output in the State, compared with Cork's contribution of25%, Limerick's 10% and Tipperary's 6.7%. In 2003 and 2004 Kerry's unemployment figures did not reflect the national trend which registered a substantial reduction in the number of redundancies in 2004.

The Forfás employment forecast suggests that the textiles, clothing and agricultural sectors would be most prone to employment losses in the future. This trend has been particularly damaging to County Kerry which has a disproportionate share of agency assisted employment in industrial sectors vulnerable to job losses. In comparison with Cork, County Kerry attracts a negligible share of high value added investment in sectors such as financial international services.

I am pleased the Minister of State is here this evening and I hope he will pass this message to the senior Minister at the Department of Enterprise, Trade and Employment, Deputy Martin. To reverse this trend all the State agencies should adopt a clear co-ordinated approach to promoting County Kerry as a location for sustainable value added businesses.

IDA Ireland is responsible for attracting foreign direct investment projects to Kerry. This includes greenfield projects and expansion of existing operations. Enterprise Ireland is responsible for the promotion of indigenous enterprise in south Kerry, while Shannon Development has responsibility for this function in north Kerry. It is important that all these agencies come together in a co-ordinated way.

Infrastructure is a critical issue in investment decision making. A region with deficits in any area of infrastructure is at a serious disadvantage in terms of attracting foreign direct investment and supporting indigenous industry and employment. Therefore, investment in the county's airport, rail and road network, telecommunications and waste management is critical to the economic growth of the region.

The enterprise strategy group report, Ahead of the Curve, classified infrastructure as an essential condition. The Government must commit to a full range of infrastructural projects for County Kerry and accelerate the introduction of the critical national infrastructure Bill promised in 2004. The region can then work towards delivering the remaining elements of the competitiveness equation as outlined in Ahead of the Curve.

I call on the Minister of State and the chief executive of IDA Ireland to visit Kerry immediately to meet a representative group, including the county manager, SIPTU, IBEC, the local chambers of commerce, SFADCo and any other relevant agency, to discuss a way forward and prioritise Kerry for foreign direct investment. I have requested the Chairman of the Oireachtas Joint Committee on Enterprise and Small Business, Deputy Cassidy, to bring that committee to Kerry, to do as it did in Wexford and will do in Cork in the coming weeks. It can discuss with local interests the challenge of bringing employment to the county.

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