Michael Ahern (Cork East, Fianna Fail)

I thank the Deputy for raising this matter. While my colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin, does not have functional responsibility for programmes for economic development, he does have responsibility in the area of job creation and improving the environment for job creation.

In July 2006, the Minister published the report of the interdepartmental group on Donegal. This group was established at the request of the Government following several major job losses in the county in recent years. The group was asked to focus on the progress being made on infrastructural requirements to make Donegal a more attractive location for enterprise creation, particularly as it makes the transition from traditional to modern and higher value-added industries. The National Development Plan 2007-2013, which includes substantial funding for infrastructure, and funding from Northern Ireland will help to improve these two towns.

The report showed that Donegal has no shortage of advantages and opportunities in so far as the promise of a brighter future for its inhabitants is concerned. There is a dynamic combination of State development agencies active in Donegal which are committed to enhancing the attraction of the county for business. These agencies have demonstrated the ability to provide a clear vision and focus for future economic development. IDA Ireland aims to pursue more knowledge-based greenfield foreign direct investment for Donegal and to convince existing IDA clients to transform their current operations into higher value activities. Enterprise Ireland will encourage and assist more innovative, technology-led companies and promote a greater level of start-up activity. These actions are in response to the challenges facing traditional industry in the county which is under pressure for competitiveness reasons and both agencies, as well as Údarás na Gaeltachta, are endeavouring to meet these challenges.

Enterprise Ireland has also been active in supporting the development of community enterprise centres in the north-west region, which are critical to continued enterprise development in rural areas and to the development of an entrepreneurial culture. Nine community enterprise centres in County Donegal have received funding of approximately €2 million under the community enterprise centre scheme to date.

In Donegal town, IDA Ireland has commissioned architects to design a 1,000 m2 office building at Lurganbuoy. It has applied for planning permission for the building and a decision from Donegal County Council is imminent. It is planned to enter discussion with the private sector regarding the construction and provision of this building as soon as planning permission is received and I am confident that a substantial number of new jobs will arise from this initiative.

In Ballyshannon, IDA Ireland has undertaken a significant amount of site development work on the industrial estate and this work is now complete. The County Enterprise Board will continue to provide existing and new supports to micro-enterprises such as Enviro Grind Limited in Pettigo, complementing the work of IDA Ireland and Enterprise Ireland.

The absence of much-needed infrastructure has been highlighted as an obstacle to job creation in Donegal over several years. I was pleased to see that the interdepartmental report highlighted several developments under way or planned in the areas of road and air transport, water supply and treatment, broadband, energy and education. These have been solidified and strengthened in the recently launched National Development Plan 2007-2013. Hopefully funding coming from Northern Ireland will complement that investment. In the national development plan particular emphasis has also been placed on North-South co-operation and development which will be of direct benefit to Donegal. A recent study on the development of the all-island economy sets out a clear and strong economic rationale for all-island economic activity. InterTrade Ireland, the all-island trade and business development body set up under the Good Friday Agreement, supports the development of key business networks on the island, including the North West Science and Technology Partnership.

This partnership between industry, academia and other key stakeholders focusses on strengthening science and technology-based innovation and business in the north west. Major advantages for Donegal will flow from the continuing progress to follow the re-establishment of the political institutions in Northern Ireland.

The north-west region is a priority area for IDA Ireland and Enterprise Ireland as the agencies continue to market this region strongly for new investment. The job creation achieved over the past year is largely a result of the ongoing commitment to Donegal from the State development agencies which will continue this commitment. There have been significant employment developments for Donegal recently. In addition to Abbott, recent major job announcements include SITA, ZEUS, PowerBoard and AssetCo. This Government and the State development agencies are fully committed to fostering the environment for job creation in Donegal with economic benefits accruing across the county to urban and rural areas.

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