Micheál Martin (Cork South Central, Fianna Fail)

I propose to take Questions Nos. 79, 95, 108, 112 and 132 together.

As stated in my previous reply to the House on this matter, I was disappointed to hear about the decision by Amgen on 3 October last that it was to indefinitely postpone its proposed development of the Carrigtwohill site. On 15 October last detailed discussions were held in California between myself, the Secretary General of my Department, senior IDA Ireland personnel and senior corporate executives from the company.

With regard to the financial assistance provided to the project by the Exchequer, a total of €4 million in IDA Ireland grants has been paid to the company to date. While IDA Ireland has not sought repayment of IDA Ireland grants to date, the company is obliged to repay the grant in its entirety under its legally binding agreement with IDA Ireland in the event of the project not proceeding.

I have no function in regard to local authority expenditure. However, I understand that at a meeting held on Thursday, 9 October, Amgen confirmed to Cork County Council that it will reimburse the council for costs incurred by the council on works relating to the site. The company indicated that it expected to retain the site. As stated in my earlier reply, it confirmed that to me as late as last week. The county manager has also confirmed to me that he had fruitful discussions with Amgen on the infrastructural works. As stated earlier, the decision by Amgen was based purely on developments relating to its global business and is in no way reflective of the business environment in Ireland or of the high calibre staff it had hired.

IDA Ireland is actively promoting the greater east Cork region to prospective investors across the full range of IDA Ireland targeted sectors, such as pharmaceuticals, medical technologies, information and communications technologies and internationally traded services via its network of overseas offices and project divisions. The agency has seen the emergence of an economic corridor along the N25 with the initial development of Little Island many years ago followed by new developments at Eastgate, Fota Business Park, Carrigtwohill and Midleton.

IDA Ireland has also been instrumental in attracting additional client investment to the area with the development of the IDA Ireland Business and Technology Park in Carrigtwohill. The availability of quality property solutions in the east Cork area has proved attractive to visiting IDA Ireland clients.

There are currently 133 IDA Ireland assisted companies in County Cork employing almost 20,000 people. The corresponding figure a decade ago would have been 10,000. Cork city and county have benefited greatly from a number of important investment announcements this year which demonstrates the attractiveness of the greater Cork area as a location for inward investment by existing companies already located there and new overseas client companies choosing Cork as their location of choice.

Cork has seen consistent investment by new companies and reinvestment by existing companies in recent years in the pharmaceutical sector. The investment by GlaxoSmithKline of €250 million over five years in its production site at Currabinny followed the establishment of a research project in August 2006 into gastrointestinal diseases, in collaboration with the Alimentary Pharmabiotic Centre in UCC, which involved an investment of up to €13.7 million. Cork as a location was also endorsed by Eli Lilly with its intention to invest €400 million over five years in a biopharmaceuticals manufacturing facility at its existing site in Dunderrow, Kinsale and byPepsiCo Inc. with the establishment of its worldwide concentrate headquarters.

I am confident the policies being pursued for Cork city and county by the development agencies and by Government will continue to pay dividends in terms of investment and jobs for the region.

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