Tony Killeen (Clare, Fianna Fail)

I thank Deputy McGinley for raising this matter. I am taking the debate on behalf of the Minister, Deputy Martin.

On the unemployment rate for Donegal quoted by the Deputy, I point out that the Central Statistics Office does not compile county-by-county unemployment data. CSO data for the second quarter of 2007 show an unemployment rate of 5.3% for the Border region as against a national average of 4.5%. While it is recognised that Donegal has suffered particular difficulties in the past owing to the demise of traditional industries such as agriculture, fishing and textiles, there is clear evidence that the county is successfully engaged in a transition to the new economy. Live register figures at 8,340 and 8,370 for September 2006 and September 2007, respectively, are lower then any year going back to 1993.

The interdepartmental group report on Donegal, which my colleague, the Minister for Enterprise, Trade and Employment, Deputy Micheál Martin, launched last year, identified the various infrastructure developments required to support enterprise development in the county. The report noted not just that much progress had been made but also that financial provisions were available to complete major infrastructure projects, especially new roads, to equip Donegal further as an attractive location for enterprise development.

IDA Ireland has identified Donegal as a key target location, with the county now competing for a different type of business from labour-intensive manufacturing on which it relied successfully in the past. The overseas investor now seeks locations for more knowledge intensive manufacturing or office-based solutions, to a great extent depending on advanced skills and higher value-added activities. This has required a significant change of strategy by IDA Ireland with a focus on a limited number of key locations nationally.

IDA Ireland has developed a new modern business park in Letterkenny with modern building solutions capable of competing with other locations nationally and internationally. IDA Ireland has been working with the third level sector in the region, namely, Letterkenny Institute of Technology and the third level sector in Northern Ireland, to offer the necessary courses aimed at its target areas of medical technologies, international and financial services and high-end engineering.

Progress has been made over recent years in securing new investments from PacifiCare, Pramerica, SITA and Abbott Diabetes, with approximately 1,200 new jobs being added in the county by overseas firms over the past five years. These companies continue to recruit and are actively seeking new staff.

Pramerica Systems is expanding its services centre in Letterkenny to create 70 new jobs in software development and testing, operations, call centre and financial services with added capacity to recruit a further 80 personnel. Abbott, one of the world's largest health care companies, is establishing a manufacturing facility for its diabetes care products in Donegal town with the creation of 155 high quality jobs at full production. Abbott has now taken possession of its plant from Hospira and recruitment of key executives is under way along with the redevelopment of the site to meet the needs of its new occupant. SITA will expand its software operation in Letterkenny, leading to the creation of 123 high quality software development jobs. Zeus Industrial Products has made a capital investment of more than €7 million, principally in state-of-the-art premises, production machinery and equipment. There are 71 permanent staff members employed in the firm and recruitment is ongoing.

With regard to the Enterprise Ireland input in Donegal, during the years 2004 to 2006, a total of 1,156 jobs were created in Enterprise Ireland client companies in County Donegal, as against job losses of 980, leaving a net gain of 176 jobs.

The following are some specific Enterprise Ireland initiatives in County Donegal. Enterprise Ireland supports the CEIM enterprise platform programme, in partnership with Letterkenny Institute of Technology, the Institute of Technology in Sligo and Border Action, in providing a training programme for entrepreneurs wishing to set up their own businesses. This programme is now going into its fourth year.

Enterprise Ireland, in partnership with Invest Northern Ireland and the special EU programmes body, commenced recruitment in May 2007 for the Transform programme, a new cross-Border enterprise incubation programme. The programme was launched in September 2007 with a total of 43 participants, nine of whom are from the north-west region.

In 2006 Enterprise Ireland approved support of €650,000 for the provision of enterprise space in Carndonagh and Donegal town as part of the community enterprise centre scheme. Enterprise Ireland has approved a sum of €2.54 million to extend the business development centre at Letterkenny Institute of Technology to cater for increasing demand and the building work is due to commence in 2008.

Enterprise Ireland's policy objectives for balanced regional development are reflected in the structure of its funding offer whereby funding for existing company expansion and start-up businesses is biased towards regions. The maximum grant level is higher than in Dublin and the mid-east and a higher proportion of this funding is non-repayable.

In addition to the above, Donegal County Enterprise Board, funded by the Department of Enterprise, Trade and Employment, provides support to micro-enterprises in the start-up and expansion phases to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. Financial support is available in the form of capital grants, employment grants and feasibility study grants. From the board's inception in 1993 to date, it has paid out more than €6.7 million in grant assistance to more than 300 clients, which has assisted in the creation of 1,385 jobs.

The Department of Enterprise, Trade and Employment made additional funding available to Donegal CEB to develop and deliver two new initiatives, namely, a business information service and a "Let's Do Business" schools programme. The business information service involves the provision of a comprehensive business information service to individuals and businesses in the county. The "Let's Do Business" schools programme seeks to develop a spirit of enterprise within national and secondary schools through active learning in a range of enterprise competitions, events and enterprise clubs.

I assure the Deputy that funding supports and initiatives for enterprises in County Donegal is, and will remain, a priority for the State development agencies under the auspices of the Minister for Enterprise, Trade and Employment.

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