Ulick Burke (Galway East, Fine Gael)

I welcome the opportunity to speak on this Bill. At the outset, however, I am disappointed with its contents, since I believe many people living along the Shannon always held Shannon Development and the work it had done in the highest esteem. In July 2005, the then Minister for Enterprise, Trade and Employment, Deputy Martin, said that under the new arrangements, Shannon Development would be given an enhanced regional economic development role, with specific emphasis on addressing the needs for the less developed parts of the Shannon region. I regret and am worried that Shannon Development is now effectively leaving the pitch, because I do not have confidence in IDA Ireland or Enterprise Ireland in terms of the regional basis on which they are bringing industry into the country.

Looking at the track records in respect of the announcements and the job creation efforts and endeavours over the last five to ten years, there is a clear indication that the conferring of status on those cities and towns that became the main gateways and hubs for industry was based, in the main, on politics — with the exception of Dublin, Cork, Limerick and Galway. In view of this there is a clear deficit with regard to proper regional development. Take the four towns of Ballinasloe, Loughrea, Gort and Tuam in County Galway, for example. Tuam, for whatever reason best known to the person who made the announcement which I believe was political, was classified within the previous categories in terms of gateway and hub towns. Over the past three years IDA Ireland has made one visit with potential investors to the three other towns. This was not one visit to each but rather one to the three towns. Tuam has had a couple of other visits.

Many parts of Ireland have been forgotten by the IDA, as we have known for a long time. They have been forgotten because they lie between Galway city and Athlone. I am sure this example can be replicated in many other areas throughout the country. It is regrettable. We look across the Shannon in envy at the development work done by the regional development company, Shannon Development, including as it does the Tipperary and Clare borders nearly as far as Birr. It is regrettable that this agency is now leaving the pitch because if, as proposed, Enterprise Ireland replaces it, given the share allocations as provided for in this Bill, the same pattern I have outlined will happen.

The main responsibility of Enterprise Ireland is the support and development of indigenous Irish industries but I believe it has also lost the plot on this. There are many instances of this, even where it has supported industry. However, it claims its hands are tied when industries get into trouble, even with companies it has supported from the start-up phase. When difficulties arise, Enterprise Ireland says, as in the case of a Loughrea company recently, that the only support it can give to an indigenous Irish enterprise is a consultative grant of about €5,000 to €7,000, depending on whether it is developing new products.

In view of the difficulties in which many indigenous Irish industries find themselves Enterprise Ireland is not being helpful. I am aware that certain industries in east Galway are in difficulty and I have asked Enterprise Ireland to be proactive rather than reactive. The agency should go into such companies before something happens to determine whether they can be nurtured through the difficult periods they are facing, in terms of industrial development and employment, and helped to a greater extent than heretofore. State agencies are failing to do this. As a result of my exchanges with Enterprise Ireland when 180 jobs were lost in Cigna in Loughrea not too long ago — it was a complete shock to the small town — I wondered what it did. It visited a trade fair in New York city from 3 to 16 February 2008 entitled Kidscreen 2008 and TV Bootcamp. One wonders if it has lost its focus. Many other visits abroad were undertaken but that one highlights the insignificance of Enterprise Ireland. This Bill presented an opportunity to restructure the IDA and Enterprise Ireland and to focus on the difficulties in the area of job creation.

Galway and Limerick are two university cities. Were it not for the initiatives of the personnel of the universities in those cities — mainly their presidents and professors in the areas of job creation and research and development — they would not have received funding from abroad and would not have been able to establish a link between that funding and research and development in existing industries in Galway and in Limerick. The IDA was irrelevant but jumped on the bandwagon. The initiatives of the universities and their personnel, who were progressive, have led to many of those industries developing. The link between the universities and job creation has been tremendous, and I hope it continues.

There is a need for the Minister to reassess the situation and how those organisations go about their work in job creation. They are not doing so fairly and they are neglecting the concept of regional development. Not too long ago when Deputy Richard Bruton was Minister in that Department, he gave a clear directive, not a request, to the IDA to be fair to the regions. That has all gone wrong. I hope the Minister will take an initiative, if not in this Bill, in another Industrial Development Bill which will clearly outline that for the IDA and Enterprise Ireland.

At regional level, the county enterprise board is the only agency which makes a tangible response to requests for help in job creation, albeit in a small way. Galway County Enterprise Board recognises that need and that there is talent out there and it responds in a positive way. However, it has been neglected and rubbished by Enterprise Ireland and the IDA. That is a regrettable situation. There must be co-ordination in regard to job creation and industrial policy from here on.

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