Dara Calleary (Mayo, Fianna Fail)

I welcome the opportunity to speak on Second Stage of this Bill, particularly on our industrial development agencies. I have heard the criticisms since I have been in the Chamber. It is important to reflect that the two main agencies, IDA Ireland and Enterprise Ireland, have been incredibly successful in the past number of years. The role of IDA Ireland in the growth and development of the economy has often been underscored. The organisation and its staff members have never been given credit for what was achieved during that time.

We need to reflect, even in incredibly difficult years such as 2008, that 130 FDI projects were won for Ireland by IDA Ireland, an increase on 2007. Even though in these times of credit crunch that performance will probably deplete this year, we still have talented people and an organisation that has refocused its activities in recent months in order to deal with the change in the climate with which we are dealing. There was a €2 billion investment in this economy through FDI sourced by IDA Ireland last year. I share the frustrations expressed by Deputies regarding regional performance. It is not what it could or should be. They have developed a comfort zone by going into the large cities of Dublin, Cork and Galway.

One of my concerns is that the Bill highlights the increase in the designation area for the BMW grant which was done through Europe but not here in Ireland. Those of us in the west believe IDA Ireland is deliberately using the Government guideline of 50% investment in the BMW region to develop places nearer to Dublin to try and reach that target, but at the same time it is not serving the spirit of what it was intended to. I hope that changes in the coming days.

There was some criticism earlier of Enterprise Ireland which is also unfair. It has a focussed role in supporting specific projects such as start-up companies which would often never get a start in the market place. Another of its roles which is often unheralded and unheard concerns its attempts to support community organisations and enterprise.

There is a gap in our industrial policy between the county enterprise board client and the EI client. We debated this at length but it needs to be addressed. I hope the Department will produce proposals. I agree with Deputy Varadker's comments in that the climate in which we now find ourselves requires a change in the designation of start-up businesses. Every business which is starting up should get some sort of support, be it from the enterprise board or Enterprise Ireland.

Enterprise Ireland has done much good work. Many of the missions on which it embarks, such as the telefairs to which Deputy Burke referred, are focussed on getting jobs and investment. Those of us who saw the images from New York last week of the EI-hosted event at which the Taoiseach spoke saw a very focussed event and a group of Irish business people meeting people who matter and have the capacity to make decisions for the benefit of the country. They are not just on a junket or a St. Patrick's Day holiday. Enterprise Ireland has a very strong role in this area and is an organisation we probably do not give enough credit to.

The role of regional policy has been well ventilated in this debate. There is enormous frustration, particularly among those of us who represent the regions, at the very patchy performance outside the key gateway cities. Coming from a hub town, I have seen little benefit from the national spatial strategy. Whether or not it was a political decision, we have seen little practical benefit from it and it may even have become detrimental to us at this stage.

It is important to acknowledge the global environment within which we operate. We are competing for industrial investment against cities the populations of which are a multiple of the population of this State. The days of scattering industry to every corner are gone. Equally, however, the policy of centralising it in Dublin, Cork and, to a lesser extent, Galway is also unacceptable. IDA Ireland has consistently challenged Members of this House in regard to the shortfalls that exist in terms of regional infrastructure. Its hands are tied to some extent. When visiting delegations are brought to regional areas, they see that the infrastructure is not what it should be.

The Government has taken action to address this infrastructural challenge in the last 12 years. Another Member referred to the significant investment in roads infrastructure. This is evident in my own constituency of Mayo. The change of Government policy when the Minister for Transport, Deputy Dempsey, was at the Department of Communications, Energy and Natural Resources allowed Mayo to connect to the gas network, thus offering an alternative to electricity as the sole energy source. Significant work has also been undertaken on water and sewerage schemes throughout the State. This work, which the House has undertaken on a cross-party basis in order to develop infrastructure and underpin industry, continues. We must work in co-operation with the development agencies. If we meet them half way, they too must begin to address the concerns we have offered in a constructive fashion.

I welcome the move by IDA Ireland finally to begin development of the enterprise park in Ballina, although I was concerned to hear Deputy O'Rourke talking about stone walls and lovely gardens but no industrial activity. We will deal with that issue when it arises. There is frustration at the way this project was handled and that it was not done in a more efficient way. I acknowledge the work done in recent years by Ms Maura Saddington and Mr. Jim Murrin to bring this project to fruition.

The environment in which the development agencies will have to work in coming years will be incredibly difficult. One wonders where globalisation stands in the wake of the credit crunch. The manner in which we have driven our economy in the last 15 years was with the objective of establishing ourselves as a player in the global market, as an economy offering a gateway to Europe and open to all the large international markets. The focus of our agencies will have to change until such a time as the dust settles on the current global difficulties.

Section 3 contains provisions relating to the various research and development grants, all of which will have to be refocused. For example, employment grants must be made less cumbersome and more employment-friendly. I hope the budget on 7 April will include measures to incentivise employers to retain and recruit staff. Likewise, training grants must be focused on keeping people at work as well as training those who have lost their jobs.

A review must be undertaken of the shareholdings vested in Enterprise Ireland and IDA Ireland in order to ascertain whether they are still relevant. Shares were purchased in the 1980s and 1990s in companies some of which no longer exist or are no longer relevant. This may be constraining the development of these companies. Those shares will never be cashed and we were never going to strike oil in most of these companies. This should be done as part of a general bookkeeping and tidying-up exercise.

Much concern has been expressed about a perceived dilution of the role of Shannon Development. We in Mayo always looked enviously at the work done by Shannon Development and the attention it was able to secure nationally. However, it is important that we examine the role of all the development agencies. It is undeniable that we have a significant number of these agencies on this small island. With a greater regional focus on the part of the agencies and a more targeted approach to regional development, we may all achieve our objectives in terms of developing our areas.

It is important to emphasise that the House is fully supportive of IDA Ireland and Enterprise Ireland. We all have our own regional concerns and frustrations but we must acknowledge that these organisations have done extremely important work in the last ten years and that their contribution will be vital in the years ahead. They are best placed to get us through the employment crisis we currently face. They best understand the international economy and what is required to promote the State as a location for investment. They have very talented people working both in the State and throughout the world on our behalf. They are delivering well to their target companies within the powers bestowed upon them under legislation. We must make that legislation more relevant to the current climate in order to give the agencies a brief that is less restrictive in terms of the types of companies in which they can invest. The development agencies have delivered well in the past and we can have trust and confidence that they will continue to do so in the years ahead.

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