Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I thank Deputy John Halligan for raising this matter. IDA Ireland is the agency which has for many years dealt with inward investment. Of its type, it is one of the best in the world. It has an extraordinary record of success and last year was one of the agency's best to date. It works with companies that wish to invest in the country in the areas of manufacturing, research and development, innovation, etc.

In the past the industries which used to be interested in Ireland required what were called "advance factories". The Deputy will be aware of them, many of which were smaller warehouses and units and built - either individually or in clusters - throughout the country. They were not confined to the south east or any other location. There are aging advanced factories at various locations which were never occupied or which were only occupied for very short periods. The reason for this is IDA Ireland was of the view that it was appropriate to have a building ready should companies decide to establish operations at particular locations. Matters have very much moved on and the vast majority of companies that wish to invest in Ireland now require greenfield sites of a much greater scale than was the case in the past. These companies want buildings to be designed to meet their needs and circumstances. The Deputy is correct when he states leases were entered into on a longer term basis for many of the older buildings, one of which has been unoccupied since 1998.

I do not know the details of the contracts, but it is important that a company looking at Ireland and its distinct advantages, be it from the point of view of tax, talent, technology or track record, has access to buildings that are available. That is the reason IDA Ireland had a leased arrangement for a number of buildings that might be suitable for particular companies. The Deputy is well aware that the bigger companies require a much bigger scale and scope in terms of site acquisition.

One can never estimate accurately what might happen. For instance, Eistech, which had only nine positions last year, has more than 400 now and it has announced a further 250 for Wexford. That company has expanded and grown rapidly because it does its business so well.

There were 33 visits by IDA Ireland to the south east in 2012. The scale of interest is being highlighted by the authority for companies to consider. That is replicated at home by Enterprise Ireland, which is constantly engaging with smaller Irish companies that might like to grow, change direction or have the opportunity to expand their markets.

The Deputy's point about the scale and the number of leases is correct. Traditionally, that is the reason that happened. It is very different now in that companies wishing to come here look for much bigger sites and buildings of a particular design that is suitable for their specific needs.

We can examine the policy of holding on to much older advance factories or locations with IDA Ireland, but I believe in most cases the leases were set out for a longer period. The total outstanding balance payable on leases in County Waterford, for instance, to the end of their terms is approximately €1 million.

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