Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

Question 39: To ask the Minister for Enterprise, Trade and Employment if he will address the crisis in Ballina, County Mayo where the unemployment rate is twice the national average; his views on whether this situation needs to be addressed in view of the fact this town has lost 1,000 jobs in recent years; the plans which are in place to address same; the proactive steps being taken by the IDA; when the IDA will begin to sell Ballina for what it is and to entice much needed industry to the region; and if he will make a statement on the matter. [23989/06]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Unemployment is measured through the quarterly national household survey as published by the Central Statistics Office. The survey provides a breakdown of data on a regional basis only, and not on specific towns. The most recent survey data published at the end of May shows the national unemployment rate is 4.2%. The equivalent rate for the western region, which includes Ballina, is 4.3%.

Live register data are available for specific areas such as Ballina. However, they are not designed to measure unemployment. In addition to showing the numbers claiming unemployment assistance and benefit, they also include part-time, seasonal and casual workers, who are entitled to unemployment benefit. In May 2005, a total of 1,437 people were on the live register in Ballina. The most recent data available are for May 2006, which show that this number has fallen to 1,308.

State support for enterprise and job creation is channelled through the industrial development agencies, and while I may give general policy directives to the agencies under the Industrial Development Acts, I am precluded from giving directives regarding individual undertakings or from giving preference to one area over others.

I have been assured by the agencies under the remit of my Department that they are endeavouring to attract new investment, to encourage the start-up of new businesses, to grow existing businesses and to develop the labour market in County Mayo.

IDA Ireland actively promotes Ballina for new foreign investment and since January 2003, five first-time site visits to Ballina have taken place. In addition, IDA Ireland actively works with the existing base of overseas companies in Ballina and Mayo to encourage them to grow and expand.

IDA Ireland is also developing world class business and technology parks at a number of towns throughout Mayo. The goal is to ensure that such locations have the appropriate property solutions, tailored to specific key sectoral targets, to attract inward investment. In Ballina, IDA Ireland has been in discussions with Mayo County Council regarding the acquisition of a site of approximately 27 acres in local authority ownership on the Sligo Road. The IDA has completed site investigation works and has obtained planning permission for site development works to ensure these lands are suitable for industrial purposes prior to acquisition. I understand the IDA awaits contract documentation and copy of unburdened title from Mayo County Council.

In terms of job creation, Enterprise Ireland activity is focussed on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, HPSU, the retention and creation of new jobs in existing companies and in enhancing the innovation capability of Ireland at a national and regional level through support of research in companies and third level institutions. A new Enterprise Ireland supported HPSU company, Heatsolve Limited, commenced operations in Ballina in early 2005.

Additional information not given on the floor of the House.

The overall aim of Enterprise Ireland's strategy is to transform Irish companies into market focused and innovation driven businesses and to increase their exports, sales and employment. Enterprise Ireland has approved funding support of more than €6.4 million and paid more than €2.9 million to companies in County Mayo in the period from 2003 to date. Of this, Enterprise Ireland client companies in the north Mayo area have been approved funding of more than €1.2 million.

Enterprise Ireland has worked in close co-operation with Mayo County Council in the development of the broadband metropolitan area networks in Ballina and Kiltimagh, both of which are now complete.

During 2005, Mayo County Enterprise Board approved a total of €437,965 to 23 projects and paid out €301,239 in grant assistance, which resulted in the creation of 53 net jobs in county enterprise board-assisted companies throughout the county. Five of the 23 projects which received a grant approval in 2005 were in the Ballina area and accounted for €82,400, or 19%, of the total grant approvals in Mayo in 2005. To date, a total of €28,579 has been paid out by Mayo County Enterprise Board.

Mayo County Enterprise Board's 2006 programme budget is, at more than €900,000, 12.9% greater than the 2005 allocation. This increase enables Mayo County Enterprise Board to fulfil its function and remit in maximising entrepreneurial development in the microenterprise sector throughout the county.

I am satisfied the policies being pursued by the agencies under the remit of my Department, together with the Government's commitment to regional development will continue to bear fruit in terms of the creation of sustainable development for the people of Ballina and of the west generally.

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

I thank the Minister for his reply. I have had numerous replies from the Minister in this regard as I have raised the issue consistently. As for the 27 acre park, it is disgraceful that the IDA still lacks a site, premises or business park that can be marketed, sold or exhibited to potential investors. This is a scandal and marks a Government failure. In the past nine years,Ballina has lost 1,340 jobs and only 400 replacement jobs have been created, which constitutes a net loss of nearly 1,000 jobs. I can only describe this as a mortal blow.

Ballina is an unemployment black spot. Although the Minister cited an unemployment rate of 4%, the rate stands at 11% in Ballina, which is twice the national average.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Where did the Deputy acquire that figure?

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

The numbers on the live register in Ballina exceed those for the entire County Roscommon, which speaks for itself. The fast-tracking of the industrial park on the Sligo Road must be ensured because the IDA needs a site.

Moreover, while the Minister may assert that the N26 Ballina to Bohola bypass is the responsibility of the National Roads Authority, he must exercise his collective responsibility as there must be some movement in this regard.

Although the Minister stated the IDA is playing its part, this is not the case and it has failed miserably. The IDA denies it is at fault and points to the absence of infrastructure in Ballina, which is abysmal. In previous replies, the Minister claimed to be confident that the national development plan would bear fruit for Ballina. However, there has been an underspend of €3.8 billion, including a €500 million underspend on transport. How can Ballina survive without the requisite infrastructure to make it competitive? This is the story of the west. Can the Minister do better than this?

Apparently, a couple of hundred million euro in seed capital will be made available. Will any of it be made available to Ballina companies? Will any of it reach companies from Mayo, or from the west, to allow people from Mayo to rise above their present abysmal state? The scale of failure has been abysmal. While the Minister has claimed advances are being made in respect of the business park, in reality the only advances being made are in the state of neglect of the west and of Ballina in particular. Can the Minister shed some light in this respect?

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Unemployment has been reduced in Ballina from 1,437 to 1,308 in the past year. Members should be careful in respect of the language they use.

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

The Minister should try to tell that to 2,000 people plus.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I was in Mayo recently and to describe either conditions or indigenous business there as abysmal is ridiculous and should not be done. County Mayo has a good indigenous sector, with some excellent local companies which create good employment. While challenges certainly exist in respect of infrastructure, there is a significant number of positive factors in County Mayo, not least the number of strong indigenous companies that deserve to be supported and to have their successes articulated. The word "abysmal" does not rate and is inappropriate and irrelevant to the quality of many of the companies which operate there.

As for venture capital funding, I anticipate that a number of new high potential start-up companies in Mayo and, hopefully, in Ballina, will emerge and will avail of the funds. The money in question is not given away. It must be earned in terms of the quality of companies, their products and new ideas. The money will follow ideas and products which have good commercial realisability, potential etc.

In addition, the Department has received good feedback from towns in County Mayo in terms of responding to Enterprise Ireland's community enterprise centres. I understand ten community enterprise centres have been funded in County Mayo, which illustrates good local community attitudes to enterprise and a willingness of local communities to develop their own companies and so forth. As the Deputy is aware, the most recent case concerned IRD Kiltimagh Limited, for which €300,000 has been approved for an expansion to its existing centre.

I visited the Galway-Mayo Institute of Technology recently to open the innovation centre on the Castlebar campus. This also constitutes a good success story which augurs well for a good relationship between that institute and local businesses.

As for the IDA and the proposed site, this is one of the biggest problems in respect of foreign direct investment. The Deputy cannot blame the IDA for this, as some people do, as there is a problem with the title of the site.

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

Surely, another site could be procured.

Séamus Pattison (Carlow-Kilkenny, Labour)
Link to this: Individually | In context

The Minister should be allowed to speak without interruption.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I understand IDA Ireland does not want to sell short the county council which invested significantly in that site as part of an agreement. I accept people have different ideas and members of my party articulated to me that perhaps a different site should have been selected a number of years ago. I cannot retrospectively resolve that.

This is a major challenge. Ideally, securing that site would open up and pave the way for a more effective approach to attracting industry, and I must acknowledge that. However, one cannot state it is a matter for IDA Ireland alone. Locally, heads must be put together to see whether we can resolve it.

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

Does the Minister think that an 11% unemployment rate is abysmal?

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

From where did the Deputy get that figure?

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

It is twice the national average rate and more than County Roscommon. It is abysmal. The Minister must take action on Ballina.

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I do not know from where Deputy Cowley got the figure of 11%. The live register is not the unemployment register and the unemployment rate is reducing in Ballina. I met the chamber of commerce in Ballina and people there are anxious to bring in foreign direct investment as well as developing their own. That is the issue. Regarding the site development works, the most pressing challenge is locating and securing title to the site so we can develop it and make it available to potential foreign direct investors.