Dáil debates

Wednesday, 21 June 2006

1:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 40: To ask the Minister for Enterprise, Trade and Employment the measures he and job creation agencies are taking to create the potential of 3,500 jobs at the Ennis Information Age Park in Ennis, County Clare; the current employment numbers at the park; and if he will make a statement on the matter. [24056/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Job creation measures in the Ennis Information Age Park, IAPE, and elsewhere are a matter for the relevant industrial development agencies and not one in which I have any direct involvement. As I indicated in response to previous similar parliamentary questions, Shannon Development's 30-acre information age park in Ennis, which opened on 9 June 2005, is in the early stages of a long-term development. The park is intended to provide a high potential start-up base for Ennis and County Clare which will also accommodate appropriate foreign direct investment companies brought to Ireland by IDA Ireland.

Shannon Development estimates that, when completed, the park has the potential to facilitate the creation of an estimated 3,500 high value jobs in more than 700,000 sq. ft. of high quality office accommodation. At present, the total space let to enterprises is 5,000 sq. ft. and more than 8,500 sq. ft. are available for letting in three units of large floor office space suitable for second stage incubation projects.

Phase one of the project involves an investment of €11 million by Shannon Development in a new InnovationWorks facility designed to fast-track the development of Irish high potential start-up enterprise. Shannon Development estimates that €110 million will be invested between the public and private sectors in the new park over the next 15 years.

Prior to the opening of the park, Shannon Development had 12 Irish industry client companies in the Clare Business Centre. All 12 companies transferred to the park when it opened because the Clare Business Centre was subsequently closed as part of Shannon Development's strategy of building a more modern business friendly incubation centre. One of the 12 companies subsequently closed. In addition to the transferred companies, three new companies formed since the park opened. The total employment in the client companies which originally transferred to the park was 17. The number of new jobs created by those 11 transferred companies and the three new companies formed since the IAPE opened is 20, bringing the total to 37. Shannon Development is confident that the early growth shown will continue to develop in the future.

In addition, Shannon Development accommodates Clare County Council which will rent 20,000 sq. ft. of office space at the park until it moves to its new headquarters next year. This is a short-term arrangement and Shannon Development has held back sufficient space to accommodate potential foreign direct investment client requirements by IDA Ireland.

Shannon Development will continue to attract and help establish high potential start-ups in the park through its venture development process. This process encapsulates the various stages of business development from idea generation, feasibility study stage, project development, market launch and business expansion and offers an integrated package of business development programmes to achieve this. IDA Ireland works closely with Shannon Development in the provision of suitable property solutions for potential investors to the county. The development of Ennis Information Age Park has become an integral part of IDA Ireland's international marketing programme and will be pivotal in attracting new investors.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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I thank the Minister for his reply. I was present last year when he officially opened the Ennis Information Age Park. Regarding the potential for 3,500 jobs, the first phase cost Shannon Development approximately €11 million. Does the Minister think the creation of only 20 jobs in the first year is a very poor return for an investment of €11 million?

Has confusion over who is involved when it comes to enterprise activities in Clare led to a downward trend in job creation in Ennis and surrounding areas? Will the Minister assure me that, on switching Shannon Development's enterprise functions to IDA Ireland and Enterprise Ireland, they will be able to attract more indigenous and foreign investment industry?

Approximately 4,500 people leave Ennis and its surrounding areas every day to commute to Limerick and Shannon. Ennis is becoming a dormitory town. Approximately 570 jobs were lost between 1999 and 2005. Organic Lenses and Monster Cables created approximately 100 and 50 jobs respectively. Will the Minister elaborate on the role of Enterprise Ireland in attracting industry to Ennis Information Age Park? Does he agree that IDA Ireland's performance in Ennis was very poor? Does the Minister believe it is value for money to spend €11 million to create 20 jobs in 12 months while there is potential for 3,500 jobs?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Shannon Development is responsible for the development of Ennis Information Age Park. It always made clear that it is a 15 to 20-year development. I understand all local Deputies supported that initiative by Shannon Development and continue to do so. To be fair to Shannon Development, it almost manages within its own resources. The manner in which it developed its property portfolio generated significant revenues which enabled it to plough it back into enterprise development.

The most recent successful company it supported was Stockbyte, based in the technology park in Tralee, which was floated and is a great success. I met Stockbyte representatives prior to the floatation and they articulated strong appreciation for the role of Shannon Development in the company's early stage support.

I gave a new mandate to Shannon Development which gives it certainty and security in terms of the broad regional economic development of the region in the future. It is important that the national and international resources which Enterprise Ireland has are brought in a more focused and effective way to many of the indigenous companies in the Shannon region. That would be a win-win situation for all concerned.

Clare has a strong foreign direct investment base, contrary to the rhetoric articulated from time to time. Total State supported foreign direct investment employment now represents approximately 15% of the labour force in County Clare. That compares with 7% in the national labour force. I accept that includes the Shannon Free Zone as well as IDA Ireland backed employment. Clare has been a good magnet for foreign direct investment.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Not Ennis.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Clare has been and Ennis is——

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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What about Ennis? That is the priority question.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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With respect, Deputy Pat Breen mentioned other places in County Clare.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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A total of 570 jobs were lost in the Ennis area.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Towns will always have ongoing issues. We must include——

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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It is the capital town.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I want people to examine matters with a regional focus. If we cannot even consider matters with a county focus, our industrial policy will go nowhere fast strategically. County Clare has strong quality companies such as Roche, Olympus and Essidev which provide high quality jobs and are expanding. Deputy Pat Breen might be interested to know the employment in IDA Ireland companies had strong growth in 2005. It increased by 10%. It is not only about bringing in new companies. It is about increasing the range and functions of existing companies to increase employment, which happened in 2005. Clare is especially strong on pharmaceuticals and medical technologies. With progress on the Ennis bypass and the environmental impact study on the Crusheen to Gort section of the N18 which was published in February, we are also acting on infrastructural issues which are important for job creation.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Regarding the 3,500 potential jobs at Ennis Information Age Park, are any new jobs in the pipeline for that centre? I know Clare County Council takes up some of it. Does the Minister consider 20 jobs at a cost of €11 million is good value?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Stage one involves an investment of €11 million and all the infrastructural work. I would like to see more jobs but, having said that, Shannon Development has always made it clear that it is a long-term, 15-year project. We will give any support we can to Shannon Development to support companies to base themselves at the location in question, be they indigenous or foreign direct investors.