Enda Kenny (Mayo, Fine Gael)
Link to this: Individually | In context

Question 59: To ask the Minister for Enterprise, Trade and Employment if he will ask IDA Ireland to make available to local authorities, enterprise boards and community groups the large number of vacant properties in its possession, to be used as incubator units for small business or for an alternative appropriate use; and if he will make a statement on the matter. [31330/07]

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

Under the Industrial Development Act 1986, as amended by the Acts of 1993 and 1995, IDA Ireland has the power to acquire, hold and dispose of land and any other property or any interest therein for the purpose of facilitating an industrial undertaking. Accordingly, the management of IDA Ireland's industrial property portfolio is a day-to-day operational matter for the agency, as part of the statutory responsibility assigned to it by the Oireachtas. It is not a matter in which I have a function.

The agency has a stock of buildings that it either owns or leases. These are marketed along with buildings on its industrial parks that are owned by private developers. The use to which IDA Ireland property can be put is prescribed by legislation and the disposal of property for any alternative use requires the consent of the Minister of the day. However, the agency is always available to discuss proposals regarding availability or suitability of individual buildings with local authorities, enterprise boards or community groups, and I will be pleased to consider any request for such consent should it be required.

With regard to the 67 buildings that are owned by IDA Ireland, 28 of these are now vacant. Of these 28 buildings, a total of 11 are classified as available. However, only four smaller units of these 11 buildings are considered suitable for use by small business and the agency is in discussion with the respective local authorities regarding passing the buildings to them. The other seven buildings that are classified as available would not be suitable for use as incubator units or for small businesses.

With regard to buildings that are leased by IDA Ireland, there are several large factory buildings which it leases in gateway, hub and other towns for use by client companies of the agency, Enterprise Ireland and the county enterprise boards. These buildings would not be suitable for use as incubator units. Conversion costs and the relatively short period left in the leases would make it uneconomic to refit them for such a purpose. They were designed as single-occupant facilities for manufacturing use. However, IDA Ireland also leases 18 smaller units, which are available, and is in discussion with the landlords and local authorities regarding their future use. Each of these units will be assessed on a case-by-case basis.

The number of buildings in which IDA Ireland has an interest has fallen dramatically in recent years. The policy decision to divest of buildings was taken in the 1990s and this decision was re-affirmed in the expenditure review of the IDA Ireland property programme that was concluded in 2004. In disposing of these buildings the agency must balance the need to have properties available in key locations that will help it deliver on its mandate. The agency must also seek to maximize the financial return to the Exchequer in disposing of property.

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

I thank the Minister for his reply. I acknowledge that he does not have day-to-day responsibility for the activities of IDA Ireland. I accept it is now the policy of IDA Ireland to move away from owning and operating properties. At the time that policy was adopted, 18% of the agency's properties was vacant. However, although it has since off-loaded many of its properties, there is now a vacancy rate of 41%. In other words, the number of vacant properties has increased phenomenally despite this policy of off-loading buildings.

Would it be appropriate for the Minister to request an audit of all vacant properties and to ask IDA Ireland, within a defined timeframe of perhaps one or two years, either to dispose of properties that are no longer suitable or to make suitable properties available to local authorities, county enterprise boards or local community groups?

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

Where it makes sense in local environments, we work with IDA Ireland to make a site available for an enterprise centre, for example, or for indigenous enterprise as opposed to foreign direct investment. Some 41% of properties are vacant but this percentage relates to a much smaller total than was the case previously. In 1998, there were 613 buildings in the IDA Ireland portfolio, but this figure has decreased to 150.

I issue a note of caution in response to the Deputy's suggestion. Yesterday, we announced the investment decision by Merck, Sharp & Dohme to open a 65-acre facility in Carlow. I have visited Carlow frequently in the past three years and the pressure was on us to lease that site. We almost leased a small part of it to an indigenous enterprise but that arrangement fell through. In hindsight, this seems like a positive outcome because the 65 acres are adequate for a value-added, high-end manufacturing investment. This is an example of a case where one might lose out by getting rid of property too quickly and so be left without options. In Ballina, there have been long-standing difficulties in securing a site for the county council to market the town for the purposes of securing foreign direct investment. That scheme is being held up by legal difficulties between the council and the vendor.

IDA Ireland's strategic approach to property is to dispose of those it does not need, to develop more strategic land sites, such as those in Oranmore, Athenry and in the north east, that can accommodate high-end industry, and to use the private sector more effectively.

Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

I am sure the Minister is aware of the difficulties encountered by entrepreneurs in getting started in business. I agree entirely with the sentiment of the question and the points made by Deputy Varadkar. Does the Minister accept that one of the difficulties experienced by entrepreneurs is acquiring accommodation? The Minister does not have responsibility for planning but would he be prepared to advocate within the Department of the Environment, Heritage and Local Government to secure some provision for what might best be described as "garage industry" for a limited period, thus enabling and facilitating enterprise?

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

That is a fair point. Through Enterprise Ireland's enterprise centre programme, we have allocated significant funding for enterprise. In recent weeks, for instance, we announced a significant raft of decisions in regard to enterprise centres throughout the State, particularly in rural areas and in those counties that may not have had the same success as others in securing foreign direct investment.

In regard to planning, I have encountered individual cases in rural areas, for example, where long established businesses struggle when new planning edicts or frameworks are introduced. Such businesses, which may have been providing as many as 100 jobs for a long period, often have limited capacity to expand other than through the purchase of expensive properties close to a town. I ask planners and local authorities to give greater consideration to the needs of enterprise in this regard. Account should be taken of history and heritage and how these businesses have functioned in communities. These are not fly-by-night entities but people who have been in business for many years and have come under pressure in recent times to move to expand, with significant cost implications.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context

Will the Minister issue instructions to local authority planners to zone a certain amount of land to facilitate enterprise? It is often the case that planners are unwilling to zone too much land, for whatever reason. Guidance from the Department in this regard would be useful.

Will the Minister consider assigning vacant land in the ownership of IDA Ireland for the purposes of providing car parks to serve small businesses in towns in which there is significant traffic congestion? There are parking problems in most towns that are not bypassed and businesses there are under serious pressure because of lack of footfall. The provision of temporary parking facilities on vacant land belonging to IDA Ireland would remove employees' cars from the town centre. Is the Minister open to considering such a scheme?

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

I am not in a position to instruct local authority officials.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context

I accept that. I refer to guidance rather than instruction.

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

I take the Deputy's point. We work closely with local authorities and there are many pro-enterprise county managers and town clerks throughout the State with innovative development plans. In Mallow, for example, a proactive leadership approach is being taken in terms of involving the local community in decisions regarding the zoning of land for enterprise purposes. In Dungarvan, there have been positive responses from the county manager in terms of providing sites and engaging with enterprise.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context

Some of the planners get it right.

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

That is the model we want. We invariably find that the types of practices to which the Deputy referred occur most often in those areas that are loudest in seeking investment but have the least proactive policies.

The Deputy's second question relates to a function of local authorities. Park and ride facilities are the type of infrastructure that can best facilitate access to parking for workers. There has been innovation from some local authorities in this regard.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context

If vacant IDA Ireland properties are available, is the Minister willing to allow them to be used to provide temporary car parks?

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

That is a matter for local authorities. It can only be decided on a case-by-case basis.

Damien English (Meath West, Fine Gael)
Link to this: Individually | In context

I ask only that the Minister does not rule out such an arrangement.