Dáil debates

Wednesday, 12 December 2007

8:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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I have raised this issue for two reasons. First, I submitted a parliamentary question to the Minister for Enterprise, Trade and Employment on 29 November last. The figures outlined in the Minister's response were disappointing. I learned that just five IDA-backed companies have opened in County Limerick since 2002. There have been seven start-ups in the mid-west region as a whole during that time. No new IDA-supported projects opened in County Limerick in 2002, 2003 or 2004. There was one start-up in each of 2005 and 2006 and there have been three start-ups to date in 2007. While the people of Limerick welcome such developments, we do not think they make a significant difference to the county's employment figures.

Recent IDA reports indicate that the number of IDA-backed jobs in Limerick increased by just 139 between 2002 and 2006. Our counterparts in Dublin enjoyed an increase of 3,373 in the number of IDA-supported jobs over the same period. The increase was 1,812 in Cork and 1,567 in Galway. Some counties with smaller populations than Limerick enjoyed larger increases in IDA-backed employment — there were increases of 742 in Kildare, 529 in Waterford and 407 in Leitrim. Jobs have been lost from two Limerick companies over the past year. The loss of over 100 jobs at Fulflex and a similar number of jobs at Atlas Aluminium was hugely significant for the region.

Second, Limerick will have to deal within a month with the closure of the Aer Lingus service between Shannon and Heathrow. The people of the mid-west will be at a major disadvantage when they are no longer able to access 40 cities throughout the world. The Government gave Aer Lingus permission to discontinue the service, in effect, when it failed to use its 25% stake to ensure that the Aer Lingus decision was reversed. The loss of the Heathrow service will do major damage to Limerick and the rest of the mid-west region. Furthermore, Aer Lingus has not committed to providing transatlantic flights from Shannon after the summer of 2008. Many people in the mid-west are worried that Aer Lingus will stop its transatlantic flights after it has ended its Heathrow service, especially now that we have entered the open skies era.

I note with interest the recent suggestion on the part of the Minister for Transport, Deputy Dempsey, that the Government might renege on the mid-west's €53 million tourism and economic development plan, comprising €44 million for tourism development and €9 million for route support. This cannot be allowed to happen. The plan was produced in June 2006 by the Mid-West Regional Authority in association with all the stakeholders in this sector. It was launched amid great fanfare in July 2006 by the then Minister for Transport, Deputy Cullen. Two other Ministers — the then Minister for Arts, Sport and Tourism, Deputy O'Donoghue, and the Minister for Enterprise, Trade and Employment, Deputy Martin — were involved in the production of the report at that time. I note that the Minister, Deputy Martin, who is the only one of the three to remain in the position he held at that time, is not present for tonight's debate. The €53 million plan must be retained to allow the mid-west region to market itself in the new environment that is developing as a result of the introduction of the open skies agreement.

I welcome the arrival of any IDA-backed company in the mid-west. State-supported companies account for more than 17% of total employment in the region, whereas nationally the figure is as low as 14.8%. I want the Minister of State to make absolutely certain that Limerick will be given priority by the IDA for the introduction of new large-scale companies.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I thank the Deputy for raising this matter. I refer to competitiveness in the global market place. IDA Ireland is actively pursuing all opportunities to promote Ireland as a whole but it also takes regional development into account in order to achieve a balance across the country.

I note projects such as the Atlantic rail corridor, the tunnel under the Shannon, the University of Limerick and other infrastructural developments in County Limerick. The region is a key area and the IDA is at the forefront in promoting research and development, linking up high value-added and knowledge-based companies with universities. These are the types of projects being promoted by the IDA in its travels throughout the world.

I acknowledge the great work being undertaken by the IDA in promoting Ireland as a whole. The Deputy is correct in that some areas benefit more than others in the context of embryonic spin-offs from large companies already situated in a place. The IDA cannot direct where a company wants to set up but we can encourage and direct it into certain areas and this is being done. The mid-west has a very strong IDA-supported employment base which it is hoped will continue.

Reference has been made to access to the mid-west. The Government is actively pursuing airlines and encouraging them to consider Shannon Airport. The open skies policy is in place but I am confident that Shannon Airport will continue to prosper in the context of the transatlantic routes as it is the nearest link to the east coast of the United States. I do not share a pessimistic view of what is happening in the mid-west in which there are great opportunities as a result of large capital infrastructural developments. The IDA must take note of balanced regional development but the Deputy will understand that it cannot direct a company to locate in a particular area, as this decision is based on other considerations such as sister companies and others engaged in similar activity.

I will endeavour to obtain a more detailed reply for the Deputy, as I know he has strong opinions on the subject. I will highlight his concerns and convey them to the Minister, Deputy Martin, and the IDA.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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May I ask a supplementary question?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I am afraid not, as there is no provision for supplementary questions.