Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 6: To ask the Minister for Enterprise, Trade and Employment the strategy he or the IDA has on recently vacated industrial and business premises in rural locations; the priority he and the IDA give to finding replacement businesses for these premises; and if he will make a statement on the matter. [16752/08]

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 and it is not a matter in which I have a function.

When client companies of IDA Ireland or Enterprise Ireland vacate a premises on IDA-owned property the agency's first priority is to market the premises for a suitable replacement activity. The use to which IDA property can be put is prescribed by legislation. If the premises is no longer considered to be strategic in terms of the agency's marketing strategy, or is not suitable for Enterprise Ireland client needs, the approach is usually to the local county council to seek an expression of interest in the property. If no interest is shown the property will usually be placed on the open market.

IDA's portfolio of buildings in rural locations has been reduced dramatically in recent years. The policy decision to divest of buildings was taken in the 1990s and this decision was reaffirmed in the expenditure review of the IDA Ireland property programme, which 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 maximise the financial return to the Exchequer in disposing of property.

The IDA's current focus is on delivering appropriate facilities in line with the national spatial strategy. World-class business and technology parks and buildings are being developed in regional locations that complement the spatial strategy with the aim of enhancing the overall development and potential economic gains of these locations. The focus is primarily to provide and develop property solutions in the gateway and hub locations. New buildings provided on IDA parks are under a partnership arrangement between the IDA and private developers.

In line with the commitment which we have made in the programme for Government, arrangements are currently being finalised for an enterprise audit to review the use of existing and redundant agricultural buildings and manufacturing plants in rural areas and IDA Ireland is fully co-operating with this initiative.

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

I am concerned not only with premises owned by the IDA but also those owned by companies such as NEC in Ballivor, County Meath. If a large company departs from a small village, as almost happened in Westmeath recently, the rural area loses its heart. Apart from the jobs in the company itself, other jobs are also affected such as those in smaller businesses, the service industry, the post office and shops. What is the drive to replace these jobs?

I accept that the marketing strategy of the IDA must focus on large towns and large industrial parks. However, where an existing premises exists with a history of having jobs located there does the Minister envisage changes whereby such gaps are filled first? The Minister stated action is taken in conjunction with county councils and enterprise boards. I can only speak from my experience in County Meath, and I will not claim it happens everywhere else, but I fear we have a lack of focus on the empty buildings and the county councils, enterprise boards or the IDA do not take on trying to fill them. They seem to fall between stools and remain empty for a number of years. I am concerned this happens across the board. I do not want to be local. Nationally, is there a drive to fill them first?

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

Yes, but obviously it depends on the owner of the building and the objectives he or she may have for the building.

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

I accept that.

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

In some instances, the owner is co-operative and constructive. If this is so, the agencies will work with the county council to preserve the employment zoning such a building enjoys, which is critical. The IDA or Enterprise Ireland, county enterprise boards and county councils will work together to ensure economic activity can be retained in a particular building or facility. The IDA markets such buildings and facilities and sometimes do so in partnership with the owner. However, the owner must indicate to the IDA that he or she does not have other plans.

If a similar enterprise can be placed in a ready-made facility it can help in the overall drive to bring investment to an area. In other words, if it can be shown that a facility exists and that it can meet the needs of a company with a small amount of adaptation, that can help sometimes although not all of the time. Sometimes the larger buildings are bought by a developer who transforms them into a business park for small business units. This is also acceptable if it keeps the location as a magnet for employment in the region.

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

Will the Minister take steps to accelerate the carrying out of an audit of these buildings? A significant number of them exist throughout Ireland. Where a disaster happens from a jobs perspective in an area surely a major selling point, apart from the expertise of the skilled workforce which can be retrained under the new upskilling programme, is the availability of a building. This is of paramount importance in seeking to secure alternative employment and industry for an area.

Will the Minister also ensure that where the IDA has control of an area it works with the local authority to enable it to work with individuals and entrepreneurs by providing land for small incubator units? These could provide five to ten jobs. I come from a rural area and the future of rural areas will be dependent on the provision of large numbers of significant small industries. While we should continue to pursue the objective of attracting 200, 300 or 400 jobs to a rural area it may not be as feasible as it was. We must recognise this. In terms of rural locations small is also beautiful.

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

I agree with the Deputy and I will work to obtain the audit which is under the remit of the Department of Community, Rural and Gaeltacht Affairs which initiated the idea. We are anxious to co-operate with it and it would be useful. Deputy Penrose is correct to state that property solutions and facilities are important. It is part of the jigsaw which brings investment to a location.

County councils have been involved in many of Enterprise Ireland's community enterprise programme centres through funding or providing the greenfield sites where the centres are built. They have become important centres of incubation. In places such as Mallow and Carlow, I notice county councils are working with local interests on how to turn the Greencore facilities into new economic opportunities.

Deputy Penrose is correct that we should create the facilities to enable the indigenous sector to obtain good quality facilities and business. This is critical and I impress it on county managers. Some are more proactive than others on this agenda. It makes a difference because indigenous companies are growing. People starting off in one location might need to expand and might need a newer facility.

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

In general, is the Minister satisfied with the way the IDA manages its property portfolio? Without talking about the large land banks, and I accept it must have some land banks, in January I received figures from the IDA stating that 42% of its properties were vacant, including in the Airways Industrial Estate and on Gardiner Street in Dublin. In recent days, I also obtained figures from the Minister to show that approximately 40 IDA properties and buildings have been vacant for more than five years, 20 of which are leased from a private owner and have been vacant for five to ten years. One property leased from a private owner has been vacant for more than ten years.

If I were in the Minister's job, in my first week I would call the IDA to establish why the hell it spends large amounts of money renting buildings from private landlords to leave them vacant for five, six or even 11 years. The Minister must ask the IDA what is going on. Does the Minister have confidence in how the IDA manages its property portfolio?

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

It is 40% of a much reduced number. Since 1998, the number of properties has been reduced from 523 to 164, which is a drop of 69%. The IDA has had a progressive and dramatic divesting of properties. That said, that any property would lie vacant for more than five years is not satisfactory. I remember on the previous occasion we discussed this I made the point about a location in Carlow which was idle for three years prior to the arrival there of Merck, Sharp and Dohme. We must have patience in respect of quality parks. However, I acknowledge some of these are not in this vein.

Generally speaking, the policy is to have strategic land sites, such as Athenry and Oranmore. In the south east and north east, the IDA is developing land sites that facilitate the type of strategic industries it is seeking and has sold off a whole range of small plots and units. The money earned from the sale of these small plots and units was used to fund the strategic sites initiative.

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

I would be interested to hear who are the landlords; it would make interesting reading.

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

The Deputy will not be able to get that information.