Dáil debates

Tuesday, 22 November 2011

2:00 pm

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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Question 60: To ask the Minister for Jobs; Enterprise and Innovation the initiatives, policies and or steps he has taken or will take to tackle the unemployment crisis in County Kerry which currently boasts a worrying unemployment rate of approximately 20%; the action he will take to address the loss of jobs due to the phased closure of a company (details supplied) in Castleisland; the stage the proposed development of the Pretty Polly building in Killarney and the Global Pharmaceutical Centre of Excellence in Tralee as potential employment hubs have reached and the projected completion times for both; and if he will make a statement on the matter. [36663/11]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The enterprise development agencies under the remit of my department provide a suite of support measures and interventions that help to support job creation and job retention across the country as a whole, including County Kerry. The overall mix of incentives varies from fiscal policies, such as the 12.5% corporate tax rate that all companies can avail of, to targeted supports or incentives designed to stimulate specific types of business activity. These incentives include funding for certain capital investment, job creation, research and development, training, marketing, and management development. The focus of Enterprise Ireland support, in collaboration with the county enterprise board, is on measures to promote high potential start-up companies, increase productivity, develop management and international sales capabilities, facilitate access to equity and finance and to support entrepreneurship and micro-enterprise.

As regards the specific issues raised by the Deputy, since the announcement by Aetna to close its facility at Castleisland on a phased basis by the end of 2011, IDA Ireland has worked to attract other international financial services operations into the region. In addition, IDA Ireland has worked with Aetna to construct a prospectus setting out the skills and capabilities of the workforce and a profile of the Castleisland facility, which IDA is using as part of its efforts to attract alternative employment to Castleisland. IDA has highlighted the skills and capabilities of the Aetna workforce to a number of relevant investors. While several initial expressions of interest have been identified, IDA continues its efforts to attract genuine prospects to Castleisland.

IDA has been successful in attracting JRI America Incorporated, a subsidiary of Japanese financial services company Sumitomo Mitsui Financial Group to locate in the Kerry Business Park in Tralee, County Kerry. The company announced plans in September to establish a software development operation in Tralee, which will create up to 100 highly skilled positions over the next few years with recruitment already under way for several positions.

Additional information not given on the floor of the House

Officials from all three enterprise development agencies, IDA, Enterprise Ireland and Shannon Development have been in negotiations with Global Pharmaceutical Centre of Excellence, GPCE, at various stages since the this project was first announced. I understand that all the agencies have agreed a collaborative approach whereby GPCE would receive whatever comprehensive support is available. I am informed that Enterprise Ireland, which is willing to support any viable business proposition, is awaiting a new business plan from the promoters of GPCE while IDA has commenced discussions with one company proposed by GPCE. As regards the Pretty Polly site in Tralee, this site is the property of Tralee Town Council and not IDA. I understand that IDA is endeavouring to source a suitable prospective tenant for the building and is working with the town council on the detailed specification of the buildings to assist with the efforts.

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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In the past few years County Kerry has become a commercial and industrial wasteland. That is the honest reality; we have lost numerous companies in the last ten to 20 years. In my motion I mentioned Pretty Polly which at its peak employed 1,100 people. There were 1,000 jobs lost in Burlington in Tralee and another 500 in Denny.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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The Deputy must ask a question.

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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I am trying to give an insight to what is happening in the county. Liebig in Killorglin has closed, while Aetna Company has been the subject of a phased closure in recent months. I urge the Minister to redouble his efforts to find a suitable employer for that facility. Castleisland has been seriously neglected. Moral is at a low level because of these job losses. The company indicated to me a few months ago that it would hand the plant over to the local authority and the Minister told me then that he understood it would be sold by the company. Will he intervene to ensure the facility is handed over to Kerry County Council or a local authority body?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I did not say anything about selling any site; IDA Ireland is promoting the Castleisland site. The Deputy asked about the global pharmaceutical centre of excellence and officials from all three enterprise agencies, IDA Ireland, Enterprise Ireland and Shannon Development, have been in negotiations since it was first announced. All the agencies have agreed to a collaborative approach, whereby the GPCE will receive whatever comprehensive support is available. Enterprise Ireland which is willing to support any viable business proposition is awaiting a new business plan from the promoters of the GPCE, while IDA Ireland has commenced discussions with a company proposed by the GPCE.

The Deputy asked about the Pretty Polly site in Tralee. That site is the property of Tralee Town Council, not IDA Ireland which is trying to source a suitable tenant for the building and working with the town council on the detailed specification of the building to assist in seeking applicants.

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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I thank the Minister and the Minister for Arts, Heritage and the Gaeltacht for facilitating a meeting with Enterprise Ireland and IDA Ireland in recent months. We hope the rewards will be reaped and that a substantial number of jobs will be provided in the pharmaceutical centre proposed for Tralee. The Pretty Polly site is an ideal location. Pretty Polly employed up to 1,100 people at one stage and I urge all Ministers to find a suitable project, be it in education, enterprise, technology or manufacturing. This is a wonderful plant of substantial size.

What is happening with the Shannon Energy Valley initiative? There has been a lot of bureaucratic messing that has held up the project. In the region of €500 million has been invested in the liquid nitrate gas proposal which has dragged on for a number of years, with various impediments. I ask all Ministers and the Taoiseach to get involved and make an all-out effort to finalise the project because otherwise it will be lost.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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While the Pretty Polly site is very valuable, there are questions about the need to convert the building into units that would make it more usable. That issue may need to be explored locally.

I met the sponsors of the LNG project. The key issue in this regard relates to the pricing of gas and whether a fee must be paid in respect of interconnectors. The issue relates to a role that does not fall to the Government but to the Commission for Energy Regulation. That is my understanding of the current position but I would need specific notice to be able to elaborate thereon.