Dáil debates

Thursday, 1 December 2011

Topical Issue Debate

Industrial Development

3:00 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

I thank the Ceann Comhairle for selecting this important issue for debate during Topical Issues. This matter was discussed the other evening at a town hall meeting of Mullingar's business community, which I attended. I would like to give some background to this matter. I will preface my remarks by saying I do not hold the Minister of State, Deputy Sherlock, personally responsible for any of this.

Photo of Michael McCarthyMichael McCarthy (Cork South West, Labour)
Link to this: Individually | In context

Go for him.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

We have had enough of that today. A 68-acre site was purchased by IDA Ireland in 2002. It was intended that a great new technological park for the town of Mullingar would be developed on the site. Permission was granted to install all services on the site in 2003. The park is now fully served by road, broadband, electricity, public lighting and footpaths. The attention to detail was such that the park even has a bus stop. Permission was subsequently granted for two units in an effort to attract new business to the town. The park is totally empty today, however. It is being used for grazing purposes. I wonder how much those grazing cattle are costing the Exchequer. Historically, the people of Mullingar have not had good experiences with IDA Ireland. In 1997, IDA Ireland announced that Oxford Health Plans was planning to locate in Mullingar and intended to employ 500 people. The firm had 40 staff in Mullingar at first and increased this to 180 before it closed its doors two years later. Similarly, the Hon Hai Precision Industry Company located in Mullingar in 1999 to great fanfare but little came of it.

I have submitted a number of parliamentary questions on this matter since I was elected to the Dáil. Most recently, in October of this year, I asked the Minister for Jobs, Enterprise and Innovation to state the number of visits by potential clients to the IDA Ireland park in Mullingar that had taken place since February 2011. The Minister said in reply that he had been "informed by IDA Ireland that so far in 2011, the agency has hosted three site visits by potential investors to Mullingar". That is nothing short of disgraceful and shameful, particularly when one examines the site visit figures for other IDA Ireland parks in the region. When representatives of IDA Ireland addressed Westmeath County Council on 11 May last, they said there is no such thing as a fair share or an equal slice when it comes to bringing direct investment and jobs to Mullingar. IDA Ireland should market Mullingar as a priority location in keeping with its stated policy objective of balanced regional development and delivering 50% of projects to regions outside Dublin. What has Mullingar done wrong? It is strategically placed in the centre of Ireland and is well-serviced by a road infrastructure. Travel times from Mullingar to Dublin Airport and Dublin Port are two hours, an hour and a half to Galway, two hours to Belfast and two and half hours to Cork. Rail services have been improved over the past several years. Mullingar has a well-educated workforce and is close to major third level institutions such as Athlone Institute of Technology, which celebrated its fortieth anniversary as seen on "Nationwide" recently, and NUI Maynooth which is only 30 minutes away. However, the IDA still treats us as second-class citizens.

The Government recently decided to close the Army barracks in Mullingar with the relocation of 200 jobs. In its capital expenditure plan, it announced it would discontinue with the decentralisation of Department of Education and Skills offices to the town with a further loss of 300 jobs. While most decentralisation programmes were a bit airy-fairy, I was informed the Mullingar proposal was the most subscribed of all the plans.

Who will take control of IDA Ireland, as it seems to be a law unto itself? Will the Minister inform me what Mullingar needs to do for the IDA to stop ignoring a business park in the town in which it has invested millions of euro? The agency has failed abysmally in attracting jobs to Mullingar or to work with Enterprise Ireland or the local enterprise boards. It has hoarded this business park away for itself. Several companies have approached the agency to purchase units in the business park, only to be refused unless they had IDA approval. As the Minister knows, opening up just one unit can have a knock-on effect with other businesses opening in the vicinity. What are the Government's plans for job creation and investment in Mullingar? What are the Minister of State's proposals for this 68 acre functional business park, along with those of IDA Ireland and Enterprise Ireland, which is still being used to graze cattle?

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
Link to this: Individually | In context

I thank Deputy Troy for raising this matter. I have some sympathy for his position as I understand the frustration of any Deputy who represents areas outside of the large urban conurbations when it comes to attracting inward investment to their business parks. I too have had words with the agency when it comes to its policy of attracting inward investment to places other than the larger urban conurbations.

IDA Ireland's property portfolio comprises approximately 1,240 ha. Under section 16 of the Industrial Development Act 1986 the agency has responsibility for managing its property programme which consists of the acquisition and disposal of land, the development and servicing of land and the provision of building solutions. The programme has been designed specifically to support the promotion of Ireland and its regions as a suitable location for foreign direct investment, FDI, by providing tailored property solutions.

The midlands region is a priority for IDA Ireland and it is continuing to market the region, including Mullingar, to its existing clients and to potential new investors. In line with the national spatial strategy and IDA Ireland's strategy, Horizon 2020, IDA Ireland is focused on advancing regional economic development, primarily through gateway locations and in the midlands this includes Mullingar, Tullamore and Athlone.

The IDA has invested heavily in the business and technology park in Mullingar to make it more attractive to overseas clients. The agency has confirmed that it will continue to promote this park and other local private property options to secure new investments for Mullingar and its surrounding areas. As Ireland competes for high-end investments, the concept of scale is crucial to success. Leading corporations require a significant population of highly qualified talented people, effective physical and digital infrastructure, coupled with the availability of sophisticated support services, an attractive quality of life and proximity to third level institutions.

IDA Ireland is actively marketing the midlands gateway through its network of overseas offices and is in regular engagement with all local economic stakeholders including local authorities, midlands gateway chamber, county development boards, academia and Enterprise Ireland to develop constantly the value proposition for the midlands and to provide the most attractive conditions for growth.

With the improved infrastructure that is now in place, a significant number of people commute from within the midlands gateway. The IDA considers a project win in one midlands town to have a positive impact on the other surrounding areas due to the close proximity of all main locations.

As well as marketing the region for new greenfield investment, IDA Ireland continues to work with existing clients to deepen their mandate in Ireland and to continue to reinvest in their sites in the region. This encourages further business in areas which are compatible with our skills base and which are sustainable within our economy in the longer term.

The strategy of developing lands and property in advance of securing new business has been a fundamental and successful tool in the IDA's marketing to overseas clients. The ready availability of property solutions often eliminates the lead times normally associated with acquiring property and for completing necessary development work. It also allows for the commencement of projects at an earlier date by eliminating many of the potential difficulties associated with land acquisition, planning and construction.

It is an accepted that the role of the IDA in making available appropriate and timely property solutions tailored to the needs of prospective multinational clients has been a key contributor to winning FDI to Ireland.

I have been informed some clients tend to opt for site locations in larger urban areas. I agree with the Deputy that there must be a meaningful dialogue with the IDA around the designation of hubs in attracting inward investment to sites such as the one in question. There may also be a need to examine more closely how these sites can be better utilised.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

I thank the Minister of State for his reply. The IDA's policy states it would be in keeping with the authority's stated policy objective of balanced regional development to have 50% of projects delivered to regions outside Dublin and Cork. The Minister of State correctly pointed out that the midland region is receiving investment and he stated the gateway hub of Tullamore, Athlone and Mullingar is being looked after, but only two of those towns are being looked after. There is no IDA development in Mullingar. He also referred to proximity to third level institutions. The availability of a highly educated workforce is of huge importance to potential investors. The town is well located with AIT down the road and NUI Maynooth up the road, both only a 30 minute drive away.

According to reports regarding the upcoming budget, no grants will be made for fourth level education and that will have a detrimental affect on the IDA's efforts to attract foreign direct investment. If the student registration charge is increased further, it will also have a detrimental effect because young people will be disincentivised to attend third level and educate and upskill themselves to a level that would attract foreign direct investment.

Will the Minister of State take a personal interest in the site in Mullingar? I am sure he will visit the region. When he does so, will he visit the IDA park in Mullingar to see first hand how well located and serviced it is and how quickly it could be made ready and available to a potential client? The IDA should look outside its own parameters regarding this park. It seems to covet the site because no one else can get a look in. The authority has had it for the past 11 years and it has not attracted any company. Enterprise Ireland, the local authority, the county enterprise board and community organisations should be given the opportunity to avail of it and let whichever group comes forward with a reasonable suggestion use it. If that means they have to be given the site without paying for it, so be it. Captains of industry who are prepared to take risks and invest their own capital in line with their entrepreneurial spirit to create jobs in our locality should be let on to the site. People need to be incentivised to spend their own money to create jobs because the State will not do so. The State needs to introduce policies to incentivise people to generate job creation using their own wealth.

Will the Minister of State give a commitment to do this, especially given the recent decision to close the Army barracks in Mullingar and to cancel the decentralisation of the Department of Education and Skills to the town? The town has lost 500 jobs. The IDA says it prioritises areas that have suffered job losses. Mullingar must be at the top of the list if that is the authority's criterion.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
Link to this: Individually | In context

I have sympathy for the Deputy regarding the issues raised. If one considers this from the vantage point of companies that may invest inward, they do not necessarily look at county boundaries or constituencies and, therefore, if they are considering the midlands gateway, they will look at the towns, in particular, not the county boundaries.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context

The IDA is bringing investors to the other two towns.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
Link to this: Individually | In context

I take what the Deputy said in good faith. Given that Mullingar has a strong stakeholder forum, I respectfully suggest it should take up the cudgel through its local public representatives to forge a closer link or dynamic with the IDA in respect of the issues he has outlined.

With regard to a site visit, I can bring this to the attention of the Minister. I have visited AIT and NUIM. They are two fine institutions conducting world class research and there is continued investment by the Government in science, technology and innovation to ensure this world class research can be maintained.

There is merit in the Deputy's contribution. There has to be a dialogue around these sites throughout the country and how they are marketed and utilised. We need a discussion about a more lateral approach and if a set of potential investors locally or a set of stakeholders or entrepreneurs who are from without the IDA portfolio want to engage, an approach should be made to the authority to discuss the potential of the land use. I fail to see why that could not happen. I thank the Deputy for raising these issues.