Dáil debates

Thursday, 21 February 2013

Ceisteanna - Questions - Priority Questions

Job Statistics

4:50 pm

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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To ask the Minister for Jobs, Enterprise and Innovation the number of jobs created and the number of jobs lost in Industrial Development Agency and Enterprise Ireland supported companies in counties Laois and Offaly for the year 2012. [9407/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Employment in agency-supported companies in Laois and Offaly have been very severely affected by the economic crisis. In the three years 2008 to 2011, the net loss in employment in these companies was 1,247, representing a 21% loss in employment in this group of companies. In 2012, net job loss in agency companies was 64. While this is still disappointing, it represents a substantial improvement in the trend. It comprised 54 gross jobs created and 24 job losses in IDA companies and 215 gross jobs created and 309 job losses in Enterprise Ireland, EI, companies.

The two counties have a small base of foreign-owned companies, employing fewer than 1,000 in total, mainly concentrated in engineering and mixed manufacturing. In recent years, it has proved challenging to maintain and attract overseas manufacturing companies into these counties as much of this investment globally is going to low-cost destinations such as eastern and central Europe and China. As a result of the locational shift in global manufacturing, both Laois and Offaly have seen a number of closures within the multinational sector. In order to re-position the counties to a more knowledge-based economy, IDA Ireland is marketing Portlaoise as a key location for investment in the globally traded services sector and Tullamore as a key location for investment in the medical technologies sector, where Ireland has the capacity to win new investment.

Irish-owned companies represent almost 80% of the exporting base of the two counties and have been more resilient in the face of the economic crisis. EI has been actively working with its base of 136 companies in Laois and Offaly, assisting their transition to specialise, innovate, develop skills and value and scale up, including through the launch of the new potential exporters division, the lean business offer which enables manufacturing clients to increase productivity and competitiveness, and the launch of a new development capital scheme aimed at addressing a funding gap for mid-sized, high growth indigenous companies. In the last quarter of 2012, EI launched a €200,000 competitive feasibility fund in the midland region aimed at sustaining start-ups in the area.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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The reason I tabled the question is because of figures I received a month ago on the number of jobs created and lost in Laois and Offaly. I did not believe the figures when I first saw them. The Minister outlined that two new jobs were created in Laois in IDA-supported companies while 23 jobs were lost. Enterprise Ireland created 76 jobs in Laois while 138 jobs were lost. There have been significant job losses in County Laois. In Offaly 31 new jobs were created and one job was lost. County Offaly has fared slightly better than County Laois. A total of 139 jobs were created in Enterprise Ireland-supported companies while, unfortunately, 171 jobs were lost. The net loss in Offaly was two jobs but Laois has been more badly affected.

In November I inquired how many visits the IDA had made. I was informed that not one single visit had been made to IDA client companies in Laois in the first 11 months of the year. The agencies have lost jobs in spite of the significant resources available to them. In the case of the IDA, its budget in 2012 was more than €80 million.

The Minister outlined the figures for the three years, 2008 to 2011, which are bad. It is not as if we have had good years. The latest figures come on top of a series of bad years. The number of net jobs created in Cork, for example, was 1,833. In the case of Dublin it was 4,012 jobs. A two-tier system appears to be in operation. Since the Government came to power, 3,100 net jobs have been lost in the midland region and 3,700 have left the labour market in the four midland counties, mainly due to emigration. The unemployment level in the region is at the incredibly high level of 17.4%. The situation is serious and we are most concerned about it.

Those of us who try to project the midlands in a positive way and to get things moving there are discouraged by the figures. The situation looks bad. I have discussed the issue with the Minister in the past. At local level, people are doing their best, yet there is an unemployment rate of 17.4% in the four midland counties. The negative IDA and Enterprise Ireland figures do not follow on from a number of good years. They continue the trend of the appalling statistics from recent years due to the crash. We must get on top of the situation. Could the Minister indicate whether a two-tier system is in operation by IDA and Enterprise Ireland?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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As Deputy Stanley is aware, at the request of Deputy Charles Flanagan I arranged a delegation involving himself, other Deputies and local authorities to meet the IDA and discuss the challenges. IDA Ireland has a clear strategy. It has invested €3.2 million in the business park in Portlaoise. It is targeting the location on the basis of the scope it has to deliver in the internationally traded services sector. That is its offer. It also has a significant flagship business park in Tullamore and it has required planning permission for three 10,000 sq. ft. advance technology units. It is positioning Laois and Offaly to be competitive.

It is not IDA Ireland, however, that decides where companies locate. Companies make decisions on the basis of many criteria. Often they are looking for the best fit with their sector. We must build a competitive advantage in the various regions to exploit the areas of opportunity. There is strength in Laois and Offaly in indigenous companies in the food sector, which is doing exceptionally well and has good prospects for growth. It is not always a case of looking to the IDA. It is also important to build on sectors where we have inherent strengths. Engineering is a strong sector, as are forestry and food. There are opportunities to build on them. We are seeking to make Laois and Offaly competitive and to market them effectively. I do not have the figures on visits but I think there were three visits to Laois and Offaly last year.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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There were no visits to Laois.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Is that the case? I do not have the figures to hand.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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On the three units-----

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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The time is up.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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Could the Minister inform me of the location of the three proposed new IDA units? There is a target of 50% foreign direct investment to be located outside of Dublin and Cork. Currently, the level is 35% nationally but Laois and Offaly are much lower than that.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I am sorry, Deputy, but the time is up. We must move on to the next question from Deputy Healy.