Dáil debates

Wednesday, 13 May 2015

10:00 am

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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6. To ask the Minister for Jobs, Enterprise and Innovation the steps he is taking to support enterprise development in the midlands and western regions; and if he will make a statement on the matter. [18340/15]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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Jobs from foreign direct investment or the IDA, in the main, do not swim. With few exceptions, IDA jobs are not crossing the Shannon. Projections based on the IDA record over the last five years show that while Galway city can expect up to 1,300 jobs per annum over the next five years, counties like Leitrim can expect 80 jobs and Roscommon just 45 jobs per annum. There are similar projections for towns in east Galway. What specific measures will be taken to bring jobs to rural and smaller provincial towns?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Supporting enterprise development in all regions of the country in order to support job creation is a key objective of the Government. All regions have experienced jobs growth, as the Minister of State, Deputy English, has said, but the rate of progress in some regions is less than in others. That is why the Government is placing an increased emphasis on supporting job creation in the regions this year.

In February, the Government announced details of the Action Plan for Jobs: Regional Initiative, which seeks to capitalise on the strengths and assets of each region to maximise enterprise growth and job creation. The initiative will build on the success of the national Action Plan for Jobs, and encourage regional stakeholders, including enterprise agencies, local authorities, higher education institutions, other public bodies and the private sector, to come forward with innovative ideas to boost job creation in their own region.

In total, eight regional action plans will be developed and published this year. My objective is that six plans, including those for the midlands and west regions, will be launched by the end of July, with the remaining two in development. In each of the regions the regional manager of either Enterprise Ireland or the IDA is acting as co-ordinator and has formed an action group among public bodies in the region. Stakeholder workshops involving public and private sector groups have been held in Athlone and Galway, which I have attended. Their task was to identify new opportunities and to develop actions which can be implemented collaboratively within the next 18 months to deliver growth in enterprises and jobs. A formal monitoring committee with private sector involvement will be formed to oversee the implementation of the plans.

The regional action plans will be supported by investment of up to €250 million over the next five years, including €150 million for a property investment programme by IDA Ireland, and up to €100 million for three separate competitive calls which will be administered through Enterprise Ireland. These competitive calls will support collaborative initiatives to boost enterprise growth and job creation in the regions. Details of those competitive calls will be announced shortly.

As part of its property programme, the IDA has committed to investing in new property solutions in Castlebar, Galway and Athlone, amongst other centres, over the next three years. Enterprise Ireland and IDA Ireland have also placed an increased emphasis on the regions in their new corporate strategies. It is the roll-out of those strategies that will inform regional enterprise plans.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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I thank the Minister for his response. His initiative is welcome and it is positive. However, the reality is that for many of the smaller provincial towns, it will be local employers and local jobs that will turn around the economy. One of the key aspects of that is to support the local enterprise offices, LEOs, across the country. For example, the LEO in Country Roscommon will by June 2015 have exhausted the funding that is available to it.

In many of the other smaller counties across the country the same will happen. I want a commitment from the Minister on counties which have received the short end of the stick in regard to foreign direct investment, namely, that if their LEOs are able to draw down funding and spend it in the first six months of the year they will not have to wait until 2016 to access more funding. I want a commitment that the funding will be forthcoming for the viable job prospects available.

I refer to LEOs in Galway and Roscommon. Both offices are currently short-staffed and need existing staff. Will the Minister give a commitment to the House that they will be appointed?

10:10 am

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I thank the Deputy for his support for this initiative. It is not true to say, as he projected in his initial statement, that foreign direct investment only takes place east of the Shannon. In the western counties to which Deputy Calleary referred in terms of the report from the WDC, 4,000 additional jobs were created by the IDA in the past four years. There has been a stronger performance by those companies than by Enterprise Ireland companies in those regions.

It is not true to say that the IDA is undervaluing the regions. We are seeking to support balanced regional growth through the IDA. It has made a commitment to increase its project by 40% in each region. It is a very firm commitment and to underpin it, as the Deputy knows, we are building advance facilities in Athlone. LEOs are a fundamental piece of the strategy. We recently allocated additional staff, through a graduate placement programme, to virtually all LEOs. We are having a competitive call specifically aimed at LEOs to allow them to bring forward new initiatives that would support job creation. It is a competitive approach and we stand over it.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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The Minister avoided answering the question, that is, whether additional funding will be provided to LEOs in counties where they are not successful in bringing significant numbers of FDI jobs into the region and ensure that they will not be left short-changed until the end of the year. The current popular IDA job locations will get more jobs over the next five years, to the detriment of towns like Ballinasloe, Roscommon, Boyle, Ballaghaderreen and Castlerea. A lot of the locations investors look at are chosen before they arrive in Ireland.

I ask the Minister to make funding for a specific initiative available, namely, to provide expertise and support to smaller provincial towns so that they can properly promote and highlight what they have to offer prospective investors so that they are at least on the pitch when investors are considering coming to Ireland and the regions.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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As I indicated, the Government has provided €150 million for the IDA to develop property-based solutions across the country, only 30% of which is committed to the 12 advanced facilities. There is an IDA facility to support initiatives. It is a pity the Deputy was not at the regional enterprise forum because people genuinely examined our strengths and what we can build in the regions. The call will see groups of people coming forward with solid proposals that can pass a business case test. That is what this is designed to do, namely, to bring institutions together.

Athlone Institute of Technology is a powerful influencer. If that can be allied with other enterprise centres it can be a very powerful driver. We are seeking new thinking from the region. It is to be hoped that will materialise in individual initiatives in particular locations. For example, Drumshanbo in Leitrim, which is not that far away, has an outstanding food centre which is an example to anyone. It has brought together SOLAS, entrepreneurs and support services from the LEO. That is the sort of initiative we are trying to develop. The quality of the proposals will be crucial.