Dáil debates

Thursday, 3 November 2016

Ceisteanna - Questions - Priority Questions

IDA Site Visits

4:05 pm

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

3. To ask the Minister for Jobs, Enterprise and Innovation to outline her views on the current regional spread of jobs and IDA Ireland site visits; and if she will make a statement on the matter. [33223/16]

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I call on the Minister to comment on the current regional spread of jobs and IDA Ireland site visits given that the county-by-county analysis tells a completely different story.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have a question before me which was sent in formally by Deputy Collins and I will answer it. Regional development is a priority of mine and a priority of this Government. Growing and sustaining foreign direct investment outside the country's main urban areas is a key part of our efforts in this context. To achieve this, we are continuing to make the case to prospective investors that regional Ireland can be and is a suitable location for their businesses.

IDA Ireland fully understands and is committed to growing foreign direct investment in every county. This is demonstrated by the agency strategy for 2015-19. Under the strategy, an increase in investment of at least 30%-40% in each region outside Dublin is targeted.

Real progress is already being made towards these goals. This is partly reflected by the growing number of site visits by investors to regional locations. In 2015, 57% of site visits were to locations outside Dublin, up from 43% in 2014. The figures for 2016 thus far show that the trend is continuing, with 58% of visits conducted this year outside Dublin.

We should remember, however, that a company's ultimate choice of location can be influenced by a number of factors. These include talent, proximity to transport hubs and the supply of suitable property. IDA Ireland actively tries to encourage client companies to locate outside Dublin, but the final decision of where to situate always rests with the company itself.

4:15 pm

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Not even the Minister could deny that there is a two-tier recovery afoot. The quarterly national household survey shows that 63% of all employment gains in the 12 months to the end of the second quarter of 2016 were in the greater Dublin area. A breakdown of the figures shows that in the midland region there was a gain of 1.07%, in the west, 3.02%, in the south west, 4.27%, and in the mid west, 9.3%. They are quite small. In addition, 43% of all Industrial Development Authority, IDA, site visits in the first six months of 2016 were in the capital. Ten counties had two or fewer site visits in the first six months of this year whereas Dublin had 145 site visits. How does the Minister intend to achieve the 2020 regional jobs target of 135,000 new jobs outside the greater Dublin area?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I hear the Deputy very clearly but it is not all about site visits. Many of the foreign direct investment, FDI, companies already here decide themselves, with the help and support of the IDA, to increase the workforce and there will not be a site visit. I made the point very strongly that the FDI companies decide where they want to go. I was on a trade mission recently in the west coast of the United States and it was very obvious when I visited companies with the IDA that the IDA’s intention is to win trade, to land the company in Ireland. When it gets buy-in from the company it will talk to the company which will be informed of the supports available. There are many more supports available in the regions and in rural Ireland than in Dublin but the company ultimately decides.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Site visits are not everything but they are a big part of the process. Competitiveness and connectivity are also a big part of the location. The Minister has been to Limerick on several occasions recently and she will be welcome to come again and we welcome the announcements made.

What has the Minister done to prioritise the building of the motorway between the mid-west capital, Limerick, and Cork? It is not a priority in the Government’s capital programme but it is badly needed. The main connection between the second largest city, Cork and the third largest, Limerick puts the mid-west region at a severe disadvantage. Has the Minister spoken to the Minister for Transport, Tourism and Sport about the connection between Limerick and the port at Rosslare Harbour, the N24? Why is that not a Government priority? The proceeds from the State’s sale of its shareholding in Aer Lingus were put into the connectivity fund under the remit of the Department of Finance. There have been only two applications to it which have been grant-aided. Why has the Minister’s Department not been pushing the agencies in Limerick and around the country to avail of the €335 million in the connectivity fund, to boost connectivity and help competitiveness of the regions, particularly the mid west, the M20 Cork to Limerick road and the N24 Limerick to Waterford road?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There were 40 site visits to Limerick by 40 different companies. That does not take into account the companies that are there already that might be thinking of expanding. To date, in 2016 up to the end of the third quarter, there have been 39 site visits. That is a huge improvement. Deputy Quinlivan, who is in the Chamber, has attended many of the job announcements there. Limerick is a very favoured area and a favoured city.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

That is good to hear.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Companies talk to us about the airport, the Limerick Institute of Technology, the University of Limerick and the wonderful talent pool in the area. I have spoken to the Minister for Transport, Tourism and Sport about those roads. I will check out the question of the Aer Lingus connectivity fund. I assure the Deputy Limerick is doing pretty well and there seem to be more job announcements in the pipeline. The Deputy can look forward to that towards the end of this year.

Question No. 4 replied to with Written Answers.