Dáil debates

Thursday, 10 November 2016

Topical Issue Debate

Regional Development Initiatives

5:15 pm

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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I thank the Minister for taking this matter. On 30 June the local representatives in Mullingar received details from the legal adviser of Imperial Tobacco that the factory intended to close and relocate its manufacturing to the Netherlands. The decision meant the loss of 87 jobs, which were good strong jobs in Mullingar whose loss had a generational impact throughout the town. I demand that the Government take strong action to ensure the site vacated by Imperial Tobacco is utilised to the best of its ability and ensure we get a replacement industry on the site. It is important that Enterprise Ireland or the IDA acquire the building. We often see roll-outs of advance factory units but this is a ready-made unit of 10,000 sq. m on a very large site in the area.

It is important we take action immediately. I spoke to representatives from the unions and dealt with a number of employees post the closure of the plant and during the 30-day consultation process and I understand what they are going through. We need to ensure a clear plan is in place. The IDA is very busy with its programme for foreign direct investment and areas in the midlands such as Mullingar get overlooked. I demand that we change this in government. We need to deliver for areas in our regional action plan for jobs and to ensure we get tangible action.

Can the Minister say how negotiations with the management of Imperial Tobacco are going? How advanced are talks with Enterprise Ireland and the IDA and what progress has been made? It is easy to say something is included in a strategy but we need to see tangible progress. I have put down parliamentary questions on the issue and would appreciate an update from the Minister on how things stand at the moment.

We have a huge IDA park in Mullingar and Patterson Pumps is in situ. I have been dealing with a number of firms which are considering locating in the park. Some may not be from the normal foreign direct investment background but are indigenous home-grown firms considering relocating due to expansion issues. The IDA needs to make its property section available to deal with these people as there is a sense in some areas that such action is delayed. There are delays in getting back to people and prices are going up while decisions are not getting over the line on time. We need to have an emphasis on issues within the property management section of the IDA and to ensure that things are being dealt with appropriately and on time.

The Imperial Tobacco group was in operation in Mullingar from 1967 and there was a generational aspect to the factory: fathers and other relatives of employees had also worked there. We need to work hard to get a replacement industry for them. It is incumbent on us to get a good regional spread and we have to learn the lessons of the recent general election which were that Dublin was expanding rapidly but going west it was harder. The further west one goes, one can see that towns have paid a huge price so we need a renewed emphasis on that.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I thank the Deputy for raising this matter. First, I should point out that the factory concerned is not under the ownership of Enterprise Ireland or IDA Ireland. The owner of the facility is not a client of either agency. Both agencies are aware of the factory's availability. They have engaged with the relevant parties about marketing the facility as suitable for potential investors. The property has also been included on the IDA's database of available office and manufacturing properties in County Westmeath.

While Enterprise Ireland does not purchase property for its clients, it is working with enterprise development partners regarding the building's future. Both agencies are available to assist potential clients who may require premises for investment in the area to view the property.

In addition to assisting with the facility concerned, IDA Ireland is marketing Mullingar and the midlands for new investment. The IDA works to encourage its client companies in the area to grow and embed their businesses. In terms of enterprise development in the midlands, and in Mullingar in particular, Enterprise Ireland supports entrepreneurs who are setting up start-up companies in manufacturing and internationally traded services. Enterprise Ireland is also focused on the creation of new jobs by working with established client companies in the midlands. Additionally, Westmeath local enterprise office is available to assist people with a business idea and who want to consider self-employment as a career option.

There is clearly potential for job creation in County Westmeath. Earlier this year, I visited Mullingar where I met the local Chamber of Commerce and visited the IDA Business Park. This allowed me to see, at first hand, what the county has to offer to investors. The work by Enterprise Ireland, IDA Ireland and the Westmeath local enterprise office is part of a wider Government push to create jobs across the regions.

The action plan for jobs for the midland region was launched in June 2015. Its core objective is the creation of an extra 14,000 jobs across counties Longford, Westmeath, Offaly and Laois by 2020. The midlands plan includes a series of actions aimed at attracting at least 25 additional multinational investment projects to the region by 2019, building a second advance facility for County Westmeath in 2017, appointing an IDA regional manager for the region, and actions to ensure that key IDA personnel overseas have enhanced knowledge and marketing plans for the midlands.

I believe that if we deliver on the midlands action plan process we will create the job opportunities to meet local and regional needs.

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael)
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I am aware that ownership of the site is not in the control of Enterprise Ireland or the IDA but we are talking about delivering an advance factory unit to Westmeath in 2017 and this unit is 10,000 sq. m in size and stands on a site of 8.5 ha. It is a large, ready-made site which can deliver a manufacturing facility into Mullingar. A total of 16 client companies from the IDA employ 2,300 people within the Mullingar area but we need to ensure that we attract further investment into the county and I would be grateful if the Minister would drive this idea. I have met a number of client companies in the Mullingar area which are looking to relocate and expand. We need to ensure the property management section of the IDA is delivering with such people as well as working hard with them. We also need strongly to encourage home-grown, indigenous businesses that are expanding.

Can the Minister investigate whether Mullingar can be designated a centre of excellence for robotics? This is a huge area and I am aware of one company the representatives of which met with the Minister at the ploughing championships and which has a huge portfolio of international customers. If we have a hub like I have suggested, we could drive such enterprise forward. Will the Minister put this into the regional action plan for jobs? It would drive Mullingar and the midlands forward as it is a unique area which can attract investment. This particular company has the skill set for this niche area whereby we can bring manufacturing to a new level. Manufacturing has changed over the past number of years and has become much more advanced.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The IDA does not own the facility but it is selling it by promoting it, as is Enterprise Ireland, and I will make sure it is on the top of their list. We have an action plan for regional development in the area and we are pushing it as much as possible. I will take on board the Deputy's suggestion about Mullingar being a centre of excellence.

I visited Mullingar and I was very impressed by what is going on there in terms of the development of skills through the Education and Training Boards, ETBs, and the Athlone Institute of Technology. I am hopeful that we can secure a replacement industry at the location. I will do my best to ensure that happens. Senator Gabrielle McFadden has also spoken to me about this particular site, so it is high up on my list of targets.