Dáil debates

Thursday, 9 February 2017

4:15 pm

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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5. To ask the Minister for Jobs, Enterprise and Innovation the number of jobs the Succeed in Ireland initiative has created since inception; the amount of moneys IDA Ireland or other State bodies have paid over to ConnectIreland; the amount of IDA Ireland's potential outstanding liability to ConnectIreland; her views on whether the Succeed in Ireland initiative failed to meet its target of 5,000 jobs; the reason a temporary extension of the contract with ConnectIreland was agreed in September 2016; and if she will make a statement on the matter. [6646/17]

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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An article in The Sunday Business Postprompted me to submit this question on the contract between IDA Ireland and ConnectIreland, as well as the associated costs and the potential cost to the State relating to the losses sustained by ConnectIreland.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I understand from IDA Ireland that the Succeed in Ireland initiative has so far created a total of 527 jobs on the ground. IDA Ireland has paid €2.069 million to ConnectIreland as a financial reward in respect of those 527 positions. It has also provided ConnectIreland with a further €150,000 for marketing support for the operation of the programme.

As payments to ConnectIreland are dependent on the number of jobs generated through the programme, the final sum due from IDA Ireland will depend on how many positions are ultimately created. This exact figure will not be determined for some time.

I have asked my Department to commission a review of the initiative. This will allow for a full assessment of its costs and contribution to employment generation in the State. Such a review may also consider the development of a new programme, including through examining the experience of similar initiatives in other jurisdictions.

The original contract underpinning the Succeed in Ireland initiative was due to expire in March 2016. In advance of that date, however, the contract was extended for a maximum period of one year. The purpose of that extension, agreed by both parties, was to allow an orderly wind-down of the programme.

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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Obviously, IDA Ireland has decided not to renew the Succeed in Ireland initiative and it will expire in March. IDA Ireland said it created 527 verifiable jobs at a cost of €2 million but ConnectIreland, and its chief executive officer, Terry Clune, claim it created more than 2,200 jobs. There is a serious dispute about these figures. I understand there are significant tensions between IDA Ireland and ConnectIreland to the extent that it has gone for arbitration. Will the Minister confirm this?

The Sunday Business Postalso revealed that, based on freedom of information requests, there have been several meetings with IDA officials and ConnectIreland with the former Secretary General of the Department of Finance, John Moran, lobbying on ConnectIreland’s behalf. There seems to be some dispute as to whether the State agency might be required to disburse further amounts to the company to offset losses. Will the Minister confirm this? If so, will she specify the amounts involved?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Both ConnectIreland and the IDA have entered into a mutually agreed process to address whether differences have arisen between them in the course of the contract. I hope that process will result in an acceptable outcome for both parties. It would be neither appropriate nor helpful for me at this stage to comment on that ongoing process. I stated earlier, however, that the chief executives of both organisations met this week. I am hopeful there will be a successful outcome to the process. An arbitrator has been agreed on by the two parties but is yet to be appointed.

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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It is welcome a dialogue is going on between both parties. In response to a previous question, the Minister spoke about an orderly wind-down. Does she expect there will be an offset for losses? If so, will it be for significant amounts? Will it be hundreds of thousands or millions of euro?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I am not in a position to discuss that because an arbitrator has been agreed on by the two parties in question. I hope the arbitrator will pull the two parties together and we will get a reasonable outcome.

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats)
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Will the Minister give a timeframe for this process?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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As I said to Deputy Niall Collins earlier, I expect and hope I will be appointing an arbitrator soon.