Dáil debates

Wednesday, 22 February 2017

4:50 pm

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
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I have been very critical over a period given the IDA and Enterprise Ireland in particular have done very little for County Wexford. In February 2015 the previous Administration made available €150 million for property solutions for the regions. It was something I was very supportive of and I understand there simply cannot be a major advance factory or major IDA investment in every town and village. However, every constituency should certainly be given the prospect of some expenditure.

I found out the fund was being made available to Waterford and I can understand the logic of this as Waterford is the largest urban area in the south-east region. I then received information that funding was going to Carlow-Kilkenny, which is a five-seat constituency. Again, I can understand funding going to the northern perimeter of the region to try to get jobs out of the greater Dublin area, for example, back-office jobs. However, to my very great disappointment, I was then told the funding would revert back to Waterford for the next expenditure from that fund for the south-east region. This is just not acceptable. It means that funding has gone to the four-seat constituency of Waterford, then to the five-seat constituency of Carlow-Kilkenny, then back to Waterford, while leaving out Wexford exclusively. Wexford is a large five-seat constituency and one of the largest counties in the country, with 150,000 people. It is not fair. I have said in this House, and in the other Chamber when I was there, that I am okay with getting a fair share but I am not at all okay with not getting a fair share. On this occasion, it is not happening.

The number of IDA foreign direct investment visits has been in low single digits in recent years. In the first six months of one recent year, there were just three visits. At the same time, I can understand there only being three visits because there is no premises available, although there is some land in the IDA industrial estate in Wexford town - I think it is three acres, in a county the size of Wexford. Again, I am not looking for anything we are not entitled to. I am looking for what we are entitled to, which is to get some shake of what is available. That is not happening. I look forward to the Minister of State's response.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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I thank Deputy D'Arcy for raising this issue. I know he has a particular interest in ensuring Wexford gets its share of jobs. I apologise on behalf of the Minister, Deputy Mary Mitchell O'Connor, who was unable to attend due to a prior diary commitment.

I think it would first be useful to set out some information on the aims and operation of the IDA regional property programme. As Deputies may be aware, this initiative was launched in February 2015 by the Government and it is being delivered by the agency over a five-year period up to 2019. The fundamental aim of the programme is to allow the IDA to invest in property solutions that will serve to attract further foreign direct investment opportunities and win additional projects for the regions outside Dublin and Cork. In practical terms, this means equipping the IDA with the means to improve existing business parks and acquire and service suitable sites. The programme also entails the construction of advance facilities, which can be marketed to prospective investors, in areas of the country where the private sector has been slow to build. The availability of such advance facilities is an important part of the programme and 30% of the total funding available has, therefore, been allocated towards their construction.

To answer Deputy D'Arcy's point as to why Wexford was not included, it is important to point out that IDA Ireland, in determining the most appropriate sites for these facilities, has applied a set of key criteria. These include the following: the population density of the area in the question; the nature of other commercial activity and investment in those surroundings; the proximity of third level educational institutions, given their importance as effective feeders of employees for new companies; and the availability of local infrastructure than can support and foster further development in the area. It was on this basis that nine locations were selected for facilities at this particular stage, including Sligo, Athlone, Tralee, Galway, Limerick, Castlebar, Dundalk and Waterford. Facilities at six of these locations are due for completion this year and the remaining three, including Waterford, are scheduled to be completed by the end of 2018.

It is important to point out the advance facilities, although important, form only part of the IDA's regional property offering and the agency has other tools at its disposal to help attract investment to the regions. In respect of Wexford, for example, the IDA has two business parks, one in Wexford Town and one in Enniscorthy, both of which the agency’s officials are intensively marketing in order to attract new investment. Furthermore, the IDA holds a further 1.8 hectares of land at Drinagh which it hopes to be the home of future investment. We should not forget that arguably a more efficient way to increase FDI in regional locations is deepening and strengthening engagement with client companies that are already there. In other words, where there is foreign investment, it is vital to consolidate this in order to increase the footprint of such companies. We note that IDA statistics are clear that approximately 70% of all new FDI comes from existing clients.

Wexford is home to 17 existing IDA Ireland clients which, between them, employ almost 2,630 people in a range of manufacturing and service operations. There is potential to increase the size of this existing FDI footprint and that is why IDA Ireland is constantly engaging with these client companies to explore the potential for further investment. This approach has already borne fruit and in 2016 client companies already present in the county increased their employment numbers by almost 150 positions.

I want to conclude by emphasising the Government is committed to regional development all across Ireland, including in Wexford. The regional property programme is an important and useful tool but the IDA will continue to pursue all options and avenues to help win further FDI for Wexford, the south-east and Ireland as a whole.

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
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I think it is important to add some information to the Minister of State's script. While he is correct there is an IDA business park in Enniscorthy, there is no land available because it is full. I also want to correct myself as I said there was 3 acres of land whereas it is 4.5 acres. However, if a major client wanted to come to Wexford, it could not do so because that land is not available.

The issue is that if a new company is preparing to invest, either land or a premises must be available. I am fine with the investment in the towns the Minister of State outlined, namely, Sligo, Athlone, Tralee, Galway, Limerick, Castlebar, Dundalk and Waterford, and also that the next funding is being prepared for Carlow. However, subsequent to that, the funding will go back to Waterford, which is not fair. The IDA has made it very clear it is going back to Waterford but it has an obligation to County Wexford as well as County Waterford. Given the Government had made funding available, I do not believe the IDA can just exclude a county in the manner in which it is currently excluding Wexford. I ask the Minister of State to address that specific point.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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The information I have in regard to the business site at Drinagh is that it is 7.5 acres and it is available for marketing. I want to highlight a point I referred to in my first contribution, namely, 70% of new jobs are created by existing clients.

That is an important statistic.

Wexford is very strong in the medical-technology, medtech, sector. Ireland's medtech sector is on a par with those in Minnesota or Germany. We are very strong in that area. It is not all about IDA Ireland jobs. It is about Enterprise Ireland jobs also. Enterprise Ireland is doing an excellent job in that regard. There are 17 foreign direct investment, FDI, companies in Wexford, many of them in the medtech sector. The number of indigenous small industries that can come out of those foreign direct companies speaks for itself. Employment in the south east increased by 4.6% last year. IDA Ireland had a very strong year last year, which saw all regions experiencing growth.

I am familiar with what Deputy D'Arcy is talking about in the Wexford-Waterford area. Wexford has its strengths. The Deputy spoke about site visits. He is correct. There were very few site visits in 2012; I believe there were only three. Last year, there were seven site visits. IDA Ireland's team in the south east is marketing Wexford equally as much as Waterford but he must consider the way IDA Ireland operates. It operates in regions. It has to try to bring jobs into regions. It cannot simply bring jobs into towns because it is competing with other big cities such as Manchester, which has a population of 5 million or 6 million. That is the way it has to operate to attract companies into these regions. In any event, it is up to the companies to decide where they locate but it is important the Deputy takes note of the fact that 70% of new jobs come from existing companies. I believe there are great opportunities for the existing IDA Ireland companies, particularly in the medtech sector but also in the indigenous area, and for Enterprise Ireland to grow jobs as well as the local employment offices.

Sitting suspended at 4.22 p.m. and resumed at 5.02 p.m.