Dáil debates

Thursday, 23 March 2017

1:30 pm

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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6. To ask the Minister for Jobs, Enterprise and Innovation the detail of regional IDA Ireland site visits and vacant properties in 2016; and if she will make a statement on the matter. [14452/17]

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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As the Minister will be aware, I have submitted this question on every relevant occasion because we are concerned about the lack of IDA Ireland site visits to many parts of Ireland, in particular, Roscommon - Deputy Eugene Murphy is here beside me. Other such places include Kerry and, as Deputy Mattie McGrath mentioned, Tipperary. Can the Minister address in her answer the uneven spread and imbalance of IDA Ireland site visits across the country through 2016?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Regional development is a key priority for me and I am determined to help drive job creation all over Ireland. Increasing and sustaining foreign direct investment outside of our main urban areas represents a vital part of this.

IDA Ireland's strategy for 2015-19 includes a commitment to increase foreign direct investment in every region outside Dublin by 30%-40%. The 2016 results show that IDA Ireland is actively working towards this goal, with 52% of all jobs created by the agency's clients last year based outside of Dublin. Site visit statistics also indicate that progress is being made towards this objective. In 2016 there were 638 IDA-sponsored site visits nationwide, up from 565 in 2015. Locations outside Dublin accounted for 55% of these visits. It should be remembered that site visits do not necessarily accurately project future investment, as most investment comes from an expansion of existing company activity.

To attract more FDI to the regions, IDA Ireland must maintain an adequate supply of marketable serviced land and buildings that can be offered to potential investors. There are currently 23 vacant IDA-owned properties which are available for investment and I can provide details on these to the Deputy directly.

I emphasise that IDA Ireland is actively encouraging clients to locate in regional locations. The final decision, however, always lies with the company concerned and can be influenced by many different factors including access to talent, proximity to transport hubs and the suitability of local infrastructure.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Has Deputy Eugene Murphy a supplementary on this?

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I will make a brief comment. I thank Deputy Niall Collins for bringing it up and sharing time. In her reply, the Minister repeatedly states "outside of Dublin".

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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It is because the Deputy is saying its all going to Dublin.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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I am asking where are the Minister's agencies in Roscommon, east Galway, Leitrim and Longford? It is not happening in those areas. I acknowledge the programme for Government states the Government would create 155,000 jobs outside of Dublin but our region is being destroyed because we do not have jobs. If one looks at towns such as Ballaghaderreen, Castlerea, Strokestown, Cortober in Carrick-on-Shannon and Roscommon town, there are units ready to be used. I believe the Government is not engaging.

IDA Ireland had one or two visits to Roscommon.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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One.

Photo of Eugene MurphyEugene Murphy (Roscommon-Galway, Fianna Fail)
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One. In Cavan, which is in Deputy Niamh Smyth's constituency, the number was low also. IDA Ireland is not engaging with certain counties and I want the Minister to change that. If the Government does not do so then we are not getting a fair crack of the whip.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I know where Deputy Eugene Murphy's concern is coming from but if he thinks about it, the chief executive and the board of the companies involved decide where they want to go. IDA Ireland encourages them. I myself have encouraged companies that I have met to go to regional towns not too far from many of the towns Deputy Murphy mentioned.

The LEOs in Roscommon supported the creation of 704 jobs last year, EI supported 1,688 and IDA Ireland 985. I would love to be here saying to the Deputy it was 9,995 but the reality is the chief executive and directors of the board - many of whom are in the US because 130,000 of the 150,000 FDI jobs in the country come from the US - make those decisions in the US with IDA Ireland. As I say, I have been at some of those meetings and I have heard IDA Ireland push - I myself have pushed - to try and land those jobs in regional areas but there are reasons why they do not.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I thank the Minister.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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In my answer, I mentioned these reasons and they include transport hubs, talent and local infrastructure.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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The Minister's time is up.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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Everybody understands how the corporate world works in terms of decision-making. Companies make the decisions that are best suited to them but it is a fact, and despite everything the Minister says there is no disputing it, that IDA Ireland is failing the regions of the country outside of the greater Dublin area in terms of site visits.

In 2016, there was one site visit to Roscommon in 2016 there were three site visits to Kerry. That is unacceptable. The responsibility falls back on the Minister to impress upon the IDA that it must engage in itineraries outside the greater Dublin area in so far as possible. The figures show that 45% of site visits were in the greater Dublin area, which was the figure the Minister gave, but if one looks at the GDP statistic provided recently by the CSO, 45% of the Irish GDP is generated in the greater Dublin area whereas in the UK, 20% of GDP is generated in the London area. We have an imbalance and the IDA needs to work harder to address it. Is the Minister going to do something different to bring some initiative or give some direction to the IDA to change the trend which is towards the greater Dublin area and the east coast? We cannot allow a situation to persist in which Roscommon, Kerry, Cavan and other counties fail to receive due consideration from the IDA. Can the Minister redouble her efforts and implement an initiative to address that?

1:40 pm

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I work very hard to ensure that this will happen, not just with the IDA but with Enterprise Ireland, our LEOs and InterTradeIreland. Despite what Deputy Niall Collins said, I am still coming back with hard figures to him. In 2016, 52% of all jobs created were outside Dublin as were 55% of all site visits. At the same time, we have to be realistic. There is a global trend to base foreign direct investment around large urban areas where there is access to transport networks. Quite often, companies want to be located near competitors or clusters of similar enterprises. As a result, it is unavoidable that some businesses are only interested in investing in our larger cities. Deputy Collins did not mention Limerick, which is outside Dublin. There were 49 site visits to Limerick, ten to Kilkenny, 42 to Galway, 49 to Cork, 18 to Clare, 20 to Sligo, 17 to Waterford and 36 to Westmeath. As such, site visits are taking place.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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I am well aware of that. As spokesperson, my role extends to the whole of Ireland, as does the role of the Minister.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Please, Deputy Collins.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I have just told Deputy Collins that there were 638 sites visits altogether and I called out a number of counties, not just Limerick, albeit I pointed out that Limerick had been successful, as had Galway, Louth and Sligo.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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The time is up.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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That is if one is counting site visits as successes, which I do not. I see the landing of jobs in those areas as the success.

Question No. 7 replied to with Written Answers.