Dáil debates

Thursday, 29 June 2017

Ceisteanna - Questions - Priority Questions

IDA Site Visits

3:30 pm

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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5. To ask the Minister for Jobs, Enterprise and Innovation the criteria which is being used by IDA Ireland to ensure site visits by potential inward investment companies to regional counties. [30516/17]

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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This is the Tánaiste's first time taking parliamentary questions relating to her new Department. I wish her well in her new role.

My question is on IDA Ireland. I have plenty of time for IDA Ireland. It has a very good chief executive and some fantastic people working for it, but I feel that it does not always have the resources that it needs. I have often argued in this House for more resources for it.

I want to raise the issue of regionality. The latter, and bringing jobs into regions, is a critical component of the programme for Government, and it is something that we all advocate in this House. I want to get into the detail of the criteria used for site visits and for pushing certain potential inward investment companies to certain parts of the country. What criteria are used when it is decided where some companies should be encouraged to go? We cannot break confidentiality for specific companies, but I want to see a transparency of process.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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IDA Ireland remains firmly committed, as do I, to increasing regional development. That is why the agency has targeted a minimum increase in investment of 30% to 40% in each region outside of Dublin by the conclusion of its current strategy in 2019. Progress is being made towards that goal. Sometimes this is not reflected properly, and I will provide some statistics that support what I am saying.

In 2016 over half of all IDA Ireland-supported jobs created were based outside of Dublin. That is important. There are currently 23 IDA Ireland-owned units and 84 IDA Ireland-owned sites which are available for marketing as locations for investment.  These are spread throughout the country. If Ireland did not have those sites is would clearly diminish Ireland’s ability to win mobile foreign direct investment, FDI, particularly for the regions.

Determining which of these sites may be attractive to a client depends very much on the particular requirements of the company concerned.  Factors that are habitually important to overseas investors include the suitability of local infrastructure for the particular business, the proximity of transport hubs and the availability of skilled talent. It is often the case as well that multinational companies seek to base themselves as close as possible to businesses operating in the same industry. There is a wide variety of factors.

IDA Ireland always does its utmost to encourage clients to locate in areas that are most in need of investment. That is very important. I want to see that approach continue because we want to see the benefits of FDI spreading across the country into areas that need that investment. We have to remember, however, that the ultimate decision as to where to invest is always taken by the company itself.

It is also important to remember that site visit activity does not necessarily reflect investment potential because at least 70% of all new FDI comes from existing IDA Ireland client companies.  It should also be emphasised that FDI only forms one part of investment in regional locations.  Indigenous enterprise is responsible for a significant portion of employment growth, particularly outside of Dublin.

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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I am well aware that companies ultimately make their own decisions. I am also aware that the companies already here expand and make up a large proportion of the investment. Ultimately, companies that do come here have to be shown specific locations. There is no hidden agenda here. I have had direct experience in helping to get IDA Ireland into my own county. I was directly involved with First Data, the announcement in respect of which was massive for our county. I intervened and, as a result, we got Amneal into Cashel. I am working in a number of other areas at the moment. My real issue is that we can go out and explain to people that there is no hidden agenda and that IDA Ireland is doing its best for the regions. However, we could then look at the data, see a lack of investment in some regional areas, realise that €150 million has been put aside for investment in buildings under IDA Ireland's programme and the Action Plan for Jobs and identify the fact that some of the locations that should be targeted for investment have not been targeted. People then become concerned that the criteria are not fair and perceive that FDI clients, potential or current, are not being pushed towards the areas in which we need this investment most. We need to show some transparency and ensure that the public can have confidence, because it is not always backed up by the statistics or the capital funding that is available because it is being pushed into areas that already have FDI.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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If the Deputy has any suggestions about increased transparency he should give them to me. There is nothing secret about the kind of work that IDA Ireland has been doing. I can give the statistics on the site visits which show that good progress is being made toward the goal that IDA Ireland has set for itself. It is clear that there is a goal of a 30% to 40% increase in FDI in every region outside Dublin by 2019. That is the goal and that is what it is working towards. Some 173 site visits were made in the first quarter of 2017. That is up from 136 over the same period last year. Given the number of visits that are being made, it is quite clear that it is spread across the country. There are areas where it is more difficult to attract investment to, and obviously there is a focus on those areas as well. IDA Ireland is extremely committed, from what I have seen since I took office, to investment in every region of Ireland. In 2016, 52% of all new jobs that were created were created outside Dublin. That is a success. The Deputy is probably referencing some particular areas, but clearly huge progress is being made with 52% of all new jobs being created being outside the capital. Some 55% of all the site visits in 2016 were to locations outside of Dublin, so IDA Ireland is behaving in a way that reflects the targets it has set for regional development.

3:40 pm

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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I have a lot of time for the chief executive of IDA Ireland and many of the people who work for the organisation. They do a very good job but the transparency the Minister spoke about can come through in the way in which IDA Ireland converses with local authorities and, in particular, Members of the Oireachtas. We all have to use our own constituencies as examples. Benamore Park in Roscrea is one of the best sites in Ireland and I have not heard of it being the subject of any real visits. It has been there for years. Sky Innovation Park is located in Tipperary town. The latter and Roscrea are the two towns in Ireland - not to mention County Tipperary - which badly need investment. They have suffered a great deal. It does not come through that they are on the top of the agenda of those who make the decisions in respect of itineraries and visits. If we could deal with that and have transparency along the way, it would help all of us in doing our jobs. They are practical examples of how the Minister could bring about such transparency because the decision makers in IDA Ireland need to ensure that they push this out to enough locations.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I take the Deputy's point and will ask IDA Ireland to consider his points because we need the support of Deputies and Senators and all local stakeholders in order to advance jobs investment. If there are initiatives that Deputies think could be taken in their areas, I want to hear about them, particularly as we now have regional action plans. I assume the Deputy is linking with the regional action plan in his area.

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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I launched it-----

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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If that is the case, he can direct some of these questions to the regional action committee-----

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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-----which means I am speaking with knowledge.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The regional action plans are very important in the context of the points the Deputy makes. As they become more powerful and attuned to the needs of their areas - they will have a certain level of familiarity in this regard already - Enterprise Ireland and IDA Ireland will listen to them and their recommendations will guide where the sites are located and where the jobs go. It does depend on the company and we have to recognise that.