Dáil debates

Thursday, 12 October 2017

Ceisteanna - Questions - Priority Questions

Regional Development

10:20 am

Photo of Séamus HealySéamus Healy (Tipperary, Workers and Unemployed Action Group)
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5. To ask the Minister for Jobs, Enterprise and Innovation her plans to seek a change in enterprise policy in order that the south-east region can attract a more proportionate share of foreign direct investment and high potential start-ups in view of the fact the region has historically lagged behind; if the region will receive its fair share of the ten-year national investment plan; and if she will make a statement on the matter. [43252/17]

Photo of Séamus HealySéamus Healy (Tipperary, Workers and Unemployed Action Group)
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In view of the fact that the south-east region has historically lagged behind in both economic and regional development, will the Minister ensure there is a change in enterprise policy in order that the region attracts a more proportionate share of foreign direct investment and high-potential start-ups? Will she ensure the region gets its fair share of the national investment plan coming soon?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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My Department published Enterprise 2025 in 2015. It sets out the strategic framework for coherence across Departments to focus our resources to foster a better future and to deliver sustainable enterprise growth and jobs. As a small open economy, we rely on external demand and international markets for growth. Since its publication, there has been continued global economic uncertainty, including, for example, Brexit. That is why my Department is currently undertaking a review of Enterprise 2025. That is our vision. We are examining any adaptation that is required to deal with current economic uncertainty, the challenge of Brexit and changes in policy in other countries.

We continue to maintain our focus on the regions, in particular through the regional action plan for jobs process. Through these regional plans and processes, we have a focus on balanced regional development. Later in the year, the Government will publish the national planning framework and the national capital investment plan, which will focus strongly on balanced development. Inclusive of growth in our urban areas, these measures will also focus very much on balanced regional development.

The south-east action plan for jobs is the key policy response for supporting employment growth in the south-east region with public and private stakeholders actively engaged together to make progress on jobs. The core objective of the plan is to see a further 25,000 at work in the region by 2020 and to reduce the unemployment rate to within 1% of the State average. The first two progress reports on the implementation of the Action Plan for Jobs show that progress is being made. I have had the opportunity to meet with the members of the action group. I note that 13,000 jobs were created in the south east since the regional action plans for jobs initiative was launched and implemented in January 2015. The unemployment rate in the south east has fallen from 12.8% in 2015 to 8.1% by the second quarter of 2017. However, there is still work to be done.

Photo of Séamus HealySéamus Healy (Tipperary, Workers and Unemployed Action Group)
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Those responsible for the south-east area action plan for jobs briefed Oireachtas Members from the south east last Thursday. They brought with them a number of industry champions from the area who are involved in driving the region forward. Significantly, the group included the five CEOs of the local authorities in the region. The group is very concerned that the area has lagged behind historically and that unemployment levels in the region are the second highest nationally, while the region is second lowest in foreign direct investment. It is 4% in the region and 6% nationally with approximately 7% of these jobs as against a population of 11%. High potential start-ups are similarly 4.5% as against a population of 11% in the region. There is also, of course, a huge brain drain from the region with 67% of students leaving the region to study. Unfortunately, 40% of them fail to return. We ask for a genuine focus on the region and for real balanced regional development. There must at least be no further incentivisation of growth in the Dublin area. We further call for preferential treatment for the regions, in particular the south east.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I have given the Deputy the figures on the improvements in job creation, including the reduction in the unemployment rate. It is good progress. However, I accept that more needs to be done and that the unemployment rate is higher than the overall national rate. It was more than 1% higher in the second quarter of 2017 than the national average of 6.4%. The building blocks are in place, however, between the work of the regional action plan, the industries that are there already and the IDA's property programme, which is supporting development in the area.

The development of the technological university will make a difference in respect of the issue of young people leaving the area, which was mentioned by the Deputy. We want to focus on making sure that young people who are educated locally can get jobs in their own area. I refer to the Bausch and Lamb development in Waterford recently and other initiatives. The first tranche of the regional enterprise fund is €35 million and applications are being examined currently. Regional development is one of the key criteria that must be used.

10:30 am

Photo of Séamus HealySéamus Healy (Tipperary, Workers and Unemployed Action Group)
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I refer to two projects that are vital to the future economic development of the region, one of which the Minister mentioned. Will she support and push forward proposals for a technological university in the south east? It has been in the mix for the past number of years but there seems to be a hold up. It is vitally important. The second is the upgrade of the N24 motorway for the south-east region. It would be a huge driver of economic and social activity in the region and it needs to be included in the capital investment programme that will be announced in the near future by the Minister for Public Expenditure and Reform.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The establishment of the proposed technological university for the south east clearly will be important in supporting advanced education and the skills enterprise and industry need. A great deal of good work has been undertaken by the two institutes of technology and we are keen to move ahead with the planned amendments to the Technological Universities Bill 2015. They have given a momentum to the south east technological university project.

I take the Deputy's point that there needs to be a continued focus on regional development and we will publish two important national programmes towards the end of the year - the national planning framework and the national capital investment programme. It is important to align the two of those in order that the point the Deputy made about transport is addressed whereby there is alignment regarding the road infrastructure in the context of regional development as well. The reason we want to publish the two programmes together is to ensure co-ordination between the planning framework and capital investment. The two have to go hand in hand and that is a perfect example of how they need to go hand in hand.