Dáil debates

Thursday, 12 October 2017

10:40 am

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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7. To ask the Minister for Jobs, Enterprise and Innovation the plans her Department and the State's industrial promotion agencies have to assist in job creation in 2017 and 2018; their further plans to maintain existing employment in County Cavan; and if she will make a statement on the matter. [43133/17]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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20. To ask the Minister for Jobs, Enterprise and Innovation the plans her Department and the State's industrial promotion agencies have to assist in job creation in 2017 and 2018 and in the maintenance of existing employment throughout County Monaghan; and if she will make a statement on the matter. [43134/17]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I have raised previously with the Tánaiste the concerns in areas such as Cavan and Monaghan about the adverse impact of Brexit. Employment in our area is dependent on indigenous enterprise. The agrifood, construction and engineering sectors are the main sources of employment and they are heavily dependent on the Northern Ireland and British market. Already the weakness of sterling has had negative impacts on those companies so there must be specific programmes of assistance to help the companies to try to maintain existing levels of employment and, where possible, to grow. Sector-specific programmes are required to deal with the adverse impacts of Brexit and those programmes must be put in place at the earliest opportunity.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I propose to take Questions Nos. 7 and 20 together.

I recognise the particular challenges that Brexit can pose for some of the sectors the Deputy mentioned. One of our core ways of dealing with the challenges in different areas is the action plans for jobs. The north east-north west regional action plan is a key response to try to deal with the challenges and to support employment growth in the region. Its aim is to support job creation across the region, including in counties Cavan and Monaghan, by ensuring there is collaboration between the public and private sectors and that Enterprise Ireland, the IDA and so forth are supporting that work.

The core objective of the action plan is to have a further 28,000 at work in the region by 2020 and to ensure the unemployment rate is within the 1% of the State average. The sectors being targeted include the traditionally strong sectors in the area such as agrifood, manufacturing, engineering and tourism. The second progress report is being finalised and is about to be published. Over 96% of the actions due to be completed under the plan have been done and 6,000 jobs were created in the Border area since the regional action plan for jobs initiative was launched in January 2015. The unemployment rate in the region has fallen from 10.2% to 6.6%.

Clearly, we must continue this work but it is important to note that at this point in time live register numbers have fallen in County Cavan by 16.5% and in County Monaghan by 14% in the past 12 months. That is good progress but we cannot be complacent given the challenges that may be ahead, particularly for the sectors that are reliant on the UK market. Any changes in sterling would particularly affect them. This is a key focus for Enterprise Ireland in working with clients and the sectors the Deputy mentioned. The main message is to prepare for Brexit by business and by sector to ensure that firms can diversify and be supported in doing that. EI has a plan in place to focus more on the eurozone and that means supporting the firms mentioned by the Deputy to diversify to the eurozone. However, that will not be done overnight which is why a transitional phase in Brexit is very important. That is why the supports that are available for firms must be used at this point. This is what we probably should be doing anyway irrespective of Brexit, but there is a great deal of support available.

There is also the regional enterprise development fund. There was an announcement in the budget that the second tranche of that, €25 million, will be available. People can apply to that fund from January and decisions are currently being made in respect of the first tranche of that funding. Regional development was one of the criteria that had to be taken into account so all parts of the country will benefit from the fund.

In terms of firms that could be vulnerable in the context of Brexit and which need working capital, that is, firms that would be viable if they had access to capital in the short term, the Brexit loan scheme we have announced will be available to those firms in the Cavan, Monaghan and Border region as well.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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We have had difficulty over the years in attracting foreign direct investment to the Border region. One of the key ingredients in ensuring we were not successful was the fact of the Troubles on our doorstep for many decades. Thankfully, since the signing of the Good Friday Agreement in 1998 there has been a huge growth in trade between the North and South and a huge growth in companies expanding both North and South. The sectors about which I am concerned in particular are the agrifood, engineering and construction products sectors. Many of them, thankfully, have developed on an all-Ireland basis. They might have started in Cavan and Monaghan but they expanded and grew north of the Border. Similarly, some companies that were established in the Six Counties have expanded their sites and processing facilities south of the Border. In the context of dealing with the challenges of Brexit it is most regrettable that there is no Northern Ireland Executive and Assembly. There is a huge and urgent need to have the authorities in this State and in the North working together with regard to whatever programmes of assistance are put in place.

We have to ensure co-operation and that such assistance is made available to companies that have a presence on both sides of the Border, even if it is for work or activities they carry out north of the Border. A border cannot be introduced for truly all-Ireland companies. If the Department or one of the industrial promotion agencies has a programme of assistance available, I urge the Tánaiste to make it available to companies that are sited north of the Border but have a presence on this side of the Border.

10:50 am

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Deputy makes a strong case on the importance of cross-Border trade and companies which operate North and South. Ensuring this trade continues is an absolute priority. I agree with Deputy on the importance of having an executive in place in order that the needs of the North, including the points made by the Deputy, can be articulated at an international level. Brexit is the most significant challenge to face businesses, North and South, for decades.

I take the Deputy's point on the importance of providing specific supports for companies that trade North and South. The most important issue is that they are allowed and able to continue to trade without a border. Ensuring normal trade can continue is a priority for us in the negotiations on Brexit. I hope sufficient progress will be made in the next few weeks to allow the negotiations on Brexit to move on to the very important trade and business issues that are preoccupying companies. The great uncertainty surrounding Brexit makes it difficult for businesses to know what they should do at this point. However, the message remains that they must innovate, diversify, examine the specific impact Brexit will have on their business, make preparation plans and engage with the agencies whose role is to help them.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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State agencies will be contacted by some companies and enterprises that have never approached them before. I know of small companies that will approach their local enterprise offices. We are fortunate to have two excellent local enterprise offices in Cavan-Monaghan. I hope the Tánaiste is in a position to provide additional funding for the work of these offices in 2018 because the work of and support for local enterprises will be critical.

Financial services has been identified as a sector where companies may choose to relocate to Ireland as a result of Brexit. If companies choose to relocate, will a particular effort be made to try to bring some of this investment to the Border region, which has already been adversely impacted and will be further negatively affected by Brexit? There has been a history of some financial services companies operating in the Border region. County Cavan, from where I come, has had a strong insurance industry over the years and the region has a pool of talent with the relevant skills. If companies relocate to Ireland as a result of Brexit, I sincerely hope the Department and all the industrial agencies will try to persuade them to locate in areas that have been hit hardest by Brexit and face the most difficulties post 2019.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I assure the Deputy that attracting foreign direct investment to the regions is very much a priority in the work IDA Ireland is doing, which includes having suitable properties available. IDA Ireland is progressing a property plan for next year that takes in many parts of the country. This issue is also a priority in my discussions with companies. I and all the representatives discuss opportunities in regional areas and the advantages available in different parts of the country, including the Border region and counties Cavan and Monaghan. Ensuring balanced regional development is a priority and goal the Government will support in the national planning framework and capital investment programme. Companies' decision making is impacted by many criteria, including the skills available, employment, access and so forth. We will continue to focus on ensuring IDA Ireland will make sure, where possible, that companies locate in the regions. This issue forms part of all of the agency's discussions with firms.