Dáil debates

Thursday, 23 November 2017

Ceisteanna - Questions - Priority Questions

Job Creation

11:05 am

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

5. To ask the Minister for Jobs, Enterprise and Innovation the discussions her Department has had with a company (details supplied) regarding the future development of the proposed data centre in Athenry. [49764/17]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

What contact has the Department had with Apple? We know the Taoiseach met the company in California about the potential loss of the Athenry data centre. Was the Tánaiste informed when the company decided to go ahead with the second Danish plant, which had not been expected, in July this year? When does she expect it might make a decision on whether it will, in the end, proceed with an Irish plant? From where does she think it will get the 100% renewable power? Do we have a plan for how many data centres we want and what we get from this as a country? I know this is a series of questions, and I will come back to the Tánaiste with subsequent ones. What is the Tánaiste's interaction with this issue?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government is totally committed to this project, and at every available opportunity we have worked to ensure that no stone has been left unturned in bringing this project to fruition. We are striving to ensure that Ireland continues to be able to attract world-class data centres and other high-tech investments. The Taoiseach recently met the company's CEO in the USA and underlined the Government's support for this valuable project, which will build on this company's substantial existing investment and job creation in Ireland. My Department, through the IDA, has been engaged in ongoing discussions with the company involved, throughout all stages in the development of this project, including the various planning and legal processes. This engagement will continue and the IDA is in ongoing contact with the company, both through its US headquarters and with management at its existing Irish operations.

We strongly support this project for several reasons. It would help reinforce our hard-won reputation as a country that values and supports technological investment. The location of this centre in County Galway would have huge benefits for the wider area. I have just been discussing regional development, and it would serve as a strong endorsement of the west and the merits of investing in regional Ireland. We are making huge efforts to ensure balanced regional development.

The Deputy asked about forecasted benefits of this €850 million investment, and they are well-known. It is expected that 300 construction jobs would be generated, together with 150 quality on-site permanent jobs. Of course, there would a whole range of indirect benefits for the wider local and regional economy. There is very strong local support in Athenry for the project. There are many factors.

Whether the project proceeds or not, and we will certainly work to try to ensure it proceeds, remains a commercial decision for the company itself to take. We will continue working closely with the company and we will try to influence the final decision.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

I agree with the Tánaiste on the benefits, particularly for the west, but I must argue that her total commitment is not a fair reflection of the reality on the ground. These companies coming to Ireland want 100% renewable power. The Government has just presented a report which plans for the next 13 years and states we will only aim to keep the existing level of renewable power. EirGrid states we could get up to 75% in that timeframe, which would provide all the power to run these centres, but the Government does not seem to believe in it, which is one of the reasons we are at the bottom of the climate change league. Similarly, the Government pulled back the development of the grid to the north-west, including the Mayo and Galway area, and pulled back from the development of wind power there that could have powered the Athenry plant. One of the reasons it went to Denmark is not just that it was stuck in the planning system but that the company realised that in Denmark it was dealing with a government which believed in this renewable, low-carbon future. In this country, especially in Fine Gael, there seems to be an ideological opposition to the transition to a low-carbon 100% renewable future. Why is this?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

There is no ideological resistance to what the Deputy has described. These companies, as the Deputy rightly said, are big users of renewable energy, and that certainly is to be welcomed. Their experience in this country has been good. I do not think what Deputy has said is correct, because it is very clear the planning delays were the issue relating to where we are at present. The delays that have beset the project underline the need to have an efficient and speedy planning process and associated legal process in place in this country. I and the Government certainly want to ensure that similar projects are not unreasonably delayed. The Department of the Taoiseach established a high-level working group earlier this year to examine the many cross-departmental policy issues associated with these projects. The Department is represented on this group, and we will bring the enterprise perspective and retail related analysis to the group to aid its discussion. The group will seek to develop a strategic national policy approach to the development of future projects in Ireland. It is examining among other issues the possible designations of areas suitable for the development of data centres and the identification and resolution of planning issues and infrastructural requirements related to such investment. This approach is the right one. It takes into account the issues about which the Deputy is concerned and which he raised today.

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

If it is not ideological, what explains the fact the Government is in Europe at present trying to water down every renewable directive and governance measure? This is why we are at the bottom of the charts. To put this aside, I am glad the Tánaiste is looking at developing a plan for what we do with data centres. One of the reasons for the planning delay in this case was there was not a national plan. The planning system had to try to decide whether the project made sense without any understanding of the overall plan in terms of how many data centres we have, from where we get the power, the benefits for the local community and where we locate them. I very much welcome, if I heard it in the Tánaiste's answer, that she will now have such a plan. When does she expect it will be ready? What other bodies are involved? I have just come from an ESB conference down the road, and it sees the development of a renewable sensitive dynamic network as key. What is the role of the industry in this? How quickly can the Tánaiste turn around such a plan so at least companies coming in future know what is happening in this country?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Taoiseach and I have already brought the first update to the Government on this. I can confirm a cross-departmental group is looking at this. I will arrange for details to be sent to the Deputy of who is on the group and an outline of the work, and in so far as I can do so I am happy to do it. We should not forget that Ireland is still considered, and with good cause, the unofficial data centre of Europe. There are well over 25 major data centres in Ireland. Many of them belong to some of the world's leading technology companies located here. The strengths we have to offer, and I hear it again and again when I visit the companies, for this type of investment include our climate, our energy supply and our business environment. They are well known to potential investors. We will continue to work on this national plan and the IDA will remain in very close contact with the company.