Dáil debates

Thursday, 24 May 2018

Other Questions

Foreign Direct Investment

11:30 am

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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8. To ask the Minister for Jobs, Enterprise and Innovation the steps she is taking to bring foreign direct investment to vacant IDA Ireland properties (details supplied) in County Cork; and the number of site visits to these properties by prospective clients in 2017 and 2018. [22620/18]

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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What is being done to bring foreign direct investment to a number of vacant IDA Ireland properties in County Cork? The Minister of State has mentioned that there have been ten visits to sites in County Cork so far this year. I wonder whether any of them were in Duhallow, Charleville or Kanturk. What is being done by IDA Ireland and the Department of Business, Enterprise and Innovation to sell these sites and attract industry to them?

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Site visits represent a useful tool through which investors can be encouraged to invest in areas such as County Cork. IDA Ireland always does its utmost to ensure overseas firms consider all potential locations when visiting Ireland. It is important to remember that the final decision on where to invest always rests with the company concerned. I remind the Deputy that site visit activity does not necessarily reflect investment potential. As I told Deputy Kelleher earlier, at least 70% of all new foreign direct investment comes from existing IDA Ireland client companies. The employment situation in the south-west region, which covers counties Cork and Kerry, has been steadily improving in recent years. The south-west regional action plan for jobs, which was launched in July 2015, has been a key factor in this improvement. The plan placed a heavy focus on employment growth in key sectors such as life sciences, manufacturing and information and communications technology. Last year, IDA Ireland client companies created 2,388 gross new jobs in the south west, bringing total employment in overseas companies in the region to 35,248 people across 158 client companies.

IDA Ireland will continue to work with its clients to identify opportunities for new investment or expansion in County Cork. In doing so, it will draw the attention of investors to the county's particular strengths. These include but are not limited to its accessibility, including its ports and its airport, its existing cluster of medical technology and pharmaceutical firms and its strong track record as a home to overseas companies for many years. IDA Ireland is seeking to attract new firms to Cork while working closely with its existing clients there to help to strengthen and potentially grow their respective workforces. Regarding the specific locations mentioned by Deputy Moynihan, as data on IDA Ireland site visits are collated on a county-by-county basis, information on the number of site visits to specific locations in individual counties is not available. IDA Ireland does not release details of the specific itineraries of potential investors on grounds of client confidentiality and commercial sensitivity.

I can inform the Deputy, however, that a total of 51 site visits took place in Cork in 2017 and a further ten site visits have been undertaken in the first three months of 2018.

11:40 am

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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If IDA Ireland had visited any of the sites in Kanturk, Charleville or Millstreet, the Minister of State would have been able to answer the question I asked. The Minster of State is hiding behind IDA Ireland. I have no wish to interfere with commercial sensitivity. Are the Department and IDA Ireland looking at land banks held in Kanturk, Charleville and Millstreet with a view to promoting those sites for industrial development? There is a highly-educated young workforce throughout Duhallow and the north Cork region. They are as capable, and probably more capable, than any of the communities throughout the country.

The Minister of State has used the opt-out clause of saying IDA Ireland does not release individuals site locations because of commercial sensitivity. That is balderdash, to be honest. If IDA Ireland had information that it could have furnished to the Department in the past three or four days indicating that there had been a visit, then that information would have been on the record of the Dáil today. I am challenging the Minister of State to go back to IDA Ireland and ask specifically when IDA Ireland last did that. Was it back when we were trying to sell these sites in Kanturk or when the advanced factory was set up in Charleville and so on? When last was there any serious discussion between IDA Ireland and the Department on these sites and how best to attract industry to these fantastic locations?

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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IDA Ireland is working hard to ensure that all these regions and sites are available for clients and potential clients. It is important to have the sites available. These are feasible tools to attract companies. In the end, however, it is up to the investors to decide where to put investment in the country.

IDA Ireland is operating in a very competitive environment at the moment. That is why IDA Ireland must compete by region rather than by town, village or small city. IDA Ireland is up against other major cities, for example, Birmingham and Manchester, in the UK where millions of people live in one location. IDA Ireland competes by region. The agency must ensure the multinational companies are connected to the right location for the company. That is important also.

IDA Ireland does not have the final decision in these matters. The companies that potentially wish to set up here have property people who look at the places where they want to invest. We can bring the investors to the locations but in the end it is up to them to decide. Many factors influence where they decide to locate.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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In the site in Charleville, a business expansion scheme was developed 15 years ago or more. That spawned more industry around it. IDA Ireland had encouraged us some years ago and indicated that it was in negotiation with Cork County Council to hand over the sites to enable industrial units to be developed, yet, to date, nothing has happened.

The Minister of State was throwing out the question of Birmingham and other cities. I challenge the Minister of State in this regard because Duhallow and the north Cork region have as much to offer as any of those places. The area has a fantastic young educated workforce. Unfortunately, we are exporting that workforce to Dublin and other cities. The Minister of State will know the line about the east coast tipping over into the Irish sea. We have to be serious about balanced regional development. I call on the Minister of State to look seriously at these locations. They may be in IDA Ireland ownership, but are they on the IDA Ireland radar? When last was there a discussion on these properties? When last was there a discussion on how best to utilise these properties for the benefit of the State, IDA Ireland, the companies coming in and the region that supports them?

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Every IDA Ireland site is on the radar. Let us consider the positives as well. Charleville is a fantastic dairy hub, especially with the work the Kerry Group is doing there. They make cheese strings there. There is an engineering hub nearby also. Millstreet has Alps Electric and Ballydesmond has Munster Joinery. Some really good companies are based there. Deputy Moynihan is right that north Cork has a great deal to offer but many good companies are there as well.

Like any other county that has a big city nearby, there is a magnet to attract companies into the big city of Cork. People want to work there and the talent is there because of the volume of big multinational companies. Apple has almost 6,000 people. People are going to travel a short distance and there is nothing we can do about that. People can choose the places where they can get good jobs. I understand the attraction of the towns mentioned by Deputy Moynihan. They are and will continue to be on the IDA Ireland radar. However, Deputy Moynihan should also acknowledge the good jobs that are in those towns at present. We need to ensure that we sustain those jobs and employment in the future.

Question No. 9 replied to with Written Answers.