Dáil debates

Thursday, 24 May 2018

11:20 am

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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7. To ask the Minister for Jobs, Enterprise and Innovation the status of regional IDA site visits and vacant IDA properties nationwide in Q1, 2018; and if she will make a statement on the matter. [22862/18]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I ask the Minister of State to outline the status of regional IDA Ireland site visits and to detail vacant IDA Ireland properties nationwide. The first quarter statistics for 2018 on the number of IDA Ireland site visits across the country are quite alarming in that there are significant disparities between Dublin and the regions. I ask the Minister of State to elaborate on that and explain why some counties are being consistently ignored in the context of IDA Ireland site visits.

11:30 am

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Creating more jobs in the regions is a priority for IDA Ireland and my Department. The Minister, Deputy Humphreys, and I will focus on doing everything we can in the fairest possible way to spread the investment across the country. The Government is working to ensure a more even distribution of foreign direct investment across the country. Last year, IDA Ireland delivered 99 regional investments, with 45% of new jobs created outside Dublin. The last three years have seen 30,000 new foreign direct investment jobs created outside Dublin. The availability of marketable serviced land and buildings in advance of demand is an important element of IDA Ireland's ability to compete for mobile foreign direct investment. Such a supply of properties helps the agency to secure job-rich investment and allows projects to begin at an earlier date by diminishing many of the difficulties associated with land acquisition, planning and construction. It is important because it enables IDA Ireland to encourage and attract new investors to Ireland, particularly to the regions.

I am informed that IDA Ireland owns 30 properties across the country, 13 of which are occupied by its clients with the other 17 being available for prospective or existing investors. IDA Ireland's regional property programme remains an important tool for encouraging investors to locate in areas outside Dublin. This programme is targeted at ensuring an adequate supply of marketable serviced land, offices and industrial and manufacturing buildings is readily available in advance of demand from existing and potential client companies. The programme includes the construction of nine new advance facilities around the country. Buildings have been completed in Castlebar, Tralee and Sligo as part of this programme. IDA Ireland is continuing to roll out its building programme across the country, with new buildings planned in Carlow, Dundalk, Limerick, Galway, Athlone and Waterford over the next two years. I am confident that the regional property programme, which has already helped to generate employment in the regions, will help to secure further investment in the years ahead.

Additional information not given on the floor of the House

Site visits represent a valuable tool through which investors can be encouraged to invest in regional areas. IDA Ireland always does its utmost to ensure overseas firms consider all potential locations when visiting Ireland. This is in line with the priority that has been placed on investment outside our main cities. The agency is continuing to target an increase of 30% to 40% in foreign direct investment in every region of the country by the end of its current strategy in 2019. While site visits can help to highlight the benefits of the regions to IDA Ireland's client companies, we need to remember that the final decision on where to invest always rests with the firm concerned. Some companies are only intent on investing in urban areas for a variety of commercial reasons. It should not be forgotten that site visit activity does not necessarily reflect investment potential. At least 70% of all new foreign direct investment comes from existing IDA Ireland client companies. There were 66 site visits across Ireland, excluding Dublin, in the first three months of 2018. IDA Ireland will continue to bring new and existing clients to potential investment locations all over the country.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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The site visit statistics are symptomatic of the greater problem of regional imbalance. We accept there have been increases in employment across the country and a major increase in inward investment through companies supported by IDA Ireland. Given that 51% of site visits between 2012 and 2017 were in Dublin, which sends a worrying signal to the regions, and in light of the investment platforms for the coming years that have been outlined in the national planning framework, I suggest that the Government's approach to policy development is centred on Dublin. I am genuinely concerned that this will undermine the capacity of the regions to develop their own micro-economies. When this alarming situation is coupled with other Government policies - such as the lack of broadband roll-out, which is having an impact on small and medium-sized enterprises - it is clear that IDA Ireland's policy of having over 50% of site visits in Dublin, with the other visits being spread across the rest of the country, is not good enough.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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I do not agree with the Deputy. I remind him that 45% of the net 10,000 jobs created by IDA Ireland last year were outside the greater Dublin region.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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That is my point.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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This issue is not all about site visits. While site visits are important, it is also important to nurture the existing companies in this country. I advise the Deputy to look at the number of jobs that have been created by IDA Ireland. I commend the work the agency has done in this area. At least 70% of all new jobs come from existing foreign direct investment companies in this country that want to expand their global reach and change their systems of production. That is extremely important. I see this for myself as I travel around the country. Many new job announcements involve existing companies. It is important that IDA Ireland sites are available around the country to offer a choice to foreign direct investment companies that are looking to locate here. It is ultimately a matter for each company to decide where it wants to locate. The availability of sites is important. It is important for us to have advance companies as well. That is the reason for IDA Ireland's building programme. Thirteen of IDA Ireland's 30 properties around the country are occupied and the other 17 are available.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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The Minister of State has told us that 4,500 of the net 10,000 jobs created by IDA Ireland last year were outside Dublin, which means that 5,500 jobs were created in Dublin. The reality is that 55% of the net job creation was in Dublin and 45% of it was in the rest of the country, which rather proves my point. The Government's site visits policy is also relevant in this context. It is simply not good enough that ten counties, including Cavan, Donegal, Kerry, Kilkenny, Longford, Monaghan and Wexford, were not visited in the first quarter of 2018. Having served in this Department previously, I am aware that IDA Ireland cannot direct a company to locate in a specific location. Companies tend to look at Ireland strategically when they are deciding where to locate. The Government can encourage and cajole companies to consider certain areas by showing a strong commitment to regional policy. IDA Ireland can also be cajoled to encourage companies to locate in the regions. This was done previously and it can be done again. More importantly, it must be done again if we are to ensure the regions do not continue to fall further behind Dublin.

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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As I have said, the figures for the first quarter of the year can be misleading. I suggest a 12-month period should be studied to get a better picture in respect of site visits. There were ten site visits to the Deputy's home county of Cork in the first three or four months of this year. Site visits take place all year round. It is not the case that there is a certain number of visits each month. There can be extra site visits during the summer and more later on in the year. It is extremely important for IDA Ireland to have greenfield sites as a viable tool for attracting new industry into the regions. The reality, fair and straight, is that the regions are faring well. As the Deputy knows, foreign direct investment, which has been mentioned, tends to go into clusters. It is important that we have indigenous industry to back that up as well. Enterprise Ireland's results for last year show that 65% of the net 10,000 jobs it created were located outside the greater Dublin area. I remind the House that the local enterprise offices created almost net 3,700 jobs throughout the country last year. Our intention is to ensure every region, county and community feels the effect of the recovery when jobs are being created.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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I ask the Minister of State to conclude because Deputy Michael Moynihan is waiting for us to take Question No. 8.

Photo of John LahartJohn Lahart (Dublin South West, Fianna Fail)
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He has not been waiting as long as I have.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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Others have been waiting. Although it is a bit late now, I ask the Minister of State to abide by the time constraints, as we all must do.