Micheál Martin (Cork South Central, Fianna Fail)

I thank the Senator for raising this matter on the Adjournment and for his kind comments on my new portfolio. The board of Greencore has made a commercial decision to cease production of sugar beet in Carlow, with Mallow remaining as the sole producer in Ireland. The company has indicated that the move is designed to ensure the survival of its business in the face of reforms to the existing EU sugar regime and the increasingly competitive nature of the company's market, which will severely impact on the viability of sugar production in Ireland.

While primary responsibility for this area rests with the Minister for Agriculture and Food, the State agencies under the aegis of my Department will be available to assist in whatever way they can. Initially, the full services of FÁS, including retraining and upskilling, are being made available to any workers who wish to avail of them. Carlow town is a key focus for IDA Ireland in attracting foreign direct investment, in line with the Government's strategy of achieving balanced regional development.

Fortunately, Carlow has many of the ingredients necessary for attracting overseas investment, particularly a strong third level educational provision through Carlow Institute of Technology. It is important to ensure that a supportive business environment is being developed and maintained in Carlow. This includes working closely with the third level sector to ensure that new course development is aligned with the requirements of potential overseas businesses, and maintaining a close working relationship with the local authority to ensure that world class infrastructure is available to foreign investors.

The expected commencement in 2006 of the northern section of the N9 and N10 motorway-dual carriageway, which includes a bypass of Carlow, will enhance Carlow's attractiveness for investment. The existing base of overseas companies consists of five firms, employing 976 people according to the most recent Forfás employment survey.

IDA Ireland's continuing commitment to Carlow is evidenced by the development of a flagship business and technology park on the Dublin road. This will further enhance the town's attraction for overseas investment. An investment of €11.5 million has been committed to the park to date. Site development works were completed on the park in 2003 and planning permission was granted for the construction of a 17,600 sq.ft. advance office building on the park.

Construction began in December 2004, with expected completion during the third quarter of 2005. IDA Ireland continues actively to market Carlow town and the business and technology park through its network of overseas offices. Now that construction has commenced, IDA will be marketing the new building as well as the greenfield sites available on the park. IDA Ireland is also marketing Carlow for international services and high technology manufacturing sectors for which proximity to both Dublin Airport and city are key advantages.

Enterprise Ireland works with companies in its portfolio to assist them grow their sales and exports and improve innovation in order that they can compete on world markets. In the past three years Enterprise Ireland approved support of over €6 million and made payments of over €4 million for manufacturing industry in County Carlow. This investment was in areas such as research and development, capability building and process development. As part of its regional development role Enterprise Ireland works with other agencies in the county to develop the business infrastructure.

Infrastructural projects include community enterprise centres, incubation facilities in the colleges as well as supporting other technology centres. Enterprise Ireland also works closely with the institutes of technology to encourage industry-third level partnerships in the regions. Enterprise Ireland has approved €1.42 million for the construction of a campus innovation centre at Carlow Institute of Technology and an additional €156,000 for the management of the centre. Construction work on the centre is under way and is due to be completed by this summer. The first tenants will move into the centre in September.

Enterprise Ireland approved €200,000 for the construction of a 7,500 sq. ft. community enterprise centre located on O'Brien Road in Carlow which opened in December 2004. The development of community-based enterprise centres is a crucial part of the drive to create new regional enterprise. Carlow County Enterprise Board has relocated its offices to the centre and two new enterprises have opened. An additional four units are available for letting and it is hoped that the building will be fully occupied by June 2005.

Carlow County Council launched a new brochure promoting Carlow on 10 February. Enterprise Ireland was actively involved in this venture and will continue to work closely with the local authority and all other agencies in any initiatives that help to promote industry in the county.

The combined efforts of the industrial development agencies, including the County Enterprise Board, together with local community interests will be able to address the needs of the Carlow area following the closure in question.