Paddy Burke (Fine Gael)

I welcome the Minister of State, Deputy John McGuinness, to the House and wish him well in his new portfolio. I have no doubt he has a good grasp of the small and medium size business sector. It was refreshing to hear him speak on the matter. I shall confine my contribution to a few questions to the Minister of State.

We have lost our textile industry and our indigenous craft industry. During the past ten years we have witnessed a massive explosion in the retail service industry. My town of Castlebar has more than doubled in size during the past seven or eight years, yet no manufacturing jobs have been created. All the jobs created are mainly in the service and retail sectors which is worrying from an economy point of view. I presume the position is similar in towns throughout the length and breadth of the country. Some the stores are massive, probably with massive overheads in rates and development charges. Given that the Minister of State mentioned development charges, these can be quite severe on a person starting up a business. The Minister of State appeared to suggest that the new report made recommendations to county managers to adjust development charges. Does this apply to the retail and the service sector also, as some of the units are quite small, or is the Minister of State speaking specifically about industrial zones? Senator Cassidy is right in saying the third level institutions linked to small indigenous businesses in the local area is important and is the way forward. The same applies to research and development.

I attended a launch in Castlebar of Baxter Healthcare and congratulate the company, the IDA and the Government on an investment of €75 million. That no new jobs will be created means there is a change in IDA funding policy. Do county enterprise boards and Enterprise Ireland refund companies where jobs are maintained rather than create new jobs? This appears to be a change in IDA policy.