John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank Senator Cullinane for raising this important issue. There has been a long-standing unemployment problem in Waterford and in the region. The structural challenges that the region faces have built up over many years and could not be reversed with a simple set of actions. When TalkTalk announced job losses in Waterford in 2011, the Minister decided to take a very focused approach to tackling the causes of unemployment in the region, which appeared to be unique to the south east. The specific recommendations contained in the South East Employment Action Plan, produced by Forfás, are being progressed by a forum representing the agencies and key stakeholders in the region. There has been good progress since the plan was published, including several significant jobs announcements - notably, several hundred jobs were created at the Eishtec call centre in Waterford city and 65 Enterprise-Ireland-supported jobs and new jobs were created by Dawn Meats. There has been a tripling of the number of site visits by IDA Ireland.

This welcome trend has continued. On 28 March, the Minister participated in an announcement by Nypro Healthcare of an additional state-of-the-art medical device manufacturing facility in Waterford. This newly established facility will result in the creation of over 200 new high-quality jobs in phase 1, which is expected to increase in subsequent years. In addition, a major investment by Glanbia in Belview on the Kilkenny-Waterford border will provide 1,600 direct and indirect jobs, as well as an additional 450 jobs during the construction phase. It will contribute an estimated €400 million every year to the economy, with particular benefit to farm families and rural communities. Last May, the Irish software company FeedHenry announced that it would create up to 100 jobs over the next two years as part of a €7 million investment by the Enterprise-Ireland-supported firm. The jobs will be located in its Waterford and Dublin offices, bringing the number employed by the company to 140. To date in 2013 there have been 13 IDA site visits to Waterford, one visit to Wexford, two visits to Kilkenny and one visit to Carlow. Senator Cullinane will appreciate that while the IDA makes strenuous efforts to attract multinational companies to specific regions, whether companies choose to visit and, if so, whether they subsequently choose to locate in the region concerned, is entirely a matter for the companies themselves.

While every effort is being made to attract foreign investments to the south east, final decisions are made by the corporate entities. I regret this week's announcement of 74 job losses in Honeywell in Waterford city, but the company has stated it hopes many of these losses will be voluntary. It is gratifying that it will still retain a significant workforce.

The Senator also raised the issue of having a stronger IDA Ireland presence in the region. During 2010, in order to maximise resources, a business transformation process was carried out which examined every position in the organisation. The outcome provided opportunities to free up staff resources for core business generation activities and to ensure IDA Ireland met its job targets. It should be appreciated that the Department and its agencies operate under a very stringent regime in regard to staffing levels, with significant cuts imposed in many bodies within the Department's remit. However, I am pleased to say the agency has been largely protected from cuts under the employment control framework for the past three years.

I also acknowledge the recent report, South East Economic Development Strategy 2013-2023, which the Senator prepared for the Joint Committee on Jobs, Enterprise and Innovation. The report represents a comprehensive and detailed assessment of a wide range of factors that can contribute to the overall economic development of the south-east region. My Department is considering the contents of the report and assessing the merits and practicality of its recommendations. Many of the suggested actions relate to matters which come within the remit of other Departments or bodies and some of the recommendations could have significant financial implications which would be a challenge in the current financial climate. The report contains a number of very worthwhile and relevant recommendations for developing the south-east region which would serve to add to the ongoing work of the south-east forum. I will ask the forum for its considered views on the report. In due course I will be happy to discuss its findings with the committee in the context of our ongoing constructive dialogue.

I am aware that Waterford city and county councils have recently produced a report on the south east which also contains several positive proposals for enterprise development in the region. It is heartening that a significant effort is being put into seeking solutions to the economic problems of the south east and I look forward to improvements in the months and years ahead.

The Minister extends his apologies to the House as he was unavoidably detained at a meeting. He is dealing comprehensively and in a focused way with the south-east region.