James Bannon (Fine Gael)
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I welcome the Minister of State to the House this evening to discuss the need to prioritise Granard, County Longford, as a location for a new factory to advance its development and meet the needs of the increasing population.

It is crucial to site a new factory in the town to advance its development, to ensure a more balanced distribution of job opportunities and to encourage the establishment of foreign investment in both the midlands as a whole and in this town, which is in the heart of northern County Longford.

While I am aware that progress in this regard is being achieved nationally and regionally, the challenge for a town such as Granard remains tough in an increasingly competitive market. Compliments must be paid to the existing family-run businesses in Granard, which have been the backbone of the community for many years. I will not mention specific names.

Investment in Ireland tends to favour the larger urban centres that are close to universities and institutes of technology. Combining the strengths of the midland gateway will be essential to boosting the region's overall economic development and Granard, as well as other towns and villages, has a complementary role within that structure in achieving the aim of balanced regional development. However, in the rush to achieve definitive regional autonomy, demands for local industry for economic sustainability in towns such as Granard, in which there is a growing population, must not be overlooked. It is important that the Government does not overlook Granard. It is the second largest town in County Longford and lies on the N55 route from the midlands region to the northern counties and as such is ideally placed as a location for a new enterprise, particularly in terms of North-South co-operation, given its geographical positioning.

Recent changes in the political and economic climate, both in Northern Ireland and the Republic of Ireland, have opened up a range of new opportunities for cross-Border co-operation. The potential gains from working together across the Border to achieve common goals are now being highlighted and could bring a necessary boost to Granard. Granard Town Council has made repeated representations to the IDA and Enterprise Ireland requesting that they prioritise the town. I compliment my colleagues, Councillors Maura Kilbride-Harkin and John Maguire, for their wholehearted support for advancing infrastructural development in and around Granard during recent years to make it even more attractive. However, the town suffers from the Government's inability to tackle Ireland's competitiveness. Stealth taxes and charges imposed on companies price them out of the market. The Government must get its act together as a matter of urgency to remedy this threat to the economic strength of towns such as Granard.

Granard is a CLÁR programme designated region and I do not have to outline to the Minister of State the implications of this for all those living in the town in terms of disadvantaged status and their overall needs. I ask the Minister of State to give priority to Granard and other towns in counties Longford and Westmeath. They are situated in the BMW region with all the problems associated with this group of counties and urgently need to be hoisted up the economic ladder. I would appreciate if the Minister of State ensured it was top of the list with IDA Ireland and Enterprise Ireland.

On numerous occasions I called on the Government to open the purse strings on BMW funding as the massive underspend of this allocation is a scandal. I have raised this issue time and again but the scandal of the retention of this valuable funding continues. I am sure there is also an underspend in the Minister of State's part of the country. How any Government can justify withholding moneys legitimately due to a region badly in need of support is certainly a matter for the electorate to consider. I find it shameful that such practices are allowed to continue.

Since I submitted this motion three weeks ago I have received a huge number of positive responses. I have played my part in encouraging industry to the town and I am confident something will come shortly but we need more than one industry. We need a series of industries for towns in counties Longford and Westmeath. Little was announced or delivered during the term of office of the Government.

Tony Killeen (Clare, Fianna Fail)
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I thank the Senator for raising this matter. State support for enterprise development is channelled through the Department of Enterprise, Trade and Employment to the industrial development agencies, namely, IDA Ireland, Enterprise Ireland and the county enterprise boards. However, the Minister of the day is specifically precluded under the Industrial Development Acts from giving directives to the agencies regarding individual undertakings or preference to one area over another. It is open to the Minister to give general policy directives to the agencies. In this regard a key requirement of Government is that the enterprise development agencies work towards achieving a balanced regional spread of investment and jobs. The policy framework put in place to achieve this objective is the national spatial strategy which must be actively embraced and followed by all economic and social parties. Granard is well positioned in the midlands region, being within commuting distance of Longford town.

The primary objective of the development agencies is to win and grow the best in investment for Ireland. To achieve this locations with a critical mass of suitably qualified talent, supporting infrastructure and sophisticated business services are needed. For most of the mobile international investment for which we compete the competition is from city regions with a population base of more than 1 million. In Ireland only Dublin has a population of this size. For this reason, every location in Ireland must think and act regionally rather than locally if it wishes to succeed, in line with the national spatial strategy and the new national development plan.

Granard is part of the growing midlands region strategically located in the centre of the country. A key objective of the national development plan is to build on current trends and maintain strong and sustainable growth in each of the gateways. A total of 14,158 people were employed in enterprise agency-assisted companies in the region at the end of 2006. The future of Granard and the other smaller towns in the region is a fundamental part of the development of the midlands region as a whole and national investment is focused at this level. It is also vital that this national investment is partnered with local vision and leadership and that private investment also plays a role.

Each of the development agencies plays its part in the development of the midlands region. IDA Ireland is committed to ensuring a more balanced distribution of job opportunities and encouraging the establishment of foreign investment in the region. The agency markets the gateway locations of Athlone, Tullamore and Mullingar through its network of overseas offices. It also engages with local government, industry bodies and representatives, educational bodies and infrastructure, utility and service providers in the region in an effort to create and develop the conditions for winning and growing business. Progress has been achieved but challenges remain. Combining the strengths of the midlands gateway towns is essential to boost the region's overall economic strength. The other towns, villages and rural areas all have complementary roles to play.

Recent successes of the IDA in the area include providing ten acres of industrial zoned lands in January 2005 to assist in the OPW's decentralisation of the prison support services at the IDA industrial estate at Templemichael in Longford town. This project will employ approximately 200 people on completion. The lands were transferred to Longford County Council to facilitate this decentralisation initiative.

A total of eight acres of industrial zoned lands was released to Longford County Council in March 2005 at Templemichael to assist demand from local enterprise and employment start-up businesses. Abbott Ireland was established in Longford town, with an investment of approximately €70 million and 600 jobs, 80% of which are for third level graduates, over a four to five year period. This project is now operational and recruitment is ongoing. Cameron Ireland in Longford town is now the corporation's global centre of excellence for certain technological advanced products, with growing employment figures.

These investments and jobs are in County Longford and within a reasonable commute time of Granard. The IDA will continue to work in the interests of promoting the midlands for further additional foreign investment and job creation. In this regard, a commitment in the NDP requires that the agency develop a large-scale utility intensive site as part of its strategic sites initiative. The agency will address this issue and keep its entire property programme within the region under constant review.

Enterprise Ireland also has a regional focus and works with existing companies such as Pat the Baker, one of Longford's leading indigenous employers with 245 employees. Other Enterprise Ireland supported companies in Granard include Enplast and Kiernan Milling. With the county enterprise boards, they encourage the creation of new start-up companies and provide the necessary enterprise infrastructure.

In January 2006 my colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin, announced the extension of the Enterprise Ireland community enterprise centre scheme which will provide €7 million of capital funding in the period from 2006 to 2008. In June 2006 it was announced that Granard Area Development Company was successful in its application for funding and received approval for €300,000 towards the development of a new community enterprise centre which will be located in Granard town and built on land donated by Longford County Council. It is expected the centre will be fully occupied upon completion.

Longford County Enterprise Board was established in 1993 to provide a source of support for small businesses with ten employees or fewer. The function of the board is to develop indigenous enterprise potential and stimulate economic activity throughout County Longford, inclusive of Granard. The board provides a single point of contact at local level for new and established small businesses. Subject to certain eligibility criteria, enterprises may qualify for support from the county enterprise board primarily in the form of capital and feasibility grants.

During 2006 Longford County Enterprise Board paid €257,345 in grant aid to 41 projects and assisted in the creation of 37 net jobs in grant-aided companies in the county. The board also trained more than 470 people in small business skills and provided professional mentoring for 91 clients. Overall, I am confident that the policies and strategies in place for the development of the midlands region are the most appropriate and will result in sustainable investment and jobs for the growing population of the region, including the people of Granard.

James Bannon (Fine Gael)
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I had hoped for a more positive response. This motion came from Granard Town Council which requested that Oireachtas Members for the area highlight the issue. I have done so and would have welcomed a more positive response and greater involvement by the IDA and Enterprise Ireland. I acknowledge the major contribution made by the Longford County Enterprise Board. It does a fine job but needs more support from national agencies and the Government. I hope it will not be overlooked. I look forward to more positive news in the coming months.