Seanad debates

Tuesday, 18 December 2012

7:30 pm

Photo of Michael D'ArcyMichael D'Arcy (Fine Gael)
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I welcome the good news for Wexford in the announcement that Eistech is to create 250 new jobs in the town. However, this is the first piece of good news for County Wexford in a very long time. The figures for my county are stark. Unemployment stood at nearly 25% at the end of the second quarter, which is one of the worst rates in the country. According to the figures from census 2011, almost 13% of heads of household in the county are unemployed, which is the second highest rate in the country, and the youth unemployment rate, at 47%, is the third highest in the State. The Minister for Jobs, Enterprise and Innovation indicated while giving a presentation at a south-east forum that County Wexford received only three out of the IDA's 33 visits to the south east to attract foreign direct investment. This is extremely disappointing in light of the statistics I have outlined. Wexford is one if Ireland's largest counties and we are perceived as doing quite well because we are on the eastern seaboard and located relatively close to Dublin. Three visits from the IDA do not instill confidence for the prospect of foreign direct investment in the county, however. I look forward to hearing the Minister's response.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I thank Senator Michael D'Arcy for raising this issue. In the aftermath of the closure of TalkTalk last year I established a special group to focus on the south east because I recognise that it faces serious problems. The structural rate of unemployment is much higher than elsewhere and the wave of investment which preceded the Celtic tiger years passed the region by. The problem is not solely one of IDA companies, however. The issue of regional development is broader than what at the end of the day comprises less than 8% of the total workforce nationally. We must consider how best to utilise the region's many strengths and get the various groups to work together.

In the context of the action plan for jobs, Senator Michael D'Arcy and I recently attended a meeting to discuss progress in the south east. While everyone recognises the significant problems that persist in the region, we have made an impact. The IDA has paid much more attention to the south east, with the number of visits to the region increasing to 33 from 13 in the previous year. IDA companies made three visits to Wexford, in addition to two visits by foreign companies under the food rubric of Enterprise Ireland. This compares to a total of two visits over the previous five years. While the number of visits could be said to be low, it is a dramatic improvement on what was previously the case.

The Senator acknowledged the welcome announcement by Eistech. We need to examine sectors in which it is possible to develop regional strengths. We have seen that with Eistech, which is an aggressive, growth-oriented company led by dynamic people. The company was established a mere 12 months ago with nine employees but it now employs 400 and is committed to employing an additional 250 in the south east. This is the sort of indigenous company we need to nurture and grow.

While we will continue to focus on investments by IDA companies in the south east, we must also build the region's strengths and nurture indigenous enterprise. As part of the action plan for the south east, all of the agencies have examined their existing portfolios of companies to determine whether they had the capacity for expansion, and some did. We also investigated the new start-ups and allocated competitive start-up funds. These companies have generated new projects which we hope to develop further as job-creating projects. This is a broad-based strategy and, while I acknowledge there is a long way to go, we are seeing a real effort by the agencies and a focus on an area that must contend with structural problems. With the collaboration of agencies in my Department, along with education institutions and local authorities, we will build a coherent response to the challenges in the south east. That is my ambition and I will continue to meet local representatives from the area to maintain focus, register progress and enlist the support of a wider range of groups in the south east.

Photo of Michael D'ArcyMichael D'Arcy (Fine Gael)
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I appreciate that progress has been made but I am making the point that the biggest county in the south east, which is Wexford, has had three visits from IDA companies. The Carlow and Kilkenny area have a similar population but they received six visits. Waterford received 25 visits. I never wanted to take a bite out of another person's sandwich but I do not want others to eat my sandwiches. That is what is happening at present. I accept the need to develop a cohesive overall strategy but the Minister cannot ignore Wexford, the black spot within the black spot. My role is to achieve the best outcome for my area but the figures speak for themselves. Three visits in 2012 are not enough and I expect more.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Announcements about the creation of 250 jobs were not made in many counties over the last 12 months. Wexford is not being neglected in any sense by my Department or my agencies. However, we have to exploit the strengths of the overall region by building the resources available in gateway cities such as Waterford. The IDA's strategy focuses on gateways and hubs. It is important that we expand our focus beyond the IDA companies, which help to build clusters of strength, because indigenous companies can also play an important role. We are seeking to adopt a balanced approach. We would like to see more activity in Wexford and, given the work we have done over the last 12 to 18 months, I am hopeful that we can make progress over the coming 12 months in respect of the needs of the south east.

I commit to the dedication of our agencies and my Department in respect of the south east to deliver something in this area. We recognise that there are structural problems which do not apply elsewhere in the country and that the area needs a focus at this time.