Paul Gavan (Sinn Fein)
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I welcome the Minister of State. I also welcome representatives of ConnectIreland who have time to attend the Chamber this morning. The matter relates to ConnectIreland and the Global Irish Forum which was set up with great fanfare in 2011. There was a general feeling of goodwill towards this initiative because it made sense to use our global network to create jobs and rebuild the economy. In 2012 ConnectIreland secured a five-year contract for the Succeed in Ireland initiative. According to its figures, it has helped to create 2,411 jobs in the past three years and worked with 79 international companies in doing so. The organisation states it has a further 2,200 jobs lined up to be brought to Ireland in the future. Its literature outlines where the jobs will be located. It is impressive that it is bringing jobs to rural locations, as well as to Dublin. We all agree that rural locations badly need these jobs. Approximately 66% of the jobs are located in 15 counties outside Dublin. Most of the businesses have 20 employees or fewer and are a major boost for small towns and rural communities. According to a DKM Economic Consultants review, ConnectIreland has contributed an additional €123 million to Ireland's GDP so far which has resulted in a net benefit to the Exchequer of €26 million.

It is for these reasons that I am surprised that the Department has announced that the Succeed in Ireland scheme will not be renewed by IDA Ireland. Based on the evidence ConnectIreland has produced, why is the scheme being ended? The Minister for Jobs, Enterprise and Innovation said it would be reviewed and that the Government would then consider whether it should continue. However, would it not make more sense to retain the scheme until the review is published and then decide whether to end it rather than ending it before the review is complete? The review could indicate a way in which the scheme could be further improved or even conclude that the scheme has been a success. According to ConnectIreland, there are several thousand jobs in the pipeline for rural communities which could potentially be thrown away if the scheme is not supported by IDA Ireland. The contacts built by ConnectIreland would also be lost. I am genuinely puzzled because this was a great idea and it looks like it is bearing significant fruit. As I live in rural Ireland, I particularly relate to the fact that small towns and villages are benefiting. I am concerned about what will happen to the jobs in the pipeline if the organisation closes summarily. It is a puzzle; therefore, I ask the Minister of State to comment on the future of ConnectIreland and the reason the scheme is being closed before the review has been completed and the findings examined.

John Halligan (Waterford, Independent)
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I thank the Senator for his informative contribution. I also welcome the representatives of Connect Ireland. Again, I am taking this matter on behalf of the Minister for Jobs, Enterprise and Innovation.

I emphasise that attracting foreign direct investment to Ireland, especially to rural Ireland, is a key priority of the Government. I very much appreciate the role foreign direct investment has played in our economic development, as does the Minister. That is why we are continuing to do our best to get more overseas companies to locate or expand here and create new employment opportunities. The Succeed in Ireland initiative which has been operated by Connect Ireland since 2012 has contributed to our wider national efforts to win more foreign direct investment and create jobs. I understand from IDA Ireland which oversees the programme that a total of 527 new positions have been created to date. These are the figures I have been given. Payments totalling €2.069 million have also been made to Connect Ireland as a financial reward for these positions.

As has been well documented, the initiative is set to conclude on 26 March. This is in accordance with the terms of a contract extension agreed jointly by IDA Ireland and Connect Ireland in March 2016. The purpose of the extension, into which both parties entered voluntarily, was to allow for an orderly wind-down of the original contract that underpinned the initiative. IDA Ireland has no plans in place to tender for the continuation of the programme, but I want to make it clear that no decision has yet been made on the ultimate future of the Succeed in Ireland initiative. Instead, we first want to assess the contribution and performance of the Succeed in Ireland initiative before a determination is made on how to proceed in the long term.This represents a reasonable approach as we near the end of the contract. That is why a review of the programme will shortly be commissioned. I cannot supply a date, as I do not know when it will be, but the review is in the process of being commissioned. It will allow for a full assessment of the initiative's costs and employment impact and will help to inform our future approach.

I hope that I have clarified the situation in respect of the Succeed in Ireland initiative. Creating sustainable employment across Ireland will remain a core objective for the Government and me. No ultimate decision has been taken ahead of the upcoming review.

Paul Gavan (Sinn Fein)
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I thank the Minister of State for his response and I appreciate that he is representing the Minister, Deputy Mitchell O'Connor, but a couple of points puzzle me. He stated that no ultimate decision had been taken, but one has been taken to close ConnectIreland. With all due respect, I cannot see the reasoning behind that. The closest that we have to an explanation is found in a previous statement by the Minister, where she said: "The experience of IDA Ireland in this area is unparalleled and we must be careful not to risk defusing expertise and awareness of multiple entities and governance arrangements." To be frank, I do not know what that means.

I stand to be corrected, as I do not always get my figures right, but I understand that the average cost of an IDA job is €11,000.

John Halligan (Waterford, Independent)
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It is approximately €10,000, so the Senator is almost correct.

Paul Gavan (Sinn Fein)
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The average cost of a ConnectIreland job is €4,000.

John Halligan (Waterford, Independent)
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Correct.

Paul Gavan (Sinn Fein)
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For the life of me, I cannot understand why it is being closed down. It has been successful. Given that there was clearly a divergence in the figures, surely the sensible course of action would have been to continue with ConnectIreland, understand where the divergence occurred and at that point decide on whether to continue the project or give the reasons for closing it. However, this situation seems shrouded in mystery. Are these people the victims of a division within the IDA because they might be showing the IDA up by delivering jobs at a lower cost?

John Halligan (Waterford, Independent)
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The Senator will understand that I cannot comment on his last remark, as I do not know. My view, and that of the Department, is that conducting a review of the programme before we determine how to proceed is in the interests of good governance. It will help us to understand how ConnectIreland has functioned over the course of the past five years and equip us with a better understanding of its strong and weak points. Undertaking such a review is in the interests of the taxpayer, the State and the programme itself.

The Succeed in Ireland initiative is not necessarily ending. The intention is to conduct the review of performance and contribution and determine how we might proceed. I hope that, in the coming weeks, further meetings will take place between my Department, the Minister, who is the one dealing with this matter, and the IDA. That will probably happen.

The contract will end in March and it is only reasonable to expect that there should be some review, given the amount of taxpayers' money that has been invested in the project. We should see where we go from there. I have been directed to say by the Department that this does not necessarily mean that it will be the end of the programme. It is in the interests of good governance. If one entered into a contract with, for example, a company over a period of years and taxpayers' money was invested, it would be expected that a review would be undertaken before the next programme's future was determined. We must fully understand how the initiative has functioned - its strong and weak points - and take the matter from there. It is reasonable that we analyse and review the programme and push forward from there.