Seanad debates

Tuesday, 19 February 2019

Nithe i dtosach suíonna - Commencement Matters

Foreign Direct Investment

2:30 pm

Photo of Michelle MulherinMichelle Mulherin (Fine Gael)
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I thank the Minister for attending in order to deal with this matter. We were very happy to have her in the west last week for the launch of the west regional enterprise plan to 2020. That was a great occasion because it allowed us to reflect on all the great work that has been achieved as part of the Action Plan for Jobs. More than 28,000 jobs have been created since 2015 and our unemployment rate is approximately 6.6%. Under the new plan, we are seeking to increase the number of jobs in the region by 10% to 15% by 2020. The event to which I refer was fantastic, and the PorterShed digital innovation centre where it took place is very impressive. I am very hopeful that my own home town of Ballina, where we have secured €3.2 million to create a digital and innovation hub at the old military barracks, will have something similar to the PorterShed if not bigger. There are lots of good things in the pipeline and I acknowledge the Minister's work and that of her predecessor.

The Minister will recall that the chair of the Action Plan for Jobs regional steering committee, Mr. Gerard Kilcommins of Medtronic, outlined his experience of being the chair and looked at the entire region. He acknowledged that the biggest challenge is to spread job growth. Galway and Mayo are two of the largest counties in the country. The position in Galway city is almost a world apart from the other counties. The challenge is to shunt growth outwards and achieve balanced regional development in accordance with the objective of Project Ireland 2040 to grow the population outside of Galway, Dublin and the other big urban centres.

Strategic objective No. 6 of the regional enterprise plan is to "Enhance the quality and availability of enterprise space in the West". I wish to speak about north and east Mayo. We had wonderful news several weeks ago with the announcement of 150 jobs to be created by US firm Meissner. That firm will have its base in Castlebar. We are all very aware in Mayo and in more peripheral areas that it is that bit more difficult to attract foreign direct investment into these areas. I am asking the Minister how we can put north Mayo, east Mayo and Ballina on the map as an economic driver for the region. How can we attract more foreign direct investment? We already have a success story in Coca-Cola's presence in Ballina, which employs about 500 people. Hollister's operation in Ballina employs 800 people. We have foreign direct investment from about six companies including Lionbridge Technologies, which tests software. These are very welcome and they have grown in the last several years but we want new investment, and that makes sense. We may have issues regarding connectivity and roads, but I have spoken with the managing directors of several of these companies and what we have to offer is quality of life. We have never had better sports facilities and there are school places and houses. Moreover, the cost of living is much lower than in Dublin. Let us face it - all jobs are welcome, but if all the investment is in Dublin and Galway, those centres will cave in on themselves. They cannot take the pressure. We know about the shortage of housing and school places.

One solution that has been suggested by some of the multinational companies driving foreign direct investment is the construction of an advanced technology building. We know that it was key to Meissner's choice to invest in Castlebar. That was stated at the launch. Even the Minister for Rural and Community Development, Deputy Ring, who was officiating, said we need to build more such facilities.I am asking for an advanced technology building to be provided in Ballina, which is the biggest town in the area. The town needs to be put on the map so that companies can see not just a field, but a building with the capacity to expand. I get this message from people constantly and if the Minister facilitates this she will put us in a better position to attract the jobs we want and which we are willing and able to have in the north and east of Mayo.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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This Government is determined to support the growth of high-quality and sustainable employment across Ireland, including in County Mayo, and I have made regional development one of my priorities. The recent annual results of the IDA demonstrate that we are making significant progress in Mayo and the west region. In 2018, for example, 56% of all net new jobs created by the agency were in locations outside Dublin. Similarly, every region in Ireland, including the west, posted net gains in jobs last year. There are now over 132,000 people employed across 681 firms in IDA Ireland-client companies outside the capital. In fact, 58% of all IDA-supported employment is now outside Dublin. This represents the highest number of people employed in the regions by IDA Ireland clients in the agency’s history.

While more work remains to be done, County Mayo has benefitted from this regional focus. Mayo is home to a number of prominent multinationals which have shown a significant level of commitment to the county with companies such as Allergan, Baxter Healthcare and Fort Wayne Metals continuing to perform well. The past two years have seen Coca Cola investing €26 million in its Ballina operations to expand its range of activities at the facility. The presence of these companies is a testimony to the positive, enterprise-focused environment for international business that has been fostered in County Mayo.

In the past 12 months, Mayo has experienced a 7.5% growth in employment by overseas companies with 344 net new jobs added and FDI employment now reaching 4,828 people. The IDA, for its part, continues to highlight the benefits of expanding or locating in Mayo to multinationals. In 2018, the agency hosted ten site visits in County Mayo compared with seven site visits in 2017. The IDA also has a number of property solutions in place for prospective investors including approximately 11 ha of industrial zoned land in Ballina which could facilitate the development of a business and technology park. As part of its regional property programme, the IDA constructed an advanced building in Castlebar and I welcome the recent announcement that Meissner will occupy this building with the intention of creating 150 jobs over the next five years. Initiatives like the regional property programme have, so far, supported the creation of hundreds of jobs to date in regional locations such as Sligo, Waterford and Athlone with more expected in the short to medium term. This is a positive reflection of the IDA's proactive investment in property solutions in the regions.

Photo of Michelle MulherinMichelle Mulherin (Fine Gael)
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I applaud and welcome all the progress that has been made. Objective 6 in the regional enterprise plan for the west is to find quality, available enterprise space and an advanced technology building would bring more visitors to the county. The FDI companies on the ground, and Meissner when it made its announcement, have stated that the increase in the number of visits in 2018 is down to the construction of an advanced technology building and this is in keeping with what the chair of the regional steering committee has said.

The Minister may not be able to give me an answer today but I ask her to have a serious look at a site for the construction of a building. IDA Ireland is supportive of this and the local enterprise office can also see its benefits There is a field but there is no substitute for seeing a building and this would really put us on the map.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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We are achieving real results in encouraging greater investment in County Mayo.The number of people on the live register in Mayo has fallen by 6,124 or 47% compared with February 2012 when we launched the first Action Plan for Jobs. Employment in IDA-supported companies in Mayo has increased year on year since 2012, with a 37% increase in foreign direct investment, FDI, employment in the country from 2012 to 2018. The number of people employed in Enterprise Ireland-supported jobs in Mayo has also increased by more than 55% since 2011. Just last week, I announced the local enterprise office results for Mayo with 130 net new jobs created in 2018.

In terms of Project Ireland 2040, I know that under the urban regeneration fund more than €3.2 million has been allocated for the development of the Ballina Innovation Quarter, which I know the Senator has welcomed. That will be a major boost for Ballina. The Senator has been a great supporter of that project, which she has highlighted to me on a number of occasions. I was delighted she was with us for the launch of the regional enterprise plans for the west last week. Those plans are all about supporting regional development through collaborative, ground-up proposals.

I see great potential for the regional steering groups who will oversee the implementation of each plan to come up with very good projects of scale which we, as a Government, can support under the various Project Ireland 2040 funds, whether it is rural or urban regeneration, disruptive technologies or the climate fund. There is also my Department's regional enterprise development fund that I plan to launch in the coming months.

I would like to see more projects like the Ballina Innovation Quarter being replicated throughout the country because it is a very good project. I want to emphasise that creating jobs in the regions is a priority for both IDA Ireland and my Department. I am focused on doing everything I can to deliver the fairest possible spread of investment.

In 2018, IDA Ireland recorded its highest number of jobs created in the region in 17 years. Every facility has been completed under the regional property programme, and the Senator is right in saying that every one of them is occupied now.

Photo of Michelle MulherinMichelle Mulherin (Fine Gael)
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Is the Minister looking at another one?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I am. The programme is clearly delivering results. That is the reason I have increased the budget for the regional property programme by €10 million in budget 2019. Under Project Ireland 2040 and because of Brexit, a need has been identified in the Border region. There has been very little investment in terms of IDA Ireland in recent years, but that has changed. There have been a good number of job announcements in Sligo, for example. A number of very good jobs have been announced there in the past year. The Senator can understand that there is a particular focus on the Border currently.

We are making real progress. We will continue to do our utmost to encourage further such job growth across all parts of Ireland in the time ahead.

Photo of Paul CoghlanPaul Coghlan (Fine Gael)
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Before calling the next item, I welcome to the Public Gallery the president and past presidents of the Irish Amateur Rowing Union, colleagues of Senator Billy Lawless, who I have no doubt is a former champion rower.

Photo of Billy LawlessBilly Lawless (Independent)
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I thank the Leas-Chathaoirleach. I just wanted to show him the fantastic specimens of sportsmen I have brought here today.

Photo of Paul CoghlanPaul Coghlan (Fine Gael)
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I have noticed.

Photo of Lynn RuaneLynn Ruane (Independent)
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Where is-----

Photo of Billy LawlessBilly Lawless (Independent)
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He is coming.