Seanad debates

Tuesday, 6 December 2022

Nithe i dtosach suíonna - Commencement Matters

Industrial Development

11:00 am

Photo of Seán KyneSeán Kyne (Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Minister of State is welcome. I thank the Office of the Cathaoirleach for choosing this matter for debate this morning.

As the Minister of State will know, Galway has a very proud record of job creation at IDA Ireland-sponsored plants in a range of sectors, including technology, pharmaceuticals, medtech, international financial services, business services, engineering and food. We want to see the pipeline of investment continue. The Oranmore-Athenry economic corridor was designated and included in the Galway county development plan many years ago, when I was a councillor. There are land banks at Parkmore, the airport site in Carnmore, the IDA Ireland site in Oranmore, which comprises 80 acres, the Department of Defence lands in Oranmore, which are substantial, and Athenry, where there are 230 acres.

We know the history of some projects. Some did not happen, including those relating to Apple in Athenry and Intel in Oranmore. While we did not secure the latter, Oranmore was one of the final two options for the location of the new plant. That is a testimony to the work of IDA Ireland and the land bank available in the Oranmore area. We also have a bank of land in Knocknacarra, in the west of the city.

The area between Oranmore and Athenry contains the necessary infrastructure, including electricity infrastructure, a motorway and rail links. There are some downsides, including in the context of wastewater infrastructure. I am wondering what engagement the Department will have with Irish Water on developing the east Galway main drainage scheme. It has been talked about for many years. I am concerned that the current circumstances are an impediment to future expansion. Irish Water, Galway County Council and the Minister of State’s Department need to engage to ensure there is no impediment to future job creation.

Last year, some 500 additional jobs were created through IDA Ireland in Galway, including by Medtronic, Genesys and Integer. We have seen an increase in employment in the multinational sector. We are aware of its importance to an area like Galway. So many people from Galway city and county and Mayo work in the multinational sector in Galway. We want to ensure the jobs are secure. There are bigger issues at play in the context of competition, tax rates and other matters of which the Government is and needs to remain conscious. However, regarding what we are doing in government, it is important that we ensure IDA Ireland promotes the land banks and that replacement land banks will be available should the existing ones be utilised in the very near future. While a substantial number of acres are available, I understand there is substantial interest in the sites. Intel’s proposed Galway site was among the last two options in Europe before a decision was made to build in Germany. I am wondering about the current level of engagement and interest. Has IDA Ireland plans to secure additional lands within this area or others within the city and county?

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I apologise for the delay. I thank the Senator for raising this issue.

Senators will recall that 2021 was a record-breaking year for foreign direct investment in Ireland, with total employment in IDA Ireland client companies now standing at 275,384, which is up over 29,000 on the 2020 figures. Growth in the regions is particularly buoyant, with 53%, or 133, of the 249 investments won by IDA Ireland going to regional locations. In the west, there are 120 IDA Ireland-supported companies that employ 29,419 people. Ninety-four of these IDA Ireland-supported companies are in Galway city and county, and they employ 22,801 people.

The timely provision of appropriate and cost-effective property and infrastructure solutions to meet the needs of multinational companies remains essential to winning foreign direct investment. Over the past five years, IDA Ireland’s regional property programme has enabled the winning of capital-intensive projects of significant scale for regional locations. In the current IDA Ireland strategy, Driving Recovery and Sustainable Growth 2021–2024,IDA Ireland has committed to strategic land acquisition in the west and keeps its land portfolio under constant review. As Senators are aware, IDA Ireland is committed to ensuring a good supply of suitable property solutions for foreign direct investors in regional locations and, as such, has a network of business and technology parks across every region to support both its own and Enterprise Ireland’s client companies.

The Senator is correct about Galway, in which he has expressed an interest. To quarter 3 of 2022, IDA Ireland hosted 31 site visits to Galway. It is heartening that in-person site visits to Galway have returned to pre-Covid-19 pandemic figures, with the 2022 site-visit data comparable with those of 2018 and 2019. IDA Ireland completed an advanced building solution at Parkmore, within the economic corridor referred to by the Senator, in 2021. I am informed that IDA Ireland is currently engaging with those actively interested in the building. IDA Ireland secured planning permission from Galway County Council for an additional advanced building solution at Parkmore in the summer of 2022. It has completed a detailed design. The project is ongoing.

I am advised that IDA Ireland has regular engagement with client companies and stakeholders in the county. During 2023, IDA Ireland will continue to market Galway and the rest of the west through its overseas offices to target mobile foreign direct investment opportunities and will arrange corresponding site visits as required.

I will raise the issues relating to Irish Water to which the Senator referred with the property section of IDA Ireland, which would have the best people to pursue that project.

Photo of Seán KyneSeán Kyne (Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Minister of State is right to talk about the region. What is good for Galway is good for Mayo, and vice versa. There is engagement between both counties regarding both employment and movement. It is heartening that there have been 31 site visits to Galway by IDA Ireland-sponsored companies, that the Department is keeping the land banks under constant review and that there has been an advanced-buildings solution for Parkmore. I understand there is interest in acquiring some of the lands in Oranmore, so it is important and prudent that, where possible, additional lands be identified and sought that are close to - I will not use the phrase “contiguous to” - the infrastructure, including rail, motorway and electricity infrastructure. The economic corridor from Oranmore to Athenry is important as an economic driver for the county and, indeed, the city. So many people who live in the city work in the county, and so many who live in the county work in the city. Of course, the city-county boundary skirts through some of the sites the Minister of State has identified, including at Parkmore.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Again, I thank Senator Kyne for raising this issue. He will be aware that the provision of appropriate property solutions is a key element in the IDA Ireland offering for Galway and the rest of the west. IDA Ireland positions the west as home to the leading cluster in the life-sciences industry, employing the highest number of medical technology staff in Europe per capita. Along with the infrastructure the Senator referred to, the presence of the University of Galway and the Atlantic Technological University is very significant in this offering, as it is for the entire west.The overall trend in job creation in Ireland, which is very important to emphasise, remains positive. The Industrial Development Authority, IDA, had another year of strong growth in 2022, with record levels of employment and investment, and we look forward to the 2022 results being finally published later this month. Senator Kyne can be sure that we will continue to keep Galway and, indeed, the entire west region very much on our priority list.

Photo of Lynn BoylanLynn Boylan (Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State, Deputy Calleary, and Senator Kyne.