Written answers

Tuesday, 23 November 2004

Department of Enterprise, Trade and Employment

Job Creation

10:00 pm

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
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Question 281: To ask the Minister for Enterprise, Trade and Employment his views on whether there is an employment crisis in the mid-west region and in north County Tipperary in particular; his proposals for dealing with this crisis and for encouraging foreign and indigenous investment to promote job creation in north Tipperary; and if he will make a statement on the matter. [30217/04]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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IDA Ireland has statutory responsibility for the attraction of foreign direct investment to the mid-west region, except for the Shannon Free Zone, which falls within the remit of Shannon Development. Shannon Development is also responsible for supporting indigenous enterprises in the mid-west region. The six city and county enterprise boards located in the region also help develop indigenous enterprise potential and stimulate economic activity at local level.

The total number of jobs in IDA Ireland and Shannon Development client companies for the three years 2001, 2002 and 2003 was 35,096, 31,848 and 30,805 respectively. While this shows a decline in overall employment, the agencies assisted in the creation of 2,468 new jobs in the region in 2001, 1,899 in 2002 and 1,719 in 2003. This performance must be seen against a background of a difficult external economic environment. The recent decision by Guidant Corporation to significantly expand its operation in Clonmel will have a positive benefit for the entire county.

Responsibility for the provision of industrial property solutions within the mid-west region lies with Shannon Development. IDA Ireland works closely with Shannon Development in the promotion and marketing of these tailored property solutions, throughout the mid-west. These include the National Technology Park in Limerick and the Tipperary technology park in Thurles, which is part of the Shannon development knowledge network. Five companies operate out of the Thurles technology park, four of which are based in the incubator InnovationWorks. These companies are involved in e-commerce, digital cinema, software development and health and safety. The customer services division of Cantrell and Cochrane also recently moved into a 5,000 sq. ft. unit, retaining 26 jobs in Thurles. Shannon Development has also initiated the establishment of a Thurles marketing group with representatives of Thurles Town Council, the Tipperary institute, Leader, the county enterprise board and Thurles Chamber of Commerce to promote the attractiveness of Thurles as an investment location.

The further development of the Tipperary technology park by Shannon Development will provide the focus for IDA Ireland's marketing effort in north County Tipperary. Through its strategic competitiveness programme, IDA Ireland is working with the existing base of companies in the mid-west region with a view to supporting them in broadening their activities in Ireland at a functional level. The objective is to deepen each company's embeddedness in Ireland through research and development, increased technology and by securing an European, Middle East and African or global mandate.

Although the primary focus on attracting foreign direct investment into the mid-west is on service related activity, manufacturing can still play an important role in the region as is evidenced by Taro Pharmaceutical's decision to locate in Roscrea. Shannon Development has acquired a 29 acre site in Roscrea to develop a business park. It is envisaged that the park will be attractive, because of its location adjacent to the N7 and to office, logistics and industrial enterprises. The main strategy behind the park is to capitalise on Roscrea's excellent central Ireland location for both foreign direct investment and indigenous industry or for companies that might wish to relocate to the less congested Shannon region. Planning permission has been received and external infrastructure works are in the process of being provided.

Shannon Development, in association with local authorities in the Shannon region, including north County Tipperary, is also spearheading the drive to bring high speed Internet access to towns in the region. Thurles, Nenagh, and Roscrea are scheduled as priority towns for phase two of the advanced broadband roll-out programme which should convey significant advantage on those towns, in terms of attracting foreign direct investment and indigenous industry.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 282: To ask the Minister for Enterprise, Trade and Employment the number of visits which IDA Ireland and Enterprise Ireland have made to a factory (details supplied) in County Wexford since it was built. [30253/04]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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IDA Ireland which is the agency with statutory responsibility for the attraction of foreign direct investment, and Enterprise Ireland which is concentrating on indigenous industry, that they are actively marketing the factory to potential investors. A profile of the facility has been circulated to IDA Ireland's overseas offices informing them of its competitive rental rate in comparison to locations like County Dublin. There have been two site visits from potential overseas investors since completion of the advance factory facility two years ago. Enterprise Ireland has reported that the demand for factory space in the south east has been very slow over the past three years. The agency has brought three groups to view the facility over the past two years. Ultimately decisions regarding where to locate a project, including what areas to visit are taken by the investors.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 283: To ask the Minister for Enterprise, Trade and Employment the Department which provides funding to FÁS whether directly or indirectly; if the said Department will provide sufficient funds to that body to facilitate the restoration of various schemes discontinued due to inadequacy of funding; and if he will make a statement on the matter. [30278/04]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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There are three related employment schemes operated by FÁS to combat unemployment, namely the social economy programme, job initiative and community employment schemes. These programmes are funded by Exchequer and national training fund allocations provided by my Department. The allocation to all FÁS employment schemes in 2004 was €366 million of which €351 million was earmarked to provide 25,000 places on the three related programmes for the unemployed. This means there has been no reduction in the level of participation as compared with 2003.

The 2005 allocation for FÁS employment schemes is €382 million, an increase of 4.3% over 2004. Funding will be adequate to allow FÁS maintain existing levels of service on the three programmes at 25,000 places. The breakdown of funding between the various programmes will be an operational matter for FÁS. Decisions on the funding of individual projects within these programmes will also be taken by FÁS as part of its day-to-day operational responsibilities. In doing so it will observe the changes to the schemes I announced on 10 November and outlined in answer to Question No. 70 on Tuesday, 16 November 2004.

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