Enda Kenny (Mayo, Fine Gael)
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Question 211: To ask the Minister for Enterprise, Trade and Employment the work undertaken by Enterprise Ireland in 2004 in facilitating the expansion of Dublin companies to regional locations; the details of firms which relocated in 2004; the number of employees who relocated; and if he will make a statement on the matter. [5933/05]

Micheál Martin (Cork South Central, Fianna Fail)
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The implementation of regional development strategy is a day-to-day matter for the industrial development agencies concerned and not one in which I am directly involved. However, in line with stated Government policy, Enterprise Ireland seeks to encourage a balanced spread of regional development. Enterprise Ireland's strategy in this regard includes encouraging companies, where relevant, to locate outside Dublin and its environs to less developed regions.

One of the ways in which Enterprise Ireland facilitates client companies that wish to relocate to regional locations is by making it financially more attractive for them to establish or grow outside Dublin and the mid-east region. For example, Enterprise Ireland provides higher levels of funding assistance for companies that are expanding or establishing a business in the BMW region. In the BMW region, the grant aid rate for building competitiveness is 45% of eligible expenditure, while in the south-east, south-west and mid-west regions it is 30%. In the Dublin and mid-east regions, the rate is 25%.

The availability of suitable building infrastructure can be an important factor in encouraging companies to expand outside Dublin. Enterprise Ireland makes its client companies aware of available business space in the regions and conducts itineraries to regional locations for companies who might be encouraged to relocate.

In this regard, the institutes of technology are key players in Enterprise Ireland's regional development strategy. They are recognised as a vital component of the innovation system in each region. Since 2001, Enterprise Ireland has approved funding of almost €25 million for 11 regionally based incubation units in the institutes of technology to encourage knowledge-based companies to locate therein.

Enterprise Ireland has also approved funding of €24 million for the provision and operation of over 100 regionally based community enterprise centres. Community enterprise centres are regarded as key partners in the development of new enterprises and enterprise culture in the regions.

Ultimately, the choice of location for new and expanding Irish businesses is influenced by many factors, including the promoter's home base, proximity to markets, availability of physical, educational and research infrastructure, access to raw materials and availability of skilled labour and research facilities, to name but a few. In light of Irish promoters' tendency to locate close to their roots, and taking account of all the other factors, Irish companies have shown themselves to be less mobile than their foreign counterparts both at start-up and expansion stages.

In 2004, Lir Chocolates Limited moved from Dublin and relocated to Navan, County Meath, when moving to bigger premises. It is not possible for Enterprise Ireland to verify if the same employees moved with the company to its new location.