Written answers

Wednesday, 20 April 2005

Department of Enterprise, Trade and Employment

Job Creation

9:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 224: To ask the Minister for Enterprise, Trade and Employment further to Question No. 135 of 16 December 2004, if IDA Ireland has any specific programme in place to promote Youghal and Cobh to potential investors; if any negotiations are under way; if not , if IDA Ireland has any plan to put such a programme in place; and if he will make a statement on the matter. [12403/05]

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 all regions and areas of Ireland. While I may give general policy directives to IDA Ireland, I am precluded under legislation from giving directives about individual undertakings or giving preference to one area over others. As I stated in my reply of 16 December last, I understand from IDA Ireland that Cobh and Youghal are marketed by IDA Ireland's south-west region as part of the broader east Cork area, which also includes locations such as Little Island, Carrigtwohill, Midleton, Carrigaline and Ringaskiddy. IDA Ireland is promoting east Cork to potential investors on an ongoing basis. Every effort is being made to secure further advanced knowledge-based industry for the east Cork area.

Due to their proximity to the greater Cork area, Cobh and Youghal also benefit from continued development from an inward investment perspective. There are 134 IDA Ireland assisted companies in County Cork, employing approximately 18,000 people. Between 2002 and 2004, 50% of all jobs announced in Cork came from companies locating in the broader east Cork area, thereby making the area the prime beneficiary from inward investment in the south-west region. In Cork, as elsewhere, there is a need to mobilise initiatives and resources on a regional rather than on a purely local basis, to compete effectively with other strong regions, cities and countries. In this context we must not forget that the investor ultimately decides where to locate. I am confident that the strategies and policies being pursued by IDA Ireland, along with the Government's ongoing commitment to regional development, will bear fruit in terms of additional sustainable investment and jobs in this region.

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 225: To ask the Minister for Enterprise, Trade and Employment further to Question No. 135 of 16 December 2004, the number of participants and the number of businesses participating in training initiatives operated by the South Cork Enterprise Board in Youghal and Cobh over the past two years; the success of these initiatives in creating new jobs; and if he will make a statement on the matter. [12404/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Some 200 people, including 20 participants from Youghal and Cobh, participated in training programmes organised by the south Cork county enterprise board in 2003 and 2004. The board operates clinics every month in Youghal and Cobh. The training and other soft supports provided to micro-enterprises by the county enterprise boards are designed to assist new and existing enterprises in improving the efficiency and effectiveness of their operations, through the development and improvement of a range of business skills. While such support contributes positively to the long-term growth and sustainability of the enterprises, it is not possible directly to relate participation in training and mentoring initiatives to the creation of new jobs. The number of jobs in enterprises supported by the south Cork county enterprise board, in the form of financial assistance or soft supports, has increased by 32 since 2003.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 226: To ask the Minister for Enterprise, Trade and Employment if he will visit Kerry in the near future to meet with the local chambers of commerce, Kerry County Council and other interested parties to discuss the failure of the IDA to attract new industry to Kerry; and if he will make a statement on the matter. [12433/05]

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 230: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the recent statements by Tralee Chamber of Commerce, County Kerry, expressing grave concern at the loss of jobs in the town and the failure by the IDA to bring a major industry to the town in the past five years; the action his Department and the IDA propose to take to create jobs in the town; and if he will make a statement on the matter. [12450/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 226 and 230 together.

IDA Ireland has statutory responsibility for attracting foreign direct investment to all regions and areas of Ireland. Under the Industrial Development Acts, I may give general policy directives to the agency but I am precluded from giving directives about individual undertakings or giving preference to one area over others. One of the agency's major objectives is the achievement of balanced regional development. The national spatial strategy provides a framework for the achievement of this objective through the prioritisation of development and investment in the locations which have been identified as gateways and hubs.

IDA Ireland's strategy for County Kerry is to achieve developments in the international services and ICT sectors, focusing on the designated linked hubs of Tralee and Killarney. While targeting potential new projects, the agency is working with its existing portfolio of companies in the region with a view to supporting such companies with potential expansions and diversification of activities. While employment levels in assisted companies in Tralee and the county as a whole have decreased since 2003, foreign direct investment companies are performing relatively well when considered in the context of the recent global downturn and the effects of the events of 11 September 2001, which resulted in fewer companies actively seeking to invest overseas.

The regrettable demise of companies such as Sports Socks and Imperial Schrade resulted mainly from the fact that Ireland is less competitive for basic manufacturing operations. County Kerry and all other parts of Ireland must gear themselves to attracting a different type of investor. The focus for the future must be on attracting investment that requires high skill levels and is more orientated towards innovation than production. Job creation and job losses are a feature of economic development in all countries, as various sectors expand and contract in response to market demand for goods and services, competitive forces, restructuring and technological change. While the transition to a high-skill high-technology regional economy will take time to achieve, I am pleased that three new projects were announced in Kerry in 2004.

Dollinger (Ireland) Limited, which has been established in Killarney for over 20 years, is to be the global centre for the production of its compressed air products range. The company will have global responsibility for the development of such products. The investment of €1.1 million, which will create more than 70 new jobs over the next four years, has resulted in the relocation of the company to larger premises in the town's IDA business park.

Liebherr Container Cranes Limited, which has been in Killarney for 46 years and is one of the longest established IDA supported companies in Ireland, intends to recruit six highly skilled research and development personnel for a new specialised team. The team, which will be of strategic importance to the parent company and will enhance the facility's role as the centre of control for Liebherr's container crane products, will develop products from concept to product launch. Any intellectual property developed will be the property of the Irish company.

Fujisawa, one of the world's top 30 pharmaceutical companies, announced that it had invested €17 million in the expansion of its Irish operation, Fujisawa Ireland Limited, in Killorglin, County Kerry. The company has a total employment of 280 people and has constructed a 27,000 sq. ft. extension to provide additional production space for the new operation.

Due to a heavy schedule of departmental and parliamentary business, I cannot give a specific commitment at this time to visit County Kerry or to meet the local Chamber of Commerce. I intend to include in my program a visit to the county in the near future. I would be more than happy to meet the chamber and any other interested parties at that time.

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