Written answers

Wednesday, 28 September 2005

Department of Enterprise, Trade and Employment

Job Protection

9:00 pm

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 642: To ask the Minister for Enterprise, Trade and Employment his proposals to appoint a task force to assess and analyse the sustainability of jobs in the Border, midland and western region; and if he will make a statement on the matter. [25369/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The most recent quarterly national household survey, published by the Central Statistics Office earlier this month, shows that 495,500 people were in employment in the Border, midland and western, BMW, region in the period from March to May 2005, an increase of 26,600 people since the same period in 2004. In addition, the level of unemployment fell to 4.3% in the period from March to May 2005 from 4.5% in the same period in 2004. These figures continue a positive trend in job creation showing year-on-year increases in employment levels and a falling rate of unemployment in the BMW region.

As Minister for Enterprise, Trade and Employment, my objective is to ensure that the BMW region remains a globally competitive, profitable and secure location for business. I believe we can best help enterprise by continuing to implement policies that are pro-business and by implementing the right balance of enterprise supports to help business. When provided with the best supporting and competitive environment, business and industry will develop to capitalise on investment and growth opportunities. Developing a competitive economy, resilient to the toughest competitive pressures, is the optimal approach to sustainable employment growth.

However, I am aware that global competition from lower cost economies is placing competitive pressures on manufacturing plants, and particularly those involved in low margin activities. Some firms are unable to compete in these new competitive circumstances. Nevertheless, the success of many world class businesses gives us some solid cause for optimism that our business base will continue to operate at the leading edge of technology and innovation, while sustaining significant employment. From a policy perspective, it is important to put in place selective initiatives to maximise this potential. Both IDA Ireland and Enterprise Ireland have specific programmes to assist their clients tackle competitiveness problems.

IDA Ireland has set high level performance targets for the BMW region. This commits IDA Ireland to achieve a target of 50% of all new greenfield jobs being located in the Objective 1 area in the period from 2000 to 2006. Enterprise Ireland's new strategy 2005-2007, "Transforming Irish Industry", which I announced on 4 May 2005, places a strong emphasis on increasing even further the number of new start-ups in the regions and increasing the growth rate of these companies.

The agencies' policy objectives for balanced regional development are reflected in the structure of their funding offers. The maximum grant levels are higher in the BMW region than in the south and east region and a higher proportion of this funding is also non-repayable. The BMW region must remain an attractive location for high value added and sophisticated companies. The agencies' continued success in winning world class investments convinces me that our approach is robust and successful.

The enterprise development agencies also work closely with the various county development boards in the BMW region and these boards are best placed to co-ordinate the ongoing business requirements of the BMW region. The county development boards are best placed to assess the jobs situation and I do not propose to establish a task force.

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