Brian O'Shea (Waterford, Labour)
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Question 664: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that the portion of employment in IDA assisted firms is 29% lower in the south-east region than in the west region; his proposals to address this situation; and if he will make a statement on the matter. [24982/05]

Brian O'Shea (Waterford, Labour)
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Question 667: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the fact that on a range of performance indicators the south-east region's economic performance is worse than that of the BMW region; his proposals in this regard; and if he will make a statement on the matter. [24985/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 664 and 667 together.

In recent years and across a range of economic indicators, the south-east region has registered significant economic growth. For example, the quarterly national household survey of September 2005 shows that both the labour force and employment increased in the south-east region by 6.5% over the two year period to May 2005. Furthermore, GDP per capita in the south-east region, according to 2002 data, was 114% of the EU 25 average. Significantly, the region's GDP per capita— expressed as a percentage of the EU average — is higher than the equivalent figure for the BMW, which is 91.5%. As a result, in international terms and using these economic indicators, the south east is a relatively wealthy and growing region.

Since 2000, 18,062 new jobs have been created in Enterprise Ireland client companies located in the BMW region. Over a similar period 7,107 new jobs were created in Enterprise Ireland client companies located in the south-east region. However, despite this growth the performance of the south east relative to the BMW has been more muted in terms of the recorded unemployment statistics. For example, the current unemployment rate for the BMW region is 4.3% compared with 5.6% for the south east.

The relatively weaker performance of the south-east region across a range of indicators is a signal to continue to address the underlying structural issues that are contributing to a weaker performance. The industrial development agencies are pursuing several initiatives in collaboration with other bodies to address these issues in the south east within the context of the national spatial strategy.

There are currently 72 IDA clients in the south-east region distributed across a range of high technology sectors including ICT, biopharmaceutical, engineering, international and financial services. At present, these companies employ a total of 10,754 permanent people. Several IDA companies in the region have undertaken new greenfield and expansion investments over the past three years including Guidant Corporation, which makes medical devices, in Clonmel, Alza Corporation, a pharmaceutical company, in Cashel, Genzyme Corporation, a biopharmaceutical company, in Waterford and Waters Corporation, a medical equipment company, in Wexford. The region is the home to a nascent financial services cluster with companies such as State Street International in Kilkenny and PFPC International in Wexford.

By continuing to market the south-east region to new potential investors and by working closely with the existing base of companies, IDA Ireland is confident that the footprint of FDI in the region will continue to expand over time and contribute to improving the overall economic performance of the region. Enterprise Ireland remains committed to the creation of an environment where existing businesses in the regions can develop their competitiveness, high growth start-up businesses are encouraged and innovation flourishes. My Department considers the issue a priority and has asked IDA Ireland and Enterprise Ireland to review their regional enterprise development strategy. It is intended that these reviews will facilitate the design of a new regional strategy for the agencies that will further drive the development of enterprises, investment and jobs in the regions.

Brian O'Shea (Waterford, Labour)
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Question 665: To ask the Minister for Enterprise, Trade and Employment his proposals to direct a fair share of foreign direct investment in the bio-sciences and engineering to Waterford and the south-east region; and if he will make a statement on the matter. [24983/05]

Brian O'Shea (Waterford, Labour)
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Question 666: To ask the Minister for Enterprise, Trade and Employment his proposals to address the low levels of employment in high tech sectors and in business services in the south-east region; and if he will make a statement on the matter. [24984/05]

Brian O'Shea (Waterford, Labour)
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Question 678: To ask the Minister for Enterprise, Trade and Employment his proposals to promote the development of an internationally competitive knowledge based economy in the south-east region. [25380/05]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 665, 666 and 678 together.

Support for job creation and investment projects in individual counties and regions is a day-to-day operational matter for the development agencies as part of their responsibility under the Industrial Development Acts. The development agencies, in turn, operate within the context of the national spatial strategy.

A key objective for IDA Ireland is to progress the development of a knowledge based economy in the south east, targeting sectors such as pharmaceuticals, medical technologies, ICT and international financial services. In line with the national spatial strategy, the agency's primary focus in regard to attracting foreign direct investment to the region is on the gateway city of Waterford and the other centres of Wexford, Kilkenny, Carlow and Clonmel.

IDA Ireland's strategy is designed to meet the needs of potential investors who indicate to the agency that they are seeking an urban base close to third level educational facilities that provides infrastructure and services that are international in focus. This strategy is also designed to have knock-on benefits in other sectors of the regional economy such as supply, distribution and transport, thus creating further investment and employment opportunities for local people in the surrounding areas.

To date the strategy appears to be working well, with life sciences, including pharmaceuticals and medical technologies, now accounting for over half of the total employment in IDA supported companies in the south-east region. Among the leading companies in the region are Genzyme in Waterford; Guidant in Clonmel; Waters Technology in Wexford; Bausch and Lomb in Waterford; GlaxoSmithKline in Dungarvan; and Lake Region, New Ross.

I believe the south-east region is well positioned for further biopharmaceutical investment because of the existing life sciences concentration, its proximity to a pharmaceutical cluster in the Cork area and the high quality property solutions that are being made available by IDA Ireland and others in the area.

The south-east region has also recorded good successes in the services sector, with international and financial services companies now accounting for more than 13% of employment in IDA supported companies in the region. Significant players in the south east now include: Sun Life in Waterford; PFPC in Wexford; State Street in Kilkenny — each employing in excess of 200 people; and AOL in Waterford, which employs in excess of 500 people. The most recent addition is Bisys in Waterford, a financial services company which expects to employ up to 250 people over the next five years.

A key factor in attracting investments from overseas companies to the south-east region has been the availability of skills and particularly the presence of the two institutes of technology in the region. The business schools in WIT and IT Carlow have forged strong links with most of the companies referred to above and mutually beneficial relationships have been developed. IDA Ireland is strongly supportive of increased interaction between the sector and the third level colleges in the region and is working closely with the ITs to progress this agenda further.

The south-east region has a strong track record in engineering activities both on the indigenous side and in terms of foreign direct investment. Some 31% of IDA supported jobs in the south-east region are in the engineering sector. Despite the fact that in recent years the sector has been facing increasing competitive challenges, a number of companies have grown and made the transition to higher value activities. One such company is ABS Production in Wexford, which has progressed a research and development initiative to build an advanced product development test facility, significantly advancing the Wexford operation's status as a key research and development centre within the group.

Enterprise Ireland, the agency which is responsible for the development of indigenous industries, also supports job creation in both the high-tech and businesses services sector in the south-east region. As part of its support for start-up companies, Enterprise Ireland's incubator construction programme in the institutes of technology represents a major investment on the part of the State. The agency has provided €2.54 million and €1.4 million for the construction of centres at the Waterford and Carlow institutes of technology, respectively.

I am confident that the policies and strategies being pursued by the development agencies, together with the ongoing commitment and support from Government and other publicly funded bodies for regional development will bear fruit in terms of sustainable additional investment and jobs in the south east.