Brian O'Shea (Waterford, Labour)
Link to this: Individually | In context

Question 679: To ask the Minister for Enterprise, Trade and Employment his proposals to significantly improve the employment situation both in terms of quality and quantity in the Waterford constituency and in the south east region. [25381/05]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The issue of job creation is a day-to-day operational matter for the industrial development agencies and relevant county enterprise boards and not one in which I have a direct role. IDA Ireland informs me that it continues to market the south east region as a potential location for new foreign direct investment, FDI, through its network of local and overseas offices, in order to secure new investment and additional jobs for the region. Since 2000, employment in IDA supported companies in the south east region has risen from 9,858 to 10,754 or just over 9%.

Key to IDA Ireland's strategy for the south east region is to progress the development of a knowledge based economy so that the region can compete both nationally and internationally for foreign direct investment. The key greenfield sectors being targeted are pharmaceuticals, medical technologies, ICT and international/financial services.

Life sciences, including pharmaceuticals and medical technologies, now account for over half of the total employed in IDA supported companies in the south east region. The south east is well positioned for further bio-pharma investment due to existing life sciences concentration and the availability of excellent property solutions.

International and financial services companies account for over 13% of employment in IDA supported companies in the region. A key factor in attracting services companies to the south east has been the availability of skills, and particularly the presence of the two institutes of technology, ITs, in Waterford and Carlow. IDA is strongly supportive of increased interaction between the sector and the third level colleges and is working closely with the ITs to progress this agenda further.

Enterprise Ireland's south east regional office works with companies to assist them grow their sales and exports and improve innovation in order that they can compete on world markets. The agency is encouraging companies to adopt new technologies to add value to their products and services. In the years 2002-05, Enterprise Ireland made payments of over €28 million to industry in the south east to support investment in areas such as research and development, capability building and process development.

Enterprise Ireland is also actively involved with the provision of infrastructure to facilitate business development and employment. The agency has provided funding for the development of 13 community enterprise centres in the south east region over the past ten years. The aim of these centres is to promote the development of commercial enterprises in local areas. The majority of centres are equipped with broadband and telecommunications infrastructure that will assist the growth of knowledge or technology based industries.

Enterprise Ireland also supports the development of business incubation workspace as part of its ongoing commitment to fostering links between colleges and industry, and has provided €2.54 million and €1.4 million for the construction of incubation centres at the Waterford and Carlow institutes of technology respectively. Both centres have now been completed, and it is expected that the first tenants will take up residence by the end of the year. It is anticipated that graduates from the colleges or members of research teams based in the colleges will be to the forefront in using these innovation centres, and in creating new jobs, particularly in the high tech sectors.

In addition, the south east city and county enterprise boards are proactively involved in the development of indigenous enterprise, and provide a source of support for small businesses in the region. Both the Waterford County Enterprise Board and the Waterford City Enterprise Board continue to support the start-up and development of small business throughout Waterford. In 2004, the enterprises supported by both boards resulted in the creation of almost 90 new jobs, with a similar number expected in the current year. The Wexford County Enterprise Board is also proactively involved in the development of indigenous enterprise in Wexford and in 2004 provided grant aid to 39 projects in total.