Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 168: To ask the Minister for Enterprise, Trade and Employment the progress being made to implement the stated policy to promote greater regional development and more job creation in all regions outside Dublin; and if he will make a statement on the matter. [25388/05]

Micheál Martin (Cork South Central, Fianna Fail)
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Regional development is a significant focus of Government policy and its importance has been confirmed in the national development plan and the national spatial strategy. Operational responsibility for job creation and investment on a regional or local basis is a matter for the industrial development agencies; IDA Ireland which is actively marketing individual areas as a location for foreign direct investment and Enterprise Ireland which is concentrating on the development of indigenous industries.

A major objective for the agencies is the achievement of balanced regional development. I believe successful development of the gateway and hub locations, as outlined in the Government's national spatial strategy, NSS, is crucial to providing each region with the locations of scale that will possess the population, skills base, business services, infrastructure and existing enterprise base necessary to attract and win new or additional investments, in particular overseas investments, against a background of strong competition from other locations, both nationally and internationally.

Ultimately, it is the investor who decides on the location, including what areas to visit as potential locations. What overseas investors are indicating to IDA is that they are seeking an urban base close to third level educational facilities that provides infrastructure and services that are international in focus.

The NSS provides a framework for IDA Ireland, working in partnership with other public bodies and the private sector, to successfully market individual regions and areas for new overseas investments or expansions, including, in particular, adding higher value activities, to existing operations. These companies not alone bring high wage jobs to individual areas but also have knock-on benefits in other sectors such as supply, distribution and transport, thus creating further investment-employment opportunities for local people in the immediate vicinity and surrounding areas.

In tandem with the NSS IDA Ireland is encouraging investment in the regions by making significant investments in the provision of focused regional property solutions and encouraging the creation of magnets of attraction. The objective of this is to ensure that key locations have the appropriate facilities, tailored to specific sectoral needs, to attract new investments. This involves networking and collaboration with local authorities and a range of organisations at local level to develop the essential infrastructure, business support services, telecoms and educational programmes; designing its itineraries around regional locations; providing reduced or zero grant assistance for investments in Dublin; and leveraging the higher grant rate permitted in regions outside Dublin, where possible, to encourage more FDI to areas which are traditionally more difficult to market.

In 2004 some 41% of all new greenfield jobs were located in the BMW region compared to about 25% in 1999, indicating that the agency's strategy is working well. Enterprise Ireland's policy objectives for balanced regional development are reflected in the structure of its financial offer to clients, which reflects preferential bias for companies located outside of the Dublin and mid-east region. Over the past five years the new job gains associated with Enterprise Ireland clients has shown strong growth in the regions. In 2004, 68% of employment gains were in client companies located in all regions outside of Dublin compared with 54% in 2000.

This growth is in part attributable to the significant investment being made in supporting new high potential start-up companies and facilitating the development of Irish companies through investments in research and development, productivity improvements and management and staff training.

I am confident that the strategies and policies being pursued by the development agencies, together with the ongoing commitment of Government to regional development will bear fruit in terms of additional sustainable investment and jobs outside of the Dublin region.