Written answers

Wednesday, 14 December 2005

Department of Enterprise, Trade and Employment

Industrial Development

11:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 232: To ask the Minister for Enterprise, Trade and Employment if he will review his decision to give the enterprise function of promoting the Shannon free zone to IDA Ireland from SFADCo, in view of IDA Ireland's poor record of job promotion in the remainder of County Clare since 2000; and if he will make a statement on the matter. [39491/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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My Department and the development agencies under its remit, Enterprise Ireland, IDA Ireland, Shannon Development and the city and county enterprise boards, are committed to the economic and industrial development of the Shannon region, including County Clare, in line with national enterprise policy goals, and the achievement of balanced regional development, within the framework of the national spatial strategy.

I recently announced details of a new mandate for Shannon Development. Under the terms of the new mandate, the company is being given a more focused regional economic development remit that will complement the roles of the national agencies, IDA Ireland and Enterprise Ireland, in attracting foreign direct investment and developing the indigenous enterprise base in the region. The city and county enterprise boards will continue to provide supports to stimulate economic activity at local level and to promote the establishment of micro-enterprises in the region.

The new mandate is based on Shannon Development's own future strategy proposals and has the support of the board and other stakeholders in the region. It is also in line with the recommendations of the enterprise strategy group and the decision to decentralise the headquarters of Enterprise Ireland to Shannon. The new arrangements will provide for a more logical delineation of responsibilities between the enterprise development agencies in the mid-west region and for greater clarity in relation to the economic development aspects of Shannon Development's remit. I have asked the company to prepare a new three-year corporate plan to give substance to the mandate and I hope to receive this in the near future.

IDA Ireland's strategy for the mid-west region places an emphasis on the gateway and hub locations of Shannon/Limerick, Tralee and Ennis. The location of new overseas investment in the gateway and hub locations not alone brings high wage jobs to these locations but also has 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. IDA Ireland's sectoral emphasis in the mid-west region is on attracting new knowledge intensive projects in information communications and technology, international services, medical technologies and life sciences. Over the past three years, employment has remained broadly constant in IDA supported companies. At the end of 2004, there were 917 people in permanent employment in eight IDA supported companies in County Clare, five of which are located in Ennis.

I do not accept that a comparison between Shannon Development's job creation record in the Shannon free zone and that of IDA Ireland in the remainder of County Clare is valid. The Shannon free zone has been and continues to be an attractive destination for FDI companies contemplating setting up in the mid-west region or indeed elsewhere in Ireland and this situation will not change with implementation of Shannon Development's new mandate. Unlike Shannon Development, IDA Ireland has a network of overseas offices and will use this network to aggressively market the zone. Its work in this regard will be complemented by that of Shannon Development, who will retain responsibility for ownership, development and marketing of the zone.

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