Written answers

Thursday, 6 July 2006

Department of Enterprise, Trade and Employment

Industrial Development

6:00 pm

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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Question 361: To ask the Minister for Enterprise, Trade and Employment the measures which are in place within the IDA to promote the products and services of indigenous Irish companies to foreign direct investors establishing business here; the steps an indigenous company can take to ensure a multinational establishing here is made aware of their services; and if they can receive information to allow them to approach these companies directly. [27551/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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IDA Ireland is the agency with statutory responsibility for the attraction of foreign direct investment (FDI) to Ireland and its regions and Enterprise Ireland has responsibility for the development of indigenous industry. Both Agencies work in close co-operation with one another and are actively working with a range of other bodies, including county development boards, private developers, educational institutes and FÁS towards maximising the potential of individual areas and counties for new investment and expansion projects.

IDA Ireland is acutely aware that overseas investors not alone bring high wage jobs to individual regions and 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.

The availability of indigenous support services capable of sustaining their investment is an important issue for overseas investors, with potential investors regularly inquiring about the availability of indigenous services that are international in focus. In this context it is also an important ingredient for IDA Ireland in both marketing sites at local level for new investment or presenting a case to existing investors for expansion projects.

While it would not be appropriate for IDA Ireland to engage in marketing an individual company's products or services, the Agency can and does make overseas investors aware of the availability of products and services that may be of interest or necessary to sustain the potential investment and where the investor so requests IDA Ireland can also facilitate introductions. Ultimately it is the investor who decides on where to locate, including where to visit as a potential location and what services or products he or she wishes to source locally to support the enterprise.

Enterprise Ireland and IDA Ireland are currently in discussion on the issue of allowing each other preferential access to each other's company information systems. This will facilitate development of a more effective ability to identify opportunities for developing relationships at various levels between Indigenous and Foreign owned companies.

Enterprise Ireland actively assists companies from all over the world to create business relationships between potential buyers and Irish suppliers. The Agency also provides support for strategic alliances, product licensing, collaborative research and joint ventures, and is actively endeavouring to maximise interactions between global buyers and suppliers in a number of ways including:

∙Meeting and consulting with potential customers and building an understanding of their purchasing requirement, including provision of free confidential support services to meet those requirements

∙Supplying detailed reports on Irish suppliers and information on how potential customers can benefit from doing business with Irish suppliers

∙Organising visits to meet with Irish suppliers and manufacturers

∙Arranging initial introductions to potential business partners and providing help with follow-up contacts.

In addition, the Enterprise Ireland website (www.enterprise-ireland.com) hosts an electronic search engine entitled "Source Ireland", which is a business directory of leading Irish suppliers, providing national/international buyers with comprehensive and up to date information.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Question 362: To ask the Minister for Enterprise, Trade and Employment the efforts which have been made in 2006 to attract investment into South Tipperary. [27552/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The promotion and facilitation of industrial development is a day to day matter for the industrial development agencies and relevant county enterprise boards, and not one in which I am directly involved.

IDA Ireland informs me that it continues to market South Tipperary as a potential location for new foreign direct investment, in order to secure new investment and additional jobs for the region. In marketing South Tipperary, IDA Ireland is focused on attracting overseas companies in the services and knowledge based industries, including advanced manufacturing. Key sectors of focus for IDA in the region are international services, healthcare and pharmaceuticals.

IDA's strategy for South Tipperary is to concentrate future economic development in Clonmel and to develop the town as a first-class location for overseas investment. This strategy has been agreed with the South Tipperary County Development Board. IDA has purchased c. 50 acres of land in the Ballingarrane Estate in Clonmel to develop a Business and Technology Park. The future development of the Ballingarrane Estate will be a key asset in attracting overseas investment into the county. Recent significant investments by IDA supported companies in the region include Guidant in Clonmel and Alza in Cashel. I understand from IDA that Guidant will be looking to recruit circa 200 staff per annum over the next five years.

Enterprise Ireland continues to encourage investment and foster job creation in Tipperary South. Enterprise Ireland job creation activity is focused on the creation of new jobs, through supporting entrepreneurs, setting up new high potential start-up companies, the retention and creation of new jobs in existing companies and enhancing the innovation capability of Ireland at a national and regional level, through support of research in companies and third level institutions.

Enterprise Ireland continues to work with companies in its portfolio to assist them grow their sales and exports and improve innovation, in order that they can compete on world markets. In addition to direct finance, Enterprise Ireland has a range of service offerings to encourage the set up of high tech, high opportunity, indigenous enterprises including business and marketing advice, mentoring, product development etc as well as incubation space.

As part of its regional development role, Enterprise Ireland works with other agencies in South Tipperary to develop the business infrastructure. Enterprise Ireland infrastructural projects include Community Enterprise Centres, which foster the development of micro enterprises, which in turn can grow into larger enterprises. Enterprise Ireland approved support of €702,547 under its CEC Schemes to Community Enterprise Centres in Carrick-on-Suir, Clonmel and Tipperary town. All of these centres are operating at almost full capacity.

The South Tipperary County Enterprise Board (CEB) is pro-actively involved in the development of indigenous enterprise in the region. In 2006 Tipperary South CEB received a total budgetary allocation from my Department of €766,995 (which is a 6.1% increase over the 2005 allocation). This has enabled South Tipperary CEB to be actively involved in the economic development of County Tipperary and to ensure that available funds are targeted to maximise entrepreneurial development throughout the locality. In the first half of 2006 South Tipperary CEB has made available in excess of €250,000 to 12 micro businesses in South Tipperary with the potential to create 25-30 jobs.

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