Joe Sherlock (Cork East, Labour)
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Question 120: To ask the Minister for Enterprise, Trade and Employment his plans for job creation in the south and south west following the recent high profile job losses at three companies; his views on the fact that high technology jobs are being lost in the region; the steps he is taking to ensure retention of high tech jobs in the region and the introduction of new high tech jobs; and if he will make a statement on the matter. [8357/07]

Micheál Martin (Cork South Central, Fianna Fail)
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State support for enterprise and job creation is channelled through the industrial development agencies. IDA Ireland has responsibility for marketing Ireland and its regions to overseas investors and Enterprise Ireland is concentrating on developing the indigenous sector. While I may give general policy directives to the agencies under the Industrial Development Acts, I am precluded from giving directives regarding individual undertakings or from giving preference to one area over others.

IDA Ireland's strategy for the South West region is to progress the development of a knowledge economy. The Agency is actively promoting the city of Cork and the greater Cork region, including the town of Fermoy, to prospective investors across the full range of IDA targeted sectors. Targeted sectors include Pharmaceuticals, Medical Technologies, Information and Communications Technologies (ICT) and Internationally Traded Services. To support and enhance this marketing campaign they are also working in partnership with Local Authorities, utility companies, third level institutes and other relevant infrastructure and service providers in the region to develop the necessary critical mass needed in terms of population, skills and infrastructure.

Job creation and job losses are a feature of economic development in all countries as various sectors expand and contract in response to market demand for goods and services, competitive forces, restructuring and technological change. The recent announcement of jobs losses in Cork, Fermoy and Youghal is very regrettable. Despite these losses, the region, and in particular the greater Cork area, is continuing to win new investment across a range of sectors. Employment in IDA supported companies in Cork has seen an increase of circa 11% since 2000, with 133 IDA assisted companies in County Cork employing in excess of 19,977 people.

Just last week, VMware, one of the US software industry's fastest growing companies, which established its EMEA Technical Support Centre in Ballincollig less than two years ago, announced a major expansion involving the creation of up to 369 additional jobs. In December 2006, Eli Lilly and Company, a global leader in biopharmaceuticals, announced plans to invest up to €400m in establishing a Biopharmaceuticals Manufacturing facility at its existing site in Kinsale involving the creation of up to 200 additional jobs. This will bring Eli Lilly's total employment level in Kinsale to 600.

In terms of job creation, Enterprise Ireland activity is focused on supporting entrepreneurs setting up new High Potential Start-Up Companies, the retention and creation of new jobs in existing companies, and on enhancing the innovation capability of Ireland at a national and regional level through support for research in companies and third level institutions. The Agency provides a range of supports for high potential start up companies including, financial supports, business and marketing advice, mentoring, product development etc. as well as incubation space.

In this regard Enterprise Ireland is pleased to be associated with recent developments in Cork based companies such as 1.2 Travel.Com Ltd., Ecom Interaction Services Ltd., Freefoam Plastics Ltd., Qumas Ltd., Dairygold plc., and new companies such as Sensl Technologies Ltd., and MP Stor Ltd. In 2006, Enterprise Ireland approved over €18m and made payments of almost €9m to client companies in County Cork. This includes support for 14 HPSU (High Potential Start-Up) companies. The agency is currently actively engaged with 687 client companies in County Cork who, at the end of 2006, employ a total of 19,078 people.

I am satisfied that the policies being pursued by the agencies under the remit of my Department, together with the Government's commitment to regional development, as outlined in the new National Development Plan, will continue to bear fruit in terms of the creation of sustainable employment for the people of the South and South West generally.