Joe McHugh (Donegal North East, Fine Gael)
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Question 100: To ask the Minister for Enterprise, Trade and Employment if there are plans to tackle the increasing problem of unemployment in County Donegal, in particular a town (details supplied) which is reeling from the loss of several industries over the past two decades; and if he will make a statement on the matter. [25321/07]

Micheál Martin (Cork South Central, Fianna Fail)
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While it is recognised that Donegal has suffered particular difficulties in the past due to the demise of traditional industries such as agriculture, fishing and textiles, there is clear evidence that the county is successfully engaged in a transition to the new economy. Live register figures at 8,340 and 8,370 for September 2006 and 2007 respectively, are lower then any year going back to 1993. The Interdepartmental Group Report on Donegal, which I launched last year, identified the various infrastructure developments required to support enterprise development in the County. The report identified, not just that much progress had been made, but also that there were financial provisions available to complete major new infrastructure projects, such as roads. These will further equip Donegal going forward, as a location for enterprise development.

Donegal is a key target location for IDA with the County now competing for a different type of business to the labour intensive manufacturing, which we so successfully won over the past four decades. Investors are, in the main, seeking a large urban base with third level education facilities, well developed infrastructure, as well as top quality business services that are international in focus. In line with this, IDA Ireland has adopted a focused approach in the County with Letterkenny as the main location for IDA development efforts. Milford, some 20 kilometres from Letterkenny, will benefit from the growth of this gateway and through the creation of high calibre jobs within easy commute of the town.

The IDA strategy fits with the national Spatial Strategy, which sets out a framework for use in planning and investment in the public and private sectors. The Strategy seeks to enhance the performance of strategically placed 'Gateways', in Donegal's case the linked gateway of Letterkenny and Derry. This Gateway will create the conditions necessary to drive economic growth and will be at the heart of extending balanced regional development to the region. Small villages and rural areas will draw strength from, contribute to and complement the Gateway, as in the case of Milford. The strategy also recognises the importance of improving the attractiveness of towns and villages through community and other activities, such as urban and village renewal schemes and urban design initiatives by local authorities, which many locations in Donegal are benefiting from.

Progress has been made by IDA in securing new investments from Pacificare, Pramerica, SITA and Abbott Diabetes with approximately 1,200 new jobs being added in the County by overseas firms over the last five years. These companies continue to recruit and are actively seeking new staff.

As regards Enterprise Ireland, during the years 2004 to 2006, a total of 1,156 jobs were created in Enterprise Ireland client companies in County Donegal as against job losses of 980 leaving a net gain of 176 jobs.

Since the beginning of 2004 Enterprise Ireland approved over €15m in support to its client companies in Co. Donegal and made payment of over €7.5m.

Enterprise Ireland's policy objectives for balanced regional development are reflected in the structure of its funding offer whereby funding for existing company expansion and start-up businesses is biased towards regions. The maximum grant level is higher than in Dublin and the Mid-East and a higher proportion of this funding is also non-repayable.

In addition to the foregoing, the role of the Donegal County Enterprise Board, funded by my Department, is to provide support to micro-enterprises in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. Through the provision of both financial and non-financial support the Board supports individuals, firms and community groups provided that the proposed projects have the capacity to achieve commercial viability.

Financial support is available in the form of Capital Grants, Employment Grants and Feasibility Study grants. From the Board's inception in 1993 to-date they have paid out over €6.7m in grant assistance to over 300 clients, which has assisted in the creation of 1,385 jobs.

I can assure the Deputy that funding supports and initiatives for enterprises in County Donegal is, and will remain, a priority for the State development agencies under the auspices of my Department.