Written answers

Thursday, 7 February 2008

Department of Enterprise, Trade and Employment

Job Creation

5:00 pm

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 36: To ask the Minister for Enterprise, Trade and Employment if he has had recent meetings in relation to bringing new sources of employment to County Donegal; his plan to provide further incentives for indigenous people looking to start up new businesses in the county; and if he will make a statement on the matter. [3965/08]

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 41: To ask the Minister for Enterprise, Trade and Employment the number of unemployed people in County Donegal; his plans to tackle the unemployment rate in the county; the measures being taken by the Government to ensure that this figure does not rise in 2008; and if he will make a statement on the matter. [3966/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 36 and 41 together.

The primary agencies under the remit of my Department with responsibility for supports and initiatives for indigenous enterprises in Donegal are Enterprise Ireland (EI) and the Donegal County Enterprise Board (CEB). Enterprise Ireland provides funding and expertise to companies with ten or more employees in the indigenous manufacturing and internationally traded services sectors who wish to expand through increased export activity. Through its network of 34 overseas offices, Enterprise Ireland assists client companies to create and implement successful strategies for market entry, development and growth.

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 the 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.

As regards the Donegal County Enterprise Board, its role 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. In relation to non-financial support, Donegal CEB engages in a range of activities to stimulate enterprise and to support small businesses. Also, Donegal is a key target location for IDA and the County is now competing for a different type of business to labour intensive manufacturing, on which it relied so heavily in the past. 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.

Since my initial appointment as Minister for Enterprise, Trade and Employment in September 2004, I have had many meetings and briefings with and from the IDA, Enterprise Ireland, FÁS and the County Enterprise Board. I have also visited County Donegal on a number of occasions since my initial appointment and met with local business and representative organisations in towns and villages such as Letterkenny, Buncrana, Moville, Donegal, Ballybofey and Stranorlar, Lifford, Killybegs and Ballyshannon.

As regards unemployment figures, these are not available on a county-by-county basis, although the latest C.S.O. live register figures show 9,651 persons in County Donegal on the live register in January 2008. Despite past difficulties in County Donegal 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. Progress has been made by the IDA in securing new high value investments from Pacificare, Pramerica, SITA and Abbott Diabetes with some 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. Between 2004 and 2006, Enterprise Ireland client companies created 1,156 jobs as against 980 jobs lost with Enterprise Ireland also approving some €15m in support to its Donegal client companies. The County Enterprise Board has to date paid out some €7m in grant assistance to over 300 clients, which has assisted in the creation of some 1,400 jobs.

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

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 37: To ask the Minister for Enterprise, Trade and Employment the efforts his Department and bodies under the aegis of his Department are making to attract industry and develop indigenous industry with a view to creating employment in Youghal; the number of enterprises for which his Department or bodies under the aegis of his Department have been notified of closures in the Youghal area in the past ten years with a breakdown of the number of jobs lost in each of these; and if he will make a statement on the matter. [4227/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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In the ten year period 1998 to 2007, four Youghal based IDA supported companies have closed with a total loss of 407 jobs. In the same period, two Enterprise Ireland client companies closed with a combined loss of 45 jobs. Details of these closures are set out in the tabular statement. While job losses at any time are to be are to be regretted, particularly for those who actually lose their jobs, it must be remembered that job gains and losses are a normal part of economic activity.

In general, the East Cork area has benefited greatly from investment in recent times. In order to build on our existing successes, the focus should be on building critical mass at regional, as opposed to local, level. The agencies under the remit of my department have a range of strategies, programmes and financial incentives in place that are designed to promote economic development and sustainable employment throughout East Cork.

The strategies and programmes of the development agencies are very much in line with the National Development Plan 2007-2013 and the National Spatial Strategy, which have been specifically designed to encourage economic development and job creation across the country as a whole.

The enterprise development agencies have seen the emergence of an economic corridor along the N25 with the initial development of Little Island many years ago followed by new developments at Eastgate, Fota Business Park, Carrigtwohill and Midleton all of which are within easy commuting distance of Youghal. IDA Ireland has found that the availability of quality property solutions in the East Cork area has proved attractive to visiting IDA clients.

I am satisfied that the actions of the development agencies together with the continued roll out of the NDP will continue to bear fruit in terms of economic development for the people of the area generally.

Table showing the number of IDA and Enterprise Ireland Client Companies in Youghal which closed in the period 1998 to 2007
YearIDA client companiesNumber of jobs lostE.I. client companiesNumber of jobs lost
1998
1999
200015
20031184
2004152
20061117140
2007154

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