Written answers

Thursday, 5 February 2009

Department of Enterprise, Trade and Employment

Departmental Agencies

5:00 pm

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 62: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether County Donegal's enterprise development and job creation agencies provide value for money; and if she will make a statement on the matter. [3945/09]

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 63: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the reason County Donegal has the highest rate of unemployment and social inequality here despite the fact that large amounts of money are spent on enterprise development and job creation agencies in the county; and if she will make a statement on the matter. [3946/09]

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 64: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of County Donegal agencies charged with enterprise development and job creation; the annual Government spend and support on each of these agencies; the number of jobs these agencies created in 2007 and 2008; and if she will make a statement on the matter. [3947/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 62 to 64, inclusive, together.

State development agencies supporting enterprise development in County Donegal and which operate under my aegis are IDA Ireland, Enterprise Ireland and Donegal County Enterprise Board. The training agency FÁS is also under my aegis and plays a major role in the training and upskilling of workers in enterprises. Údarás na Gaeltachta and other agencies operate under the aegis of other Ministers.

In 2008 Donegal CEB received a Capital Allocation of €821,093 of which €471,627.00 was used to deliver a range of management capability development programmes, and €349,466.00 was used in direct grant assistance, resulting in the creation of 187 jobs in the area. The role of Donegal County Enterprise Board, as one of the 35 County and City Enterprise Boards nationwide, is to provide support for small businesses with 10 employees or fewer 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 throughout the country.

Donegal is a 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. The overseas investor is now seeking locations for more advanced manufacturing or office based solutions, to a great extent depending on high skill and doing high value work.

To encourage this interest IDA has developed a new modern Business Park in Letterkenny with modern building solutions capable of competing with other locations nationally and also internationally. IDA has been working with the 3rd Level Sector in the region at Letterkenny Institute of Technology and the 3rd Level sector in Northern Ireland to offer the necessary courses aimed at our target sectors of Medical Technologies, International and Financial Services and High End Engineering.

As regards Enterprise Ireland, its 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 in enhancing the innovation capability of Ireland at a national and regional level through support of research in companies and third level institutions. Enterprise Ireland provides a range of supports for high potential start up companies including, financial supports, business and marketing advice, mentoring, product development etc. Two HPSU's were created in Donegal in 2007.

In 2008, under the 2007-2009 Community Enterprise Centre Scheme, Milford & District Resource Ltd. were approved funding of €500,000 towards a new Community Enterprise Centre in Milford, Co. Donegal and €50,000 funding for a Business Development Manager.

While recognising that there are currently employment difficulties in Donegal, as there is across the State, it is of major significance that while jobs are being lost, jobs are also being created as is clearly demonstrated by the Agency statistics above. The role of the State development agencies has been, and will continue to be, critical in supporting both the maintenance of enterprises and the creation of enterprises. I have full confidence in their ability to do so in County Donegal into the future. The number of jobs created in Donegal by IDA Ireland grant aided companies are as follows:

Data Year20072008
No. of Companies1312
Permanent Employment1,6231,641
Gross Gains (New Jobs)17667
Job Losses-116-49

As regards Údarás na Gaeltachta, I am informed that the number of jobs created in Donegal by its client companies in 2007 and 2008 is as follows:

Employment in Údarás na Gaeltachta companies
Donegal20072008
Full Time Jobs372357
Job Losses371319
Net Change+1+38
Employment in Enterprise Ireland-aided companies
Donegal20072008
Number Of Plants197184
Full Time Jobs3,4273,212
Gains435231
Losses-274-449
Net Change161-218
Contract/Part Time Jobs522507
Source: Forfás Employment Survey 2008.

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