Martin Ferris (Kerry North, Sinn Fein)
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Question 55: To ask the Minister for Enterprise, Trade and Innovation the action he is taking to ensure that the targets set by the Industrial Development Authority to attract foreign direct investment are met after it was revealed that developers cannot secure finance to build appropriate properties for multinational companies; the way the IDA document Horizon 2020 is being re-evaluated since an audit revealed a risk of regional development targets becoming unachievable due to the lack of property solutions in target towns; and if he will make a statement on the matter. [24293/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Government has taken decisive action in order to get credit flowing again. The Bank Guarantee Scheme, the 2009 Recapitalisation Scheme, the nationalisation of Anglo Irish Bank and the establishment of the National Assets Management Agency have all contributed to the stabilisation of the banking sector with a view to facilitating the flow of credit. The 2010 Recapitalisation package builds on earlier initiatives and includes additional supports for enterprises, including SMEs. In particular, AIB and Bank of Ireland have both committed to making available not less than €3 billion each for new or increased credit facilities to SMEs in both 2010 and 2011. This must include funds for working capital for businesses. Both banks have recently produced plans that include a sectoral and geographic breakdown of how they intend to divide up this new lending. These plans are currently being reviewed by the Department of Finance and the Credit Review Office.

This funding will be a significant increase on the figures reported by the banks for 2009 and will help to sustain the economy and foster growth. This figure can be reviewed as the needs of the economy change.

On the second point relating to the availability of property solutions, this was a concern raised by internal auditors following an internal audit of IDA's property division, completed in early 2009. The audit was clean but the internal auditors raised a concern around the availability of property solutions in Regional towns. At the time, the Agency responded that it did not have concerns in this regard.

The current downturn in the property market has significantly increased the availability of buildings for marketing to clients at more competitive prices and more flexible terms than has been seen before. IDA's property Division has in place a comprehensive suite of IDA owned and private sector solutions to meet the needs of potential investments in Regional locations. Indeed, Ireland's property costs have become more competitive against many of our international competitors. In line with the National Spatial Strategy (NSS), IDA will continue to make smart use of its property portfolio in regions targeted for investment and will continue to work with local authorities to make potential sites as attractive as possible for investors.

The Agency is fully committed to balanced regional development and, as outlined in its recently published strategy document "Horizon 2020", the IDA is confident that between 2010–2014, 50% of FDI projects will be located outside Dublin and Cork.