Written answers

Tuesday, 31 January 2012

Department of Enterprise, Trade and Innovation

State Agencies

9:00 pm

Photo of Michael McNamaraMichael McNamara (Clare, Labour)
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Question 283: To ask the Minister for Jobs, Enterprise and Innovation the savings that will be obtained from the closure of the trade office in Taipei, Republic of China; and if he will make a statement on the matter. [5280/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Decisions relating to the closure of IDA Ireland's overseas offices are day-to-day operational matters for IDA Ireland in which I have no function.

I am informed by IDA Ireland that the decision to close its Taiwan office, which it shared with Enterprise Ireland, on 31 December, 2011 was solely based on business reasons and that annual savings of €30,000 will result. The Agency has indicated that there have been no new IDA investment projects from Taiwan for several years despite the Agency's pursuit of an active marketing programme in the country during that time. It appears that many Taiwanese companies are now focussed on targeting the vast Chinese market, which has been to the detriment of investment in other regions, such as Europe. This is largely due to the enhanced political and economic co-operation between Taiwan and China in recent years.

IDA Ireland has assured me that, while it will not have an office in Taiwan, it will continue to serve the Taiwan market from its base in Shanghai.

Photo of Charlie McConalogueCharlie McConalogue (Donegal North East, Fianna Fail)
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Question 284: To ask the Minister for Jobs, Enterprise and Innovation when the new north west regional manager for the Industrial Development Agency took up employment; the operational arrangements for covering the Letterkenny office; and if he will make a statement on the matter. [4769/12]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Under its Horizon 2020 Strategy, which covers the period 2010 - 2014, IDA Ireland aims to secure 640 investments and create 62,000 direct jobs. The aim is to achieve 50% of these investments in locations outside Dublin and Cork and to transform the existing FDI base across the country to develop, retain and grow employment in existing client companies operating here. Central to IDA's strategy is to build on existing regional strengths to ensure Ireland's economic development, while optimising regional spread, in line with the National Spatial Strategy.

In the context of achieving successful implementation of its strategy, IDA Ireland continues to maximise efficiency through increasing the organisation's focus on business generation/client facing activities, which will ultimately benefit all regions. During 2010, a Business Transformation Process was carried out which examined every position in the organisation. The outcome provided opportunities to free up staff resources for core business generation activities and needs to ensure that IDA meets its job targets.

In the North West Region IDA had two offices both conducting similar regional activities. Following the Business Transformation Process, it was decided that Regional activities for the North West Region as a whole would continue to be carried out from the Sligo Office where the Regional Business and Relationship Manager for the North West Region, who was appointed in December last, is now based. IDA Ireland's Letterkenny office remains open and the two staff employed there have been assigned new roles and responsibilities focusing on frontline client activities on a national basis. The aim of these measures is to win more business for Ireland and to ensure that IDA focuses on delivering 50% of investments outside Dublin and Cork, prioritising Gateway locations including Letterkenny and Sligo in the North West.

Under the National Spatial Strategy, Letterkenny is one of 9 Gateway locations and will continue to be a key location of focus for the winning of foreign direct investments. The North West Region has 36 IDA client companies employing over 5,300 people. Indeed, Letterkenny had 2 key client announcements last year with the 200 person expansion of United Health Group, who now employ over 400 people, and Zeus, who expanded their manufacturing facility and will create 75 additional jobs. Examples of other client companies in Letterkenny are Pramerica with 800 employees; Sita, 90 employees; Medisize, 140 employees and Abbot with 140 employees.

IDA Ireland has assured me that it will continue to work closely with all of its existing client companies in the region as well as promoting the region, and especially the Gateway locations of Letterkenny and Sligo, for new Foreign Direct Investment.

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