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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Vacant Factory Premises.

Vacant factory space and IDA building programme

Summary

The Minister reported 212 IDA small factory units and 111 Shannon Development units, with many already reserved, and said speculative advance-factory building was suspended while incubator units and project-specific factories continued. He said a review of the IDA building programme was complete and its recommendations would be published, declining to discuss selective tendering before then.

asked the Minister for Industry, Trade, Commerce and Tourism if he will provide details of the amount of unutilised factory space throughout the country which could be adapted for the establishment of small units and which could be used as "start-up" workshops or offices for the creation of new employment.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I am informed that the Industrial Development Authority have 212 small factory units totalling 771,000 sq. ft. ranging in size from 200 sq. ft. to 9,000 sq. ft. available for small industry at 71 locations throughout the country. Of these, 84 units totalling 302,000 sq. ft. are at present reserved for industrial projects. In addition, Shannon Development have 111 small industry units totalling 257,000 sq. ft. available at 36 locations in the mid-west region and west and southwest Offaly. Forty-six of these units totalling 133,500 sq. ft. are reserved for industrial projects. The remaining units are being actively promoted for suitable projects.

The Deputy will already be aware that Shannon Development have pioneered the provision of low cost space to small industry based on the sharing of facilities and overheads in a single building. This is known as the workspace concept.

In 1983 the IDA also commenced construction of 46,750 sq. ft. of small industry "incubator units" ranging in size from 500 to 1,000 sq. ft. at 14 locations throughout the country. These units are particularly suitable for the start-up phase of the typical small industry project. There is also a significant volume of privately owned factory space available principally in the larger centres of population which is suitable for small industry development.

The demand for small industry units is being constantly monitored by the industrial development agencies. As there is an adequate volume of small industry factory space available at present these agencies have no plans to adapt bigger factory units which are required for medium to large-sized industrial projects.

Comment on this

Would the Minister not agree that the information we have got here today would indicate that we are proceeding to erect factories and failing to purchase at a very low price factories at other locations? Would the Minister not agree that it is time for a complete re-examination of industrial development generally following the reply to those questions?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

In regard to the first two questions posed by the Deputy I would not agree. The advance factory building programme has been suspended for the time being until we can fill the many advance factories that are already available and are not filled. As to the question of buying additional factories at what the Deputy claims is a low price — and I do not necessarily disagree with him — this would make sense if we were running short of advanced factory space, and it might be worth considering at some stage in the future. Before we recommence an advance factory building programme we should look at the possibility of buying existing space. However, some of this existing space is not particularly suitable for modern industry and this will have to be assessed on a case by case basis. However, I agree with the last part of the Deputy's question which suggests that there should be a radical review of industrial policy, and this is in train.

Comment on this

Is the Minister saying that no building programme whatsoever is being carried out by the IDA this year?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

No.

Comment on this

Is he not saying that?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

No.

Comment on this

What is he saying?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I can repeat what I have said already, which was that advance factories are not being built. The IDA building programme continues under two major headings: (1) small incubator units for small industries which are of a type not sufficiently served at the moment; (2) what are known as special buildings where, rather than build advance factories on spec, they are building factories as part of a grant package for a particular project. That part of the programme, of course, continues but those factories never remain empty because they are being built for a particular industry.

Comment on this

Will the Minister tell me if he has carried on a review of the whole building programme of the IDA which I initiated when I was there, and if he would agree with me that the use of selective tendering at a time of total depression in the construction industry is a foolish way to do their business?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

The review referred to has been completed and I have adopted the recommendations. I have conveyed them to the IDA and they will be published.

Comment on this

Does the Minister agree with doing away with selective tendering?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I would not like to get into detail on the recommendations that have been made but, as I have indicated, they will be published in the relatively near future.

Comment on this

Would the Minister agree that selective tendering is the way to get ——

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I would not wish to either agree or disagree off the top of my head with the suggestion made by the Deputy and I do not wish my reluctance——

Comment on this

The Minister has not a mind of his own.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I have a mind of my own.

8.

Comment on this