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Dáil
‹ Ceisteanna — Questions. Oral Answers. - Company Development Programme.

IDA company development programme

Summary

The questions examined the selection, confidentiality, monitoring and results of the IDA programme for developing selected Irish firms, including jobs and support for research and technology. The Minister said about 200 firms were involved, with reports monitored and firms’ names released after their programmes ended; he described the approach as generally successful but said specific job-creation and job-loss figures were not available in the form sought.

asked the Minister for Industry and Commerce if he will give an update on the progress of the IDA programme, under paragraph 11 (ii) of the Programme for National Recovery, for selective development of certain firms.

2.

Comment on this

asked the Minister for Industry and Commerce the number of firms selected for special development under paragraph 11 (ii) of the Programme for National Recovery.

20.

Comment on this

asked the Minister for Industry and Commerce if firms selected for expansion and growth by the IDA in accordance with paragraph 11 (ii) of the Programme for National Recovery are receiving preferential treatment in terms of time devoted to their problems; and, if so, the reason the identity of the firms is being kept confidential.

21.

Comment on this

asked the Minister for Industry and Commerce the number currently employed in the firms selected for expansion and growth under paragraph 11 (ii) of the Programme for National Recovery (a) at the present time and (b) at the time the programme was commenced.

26.

Comment on this
Mary Flaherty Miss Flaherty Fine Gael

asked the Minister for Industry and Commerce if he plans to conduct an objective review of the workings of paragraph 11 (ii) of the Programme for National Recovery; and if he has any estimate of the cost in terms of time and money diverted from the normal operations of the agencies under the aegis of his Department as a result of the operation of this scheme of special help for selected firms; if he will indicate the procedures and criteria whereby these firms were selected; if any firms selected originally have since dropped out of the programme; and if any others have been added.

30.

Comment on this

asked the Minister for Industry and Commerce the number of jobs created since its inception, under the provisions of paragraph 11 (ii) of the Programme for National Recovery, in firms selected for special treatment by State agencies under his aegis; and the number of jobs lost in the firms in question.

33.

Comment on this

asked the Minister for Industry and Commerce if he has been monitoring the performance of the company development plan approach which has been adopted by the IDA in recent years; if he will give an indication of its impact on the source of new job creation; and if he will make a statement on the matter.

46.

Comment on this
Liam Burke Mr. L. Burke Fine Gael

asked the Minister for Industry and Commerce if he will indicate the sectors in which firms selected by the IDA for special company development are operating.

Comment on this
Albert Reynolds Minister for Industry and Commerce (Mr. Reynolds) Fianna Fáil

I propose to take questions Nos. 1, 2, 20, 21, 26, 30, 33 and 46 together.

Paragraph 11 (ii) of the Programme for National Recovery refers to the market-oriented and technological development of indigenous manufacturing industry with particular reference to the expansion and growth of selected Irish companies firmly rooted in the economy.

This objective is being promoted through a more selective approach on the part of the State agencies involved in industrial development. Moreover, the appointment of Ministers with specific responsibility for trade and marketing and science and technology is designed to focus more clearly the national effort in strengthening industry's capabilities in these areas. At present, the principal instrument at the level of the individual firm for furthering the objective is the company development programme, operated by IDA in close association with CTT and EOLAS.

Following publication of the White Paper on Industrial Policy in July 1984 the company development programme became an integral part of the IDA's operations in 1985. Under the programme the IDA and the other agencies work with firms as a catalyst to draw up strategic development plans which are designed to lead to substantial growth in terms of output and jobs.

Selection for participation in the programme is a joint process between the company and the State agencies and is based on the company's potential for substantial growth and a willingness to make a significant commitment to the success of the programme.

By end 1987, 200 companies, of which three-quarters are Irish-owned, had undertaken formal company development programmes. Up to 40 companies normally participate in the programme at any one time. For reasons of commercial confidentiality, the identity and details of participating companies are released only when the development plan comes to fruition. Participating firms range across all manufacturing sectors. The natural resources area predominates but there is a good representation by companies in electronics, engineering and consumer products.

All companies receiving assistance from the State are treated equally. The level of time and resources devoted to any one firm is related specifically to that firm's needs and potential.

With effect from this year the IDA have made extensive changes to their priorities and structure to meet the employment objectives set out in the Programme for National Recovery. A completely new Irish industry directorate has been set up to bring a more creative and specialist approach to the challenge of securing more investment, exports and jobs from mainstream Irish industry. Within the directorate a separate division has been established to focus exclusively on the company development programme.

The IDA's 1988 annual employment survey is being compiled at present. The results will point to the progress being achieved by the company development programme and other measures to enhance industrial development.

Regular progress reports on the work of the CDP are provided to my Department. The programme was considered in some detail in the context of the review of industrial performance 1986 and will be considered again by my Department when a similar review takes place in 1989.

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

May I ask the Minister——

Comment on this
Seán Treacy An Ceann Comhairle Independent

I propose to call Deputies in the order in which their questions appear on the Order Paper. I am calling Deputy Sheehan.

Comment on this

Would the Minister be more specific and spell out to the Members of this House the names and addresses of those firms incorporated in the company development programme?

Comment on this

I have already stated that as normal, the names of the firms while participating in the programme, are kept on a confidential basis but are released after each company's programme has been completed.

Comment on this

Why the cloak of secrecy before that?

Comment on this

Of the 160 firms which appear, from the Minister's reply, to be out of their period of special development, has he applied measures of performance to those companies to ascertain whether the company development plan was a success over and above those who remained outside it so that we could ascertain whether this is a successful approach to industrial development?

Comment on this

I can tell the Deputy that, by and large, the programme has been successful, not 100 per cent successful. Naturally, as we receive reports from time to time we are constantly monitoring them and, when we ascertain from experience that there is need for some fine tuning or adjustment, that is done.

Comment on this

Has the Minister, if you like, fixed controls on which he could report to this House on a regular basis as to the success or otherwise of this programme?

Comment on this

Regular reports are furnished to my Department where they are monitored. I might add that details appear in the annual report of the IDA each year in relation to the companies involved.

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

How many jobs have been created under this programme and how many have been lost in the firms in question?

Comment on this

That is a separate question.

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

It is not a separate question. I might refer the Minister to Question No. 33.

Comment on this

We do not have details in relation to the specific programme.

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

Yes, but Question No. 33 is one of the questions on which the Minister is now answering supplementaries. The Minister was asked this question four days ago. Perhaps he could answer it.

Comment on this

Which one?

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

No. 33.

Comment on this

I will look at it and ascertain what is in it.

Comment on this

(Limerick East): The Minister's mind is wandering to other Departments.

Comment on this

That is understandable.

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

The Minister would do better to do the job he is paid to do.

Comment on this

Oh, I have no doubts about the job I am paid to do and I am doing it to the best of my ability. Would the Deputy read out the question if he has it?

Comment on this

My Question No. 33 reads:

To ask the Minister for Industry and Commerce if he has been monitoring the performance of the company development plan approach which has been adopted by the IDA in recent years; if he will give an indication of its impact on the source of new job creation; and if he will make a statement on the matter.

Comment on this

The questions in front of me have been tabled by Deputies Naughten, Boylan, Liam Burke, P.J. Sheehan, Griffin, Flanagan, Flaherty and Richard Bruton.

Comment on this

Yes, the last is mine.

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

Perhaps the Minister would answer the question: how many jobs have been created under this programme and how many jobs have been lost in the firms concerned?

Comment on this

The Deputy knows quite well from his previous experience as Minister for Industry and Commerce that there is not the exact detail he is seeking available in regard to the sectoral jobs. I appreciate his reason for tabling such a question. I will give the total of jobs created when replying to later questions. The Deputy knows as well as I do that such detail is not available and, if it were, I would be the first to supply it.

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

What we are doing here is asking questions about 200 firms which had been specifically selected by the IDA on the direction of the Government. What I would like to know is how many jobs have been created and how many jobs have been lost in those firms? Are more people employed now in those firms than there were when the programme was initiated? That is a very simple and legitimate question to ask which even the Minister in his present preoccupied state might find it in his heart to answer.

Comment on this

I would not have to find it in my heart to answer that question ——

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

Your head will do.

Comment on this

—— because the Deputy knows as well as I do that that kind of information is not available and is never tabulated in the form he outlined in his question. Secondly, the question to which the Deputy is trying to get an answer does not appear on the Order Paper. The Deputy is asking how many jobs have been created and how many have been lost but no such questions to that effect appear on the Order Paper. The Deputy in his question asks if I would give any indication of its impact on the source of new job creation but as the Deputy is aware in a three year company development plan the results will not become apparent for a number of years afterwards. An overall assessment was carried out under the review of the industrial performance and this will be repeated in the same exercise next year. That is when the information will become available. The Deputy knows this better than I do.

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

The answer is that no new jobs——

Comment on this
Seán Treacy An Ceann Comhairle Independent

Order, please. I call on Deputy Martin Cullen.

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

Is it not the case that no new jobs have been created?

Comment on this
Seán Treacy An Ceann Comhairle Independent

There is no need for the Deputy to become disorderly.

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

If the results were favourable, the Minister would give them.

Comment on this

Information on jobs will come later and the Deputy will have all the time in the world to ask all the questions he likes.

Comment on this
Seán Treacy An Ceann Comhairle Independent

Deputy Cullen has been called.

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

I am asking about the number of new jobs which have been created and lost in these specific 200 firms.

Comment on this

That is a separate question.

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

It is not.

Comment on this

No question has been tabled which asks about the number of jobs created in a specific sector.

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

The Minister has not been briefed.

Comment on this

If the Deputy would like an answer to that question he should put down a question to that effect.

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

The Minister has not read his brief.

Comment on this

I know it off by heart.

Comment on this
Seán Treacy An Ceann Comhairle Independent

Deputy Cullen.

Comment on this

Can the Minister tell us in respect of the 200 companies he has referred to what emphasis has been placed on research and development and if any attempt has been made to pool resources such as computer technology which could prove useful to all of them? Is this happening and if so, where?

Comment on this

My colleague, the Minister of State with responsibility for science and technology, will answer part of the Deputy's question when he comes to reply to a separate question. In the company development programme agencies such as CTT, EOLAS, the Irish Goods Council, the IDA and so on have an input. If any weaknesses are detected by any of the agencies, it is addressed. An audit is carried out on the technological base of the company and the capabilities of the company of moving towards a higher technological base. This audit is carried out by EOLAS. In a reply to a separate question later, my colleague, the Minister of State with responsibility for science and technology will provide more details.

Comment on this
Garrett Fitzgerald Dr. G. FitzGerald Fine Gael

I understand the Minister as saying in a reply to a previous supplementary question that statistics and details of jobs are never kept in respect of such employment. Is he seriously suggesting in respect of these 200 firms that it is not intended even to find out if the scheme has been a success, by way of monitoring employment? Is this going to be monitored and, if so, when will the first figures become available?

Comment on this

If the Deputy listened to my comprehensive answers——

Comment on this
Garrett Fitzgerald Mr. G. FitzGerald Fine Gael

I listened very carefully.

Comment on this

—— he would know that there are 200 firms involved, 48 at any given time. The reports are studied in the Department. In respect of the supplementary asked by Deputy Bruton let me say that he had not tabled a specific question and if he had he would have received an answer.

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

The Minister should take a look at Question No. 30 which asks the Minister to indicate the number of jobs which have been created and lost.

Comment on this
Seán Treacy An Ceann Comhairle Independent

The Deputy is anticipating the reply to another question.

Comment on this
Seán Treacy An Ceann Comhairle Independent

Question No. 3 in the name of Deputy Garret FitzGerald.

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

In view of the fact that the Minister has failed to answer Question No. 30 which he is purporting to answer and in view of the fact that he has failed to give any information as to the number of jobs created and lost in these firms I propose to raise this matter on the Adjournment.

Comment on this
Seán Treacy An Ceann Comhairle Independent

I will communicate with the Deputy.

Comment on this

The Minister is deliberately refusing to answer the question. He is sidetracking.

Comment on this
Seán Treacy An Ceann Comhairle Independent

Question No. 3.

3.

Comment on this