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Dáil
‹ Leaders' Questions

South-east jobs and economic development

Summary

Mattie McGrath says unemployment and poor-quality employment in the south east reflect insufficient IDA activity and excessive administrative burdens on businesses. The Taoiseach cites falling unemployment, increased employment and new investment, and says a comprehensive regional plan will build on existing efforts.

The South East Economic Monitor report produced by the Waterford Institute of Technology, WIT, school of business confirmed that unemployment in the south east is at crisis levels and is rising. It currently stands at 12.5% compared to other regions that are experiencing a national trend of 8.4%. The report finds further that the quality of employment in the south east is dramatically lower than the national average and continues to deteriorate. The report also identifies that the reason the south east economy is struggling is due in large part to the inactivity of the IDA, Departments and Enterprise Ireland in the region over the last three decades. The south east is missing a total of 6,312 IDA-supported jobs. I am delighted the Minister of State at the Department of Jobs, Enterprise and Innovation, Deputy John Halligan, is here because he understands this.

In Tipperary alone in the last few months, we have seen the closure of Suir Pharma in Clonmel with the loss of 134 jobs, Ranbaxy in Cashel with the loss of 140 jobs and of Clonmel Chemicals and Gleesons in Borrisoleigh. Two of those companies were indigenous, homegrown companies that had survived a number of recessions and gave valuable employment over the years.

The Minister for Education and Skills, Deputy Bruton, in his previous incarnation as Minister for Jobs, Enterprise and Innovation announced an action plan for jobs for the south east and that the IDA would, over five years, invest €150 million in a capital investment programme to help attract more multinational jobs to the regions. Yet, there was no mention of County Tipperary in that report, even though the Minister, Deputy Bruton, came to Tipperary for a wife. I am surprised he forgot about us.

The south east and County Tipperary, in particular, cannot endure this level of underachievement and underinvestment. The focus of the IDA must be improved. Will the Taoiseach and the Minister for Jobs, Enterprise and Innovation, Deputy Mary Mitchell O'Connor, escalate the activity of the IDA to drive inward investment into counties like Tipperary and restore fairer and more sustainable regional balance in terms of unemployment?

I was delighted to be a part of the Taoiseach's negotiations on the programme for Government. The goal of the new Government will be to deliver 200,000 jobs by 2020, of which 135,000 will be outside of Dublin. I think that is very important. I am not anti-Dublin but it is vital that we work to eliminate the two-tier economy that is emerging in our country. This is even more important in light of the inevitable economic impact of Brexit after the recent referendum. Will the Taoiseach, the Department of Jobs, Enterprise and Innovation and all Departments look at rural-proofing any legislation they introduce and insist that the IDA step up to the mark, carry out more visits to County Tipperary and be more encouraging and supportive of businesses?

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Enda Kenny The Taoiseach Fine Gael

Tipperary is a fine county with fine people.

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Tá a fhios agam. That will not get us jobs.

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It might get you the All-Ireland.

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Enda Kenny The Taoiseach Fine Gael

As part of the priority that is accorded by the IDA and by Government policy, it is the aim to have the vast majority of jobs spread outside of the capital city. Yesterday, the Government approved grant assistance for an expansion of an industry in Tipperary. In general, unemployment in the south east is down from more than 20.1% in 2012 to 11.9% at the end of 2014. There are 23,200 additional people in employment from the south-east region since the launch of the Government's action plan back in 2012. There was an 18% increase by 2014 in firms supported by the south-east local enterprise office. The Minister of State, Deputy Halligan, informs me that a comprehensive proposal will be put together for the south east. People from Tipperary were represented at a meeting held in Kilkenny recently where the presidents of WIT and Carlow IT and others came together to focus on what they can do collaboratively to continue to make the area more attractive as a location for investment. This involves local authorities, Enterprise Ireland, the IDA, other NGOs and organisations, chambers of commerce and so on.

Revenue from overseas visitors increased by 20% to more than €200 million between 2011 and 2013. In the hospitality sector, the south east is going to add immeasurably to Ireland's Ancient East in the time ahead. There is a lot of activity. The Action Plan for Jobs continues and is monitored by my Department. It is Government policy to spread the vast majority of new jobs outside the major cities. The broadband proposal, opportunities for power, communications and water are all things that are important in making a location attractive. As Deputy Martin said this morning, the importance of young graduates coming through from third level colleges is an added incentive and bonus there. Deputy McGrath can take it that the south east, no more than any of the other regions, is a focus and a particular priority for the Government and will continue to be so.

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My point was that IDA activity over three decades has not been up to par, so it needs to improve. Part of the reason for the continuing stagnation of the economy in the south east is down to the administrative burden being placed on SMEs and other business ventures that are having their entrepreneurial vision and passion restricted or crippled. In reply to a parliamentary question I recently submitted, I was told that the various Departments identified the cost of the administrative burden for businesses nationally at approximately €320 million annually. That is a frightening figure. I know that during the talks on the programme for Government, the Taoiseach mentioned a reform of the public services and all of the agencies. We need that figure to be driven down because people need support, not restraint. They have the initiative and the energy but they want to be allowed to do their job. Some €320 million is an astonishing figure that could be spent on, or could do, many other things.

The Taoiseach mentioned Ireland's Ancient East and all of those ideas. They are wonderful and there is wonderful buy-in from rural communities as well. However, this is about investment, attracting FDI, site visits and visits to the county by the IDA. All of Tipperary and I expect that the county will get a fair share of the cake; no more, no less.

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Enda Kenny The Taoiseach Fine Gael

That is partly the reason there is now a meeting of minds and experiences to put together a comprehensive overall plan for the south east to endorse and embellish the efforts that have been made there to date. When one looks at the entire sector, unemployment is down from 20% to 11.9%, although that is still too high. Every region has its attractions and its strengths. The comprehensive programme being referred to by the Minister of State, Deputy Halligan, is another opportunity to build on that.

In respect of the Brexit outcome, the Government has decided to increase staffing numbers over time in our overseas offices, particularly in regard to trade. It will be necessary to reach new markets and so on for goods and products that we produce. I met with the IDA and Enterprise Ireland quite recently, both of which are powerful agencies. World standards apply in both their cases. They have full Government support to continue working with companies here that are exporting and with FDI coming into Ireland. Yesterday, the Government approved sizeable grant assistance for an industry in the Deputy's own county of Tipperary.

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