ConnectIreland and IDA dispute
Catherine Murphy questions the dispute between ConnectIreland and IDA Ireland, the legal uncertainty, and what will happen when the current contract ends on Monday. The Taoiseach repeatedly refers to job creation, the ongoing legal issue, and the planned ministerial review, while Opposition members insist he is not answering whether a review is under way or what happens next.
Last month, during priority questions to the Minister for Jobs, Enterprise and Innovation, Deputy Mitchell O'Connor, I asked about the anomalies emerging between IDA Ireland and ConnectIreland. There have been a number of articles in the Sunday Business Post which have caused me to question what actually transpired between the two agencies and if this is likely to result in a cost to the State because of the disagreement. In her reply, the Minister told me she could not go into detail because there was an ongoing legal dispute between the parties.
Yesterday, the Joint Committee on Jobs, Enterprise and Innovation heard allegations that ConnectIreland was possibly stymied in creating jobs in what sounds essentially like a turf war. On the other hand, IDA Ireland has noted that ConnectIreland failed by a long shot to reach the target set for the number of jobs the scheme was meant to create. Whichever side is correct, the fact remains that there is a significant and fundamental difference between the job numbers claimed both by IDA Ireland and ConnectIreland.
Earlier today, RTE's "Morning Ireland" programme reported that the verification process used by IDA Ireland to ascertain whether a connector would be due a payment under the scheme had refused a significant number of connections, yet one third of these were overturned on review. This suggests a serious issue with the verification process used by IDA Ireland.
The core issue is that jobs were potentially lost to Ireland. If this is the case, the reasons for that must be made clear. An important element of this is the potential reputational damage caused. One can imagine it from the viewpoint of someone who wanted to invest, but there are two State agencies essentially almost in dispute with each other. We must look at the confusion that would create.
The issue is time-sensitive in that the contract expires this coming Sunday. Clearly, these issues must be satisfactorily addressed, and not just behind closed doors, before any new contract is entered into or the current one is cancelled. Why is there such a fundamental difference between IDA Ireland and ConnectIreland regarding job numbers? Who is nearer to the truth here? If it transpires that ConnectIreland is telling the truth, how much public money will IDA Ireland have to fork out in compensation? Is that figure likely to be many millions, as has been reported in the media, with sums of around €14 million circulating? Will IDA Ireland or the Department be called upon to pay out compensation if that is the case? Has any amount been factored into the budgets of IDA Ireland or the Department for this?
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I am quite sure the Deputy welcomes the improvement in the numbers of people working in the country.
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That is not what I asked about.
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Unemployment has fallen from 15.2% to 6.6% with over 2 million plus people now working in Ireland, spread throughout the regions in every sector.
I was recently accused in Cork of being responsible for clogging up the roads with people going to work which is, I suppose, a challenge of success. I was interested in this initially because this was borne out of an initiative that came from the 2011 Global Irish Economic Forum, with the aim of involving the global diaspora in job creation here when things were very bad. The intention was that if a person's son, cousin or daughter or whoever was working for a firm in Brazil, for example, and if that firm intended to invest in Europe, then that employee would suggest that if the firm was going to invest in Europe, it might consider Ireland. If sustainable jobs in Ireland resulted from this a finder's fee would be made available for the person who initiated that.
It was never intended that the numbers involved would be on the scale of IDA Ireland as it generally deals with foreign direct investment in this county. Many of these would be smaller job numbers in places where IDA Ireland would not normally be in a position to invite or attract jobs. There could be four, ten or 20 jobs, and the number might grow subsequently. That was the intention of the scheme. I remember, arising from the 2011 Global Irish Forum, meeting all of the players involved in Government Buildings and we set that up. It started off in a very successful way.
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The Taoiseach is not answering the questions.
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The Deputy has had her say. There are three issues here. One is the legal issue, which I cannot comment on. That is in respect of the financial situation. The second is the number of jobs that were, and are, created by the ambassadors and by the connectors of ConnectIreland. The third relates to the current position. This was a four-year scheme. It was extended, after contact was made with Government, for a further 12 months and that runs out on Monday. Irrespective of whether we wish it to continue after Monday, there would have to be another tender process. The Minister for Jobs, Enterprise and Innovation is carrying out a review of the issues that pertain to the Department, IDA Ireland and those numbers. I cannot comment on the legal dispute here.
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The terms of the review are not agreed.
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The challenge is that IDA Ireland is the statutory body, which does a superb job in attracting jobs into Ireland-----
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The review has not even started. It is closing down on Monday.
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-----but if somebody in another country wants to invest in Europe and an indication is given to them to consider Ireland, it is through IDA Ireland, or the agency dealing with investment into the country, that that contact is made. If it is only for five or ten jobs however, then they are more important in Kinvara or Ballyvary than they might be in central Dublin.
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Jobs are jobs however, and when we had none we were very lucky to get any kind of jobs in here. Deputy Howlin knows this because he was a member of the Government that approved it.
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I cannot comment on the court case but look forward to seeing the Minister's review. That is difficult given that there is litigation at the moment. The intention was to have smaller numbers dispersed throughout the country. That was the original intention, which worked very well initially.
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We were told yesterday that the terms had not been agreed yet.
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Given, as the Deputy has said, some of these matters are sub judice, we need to be careful.
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Whether a review is under way or not is certainly not sub judice.
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Deputy Quinlivan, this is Leaders' Questions. The Deputy is not his party's leader. Please hold on.
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We were told the terms were not ready.
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The Taoiseach's reply was a disgrace.
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It is very disingenuous to question whether I or others support jobs. Of course we support investment in jobs in this country. I know what the "succeed in Ireland" programme is about. I think most people in this House know what it is about. I asked the Taoiseach specific questions and I believe I am entitled to a response to those. The contract ends on Monday. There are people employed by ConnectIreland. What are they going to do on Monday? Is there an issue in respect of their jobs? When did the issues in respect of the number of jobs that do not seem to reconcile between ConnectIreland and IDA Ireland emerge?
The contract, as the Taoiseach has said, ended last year and it was continued. We were told it was continued so that there could be an orderly wind-down. Were there similar disagreements or concerns last year? Are there additional liabilities or potential liabilities as a consequence of extending that time? The Department has been lobbied by people like, for example, John Moran, on ConnectIreland. It would be useful to know who is lobbying. Is there a review actually taking place? It is time-sensitive in that this is closing down on Monday. The Taoiseach needs to address that issue.
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Of course I know the Deputy supports jobs. I just thought it conveniently absent from her contribution that she never mentioned the fact that we have more than 2 million people working in the country now.
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The Deputy is asking about ConnectIreland.
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I will allow her that. The board of IDA Ireland considered this ConnectIreland scheme in November 2016. I am a big supporter of ConnectIreland. One of the reasons it was extended for a further 12 months was to allow for this very matter to be dealt with. I am disappointed that it has not been dealt with. I want to assure Deputy Catherine Murphy that if the contract were to be extended, we would be legally bound to go to public procurement. It might be ConnectIreland which would be awarded an extension of that contract, or it might not be.
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The Department can take it up without a contract. The Taoiseach's officials told us yesterday that can happen.
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I am not suggesting that the Minister and the Department in their review of this will agree that there should not be some continuation of a scheme like ConnectIreland. It has brought a verifiable number of jobs to dispersed regions of the country, jobs that are very valuable in those regions. I was always a strong supporter of this, with the ambassadors, but it seems to have run into difficulties between both the ConnectIreland personnel and IDA Ireland. I cannot comment if that was in regard to the litigation there but I can say that if the Minister was to extend this contract, she or IDA Ireland would have to go for public procurement. The board considered that last November and it made its decision on that.
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The Department can take it up without going out to contract.
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I think it is in order, and right and proper, to consider all of the issues to be taken into account by the Minister's review.
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The jobs are verifiable one way or the other. I am very glad that people are working.
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The terms of reference have not even been agreed.
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They add to the overall number, whether it be 500 or 1,000, that is claimed by ConnectIreland versus IDA Ireland.
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Is the review under way or not?
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The Taoiseach did not answer one of the questions and it is closing down on Monday.
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It is closing on Monday. Is the review under way?
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Can we get answers?