Comment: Lir Chocolates has chosen Navan for its base, a move that makes sense, writes Frank Fitzmaurice.

The fact that Lir Chocolates has chosen to concentrate on Navan, Co Meath, as the base for its operations comes as no surprise to those familiar with the attractions offered by so called "regional" locations. What is surprising is that more city-based companies are only now realising that such a move makes sense.

What makes a move to counties outside Dublin so attractive that long-established companies are prepared to pack their bags and venture outside the M50?

Room for expansion has to be top of the list. Industrial estates in the city, which were great locations 20 years ago, are now surrounded by residential development and hemmed in by traffic congestion. Successful businesses simply cannot allow the lack of physical space to limit their growth opportunities.

Operating costs outside Dublin can be significantly lower than in the city. Taking Meath as an example, lower costs of living can save up to 10 per cent on wages and salaries. This has knock-on effects on employer's liability insurance premiums.

General insurance premiums are also lower outside the capital as rebuilding costs are less than in the city.

Savings can also be made on business rates which are lower on an absolute basis and are levied on property valuations that are themselves below comparable premises in Dublin. Rents, too, are more attractive to company executives.

Such savings can quickly repay any cost incurred in moving to counties surrounding Dublin, a trend accelerated by the fact that many business removal costs are allowable against corporation tax.

Moving to a greenfield site also offers companies possibilities in re-designing their processes to achieve greater operational efficiencies.

Releasing valuable equity can be another powerful driver for moving. The value of urban lands is considerably higher than in surrounding counties.

An added bonus for everyone connected with a relocated business is the end of the misery of modern commuting in a grid-locked city. Even people who may not live locally to the new location will generally find themselves travelling against the rush-hour traffic, reducing travelling times.

Apart from the personal and social advantages to staff who have to spend far less time on the road, reduced commuting stress opens the possibility of productivity gains for a business.

Locating away from grid-locked city streets also facilitates fast access to market - an essential prerequisite for any modern business.

The success of business parks in counties surrounding Dublin in attracting a growing number of small and medium businesses is proof that access to airports, ports and the national motorway network is, if anything, easier and more flexible outside the capital than in it.

Old perceptions, however, can be hard to dispel. Counties like Meath do not spring instantly to mind as a business location simply because they have not been promoted in this way up to now.

This masks a reality that the county is home to some of the leading national and international businesses. Companies such as NEC Semiconductors, Smurfit News Press, Hytherm, International Paper, DeRoyal Healthcare, Europ Assistance, Welch Allyn, Alltech Ireland, Largo Foods and a host of others are operating successfully from bases around the county. Manufacturing, Customer Service, Administration and Distribution/Logistics all represented in Meath's growing industrial base.

The availability of high quality recruits in commuter counties is becoming more widely appreciated as well. Meath's rapid population growth is likely to reach 180,000 by 2012.

The profile of this population is predominantly young, with many families moving out from Dublin to avail of Meath's quality of living attractions. This, of course, is creating a vast labour pool within the county, with a strong wish among the county's 20,000 plus commuters to find work locally in the county.

Meath County Council is actively promoting the county as a business location. Creating more local employment is a priority for the council and has seen it produce a new investment brochure (Hidden Resources) and a dedicated website (www.invest.meath.ie) to encourage businesses to find out what is on offer in the county.

Frank Fitzmaurice is economic development officer for Meath County Council