The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, has clashed with the South East Regional Authority over industrial development prospects for the south-east.
A letter to the authority from the Tanaiste, which was circulated at its meeting last Monday, rejected its case that the region was faring badly in employment and investment terms and required a greater IDA commitment to the area.
The regional authority claimed the south-east had failed to reach the economic growth levels of neighbouring regions, pointing out that it had a higher than average level of unemployment and lacked what it claimed was a satisfactory share of inward investment, particularly in the high-technology sector.
Members of the authority approved a motion calling for the appointment or placement of an IDA director in the south-east region and for "greater levels of commitment on the part of the IDA towards the achievement of a greater level of inward investment in the south-east". The motion was tabled in the name of Waterford Corporation delegate Cllr Oliver Cleary.
Mr Cleary told the assembly that since the Industrial Development Authority had been restructured some years ago he felt the main regional office in Waterford had lost out to the Cork office, which he said was now the regional headquarters.
However, the Tanaiste's office replied that she would not be taking the actions recommended by the regional authority. While her reply assured members of the authority that she was aware of the situation in the south-east, she indicated that in recent years things had been improving.
"While it is acknowledged that the socio-economic performance of the south-east region has not been on a par with other regions in the southern and eastern region, there are a number of highly impressive trends," the reply stated.
Overall employment was up by "an unprecedented" 30,500, representing 21.85 per cent, in the period 1997 to 1999, bringing overall employment in the region to 170,100. At the same time the unemployment rate has declined from 11.3 percent in 1997 to 8 per cent in 1999. The latest figures for June 2000 were, at 5.8 per cent, showing a continued downward trend. The figures now represent the lowest rate of unemployment in the region for 30 years, according to Ms Harney.
With regard to oversees investment supported by the IDA, it was claimed that a significant contribution to the "positive trends" in the region was the result of the work of the IDA. A total of 27 projects with a total of 4,712 jobs were announced in the last three years.
The job figures did not include those jobs supported by Enterprise Ireland, the six enterprise boards in the region, the various Leader, area partnerships and FAS community programmes.
The letter went on to say that the Tanaiste "wishes to confirm that IDA Ireland is actively focused on delivering the new, quality jobs to the regions". The agency's regional structure had been significantly strengthened with the appointment of an executive director with national responsibility for regional development and the appointment of divisional managers with responsibility for specific regions alongside their existing sectoral responsibilities.
"In addition, IDA Ireland had an area director with responsibility for the south-east and the area's regional manager was located in the agency's Waterford office.
The Tanaiste went on to outline a number of priorities for the region, quoting from the IDA Ireland strategy, which she felt would continue to bring increasing prosperity to the region.
These included:
The provision of high quality business and technology parks with quality office and industrial buildings in the larger towns in the region, typically the county towns and, to a lesser extent, the smaller towns, by working closely with the local authorities and the private sector. The Tanaiste said that significant progress has already been achieved in Wexford, Waterford, Kilkenny and Carlow, in this regard.
A marketing formula for new greenfield projects in the southeast was moving ahead, focused on the sectors which had given high growth in recent years. These included attracting investment in the information technology sectors, communications, pharmaceuticals and internationally traded services.
Encouraging the provision of major infrastructural developments under the National Development Plan 2000-2006, "which is an essential part of achieving a more balanced spread of inward investment and developing the existing industrial base in the region".
The director of the South East Regional Authority, Mr Tom Byrne, said there was some disappointment that the area would not be prioritised, although he "noted" the Tanaiste's comments.