AN INDUSTRIAL development approach that promises “something for everyone in the audience” is not feasible in present economic circumstances. Because of that, there is an element of game-playing in complaints by Fianna Fáil’s Michael McGrath that Dublin has benefited unduly from foreign direct investment, while 12 counties had failed to record visits by potential foreign investors.
As Minister for Jobs Richard Bruton noted, Ireland has only one metro region and that is the greater Dublin area. Outside of that, IDA Ireland typically shows foreign companies a number of suitable “gateway” sites, but the final decision on where to locate is up to them.
Such flexibility may not appeal to areas particularly affected by unemployment. But IDA Ireland’s success in attracting foreign direct investment has been impressive. A trade report found inward investment grew 22 per cent last year, compared to an average decline of 3 per cent within the EU. On the basis of that investment, trade is expected to grow by 4.5 per cent over the next five years, accelerating to 7.2 per cent thereafter.
Global corporations have specific demands, such as access to qualified talent and a significant population pool, along with high-quality physical and digital infrastructures. That should not mean peripheral, less developed regions are neglected. A national spatial strategy introduced in 2002 was intended to promote more balanced regional development, with the identification and promotion of industrial “gateway city locations” and urban “hubs”. Unfortunately, it has been largely ignored. After years of lip service, the last government offered to consider the establishment of a revised gateway investment fund just before it left office.
This Government has been equally vague. Minister for the Environment Phil Hogan suggested a review of the situation by the eight regional authorities “in light of evolving economic circumstances”.
Industrial and regional development should not depend solely on foreign direct investment. Preparations should be made for a revival of the domestic economy and the emergence of strong, innovative enterprises within manufacturing, technology and the agricultural sectors. A better social and economic balance at regional level will require State and corporate investment in transport, roads, education, broadband and energy systems. There is a need to co-ordinate scarce resources and provide more effective local governance and leadership. Long-term planning should start now.