News that up to 1,300 jobs will be created in Longford over the next five years, is very welcome. Such has been the scale of large jobs announcements from the IDA in recent years, that many pass almost unnoticed. And while the volume of jobs promised yesterday would be good news in any area, it is particularly so in the Midlands region which has yet to share the full benefits of economic prosperity. In just a few years, the Irish economy has been transformed from one of Europe's laggards to its leading performer, with living standards now fast approaching the EU average. But for many in the Objective One region this has not been the reality. Cardinal Health will now be the key focus of the Midlands economic development plan and the $100 million investment is the most significant announced for the region. The Tanaiste, Ms Harney, said yesterday that Cardinal Health's decision to locate in Longford was influenced greatly by its need to attract the numbers of skilled staff it requires. The company is likely to have links with Athlone and Sligo regional colleges as well as associations with the universities.
Even more important than the availability of labour, according to Cardinal's chairman, is the low rate of corporation tax at 10 per cent. This underlines the importance of the concessions won by the Taoiseach and his team at the EU summit in Nice on Sunday evening. Over the coming years, the new campus will transform the Midlands economically. Longford has suffered from the demise of traditional industries in recent years. In 1998, Atlantic Mills closed down with the loss of 180 jobs and was closely followed by Barber Threads. IEC Electronic, which only arrived in 1998, had closed by 1999. The industrial base is now small and the IDA has been seeking a major industry for around three years.
Against this background - and rising concerns about the outlook for the US economy generally - it will be hoped that Cardinal Health is in for the long haul. When Seagate pulled out of Clonmel in 1997, it had serious repercussions for the local economy. The IDA is optimistic, pointing out that the company has bought the site on which it will build its new plant and that the health care industry is more stable than many others.
The fact that there will be a wide range of different jobs on offer for people with both second and third-level education from information technology and pharmaceutical manufacturing to technical operations and supervisory functions, is also welcome.
Yesterday's announcement also underlines the impact of a strategic approach to industrial development. Ireland is now a relatively high labour-cost location, so we can expect a continued rationalisation of lower to middle-skilled manufacturing plants based here. This is why initiatives in areas such as e-commerce and health care are so important to our longterm growth outlook. What is required is imagination and a fully considered policy approach. The challenge is to build on this success and secure the foundations for sustained economic growth, equally benefiting all regions of the State.