IDA to be prevented from creating jobs

[Schuhart]

This is not highlighted in the official press release. You have to go to regional papers to find out what’s happening. Donegal to be targeted for FDI. The salient point

… half of all new projects backed by the IDA will be now located outside Dublin and Cork, with priority given to rural areas with high unemployment. Donegal, Sligo, Limerick and Waterford will be the focus of targeted FDI and associated job creation.

In other words, Dublin and Cork will be hamstrung, and forced to grow employment opportunities as the same slow rate as Donegal despite having far greater potential.

In other words, official policy is that its better for people to emigrate than to find employment in Dublin or Cork.

Firms denied support for setting up in Dublin and Cork, who baulk at being forced to locate in Donegal, won’t have far to look for a jurisdiction willing to facilitate them. Northern Ireland is not following the same policy of economic suicide.

Minister of Enterprise, Trade and Investment Arlene Foster … wrote that "in relation to the location of investment, the view of the Panel was that government policy should not seek to unduly influence the location of firms within Northern Ireland."

She continued: "Indeed, the report highlights that FDI will naturally gravitate towards larger urban areas where they can benefit from proximity to customers, suppliers and other institutions such as Government."

It is simply ludicrous that, in the current climate, we are placing this artificial limit on the ability of our main cities to attract FDI.

[johnfás]

Yes it does seem like a rather silly policy in practice. In theory it is all well and good to encourage companies to invest in outerlying areas of the economy if they are prepared to do so. However, when we are in desperate need of investment we should be seeking to facilitate potential investors, rather than frustrate. The facilitation of investors is what we built our FDI model on - we have seemingly since abandoned this model. There are also potential difficulties in skillsets in some of the areas outside the main urban centres. If half the IDA supported investments are to be in areas where there are no universities - and thus fewer graduates - it seems unlikely that we will be able to attract the calibre of job which the Government says we should be.

There is a balance which can be struck though in respect of incentivising certain locations for suitable industries which does not hamstring potential investors. However, it is a delicate tightrope and does anyone really have confidence in the Government to walk it?

[Sync]

There's a degree of logic if all things are equal to pushing Limerick/Clare as the infrastructure is there for a multinational to move in an avail of the decent roads/airport/skilled IT and tech staff/empty quality office/manufacturing buildings. But the idea that you can usher FDI towards Sligo and Donegal in particular over virtually any other area of the country is silly.

[juanpablo]

Good find Schuhart but what a sham of a policy. Trying to pressurise prospective industries to move into the backwoods areas of our country is FF gombeen opportunism at its absolute worst.

The usual local big mouths, unable to look beyond their county boundary, will be out in force saying this is a good idea but when will people learn that economies of scale are what matters and we should be trying to promote growth in our main areas of industry and employment and not trying to put a factory on every crossroads.

[odie1kanobe]

IDA don't create jobs what they do is attract industries in to create jobs............very big difference.

IF companies don't wish to be rurally located they will go elsewhere.

However given the infrastructure development there is little reason why companies can't be located at or close to a Motorway an hour from Dublin.

[juanpablo]

There's a degree of logic if all things are equal to pushing Limerick/Clare as the infrastructure is there for a multinational to move in an avail of the decent roads/airport/skilled IT and tech staff/empty quality office/manufacturing buildings. But the idea that you can usher FDI towards Sligo and Donegal in particular over virtually any other area of the country is silly.

limerick/Shannon has surely had enough state support as is over the years and still Limerick is an unemployment blackspot, if there ever is anothe Dell style employer they would be better off in Dublin or Cork simply because if/when they pull out the effects won't nearly be as catastrophic.

The IDA should be trying to attract industries to Ireland, not to the backwoods in the southeast or northwest, let the companies decide where they want to locate here when they decide the country is a good place to do business in.

[goosebump]

Bloody nonsence.

Why don't we just pass a law making it illegal to make some redundant while we're at it?

Sure, wouldn't that solve the unemployment crisis over night?

This has Mary Coughlan's finger prints all over it.

[Schuhart]

there is little reason why companies can't be located at or close to a Motorway an hour from Dublin.

And Donegal is close to a Motorway an hour from Dublin?

Can I suggest you need to confront what this policy is actually saying?

[johnfás]

IDA don't create jobs what they do is attract industries in to create jobs............very big difference.

IF companies don't wish to be rurally located they will go elsewhere.

However given the infrastructure development there is little reason why companies can't be located at or close to a Motorway an hour from Dublin.

Indeed, but our policy makers should be ideally seeking to encourage such industries to decide that "elsewhere" to be somewhere else within our economy. That's really the point.

[Xavier_Pocock]

Bloody nonsence.

Why don't we just pass a law making it illegal to make some redundant while we're at it?

Sure, wouldn't that solve the unemployment crisis over night?

This has Mary Coughlan's finger prints all over it.

+1

This is parish pump stuff, but is anyone really surprised by this?