Leitrim Co. Development Board Conference “Investment through people, people through investment”

Carrick-on-Shannon, 16^th June 2005

Good afternoon ladies and gentlemen.

It gives me great pleasure to join you here today at this conference “Investment through people, people through investment”.

The theme of “investment and people, or people and investment” is core to the development of the Irish economy. Strong employment growth in recent years meant that Ireland’s unemployment rate was down to just 4.5 per cent in 2004. At the same time Ireland scores very well under the UN’s Human Development Index reflecting strong life expectancy and income per capita.

Ireland’s economic development in recent years has been built on key competitive strengths such as: one of the lowest taxation regimes in Europe, access to the EU internal market, a well-educated and skilled workforce, and pro-business Government policies. The Government is committed to the further support and development of these strengths, believing all the while in the principle that investment in business, infrastructure and education is investment in our people, who in turn are our investment in Ireland’s future economy and quality of life.

It has been said that “no man is an island”. We are all inter-connected, as individuals, as a nation, and further, as a planet. In the 21^st century the development and inter-connection of a global economy means that what affects one affects all, to a greater or lesser degree. There is a deep consciousness of this amongst the people and business community here in Leitrim – perhaps even because of the very fact that the population of the county is so small. It is no surprise, therefore, that the Government has firm policies in place to encourage and facilitate the sustainable development of rural areas. It makes for perfect sense both as a social objective and as an economic objective. The delivery of physical, social and economic infrastructure is key to the realisation of these objectives. The county of Leitrim is very much centre-stage in this regard and that is why the Government has committed generous resourcing under the National Development Plan to redress the heretofore under-provision of economic and technological infrastructure in the county. Already some very noteworthy infrastructural advances have been made in the county: major improvements have been made to the road network and further upgrading projects are in the pipeline, while, on the telecoms front, carrier-neutral services can now be availed of in the Carrick-on-Shannon and Manorhamilton areas.

Other positive developments include the highlighting of Carrick-on-Shannon in the National Spatial Strategy as an important local driver of economic growth in partnership with the local gateways and hubs. In this regard the Government’s decentralisation programme for the Civil Service has also taken account of the needs and potential of Leitrim. Carrick-on-Shannon is set to receive some 250 Civil Service staff from the Department of Social and Family Affairs and the Central Fisheries Board. These, and their families, will inject added momentum into the local economy of Leitrim and expand investment and employment in the general services sector.

I am pleased to see the growth of both indigenous and overseas multinationals in Leitrim. I note, indeed, that we are joined this afternoon by the Chief Executive of MBNA Ireland, the largest employer in the county with over 1,100 staff. An investment of the calibre and magnitude of this MBNA facility is a vote of confidence in the human and physical infrastructure of Leitrim. Not only does it generate other spin-off interlinkages with the wider business community in the County but it also serves as a powerful advertisement for the ‘qualifications’ of Leitrim as an attractive location for large-scale investment.

The IDA is very much alert to the potential of Leitrim to host good quality industrial and services investment projects. Their promotion and development of the County continues with 6 IDA Ireland-supported companies in Leitrim employing approximately 1,375 people, a figure which has more than quadrupled the 2000 level of IDA-sponsored employment in the County. Over the past 5 years IDA Ireland has developed a focused approach to the development of the North West region – a population of over 440,000 people - throughout Leitrim, Sligo and Donegal. Their intent is to ensure the area achieves quality inward investment and builds on the existing company base. Recognising the importance of both the traditional manufacturing base in the area and the emerging financial and international services investment opportunities, the IDA is actively seeking new investment in these sectors for the region. It is committed to marketing and promoting Leitrim as a location for FDI investment in the sectors targeted for the North West including financial services, engineering, pharmaceuticals and medical technologies. Of course, investment developments taking place in neighbouring counties are also creating employment outlets for the people of Leitrim, as for example, in the case of the recruitment build-up in the Toucan project in Sligo and in Abbot Laboratories in both Sligo and Longford.

Since 2002, Enterprise Ireland has approved funding of over €2.5m to companies in Leitrim. In addition they have approved over €1.2m in support of 9 Community Enterprise Centres throughout the county – for example the new Food Hub in Drumshanbo, due for completion in July 2005 and designed to become a major centre for the development of new food companies and furthering the aims of existing firms wishing to grow.

On a micro-enterprise scale, Leitrim County Enterprise Board continues to support business start-ups of new entrepreneurs employing under 10 people. In 2004, €183,000 was paid in support of 22 projects in the County, with training provided to 119 participants.

I would encourage all would-be micro-business promoters to liaise with the County Enterprise Board and to draw down the supports which best fit their particular enterprises, whether that be by way of business advice, mentoring or training services or cash grants towards capital or employment costs. The County Enterprise Board through its engagement with the other State agencies located here, is an active player in a broad-based co-operative effort to maximise the economic potential of Leitrim. Today’s conference has been organised under the auspices of the County Development Board and the County Council, and I would like to thank them both for enabling this forum for discussion to take place.

As I have already stressed, development of our people is an important factor to our future economy. Bringing people together in the wider context of serving and advancing the economy of the island of Ireland as a whole is very much part and parcel of the Government’s vision for economic development on the island. Fulsome co-operation between the two administrations on this island is the means by which new opportunities for business development can be identified and exploited. I am very pleased, therefore, to see the various State Agencies engaging constructively in furthering cross-border linkages and co-operation. I particularly welcome the development of the relationships between Leitrim County Development Board and Fermanagh College in running the Masters Degree in Business Administration. Fostering this kind of education of our future business professionals contributes to islandwide entrepreneurship and is to be applauded.

When it comes to planning the broader economic strategy, it is important for us all to bear in mind the absolute imperative of retaining and improving our international competitiveness. At the present time it is vital for us to develop measures to help protect against appreciation of other currencies against the Euro, for instance by working with the social partners on wage setting, government spending and taxation to make Ireland as responsive as possible to changing competitiveness developments. With demographic changes and the low rate of unemployment there is little room for employment growth to continue as a driver for economic growth. Improvements in productivity, innovation in product and process design, efficiency in our public services, public sector reform, infrastructure development, education, entrepreneurship and enterprise development – all of these are critical to the mix of ingredients that are needed to keep us competitive on the global stage.

At EU level the Member States have committed themselves to three core principles:

• Making Europe a more attractive place to invest and work,
• knowledge and innovation for growth,
• creating more and better jobs

as a means of driving the EU to the position of global leader in the competitiveness stakes. As a committed member of the EU, we in Ireland are doing our part to forward this agenda. Our intention is to continue with prudent fiscal policies, a pro-enterprise tax regime, responsiveness to the needs of enterprise and a positive approach to the EU.

Leitrim County Council website describes the county as “enjoying the best of both worlds …21^st century …technology …and the gentle hum of the rural world”. “Investment through people, people through investment” is a similar application of the best of both worlds principle. By recognising the worth of our existing people and businesses and investing in their future we can develop our people and our economy in a balanced way to the benefit of all.

Once again I would like to thank you for inviting me here today. Your conference is a timely one, reflecting the needs of the area. I recognise the thoughtful planning which has gone into its arrangement. Your line-up of speakers is impressive and does justice to the importance of the development of this county. I wish you continued success.

Ends/ETE 1378