Report of Interdepartmental Group on Donegal launched by Minister Micheal Martin, TD.

27 July 2006

The Minister for Enterprise Trade and Employment, Micheál Martin, TD, today (Thursday 27^th July 2006) published the Report of the Interdepartmental Group on Donegal. The Minister established this Group at the request of the Government last September following a number of major job losses in the county. Minister Martin asked the Interdepartmental Group to focus on the progress being made on infrastructural requirements to make Donegal a more attractive location for enterprise creation, particularly as it makes the transition from traditional to more modern and higher value-added industries.

Commenting on the publication of the Group’s Report, Minister Martin said, “I firmly believe that bringing this group together succeeded, not only in its primary objective, to identify barriers and provide solutions to the development of enterprise in Donegal but it also jump started a number of important initiatives that may not otherwise have got underway in the normal course”.

“Co Donegal has no shortage of advantages and opportunities in so far as the promise of a brighter future for its inhabitants is concerned. There is a dynamic combination of State Development Agencies active in Co Donegal who are committed to enhancing the attractiveness of the county for business. These agencies have demonstrated the ability to provide a clear vision and focus for the future economic development of the county. Many of its challenges are capable of being transformed into opportunities provided that the appropriate remedial measures can be put in place.

In considering the overall objective to improve the environment for job creation, the Inter Departmental Group has identified some key region specific challenges facing the county.

Donegal has a substantial labour force available to prospective employers wishing to set up or expand their operations in the county. However, there is a need to convince the young population and the unemployed of the county of the importance of education and training. They must take maximum advantage of the many educational and up-skilling opportunities available to them through the Education and FAS systems as well as the support mechanisms provided through the Department of Social and Family Affairs. Significant investment has been, and continues to be, made in educational, training and retraining institutions and facilities, up to and including third level, available within the county and in adjoining counties.

Since I asked this Group to come together, significant progress has been made across a range of areas including:

• the roll-out of broadband, including the provision of €7.56m for cross border telecommunications improvements. Several projects are currently being supported in the Donegal/Derry area.
• the refurbishment of the Medium Voltage electricity network, comprising a total of 4,400 km, is expected to be completed later this year. The development of High Voltage networks, which is one of the most critical issues for Donegal, is progressing well and the ESB is working closely with the local authorities to provide reinforcement of the main networks.

• Major investment has been continuing in the road network in Donegal with the completion of the N56 Mountcharles bypass, the N15 Donegal bypass, the N15 Clar/Barnesmore, the N12 Bridgend/Northern Ireland Border and the construction of the N15 Bundoran/Ballyshannon Bypass, which was opened on 27 April this year. The completion of major national routes such as the M1, N2 and N3 will ensure a much-improved level of access and service for Donegal-Dublin traffic.

• The current Water Services Investment Programme 2005-2007 envisages an investment of over €335m for water and sewage schemes in Donegal, including the provision of €41m for the Lough Mourne/Letterkenny water supply service.
• Significant progress has been made securing new jobs, investments from PacifiCare, Pramerica and Seatem among others, has led to approximately 1,200 new jobs in the County over last 5 years. In addition, new investments, which have been secured more recently include SITA INC, Zeus Industrial Products Inc. and Abbott Diabetes, Assetco, and Powerbar.

Commenting further Minister Martin said, “In parallel to this, I had asked the State Development Agencies under the auspices of my Department to redouble their efforts in supporting job creation in Donegal. I am particularly pleased to see that there have been a number of major job announcements recently such as that will create at a minimum of 500 jobs. This is a clear indication that Donegal can and is attracting new enterprises. I have also been working closely with my colleagues in Government on furthering the infrastructural development agenda. In that context the IDG Report reflects the enormous strides that have been made on infrastructure either through project completions or major commitments to do so.

The Report places a renewed emphasis on cross border co-operation in the context of the British and Irish Inter Governmental Council with the development of the North-West Gateway Initiative announced by the Minister for Foreign Affairs, Dermot Ahern and Secretary of State Hain on 2^nd May in Dublin. This initiative focuses on various elements of Government Policy and Planning on a cross border basis, which is certain to be of benefit to Donegal in releasing the full potential of the border regions. There is now a unique opportunity available from the progress in the overall Peace Process and, in particular, the agreement at senior political level to work together to address the problems of the region on a North/South basis. While acknowledging that the cross-border development opportunities are being addressed in the context of wider cross-border collaboration efforts, the Group suggests that priority should be given to:-

• Key Road Projects
• Development and Access to Derry City Airport
• Broadband links between Donegal and Derry
• Improved Energy Infrastructure
• Joint Tourism Initiatives
• Joint EU Funding possibilities and
• Joint Spatial Planning

Concluding Minister Martin said, “In many ways the report marks the work in progress to making Co Donegal an attractive place to bring business and to making the transition from the old world to the information age economy”.