
must be redrawn
John Deasy
The regional aid or investment aid guidelines for foreign companies investing in areas of high unemployment need to amended immediately by the Department of Enterprise, Trade and Innovation.
The amounts involved should be increased and weighted more towards areas suffering the highest levels of unemployment in order to incentivise foreign investment in regions outside of Dublin, Cork and Galway.
IDA chief executive Barry O’Leary said this week that even with regional incentives, it was proving increasingly difficult to convince companies to invest outside Dublin and Cork.
Ever since Mr. O’Leary took over the IDA in 2008 there has been an increased concentration of jobs created by foreign firms in Dublin, Cork and Galway. I do not believe the IDA has any serious policy for attracting investment in the regions outside of these urban areas and the problem is getting worse not better.
Research carried out this year by professors at NUI Maynooth found that as much as 82% of jobs created here by overseas firms in the past six years have been centred around Dublin, Cork and Galway. They found that almost 80% of jobs created by new foreign firms in the last decade were located in Dublin, Cork and Galway.
These three cities also accounted for 62% of job gains in existing foreign firms and less than half of the job losses in that period. The process of concentration in these three cities has accelerated since the onset of the economic crisis in 2007.
