Minister for Jobs, Enterprise and Innovation, Richard Bruton, has said he will review the IDA’s presence in Waterford after his Fine Gael colleague John Deasy called for a change of strategy and the re-dedication of senior staff to the southeast.
Both attended last Tuesday’s (June 10) Oireachtas jobs committee meeting, at which the Minister took general questions surrounding the proposed redundancies and cost-cutting at Bausch + Lomb.
Raising the issue of inward investment, Deputy Deasy said the situation “changed negatively” for Waterford in 1996 — at a time when Mr Bruton was enterprise minister. That year an internal IDA restructuring saw the agency’s southeast and southwest divisions amalgamated. A new southern regional director was based in Cork — the existing SW headquarters.
“At the time plenty of people, including people within Government, sounded a warning that that was going to have a detrimental effect on the city and county of Waterford, and the southeast,” Mr Deasy said.
He reminded Mr Bruton, “You were the minister at the time those warnings were given. Since then, as it’s turned out, those warnings have proven to be absolutely correct”, with over 80% of all Foreign Direct Investment “going to three particular locations — Cork, Dublin and Galway.”
Referring to the Minister’s approval in February for the appointment of 35 additional IDA staff, Mr Deasy added: “I am of the opinion at this point that there needs to be a restructuring with regard to the seniority of IDA staff when it comes to the southeast, and the situation that was in existence in 1996 when you were minister needs to be reinstated.”
Mr Bruton said: “I take the point there is a lot of criticism but on the issue of where do you put new staff ... we’re seeking to build new opportunities in new geographies and all of those 35 people are being put into overseas locations to try to win new investment.”
“But,” he told Mr Deasy, “obviously the IDA is undergoing a review of its overall strategy and its regional strategy in conjunction with my own Department, and we will look at issues that are raised here in terms of staffing at that level.”
The Minister insisted: “I’m confident the IDA, under my direction, is giving this the necessary attention it deserves ... I believe in time that those site visits and that enhanced effort will deliver results.
“This year again, through the IDA, I funded an advanced facility in Waterford; precisely because I feel we need something different in the regions to respond to the challenges that the IDA have had in getting the necessary regional spread.”
He added, “we’ll be taking a tough look at our regions, how we’re doing things, and how we can do things better. I will be reviewing, in the context of the [IDA] regional strategy, the appropriate realignment of resources to the challenges we meet.”