The decision by Intel to invest $2 billion (£1.6 billion) in a major expansion of its facility at Leixlip, Co Kildare, is of strategic importance to the economy. The new facility will produce the newest version of computer semiconductors, underpinning Intel's commitment to Ireland and putting its facility here at the leading edge of this technology. In turn, this copperfastens Ireland's position as one of Europe's new centres for information technology production.
As the Tanaiste, Ms Harney, said at yesterday's announcement, Intel's arrival here in 1989 created a sea change in the perception of the State as a technology centre in Europe and "generated a very significant and substantial chain effect in the industrial development process." For these positive benefits to continue to accrue, Intel's operation here must continue to manufacture the most up-to-date products. The new investment ensures this, making it the most advanced semiconductor manufacturing plant in Europe.
The decision by Intel to invest substantially further here reflects great credit on its management and employees. Other Intel sites would have been competing for the investment. The parent company's confidence that Intel Ireland could get the new plant up and running in little over one year was a key factor in Leixlip being chosen for what will be the biggest single industrial investment project in the State's history.
The company's total investment here since 1989 will reach an extraordinary $4.5 billion (£3.7 billion). The latest project will lead to 1,000 additional jobs at the site by 2004, bringing the total number of people working at the Leixlip plant to 5,400.
Because of the changing economic climate, the creation of 1,000 new jobs west of Dublin is not worth as much to the State as it would have been in the days of high unemployment. Such a big expansion will add to congestion, further inflate house prices in the area and exacerbate the skills shortage. The state of the art technology involved in the new plant and its strategic importance are the reasons that the latest announcement is an extremely welcome one.
When Intel first came here in 1989 we had one of the highest unemployment rates in the EU and thus a ready supply of available labour. Now different considerations apply. Intel, along with many other big employers, now spends considerable sums attracting, training and trying to hold on to employees.
Fortunately, this did not deter the company from considering the Republic for its latest investment. While concerned about the skills shortage - particularly its ability to get construction workers to build the plant - it apparently believes that the difficulty of getting skilled staff is no worse here than at its other international locations. Ms Harney again spoke at the launch about her plans to allow more immigration into the State to fill jobs in industry.
Because of the problems of congestion and skills shortage, IDA Ireland is refocusing its marketing campaign to attract projects to the less prosperous Midlands, Border and West regions. Clearly, it is facing difficulty in attracting major investments to these regions, partly due to the lack of adequate infrastructure. The National Development Plan aims to address some of these problems, but building up the industrial base in these regions will inevitably be a slow process.
In future, industrial development will also require a new political focus. The Tanaiste was quite rightly pleased to attend yesterday's announcement. But no State support is now justified for job creation projects in the greater Dublin region which do not have a strategic importance. Instead, all efforts must be devoted to the other regions. If IDA Ireland is doing its job, the announcement of 1,000 new jobs in Leixlip may be the last major project that a Government minister announces in the Dublin and Mid-East region for some time, save for another investment of matching strategic importance to our industrial infrastructure.