The news that the US company Boston Scientific is to undertake a major expansion in Galway is a major boost for the region. IDA Ireland can be proud of its achievement in landing yet another major investment project for Ireland, the latest in a line of such announcements which should contribute significantly to employment growth over the next few years. All the signs are that further significant announcements can be expected later in the year.
The Boston Scientific announcement, to be formally confirmed at a function in Galway today, is particularly welcome from a number of viewpoints. It promises 1,000 job's, many of them for graduates. It will involve a significant investment of almost £40 million, which in itself will bring many benefits to the region. And it is building on the existing success of Boston Scientific in its Galway base, where it manufactures high technology Medical products.
The location of the latest big investment is particularly welcome. Almost all the major jobs announcements over the past couple of years have been for the Dublin area, culminating in the plans revealed late last year for IBM Ireland to create almost 3,000 jobs in Mulhuddart, west Dublin. Dublin has proved an attraction for the big investment projects because of the developed infrastructure and the ready supply of young qualified employees.
This has led to complaints from other parts of the State that they were losing out however it is important to realise that it is companies themselves which choose investment locations and that IDA Ireland and the Government only have limited influence. Their main priority must be to win the projects for Ireland against tough international competition.
In this light, the decision by Boston Scientific to expand its base in Galway is particularly welcome. It will be a fill up for the region which has already recovered well from the closure of Digital Equipment's manufacturing operation there Digital itself has since developed other parts of its business in Galway and the area has a strong base of multinational and indigenous industry. And as the Minister for Enterprise and Employment, Mr Bruton, points out, such is the scale of the investment that it will provide a boost not only for Galway but also to surrounding counties.
Boston Scientific is the first major jobs announcement of 1997, after the huge successes recorded last year. For the moment Ireland obviously has the key factors necessary to attract foreign multinationals to invest. These include a young and talented workforce, a fast developing infrastructure and an attractive Government grants and tax package.
However it would be a mistake to take it for granted that continued success is guaranteed. Such has been the speed of development in sectors such as software that skills shortages are emerging, a development to which the Government is now responding. And major multinationals will soon want to know Ireland's plans when the 10 per cent corporation tax rate expires in 2010.