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Dáil Éireann díospóireacht -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Company Closures.

Michael Noonan

Ceist:

141 Mr. Noonan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she had prior notice of the closure of a company (details supplied) in County Limerick; the steps she took to prevent the closure; if her attention has been drawn to the fact that the company has stated that it is relocating activities to France due to the fact that it considers Ireland to be uncompetitive; the steps she intends to take to restore competitiveness for manufacturing industry here; her views on the effect this pre-Christmas announcement had on staff and their families; the steps she intends to take to protect their interests and to provide them with alternative employment; and if she will make a statement on the matter. [4288/03]

On 6 December 2002, my office was advised by IDA Ireland that Wilo Pumps Limited would be reducing its manufacturing operation by 85 jobs at its plant in Limerick and that the announcement would be made on 9 December 2002. IDA Ireland had been working closely with local management of the company in order to maintain the operation's sustainability within the group and I regret the decision by Wilo Pumps Limited to downsize its Irish operation. I understand the company decided that it was necessary to reduce production capacity to achieve required cost efficiencies, logistic advantages and improved economies of scale for the group overall. However, I also understand that the company will retain its existing assembly operation in Limerick, which employs 12 people.

In reaction to the closure announcement, FÁS representatives visited the plant on 13 and 17 December 2002, with presentations and registrations being offered to all employees. Eighty employees have since registered with FÁS. A total of 44 staff expressed interest in training, 24 of whom requested the introduction to computers course. Subsequently, 11 staff took up a place on a specially arranged introduction to computers course, which commenced on 10 February, 2003.

There is a strong base of existing IDA supported companies in County Limerick employing approximately 10,000 people. The IDA actively works with these companies to increase their strategic importance to the parent operation, thereby further embedding them in the region. IDA Ireland continuously monitors the position of firms in both the manufacturing and services sectors, to identify both opportunities and threats to employment. The reasons for such relocation are many, varied and complex and, on balance, Ireland continues to benefit from such movement due to the underlying strength of our economy despite the recent world downturn. The IDA cannot be competitive in all types of industrial activity and the agency continues to seek to secure worthwhile employment for our people in areas where Ireland has a competitive advantage.

The comprehensive list of policy actions designed to enhance Ireland's competitive position generally will continue to be to the forefront in our policy formulation. I have asked the IDA and the other State agencies under the auspices of my Department to continue to do their utmost to secure alternative employment opportunities and actively promote Limerick as a location for new investment.
Question No. 142 answered with Question No. 136.
Question No. 143 answered with Question No. 109.
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