I apologise for Deputy O'Rourke's absence. I wish to share my time with Deputies Kirk and McGahon.
Adjournment Debates. - Dundalk (Louth) Job Losses.
Is that agreed? Agreed.
It is sadly ironic that my constituency colleagues and I are forced to raise an issue relating to our constituency on a day on which the Minister, with much fanfare, presided over an announcement of 1,200 jobs in north Dublin in Gateway 2000 when within the next few days, our town will receive some very bad news. Some might suggest that our economy is booming but they should check Dundalk.
County Louth has a population of 90,000 of which 10,500 are unemployed. Neighbouring County Meath has a population of 120,000 and the unemployment figure for that area is 4,500. The unemployment rate in Dundalk alone is 4,700, way ahead of that of County Meath.
Our deputy leader, Deputy O'Rourke, and I raised the issue of these two companies in January and I raised the general issue of unemployment in the greater Dundalk area on the Adjournment last week. We warned in January of the difficulties these companies were experiencing. In view of the good news the Minister announced today in relation to Gateway 2000, I suggest that some consideration be given to those people who are, unfortunately, about to lose their jobs in the Dundalk area. Perhaps they could have first preference of the new jobs or the Minister could use his influence with the Gateway 2000 company.
Much attention was paid to the Dundalk area in the early 1990s. We had new companies such as Quantum and AFL/Stribel but unfortunately the eye has been taken off the ball since. I wonder why. I am not just mentioning the Government in this respect. I suggest that the Minister and his Government pay exactly the same attention to the Dundalk area as was paid to the Tallaght area. I ask him to establish immediately a task force, similar to those in Tallaght and Galway, to oversee the horrendous unemployment in Dundalk.
I am grateful for the opportunity to make a few remarks about the serious escalating unemployment problem in Dundalk. My constituency colleague has outlined the statistical position. The recent announcement by Harris Corporation to lay off a significant number of staff and the rumours in relation the Keytronic Europe plant make difficult and dismal subjects for discussion in the town of Dundalk. I am glad the Minister for Enterprise and Employment is here to take this motion. We would be delighted if he could tell us that he will be announcing a new industry for Dundalk to compensate for the job losses.
There is a perception that there is plenty of money in various funds for industrial development in the Border counties. Recently I spoke to officials in the Department of Finance and the Department of Enterprise and Employment about the peace initiative. It is depressing that money appears to be made available for everything other than what should be a priority. There is a serious deficiency in the industrial infrastructure of the Border counties and it is estimated that about £10 million would be required to develop that infrastructure from Louth to Donegal.
Some months have passed since the Washington Conference but there is no tangible evidence of benefits arising from it. There might be some in the pipeline but at present there is nothing tangible. Perhaps the Minister would also refer to the political initiative being taken in America to provide special trade concessions for American companies in Northern Ireland and in the six counties south of the Border. Clearly that would be beneficial to the industrial base.
Deputies from County Louth, regardless of their party affiliations, have a good relationship and last week I had no difficulty coming to the House to agree with Deputy Ahern. I still agree with him but I must express my disappointment with tonight's exercise. It is political cynicism and hypocrisy, although perhaps hypocrisy is a harsh description.
The Deputy is not bad at that himself. He should watch some of his colleagues.
Tonight's exercise is dancing on the graves of the jobs of the unfortunate workers who will lose their jobs on Friday. It is sheer political hypocrisy on the part of the Fianna Fáil Party. It has decided to ride every wind of public discontent, from the unfortunate peace process which is now stalled to the job situation in Dundalk. Deputy Ahern, in particular, does not need to do that. He should be above it.
This is a total farce. The matter was raised one week ago and there was an assurance from the Minister that he would do all in his power to alleviate the distress in Dundalk. Happily, not all the news is gloomy as I hope the Minister will demonstrate when he makes an announcement at the weekend.
I thank Deputies for again giving me the opportunity to speak about the very important topic of employment in Dundalk.
First, I wish to clarify the position in relation to the task force on industry adjustment. Deputies will recall that I established this group last year to advise me on policy directions in respect of industrial adjustment and competitiveness issues, particularly in light of the needs of traditional sectors facing the winds of change. This group comprised representatives from my Department, the industrial development agencies, the Labour Relations Commission and the social partners.
Arising from the task force's deliberations, I launched last December a new EU-funded initiative designed to assist companies in traditional sectors of industry to adjust to increasingly demanding conditions of competition. A support package will be available over the next four years to help companies implement change programmes that will result in an overall strengthening of the Irish manufacturing sector. Total expenditure will amount to £17 million, of which 50 per cent will be provided under EU Structural Funds and the remaining 50 per cent by industry itself. The measure is designed to provide financial support and advice towards helping traditional manufacturing sectors adapt to increasing levels of competition. Arising from the objective to help small and medium enterprise in traditional sectors, such as clothing, this programme is being administered by both Forbairt and Shannon Development.
That was not adverted to by either Deputy but it was referred to in the initial adjournment matter.
We did not have enough time.
The Change programme is targeted at SMEs with 25-100 employees in traditional sectors who are most in need of assistance. Bigger companies are not eligible for support under this measure.
With regard to the specifics of employment in Dundalk, I am aware that the companies referred to by the Deputies have been experiencing difficulties; we dealt with these in the House previously. I assure the Deputies that the IDA is keeping in close touch with them and is doing everything possible to assist them.
I will outline the present position in relation to both companies. Keytronic has experienced difficulties in the marketplace over the last 12 months and is reviewing its business structure. I expect this review to be completed very shortly and the company has confirmed to its workers that it will discuss the position with them in the first instance at the end of this week. This is the correct approach by the company and, in the circumstances, it would not be appropriate for me to comment further at this stage.
The position in Harris Ireland is that the company placed some of its staff on a three day week in March 1996 as a result of a global downturn in the semiconductor industry. Following a review of this system, the company returned to a five day week. Unfortunately, this has resulted in the announcement of approximately 40 temporary layoffs. The company has indicated that when business picks up, the staff will be reemployed. IDA Ireland is well aware of the difficulties within the semi-conductor sector and has recently been working with Harris in developing its R & D facility for a new product line in Dundalk. The manufacture of these new products, currently at the design stage, will enhance the plant's longer term outlook.
I intend to visit Dundalk on Thursday to have a meeting with the various agencies under the aegis of my Department. I am happy to extend an invitation to local Deputies to meet me on Thursday evening. I intend to impress on the agencies the urgency of promoting employment in Dundalk. I am confident that additional jobs can be created in other investments in Dundalk and the pipeline of potential projects for the town is strong.
The north-east region has a significant base of high technology companies which is a key factor in attracting overseas investors. It is important that I again outline what is happening in the region. There is an impressive array of over 40 overseas companies in Louth, including Quantum, ABB, AFL/Stribel and National Penn. In addition, the announcement last November that American Power Corporation is to locate its uninterruptable power supplies project in Drogheda will result in a £14 million investment and will employ 300 people at full production.
With regard to indigenous industry, Forbairt, through its north-east regional office, continues to actively promote the area for industrial development. During my visit to Boston with Forbairt officers last November, for example, I announced three specific business partnerships between Irish and US companies, including one from County Louth. This was between Creative Media Training Services Limited in Drogheda and Paradign Inc. of Florida. Forbairt is also working with Dundalk Regional Technical College in seeking to source potential technology based start-up companies. In addition, I draw the Deputies' attention to the recent opening of Potato Cuisine Limited in Drogheda which will create over 60 jobs.
I assure the Deputies that both IDA Ireland and Forbairt will continue to build on the developments in Dundalk and County Louth which I have outlined. Furthermore, the local employment service and the county enterprise board will play an active role in employment promotion in the area.
The Dáil adjourned at 9.10 p.m. until 10.30 a.m. on Wednesday, 15 May 1996.