I wish to share my time with Deputy Moynihan.
Adjournment Debate. - Duhallow (Cork) Employment Task Force.
Is that agreed? Agreed.
Given the difficulties I encountered in raising this matter in the Dáil yesterday, I am particularly pleased there has been a change of heart and that the Minister of State is here to reply to the debate.
The loss of 150 jobs in Duhallow, 120 at Alps in Millstreet and 31 at Keatings in Kanturk is a major blow to the local economy. It is to the local region what Seagate was to Clonmel, what Asahi was to Killala and what Packard Electric was to Tallaght. Consequently, I am looking for a similar response from the Government for Duhallow as was delivered to those other regions.
Specifically, I want a task force established which is accountable to the Minister whose primary responsibility will be to attract additional inward investment and job opportunities to the area. Like previous initiatives, the task force should consist of somebody from IDA Ireland, the local authority, the local enterprise board and representatives of local community and business groups. With adequate resources and specific objectives, the present crisis can be resolved by such a task force.
IDA Ireland has a significant land bank in the region — more than 5 acres in Millstreet, more than 6 acres in Kanturk and more than 8 acres in Charleville. There has been no development in those land banks for more than ten years. An analysis of new job announcements in the greater Cork region over the past 12 months confirms that they are either extensions to existing plants or new companies moving into existing vacant advance factories. It is obvious, therefore, that for Millstreet, Kanturk and Charleville to compete for new jobs, a mechanism has to be found to put advance factories on these sites. Only then will the region be able to compete for new jobs. This should be the first objective of the task force.
Alps in Millstreet and Keatings of Kanturk have been valued employers in the region for many years. With regard to Alps, it has to be hoped that the company can regain its former position of strength in terms of numbers employed in Millstreet as quickly as possible. However, the loss of 120 jobs highlights the excessive dependency of the local economy on one large multinational employer and is another good reason additional employment opportunities should be created locally. It is not only the 120 jobs in Millstreet and the 31 jobs in Kanturk but the associated service jobs in transport and other related areas which will also be lost when these jobs no longer exist.
In the Finance Bill of 1998, my colleagues and I in Fine Gael sought the inclusion of the Duhallow region in the rural renewal pilot scheme. This was rejected by the Government. I urge the Minister not to deliver a second body blow to the region and to proceed immediately with the establishment of a task force.
I would like to express my dissatisfaction and regret at the recent job losses in Alps Electric (Ireland) Limited in Millstreet and Keatings in Kanturk. This comes as a body blow to the workers of both towns and the general catchment area who have been made redundant. I sympathise with the workers who have lost their jobs. Those with families, mortgages and children will find it increasingly difficult to meet their financial commitments.
These closures are not acceptable. I want a commitment from the Minister that positive action will be taken in the Duhallow area. When does the Minister expect this area to be highlighted as one which needs significant job creation to maintain it as a vibrant community? Cork North-West, and particularly the northern side of the constituency, has not benefited from the Celtic tiger economy. It is unacceptable that while jobs are being announced throughout the country Cork North-West and particularly my native Duhallow, are getting nothing. We are faced instead with job losses. It is time to turn this trend around.
As its representative I cannot allow the deterioration of this area to continue. As a young person it seems to me that Duhallow has never mattered. It has been completely ignored by successive Governments. I am now calling for a stop to this unacceptable treatment. I am demanding action. Nothing has been done and it is the perception that nothing will be done. This must be reversed. I acknowledge the efforts of the Taoiseach and the Tánaiste to date. The representative of the IDA, Mr. Paddy Gallagher, visited Duhallow in the past two to three weeks. It is the first time this happened, and I commend him for doing so.
I am delighted that Deputy Creed has taken such an interest in Duhallow. The major body blow was the decision to allow Alps Electric to build their extension in Killarney and not relocate it in one of the IDA's land banks in the Duhallow region, in Kanturk, Newmarket or Charleville. I ask the Minister and the Government as a matter of urgency to prioritise the greater Duhallow area, particularly the northern part of my constituency, and ensure that employment is brought in. Our population is declining and it is only if we provide jobs for young people that the population of this area will grow. We must ensure that it grows to maintain the economy and the vibrancy of its community.
I thank the Deputies for raising this matter. I share fully their disappointment over the job losses in the Millstreet and Kanturk areas.
In relation to Alps Electric (Ireland) Limited, which was established in May 1988 in Millstreet, County Cork, to manufacture computer peripherals, the company is a division of the Alps Corporation of Japan who are one of the world's leading manufacturers of electronic components. In addition to manufacturing computer keyboards and input devices, the Millstreet operation also has responsibility for design, development, sales and marketing activities.
In 1996 Alps established a second operation in Killarney which manufactures electronic components for the automotive industry. The Killarney operation has been experiencing rapid growth and currently employs 190 people, which is well ahead of target. However, in recent years Alps computer peripheral business area has experienced intense competition due to the wide availability of competing products from low cost sources. The IDA has been very conscious of the difficult market environment facing the company and has maintained close contact with Alps both in Ireland and Japan.
Despite the company's best efforts to focus on the high end of the computer peripheral market, price competition from low cost locations continued to present serious difficulties in the marketplace. Regrettably, against this deteriorating market background, the Alps Corporation has now taken a strategic decision to restructure its manufacturing operations. This will entail a substantial scaling down of non-profitable activities in the computer peripheral business and a refocusing towards the development of the electronic automotive components business. This in turn has resulted in the announcement of the phased reduction in the Alps workforce in Millstreet from its current level of 150 permanent and 40 temporary employees, to approximately 70 in total. The redundancies will take place on a phased basis from the end of June to September next. However, I understand that some of these job losses will be offset by the continuing increase in the Killarney workforce. I am aware that the Alps Corporation has been very impressed with the quality of the workforce in Millstreet. Its commitment to maintaining a manufacturing presence at the plant and regrowing the operation as new business is developed is tangible evidence of this commitment. I assure the Deputies that the IDA will work actively with Alps to assist in its efforts to seek new products to introduce to the Millstreet plant.
I am informed that Alps hired a specialist consultancy team to assist employees in finding alternative employment. Potential employers and recruitment agencies will also be invited to Millstreet to meet employees at a later stage. These concrete steps by Alps to manage job losses should give every employee the opportunity to take advantage of opportunities that arise in the region.
With regard to the job losses at Keatings Kanturk. the company currently employs a total of 365 people in manufacturing and distribution in two bakeries in Kanturk. The smaller bakery, formerly Binchys, is engaged in fresh confectionery and it is this business from which the company is withdrawing. I understand that 15 full-time employees and 20 part-time people will be let go. However, 23 people will be retained in Binchys for specialist bread work. It is hoped that the fresh confectionery business will be picked up by other local bakeries with potential for job creation.
Overall, the Cork region has benefited substantially from industrial growth. Last year Cork experienced one of its strongest industrial development years in history with significant growth in IDA backed companies. A total of 1,405 new jobs were filled in IDA backed companies and this was achieved in a balanced way through expansions of the existing base of companies and the arrival of some prestigious new names. These new start-ups and expansions should lead to further strong growth for the region in the medium term.
The strength of the overseas sector is indicated by the fact that there are now 109 IDA backed companies in Cork city and county directly employing a total of 12,600 people. These jobs also provide, through their spin-off activities, at least the same number indirectly in the local economy, making the overseas sector a critical part of the regional economy.
Finally, it is not considered that a task force is required in this situation, where a co-ordinated response between the various agencies in the area is ongoing to ensure that everything possible is done to further maximise job opportunities in the region.
It is a raw deal for Duhallow. Even the Minister's information is incorrect.
I work for a Department to which the State agencies report. They have a de facto responsibility to ensure that the information conveyed to this House is accurate. If the Deputy wants to dispute any of the figures, he can let me have the information he has and I will have the figures confirmed for him. The Government is cognisant of what the Deputies have said and is aware of the seriousness of the situation. The two companies are downsizing in the Duhallow region. We are aware of the importance of industry to this historic region. Deputy Moynihan has been in constant touch with my office to try to get employment into the region. I assure the House that we are instructing the IDA, Forbairt, Enterprise Ireland and the local enterprise board to take serious action to ensure that investment is made in this region as quickly as possible so that we create opportunities for the employees losing their jobs as a result of the downsizing of these two companies.