I am disappointed the Tánaiste is not present.
Adjournment Debate. - Industrial Development.
I am a good replacement.
I hope so. On 15 December 1995 Neodata Services Limited closed its factories in Kilmallock, with the loss of 36 jobs, and in Newcastlewest, with the loss of 71 jobs. Neodata owned both premises and subsequently sold them. There is no indication as to what its premises in Newcastlewest will be used for. The purchasers in Kilmallock hope an alternative business will be found for the premises. In a parliamentary reply on the 29 November 1995, the then Minister, Deputy Richard Bruton, indicated that he had directed IDA Ireland to redouble its efforts to find replacement industries for the region.
What tangible proof can the Minister provide that serious efforts have been made to find alternative industries for Newcastlewest and Kilmallock by the IDA? Unless both locations receive serious consideration, they will not receive the same attention for industrial development as the Limerick city and Shannon area. While industrial development is to be welcomed in the region, is there a difficulty in getting extra industry for Newcastlewest given that no industrial unit is available? What chance does a greenfield project have in that location as far as the IDA is concerned? If the delay of two and a half years is anything to go by, the chances for an alternative industry are not good. I hope this is not the case and that the IDA has not forgotten its commitment.
With regard to Kilmallock, the former Neodata building was purchased with the objective of finding a suitable industry for the premises. It has been marketed aggressively locally. I trust the Minister will give a positive assurance that, with the passage of time, the replacement industry commitment will not be forgotten for both towns. It was a harsh Christmas present for more than 100 female workers when the factories closed in December and I look forward to a positive reply.
I thank the Deputy for raising this important matter. However, the Tánaiste is unable to be present. As the Deputy is aware, attracting industry and employment to particular parts of the country is a day to day matter for the industrial development agencies under the aegis of the Department and is one in which the Tánaiste does not have a direct function. I presume the Deputy is referring to Neodata Services Limited which operated out of Kilmallock and Newcastlewest and which closed in December 1995.
The industrial development agencies are committed to securing new investment for Kilmallock and Newcastlewest and every effort is being made to ensure this happens. The properties in Kilmallock and Newcastlewest have been sold. The Newcastlewest facility was sold to a local private purchaser and the Kilmallock plant is now owned by a local community group and is currently being refurbished.
An economic study group was established in Kilmallock to evaluate the strengths and weaknesses of the town. The group is chaired by the Kilmallock Traders Association and comprises representatives from Limerick County Enterprise Board, Shannon Development, Forbairt and IDA Ireland. It appointed consultants to examine all socio-economic aspects of Kilmallock and its environs and involves meeting all interested parties in the area. A report is due from this group by the end of July 1998.
The industrial development agencies continue to promote Kilmallock and the vacant Neodata site. To date in 1998 there have been three site visits to the plant in an effort to attract new industry and potential overseas investors. In addition, Shannon and IDA Ireland are actively promoting a 13,693 square foot building at Kilfinane Road, Kilmallock. At the end of December 1997 there were ten agency-supported indigenous companies in Kilmallock employing 219 people compared with nine companies employing 199 people at December 1996.
The Neodata site at Newcastlewest was purchased by a private investor and will no longer be marketed by the agencies. However, Forbairt actively promotes its technology and innovation services in the Newcastlewest area, especially technology grants, graduate placement programmes and other services as required. The main thrust of activity to date since the closure of Neodata has been the special training course for ex-employees of the plant. This training was carried out by FÁS in close co-operation with Shannon Development and IDA Ireland. Forbairt works closely with Limerick County Enterprise Board and West Limerick Resources in the Newcastlewest area. At the end of 1997 there were 13-agency supported indigenous companies employing 316 people in Newcastlewest compared with 13 companies employing 343 at December 1996.
I emphasise the commitment in the programme for Government to ensure appropriate priority is given to encouraging industrial development in the regions. I intend to ensure the development agencies under the aegis of my Department carry out their remit in this regard.