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Dáil Éireann debate -
Wednesday, 24 Mar 1999

Vol. 502 No. 4

Written Answers. - Job Losses.

Cecilia Keaveney

Question:

59 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment the position in relation to the workers in the Fruit of the Loom plants in Malin, Buncrana, Milford and Raphoe and the Donegal Shirt Factory, Lifford; the estimated time of final closure of the plants; the steps, if any, being taken to find alternative industry for each of these locations; the steps, if any, being taken to retrain employees who are to lose their jobs; and if she will make a statement on the need to keep a geographical spread of employment throughout Donegal north east. [7773/99]

All the workers who are due to be made redundant during 1999 at the four Fruit of the Loom plants have been issued with redundancy notices. These notices are due to expire between 23 and 30 April 1999. I understand, however, depending on the volume of work on hand, that short-term contracts may be given to a number of the employees.

In relation to the Donegal Shirt Company, this company closed at the end of February and a redundancy package was agreed.

The Donegal Employment Initiative, which I established last September in response to the expected job losses at Fruit of the Loom, is working closely with the development agencies in efforts to find new employment opportunities for Donegal, which, of course, includes the areas affected by the job losses at both Fruit of the Loom and Donegal Shirt Company.
IDA Ireland has placed the Donegal region firmly in focus with its overseas marketing staff by arranging visits to the various locations and familiarising them with the resources and facilities available. Over the past six months, IDA Ireland has been bringing companies on first time site visits to County Donegal and a number of these companies have returned for a second visit. Currently, out of these site visits, there are three companies involved in ongoing detailed discussions with IDA Ireland in relation to potential new investments. I am hopeful that there will be a successful outcome to the negotiations.
In addition, the development of a new 27 acre business park in Letterkenny is progressing well, with the completed new advance factory attracting significant interest. Planning application has been lodged for a second 25,000 sq. ft. advance factory. Arrangements have also been finalised for the construction of a new quality office building at Windyhill in Letterkenny. These developments, together with the quality buildings available from Fruit of the Loom at Milford, Raphoe and Malin, will enable IDA Ireland to actively market industrial sites in a number of locations throughout Donegal north-east with a view to sustaining a geographical spread of employment opportunities in the area.
Enterprise Ireland is actively pursuing indigenous enterprises for the region, particularly in the fishing, food and tourism sectors. It has approved financial support of £1.7 million to companies in County Donegal in 1998 which will help create almost 200 jobs over the coming years.
In relation to training, FÁS and CERT, in co-operation with the Donegal Employment Initiative, have drawn up a joint programme for retraining workers who are to be made redundant at Fruit of the Loom and the Donegal Shirt Company.
The Minister for Tourism, Sport and Recreation recently announced details of a £0.5 million CERT initiative involving a range of training programmes to help the workers who are being made redundant to find new jobs in the tourism sector.
The retraining of the workers being made redundant by Fruit of the Loom and Donegal Shirt Company is viewed as a key priority by the Donegal Employment Initiative. In this regard, it has established a special sub-committee to deal with training and support services. Last January, this sub-committee visited the various Fruit of the Loom plants to meet management and workers' representatives to brief them on the programme of work being undertaken by the task force. This was followed by FÁS running a series of interview sessions at the various plants in order to provide personal employment guidance counselling for each worker and to register them with a view to future job opportunities. On completion of this exercise, FÁS has compiled a workforce analysis which identifies a profile of the workers and the training required. FÁS has also completed a workforce analysis in respect of the ex-employees of the Donegal Shirt Company.
The Donegal Employment Initiative, through FÁS and CERT, plan to co-ordinate a wide range of education and training programmes, including the provision of training courses in each community area subject to the level of demand.
I am hopeful that the priority actions being taken by the Donegal Employment Initiative with the co-operation of the various State agencies will be successful in attracting a range of new employment opportunities for the entire county.
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