Dáil Éireann debate -
Thursday, 20 Apr 2000

Vol. 518 No. 5

Written Answers. - Job Creation.

Nora Owen

Question:

29 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will investigate the circumstances of the disposal of premises (details supplied) in Donegal which was purchased by a company which had closed another plant in County Louth; and if this was approved in view of the fact the premises belonged to another company which had ceased operations. [11977/00]

Cecilia Keaveney

Question:

72 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment the position in regard to job creation at a premises (details supplied) in County Donegal in view of the high level of unemployment and the high level of expectation for the location and if she will make a statement on the matter. [12150/00]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 29 and 72 together.

In July 1999, IDA Ireland introduced Hawkesbay Apparel Limited to the former Fruit of the Loom facility in Raphoe, County Donegal. This introduction was on the basis that Hawkesbay would create a minimum of 150 jobs in the facility. The company's business plan was based on a project to produce a range of clothing for fashion designer branded companies, and department and chain stores. The project was totally independent of Hawkesbay's existing business in Ireland of producing jeans under contract for VF Corporation.

The Raphoe factory was still in the ownership of Fruit of the Loom and, within the context of its grant liabilities to IDA, Fruit of the Loom was obliged to secure IDA approval for any sale of the facility. No grant aid was involved in the new project to be based in Raphoe.

Hawkesbay has now found it cannot deliver on job prospects and has decided to place the Raphoe facility on the market for a much inflated price. However, IDA Ireland is determined to continue its strong marketing efforts and deliver results for the entire county and in this context its preference is that the Raphoe facility remain available for marketing.

The sale of the former Raphoe facility was an independent third party property transaction between Fruit of the Loom and Hawkesbay, albeit one that required the consent of IDA Ireland. In approving the sale between the third parties, IDA reached agreement with Hawkesbay based on the delivery of specific job numbers within a timeframe. Specifically, if the company did not deliver a minimum of 150 jobs by 31 December 2000, a liability would accrue to IDA of £450,000. IDA is in the process of securing this payment.

The development agencies are making progress in Donegal as evidenced by the Pacificare project, Prumerica Systems Ireland Limited and an active marketing programme on the Milford facility. IDA has also submitted a planning application for a new healthcare facility for County Donegal. In February 2000, Enterprise Ireland approved assistance to Raphoe Enterprise Company Limited of approximately £62,000 towards the establishment of an enterprise centre. The workspace will be four separate units of 1,l00 square feet each.