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Dáil Éireann debate -
Tuesday, 6 Nov 2001

Vol. 543 No. 2

Private Notice Questions. - Job Losses.

asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps she will take to address the serious employment crisis now facing north Dublin as a result of the announcement on 5 November 2001, by a company (details supplied) in County Dublin of the loss of 450 jobs and the earlier announcement of major losses at another company (details supplied) and other plants; the steps she will take to initiate a targeted job creation programme for the area; and if she will make a statement on the matter.

asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to provide replacement jobs following the loss of 450 jobs from a company (details supplied) in County Dublin.

asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has had discussions with the management of Tara Mines on their proposed temporary closure of their plant for three months resulting in the laying off of up to 700 workers; the steps she will take to source a replacement industry and re-train staff should this closure become long-term; and if she will make a statement on the matter.

asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will address the crisis caused by job losses, particularly in the north Dublin area.

(Dublin West) asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on the recent spate of job losses in industry.

I sympathise with the workers who have been made redundant both at Celestica and those who have been laid off at Tara Mines. I extend that sympathy to their families. Furthermore, I express my sympathy to the employees at Braun, The Irish Times and other companies who have received similar bad news in recent days. These redundancies and lay-offs are a direct result of the current severe downturn in global economic activity, particularly in the United States. I assure the House that every effort will be made to find alternative employment for those made redundant. The Government will remain in close touch with the management of the parent company of Tara Mines with a view to ensuring that operations are recommenced as soon as possible.

The job losses at Celestica have come on foot of the withdrawal by another company – Motorola – of contracts for the manufacture of mobile phones. While IDA Ireland has been in constant contact with the company over recent months – I have had discussions with the company's general manager in Ireland – the company was not aware of the withdrawal of these contracts until 4 November. The IDA will continue to work with the company in consolidating its existing operations which will continue to employ 500 workers. Because north Dublin is currently going through a difficult period of job losses, I announced yesterday the establishment of a training and jobs placement initiative to be chaired by the manager of Fingal County Council, Mr. William Soffe. FÁS, the local area partnerships, the local authority, the county enterprise board, CERT and Enterprise Ireland will work to ensure that those losing their jobs are fully appraised of other employment opportunities in the area and are offered training or support for business opportunities.

Ministerial responsibility for the mining industry comes within the remit of the Minister for the Marine and Natural Resources. I have not had any discussions with the management of Tara Mines on the proposed temporary closure. On 1 November 2001, Outokumpu – the Finnish company which owns Tara zinc mine – announced it was placing the mine on care and maintenance basis. Consequently all of the approximately 670 employees were issued with protective notice of temporary lay-offs due to commence on 17 Nov ember. About 50 staff will remain on maintenance and essential services.

The company cited the downturn in global economic conditions and the resulting low base metal prices as the reason for its decision. The major uses of zinc are for galvanising steel and the manufacture of brass and dye-casting alloys for household, industrial and automobile components. Demand is sensitive to economic slow-down. The company indicated that, at current prices, the operation at Tara is losing in excess of 3 million per month. I understand the market price for zinc has fallen considerably in recent months from $1,000 per tonne in March 2001, to about $750 at the end of October. In announcing its decision the company said it will conduct reviews on an ongoing basis and that operations will resume as soon as market conditions allow the mine to become viable. Since the announcement FÁS has been in contact with the company and has offered its services to both the company and the workers. A meeting between FÁS and the company for the purpose of agreeing specific measures of support and assistance is scheduled to take place tomorrow. The company has, however, expressed concern to FÁS about people being available to return to work and wishes to emphasise that the proposed lay-off is temporary. The industrial development agencies continue to actively promote the Navan area as a location for investment. FÁS and the other agencies will remain in close contact in order to minimise the effect of the lay-offs.

In the past 12 months the north Dublin region has witnessed the closures of Gateway in Clonshaugh with the loss of more than 1,000 jobs and the closure of Motorola in Swords, also with the loss of more than 1,000 jobs. Dell in Poppintree shed 55 jobs, 60 jobs have been lost at Electric World in Blanchardstown and Santry while 317 jobs have been lost at the Kylemore bakery in Finglas. Datalex in Malahide has shed 29 jobs, several hundred temporary employees have lost their jobs at Aer Lingus and Celestica yesterday announced 450 job losses in Swords. Will the Tánaiste accept that the effect of these announcements and redundancies has devastated the economic life of north Dublin, particularly Swords, Malahide, Skerries, Balbriggan and Donabate and all towns and villages? Does she accept that the Government proved unwilling and unable to respond to the crisis? Does she accept that even if one-eighth of the nearly 6,000 jobs that have been lost in the past 12 months were lost in any other region the Government would already have put in place a mechanism to deal with such a crisis?

I accept there have been difficulties. However, to put things in perspective, there are 117,000 more people at work in Dublin today than there were in April 1997 and the rate of unemployment in the Dublin area fell by 8.5% as against a national drop of 3%. FÁS informs me that there are 1,100 job vacancies in the north Dublin area. There are companies, including Swords Laboratories and Organon, which are recruiting workers in north Dublin. We need to put things in perspective and ensure we do not hype the obvious difficulties we are experiencing. There has been a huge downturn in the global economy, particularly in the ICT sector. Unfortunately, it has been compounded by the events of 11 September which have affected tourism and aviation and sub-supply companies.

It is important we seek to maintain as much activity as possible in Ireland. The IDA and Gateway, for example, are at an advanced stage of negotiation with a company which may take on about 150 of the Gateway workers to support Gateway's customers in Europe. The reason for Gateway's closure in Ireland was the company's decision to pull out of the entire European market. It had nothing to do with the circumstances prevailing in Ireland. The company is ceasing production in Europe because it has not been performing well in that market. However, it wants to continue to support its European customers and in recent months we have worked to try to ensure that support is provided in Ireland. We are very optimistic the negotiations will be very successful in keeping about 150 of Gateway employees working in a similar area of activity, albeit with a different company. I understand the vast bulk of the other Gateway workers have found alternative employment.

The initiative I established yesterday will work on the ground in north Dublin with the people who have been made redundant and the various companies. Mr. Fogarty, the general manager of Celestica, has assured me he will work very closely with the body I am putting in place to ensure as many of the workers as possible find alternative employment or, where that is not possible, are offered training for other jobs in the Dublin region.

I will heed the Tánaiste's advice to put matters in perspective. Yesterday's announcement in north County Dublin brings to 15,000 the number of redundancy notices served in the State since the start of the year. Does she accept that 15,000 redundancies amounts to 15,000 families and up to 15,000 mortgages?

The Tánaiste's response to the crisis is less than satisfactory. She has changed focus by announcing what she describes as a training and jobs placement initiative. Could she advise the House of the difference between this and an inter-agency task force or a multi-agency group, which I understand she recently set up in response to lay-offs in County Louth? The difference is minimal and it appears to be something thought up by a doctor of spin in her Department to deflect from the tired old task force formula because 23 task forces are already in operation, all of which are under performing and many of which have done very little to address the jobs crisis of the past nine months in particular.

Will the Tánaiste outline to the House the exact protocol in her Department for what she describes as an "early warning system"? What exactly does it mean? What time frame has been put in place for the various inter-agency and multi-functional task forces she has set up around the country? Has she set a deadline for reporting progress?

Does the Tánaiste accept yesterday's admission by the chief executive of the IDA that the country is suffering a recession?

We are not in a recession. The economy continues to grow.

What criteria is the Tánaiste using?

Growth. The economy is growing, it is not in a recession. We have more people at work today than we did this time last year.

Unemployment is rising on a monthly basis.

Very marginally, yes, but to put things in perspective 15,500 redundancies were notified to my Department up to the end of October. In 1993-94 the figure was 18,000 per year. Proportionally, given that the base is much higher because there are 400,000 more employees today than in 1994, we have had much worse years in recent times.

That is not much consolation for the 6,000 people who have lost their jobs in north Dublin this year.

We cannot continue with interruptions.

If I am asked a specific question, I will answer it. However, I will not be tempted to play party politics with the very difficult circumstances facing individuals and companies.

I do not want to get into semantics, but there is a difference between the group I announced yesterday and some of the task forces that have been put in place. The initiatives deal with local circumstances on the ground. In north Dublin, there are 1,100 vacancies and some companies continue to recruit. We want FÁS and CERT and the agencies we have established to work with the employees who have been made redundant in an effort to place them in these jobs. Where they are not suitable, for example, if Celestica workers might not be suited to jobs in the pharmaceutical industry although I understand the contrary is the case, training initiatives should be put in place.

In other parts of the country investors are pulling out leaving a vacant factory. That is not the position here. I remind the House that Celestica is committed to Ireland and will remain here providing 500 jobs. If the market improves, which is inevitable, I hope the company's activities in Ireland will grow. There is no vacant factory, to which a task force could bring foreign investors with a view to encouraging acquisition. The task here is to find alternative employment in alternative companies for people being made redundant.

There is no magic warning system which would alert me that Motorola would inform Celestica in the United States last Sunday that it would no longer honour the legal contract it signed. I use the term "legal contract" because one cannot have a stronger commitment than a legal contract. Motorola is not proceeding because the mobile phone industry globally has gone through the floor and it, in particular, is experiencing huge difficulties. Celestica has to respond to this very quickly to ensure it remains viable.

No early warning system can provide that kind of information, but the one we have consists of the IDA, Enterprise Ireland and Shannon Development, the three agencies for which I have responsibility. They are in fairly constant contact and engage with their client companies in regular assessments of their position. In particular, we have been involved in an assessment of the ICT sector which, as has been known for some time, has been in difficulties.

We get the best information we can from the agencies working with the companies on a daily basis. We do not always know what will happen and have received warnings which, thankfully, have not come to fruition because efforts have been made, through the agency, to help the companies in terms of showing greater flexibility on or, in some instances, renegotiation of agreed grant aid packages, helping with research and development or attracting more value added activities to Ireland. We have been successful in keeping activity in Ireland. We want to continue with that important task.

The Tánaiste informed us about the content of her talks with the Tara Mines company. Is she satisfied that the redundancies arise from a drop in the world price of zinc? If so, has she made arrangements to discuss the matter at the next Council of Ministers meeting? If she has not done so already, will she confirm she will arrange a meeting? I ask the Tánaiste to discuss with the Minister for Finance introducing incentives in the forthcoming Finance Bill to provide the same level of incentive for job creation in Meath as in the BMW region. Meath is at a disadvantage having the BMW region on the one side and Fingal on the other. Will the Tánaiste assure the House that these jobs will be restored in full when the price of zinc rises? When does she expect that to happen? What are the main factors influencing the price of zinc on the world market and has she any proposals to address them?

I do not have responsibility for mining or the marine industry, so it is not appropriate for me to deal with the company in question or to raise issues related to mining at EU level. That is a matter for the Minister for the Marine and Natural Resources, Deputy Fahey.

Will the Minister ask him to raise it?

I am sure he is aware of this debate. Half the mines in the world are in trouble at present. There is an over-capacity in the industry. There is a mis-match between supply and demand. Mines in Canada and the United States have recently closed. There will inevitably be huge restructuring. Over-capacity in any market leads eventually to restructuring. Some companies will go and others will stay. Obviously there will be rationalisation but I do not know when that will happen. Until it happens there will be difficulties for Tara Mines. I am satisfied it is the world market conditions that have led to this decision – it is protective notice not redundancy – and the company has made it clear to FÁS that it wants to recruit the workers when the market conditions change and I hope that can happen soon.

What can the Minister say about the BMW region?

The BMW region is a defined geographic region and Meath is not included in the BMW region, as the Deputy is aware. The Government was not free to pick and choose particular counties, the counties had to be contiguous. Meath has a good infrastructure, it is very close to the airport and unemployment in Meath is low. Grant aid is only one part of the package. It is not the reason companies locate in certain places. It may be the icing on the cake but at present we are talking about job maintenance. There are relatively few investments being made now because of the uncertainty both in the global financial markets and in industry generally. We must work with the companies, be they in Meath or elsewhere, to maintain as many jobs as possible. We have a fairly generous and very flexible approach in terms of the training regime, the support for research and development and the other supports for industry.

We hope to address here the appalling level of job losses. Does the Minister agree that unless research and development facilities are bedded down in Ireland, as they are in the United States, and indigenous employment is encouraged, the mobile type of investment which represents so much of what people depend on for employment will continue to be siphoned off to eastern Europe and beyond? The average weekly wage of an electronic engineer in Hungary is £75. In Ireland that amount would not keep a person in food let alone accommodation or to look after a family.

I spoke with Noel Fogarty, the general manager of Celestica and some of its workers in Swords yesterday. I was asked what measures apart from a Government initiative, welcome as that may be, will be put in place. Will VAT on research and development equipment be lowered or even removed so that an indigenous research and development base can be consolidated in this country? The lowering of the rate of VAT or its removal for repair and maintenance work would ensure a proper service industry which is indigenous. Will measures like these be part of the Minister's recommendations to the Minister for Finance in framing the budget so that in the future there will not be a continuance of the cycle of jobs leaving our shores and going to cheaper labour markets elsewhere?

The only closure in the past week as a result of relocation was that of AFM in Dundalk. That was very basic production, very low value-added activity where the labour costs were 40% to 50% of the overall unit cost. The company was therefore not able to compete with companies from central and eastern Europe, from Asia and other places. There are very few European countries, if any, that still have that kind of activity. We need to consider the different things that are happening. The majority of redundancies are occurring as a result of the economic slowdown. Deputy Sargent is correct, where research and development takes place there is a greater chance that activity will happen close to where products are researched and developed. The strategy in recent times has been to move up the value chain and this requires a higher level of skill and education. A lot of the support now being given to companies is to maintain existing jobs and to move those companies up the value chain.

There are tax implications and one of the downsides of a low corporate tax regime is that it is often unattractive to carry out research and development where corporate taxes are low. There are issues to do with tax credits or a multiple of the cost of research and development. I support what the Deputy says and hope that we will be able to encourage new thinking in relation to that matter. We must seriously examine the incentives that may be put in place both in terms of the skills base, which we are doing, and the other competitiveness issues. Our tax system could be made attractive particularly for research and development. We are pursuing that with the Department of Finance in the context of upcoming Finance Bills.

(Dublin West): Celestica, Motorola, Dell, Gateway and Otokumpu are some of the names which featured prominently for sharp and disastrous job losses in recent weeks and months. Does the Minister agree there is a dangerous over-dependence, encouraged by the Government, on multinational corporations in terms of the direct employment and employment in downstream industries? Does she agree that such corporations have enjoyed massively favourable tax concessions over many years, a highly educated workforce, courtesy largely of the taxpayer, and massive profitability? Does she agree that probably between £30 billion and £40 billion in profits has been sent abroad in the past five years? Does she believe it is moral that such companies should dump thousands of Irish workers on the sidelines at the first sign of a tremor in international capitalist markets, irrespective of the future of those workers? Many workers in north and west Dublin are young people who have purchased homes and have expensive mortgages while others have families to feed.

In view of the spate of job losses in north and west Dublin from multinational corporations, over which the Government will say it has no control, will the Minister agree it is criminal that the Government is refusing to invest in an indigenous company over which we have full control? I refer to Aer Lingus where such investment could stop the loss of 2,000 jobs instantly and avert the massive damage to the communities in which the workers live if those job losses go ahead. It is criminal that the Government is refusing this investment in view of the tragic losses for other workers in multinational corporations.

There are several multi-locational or multinational Irish companies, such as Iona, Trintech, CRH, Kerry, Bank of Ireland and Allied Irish Banks. There are many originally indigenous companies that are now multinational or multi-locational. It is not an issue to do with the ownership of the companies or where they may or may not belong, it is to do with competitiveness, with ensuring that we remain as competitive and as attractive as possible for industrial development.

Thousands of people in Ireland work in multinational companies, in foreign companies. Thousands of others work in Irish companies which supply those foreign companies, not just in Ireland but abroad. Many of the successful Irish companies gained their initial management experience and expertise by people working in foreign companies and subsequently going on to start up their own companies. We live in a world that is much more open than it was previously. When world growth and world trade was expanding in recent years Ireland did extremely well in that context. Ireland remains a very good place in which and from which to do business. Ireland offers a solution to many companies that are now restructuring, closing operations and rationalising their activities. Technical support can be based in a single location in Ireland and we must sell the attractiveness of Ireland, even in this difficult time, to those companies which are looking for solutions. As chief financial officers examine the financing of companies in terms of how they can make cutbacks, Ireland may offer a solution in that, instead of such companies having several locations in the world, they may be encouraged to consolidate much of their activity in Ireland.

I have huge sympathy for those losing their jobs or those who will have to endure the uncertainty of trying to find a new job, particularly in the run-up to Christmas. Many workers, their families and communities and many companies find themselves in a very difficult situation. They have my undertaking that we will assist them in whatever way we can. State aid is an issue not only for Aer Lingus but for other companies. As the Deputy is aware, notwithstanding the difficulties being experienced, we are not free to give operating aid to companies.

(Dublin West): The Government is free to do so, but it chooses not to do so.

We must work to ensure that companies located here, whether Irish or foreign, are successful and competitive. In so far as we can create the conditions to make that happen, we will do so.

Is the Minister not very laid back about the crisis on the northside? Deputy Seán Ryan listed 6,000 jobs that are going or gone. The Minister pointed to 1,100 possible vacancies. Apart from the £180 million wage bill involved, there will be a major loss of service purchases from business across the northside. For every one of 6,000 jobs that will be lost, another job will be lost elsewhere on the northside. Is it not wearing a bit thin to talk about a job training and recruitment initiative? Does the Minister consider it is time to change the redundancy Acts, which offer half a week's pay per year of service to many of those workers who are losing their jobs?

Given our Celtic tiger economy, that seems extraordinarily niggardly. Will the Minister consider it appropriate that enterprise funds should be automatically established when there are significant job losses of this scale so that people seeking to set up on their own could automatically draw down money instead of having a training and jobs placement initiative? Will she consider other measures that can assist people who face large deficits in their mortgage repayments. Traditionally, no assistance has been available to deal with those types of problems.

There is a need to examine the northside more holistically, to use that awful term, than the Minister is willing to do. Serious meltdown is being faced in one square mile on the northside. There is a need for the Government to be more alert to the needs of that area and to be more creative in providing solutions.

We must not talk in terms of a meltdown or recession, or make a panic response. We must all have cool heads and make a calm response. Celestica will pay redundancy of six weeks' pay per year of service. I acknowledge that redundancy payments are not generous, but in so far as that company's redundancy payment is more reasonable than other offers, I welcome it.

There have been many job cutbacks on the northside, but there has also been much growth. I mentioned two companies that are currently recruiting. Swords Laboratories is recruiting 100 people. I am not certain of the number being recruited by Oregonan, but I believe it is in that region, or maybe it is higher. The same applies to other smaller companies. I share Deputy Richard Bruton's view that for every job lost in a company one other job is indirectly lost.

In addition to the training and jobs placement initiative, we have been more generous in providing venture capital funds recently and that will have to be the case even more so next year because I anticipate that the private sector will be more conservative. Therefore, Enterprise Ireland must be more proactive on the venture capital side.

We are also examining issues relating to competitiveness funds for companies operating just above the margin. Sometimes much of the emphasis is on what is called hypotential start-ups or working to get new investment. We must equally work aggressively to maintain existing investment because replacing investment that is withdrawn is very difficult, and it will be particularly difficult over the next number of months until we see our way through this global economic slowdown.

Having worked with the chairperson of the new agency, the county manager of Fingal County Council, Mr. William Soffe, for many years, I have the height of regard for him. I have no doubt he will do the best he can and that he will work wonders provided the necessary resources are made available to this agency. Will the Minister give a commitment that they will be made available? Is she aware that in the post-Cahill plan situation whereby a task force was initiated in 1993 and recommendations were made in 1996 and 1997, many of those recommendations were not implemented? Is she aware that one of those recommendations was the setting up of an enterprise centre in Swords, which was not established? Given that this task force did not have the services of a secretary to answer a telephone call or to type a letter, will she give a commitment that whatever resources are available will be made available for this agency? In the context of the crisis that has been addressed here this afternoon, will she give a commitment that other companies will be attracted to locate in this area? Will she, on behalf of the Government, give a commitment to the workers and their families that the Government will do everything in its power to provide replacement jobs for some of those lost in the region?

I give a commitment that whatever resources are necessary will be made available to the training and jobs initiative group. Any resources that it believes it requires by way of back-up, research or secretarial facilities will be forthcoming.

I thank the Minister for her reply, albeit somewhat uninspiring. IDA Ireland chiefs are reported to have said that further job losses in IDA Ireland-backed companies are inevitable. Does the Minister share that view?

Yes, I do. Given the slowdown that is under way, particularly the difficulties in the ICT sector, that is inevitable. In the first instance, I believe some of the expansions that were due to go ahead will be delayed. We are living through a period of major uncertainty. There was uncertainty in any event prior to 11 September, but that event compounded the difficulties for all of us. It is inevitable there will be more job losses. If the Deputy is asking me am I aware of a particular company about which I am concerned that will be in difficulty tomorrow, the next day or next week, I do not have a list indicating that X, Y, or Z is in difficulty, but we know that companies in the ICT sector, particularly those servicing or supporting mobile phones, are in particular difficulties and major efforts are being made to engage with those companies and to help them in whatever way we can.

Does the Minister accept that relocation may not necessarily take place when a sweatshop economy, for want of a better term, gets favourable treatment over a country like Ireland and that a transnational corporation may be only downsizing here, as rationalisation takes place wherever it happens to be located? She talked about creative approaches to the unemployment crisis. Many families in Dublin North recognise it is necessary to put in place employment practices that may involve work sharing or different types of working arrangements. That should have been more creatively done in Aer Lingus rather than the large-scale announcement of job losses. Will she put the message across to those in a position to make decisions that it may not be necessary to lay off the large number of people some companies are talking of in that there may be other ways to address the difficulties?

The Government might more seriously consider initiatives such as a guaranteed basic income, which would provide an income for people who can then get a living wage by working for fewer hours than they would otherwise have done. Those options require Government participation as well as the participation of the private sector.

What we need is the maximum amount of flexibility. Activity happens wherever it is competitive for it to happen. It is not just a function of wage costs or prices. A host of issues affect competitiveness, such as skills, education, infrastructure, research and development and so forth. We must continue to work hard to ensure we are as competitive as possible. Ireland, like most countries in Europe and virtually every member state of the EU, is no longer competitive vis-à-vis other countries for basic production.

We are not in a world where we can give any guarantees. We have a minimum wage and the challenge is to ensure that those who earn the minimum wage are taken out of the tax net. Notwithstanding the difficult budgetary situation, I hope we will be able to, if not meet that commitment, come close to meeting it because it is important. There are two ways of increasing take home pay, one is through reducing tax and the other is through nominal wage increases. If we can use the tax system, which we have done in recent years, we can further the competitiveness of this economy.

(Dublin West): Another way would be to reduce profits a little.

I am sorry I was not here for the earlier part of the debate but I was dealing with another case of a factory closing. Is the Tánaiste aware of the serious situation in Cavan due to the fact that Teradyne Ireland Ltd. has pulled out of its commitment to build a factory there? More importantly, is she aware that 300 jobs were lost in Monaghan as a result of the closure of Monaghan Poultry Products? The Tánaiste wrote to me and other Deputies to explain her policy on the Border region. However, there is a new beginning in that area with the appointments in Belfast this morning of a First Minister and Deputy First Minister. Given that the Border region did not benefit in the past from IDA investment, there should be a strong effort to do something there now. The loss of 300 jobs in a town like Monaghan is as serious as the job losses in Aer Lingus in Dublin. The situation cannot be ignored.

I welcome the Tánaiste's change in policy to relieve from tax those on lower pay. It is a welcome change or U-turn.

It is not a U-turn. I introduced the minimum wage and I am committed to rewarding those who work for a living. I have said on many occasions that many members of the rich community do not pay tax. Some of them are tax exiles and do not pay any taxes in this country.

The Border region, as a result of the 30 years of civil unrest and violence in Northern Ireland, was cut off from its natural economic hinterland and the Border counties, including Cavan, Monaghan and Donegal, suffered enormously. Growth rates in that area are far less than those in all other parts of the country. That is the reason there was such huge celebration when Teradyne announced it would build a huge operation involving 800 employees in Cavan. It was the first major IDA investment there for 24 years.

The company has had serious difficulties in recent months. It also encountered planning difficulties. A single individual, as is his or her right, appealed the decision of Cavan County Council to An Bord Pleanála. That delayed matters by a considerable length of time as the company had hoped to be on site and beginning construction last January. That was not to be, however, because the planning permission was only granted last week. It was an additional factor although not the sole reason for the difficulties. The delay did not help.

Teradyne will maintain its existing operation in Cavan where it employs more than 40 people. That shows a commitment to Cavan and when the market situation changes I hope the company will be in a position to make further investment in the Cavan region. It is significant that it will maintain its existing operation and the employees it recruited over the past 12 months.

I am glad the Tánaiste mentioned Donegal. The situation in the county has been serious for a number of years, particularly since the disaster with Fruit of the Loom. The Tánaiste was responsible for establishing the Donegal task force which eventually published worthy recommendations and a strategy to address the endemic unemployment problem in the county. The rate of unemployment is many times the national average. Can the Tánaiste give an assurance that sight will not be lost of the problems in Donegal? They are ongoing and endemic. I am aware that difficulties are cropping up in other parts of the country but will everything possible be done to implement the worthy, well thought out and constructive proposals of the Donegal task force, a task force the Tánaiste was responsible for initiating?

The ones that came within my remit, to the best of my knowledge, have been implemented. We have announced more jobs than job losses in IDA foreign companies in Donegal in the past four years. There were more than 1,900 job announcements. Donegal is an attractive location and is a priority for investment, as is the BMW region in general. The county has been doing well but things will be difficult due to the economic slow down.

The remaining aspects of the recommendations relate to infrastructure. The key to Donegal's future, because it is so peripheral vis-à-vis the rest of the country, is better roads and broadband infrastructure. Electricity and energy infrastructure is essential as well. There is a commitment from Government to put that infrastructure in place. It is extremely important.

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