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Dáil Éireann debate -
Tuesday, 20 Nov 2001

Vol. 544 No. 3

Adjournment Debate. - Job Losses.

I thank the Ceann Comhairle for the opportunity to do what I seem to do on a regular basis, come into the House to express my sincere sympathy to people who will lose their jobs in County Donegal, particularly in my region of Buncrana. While I am disappointed the Minister is not present to respond, I welcome the Minister of State, Deputy Treacy.

The loss of 67 jobs in Buncrana in March 2002 will mean a bleak Christmas for many families. Many young people with mortgages will be added to the hundreds of others whose redundancy packages have run out. Their financial position is affecting local businesses and the urban council, given that the urban council got most of its rates from Fruit of the Loom which has become almost extinct.

Do we understand the extent of the collateral damage behind these announcements when they run off our tongue – 67 job losses? Did it make the evening news on RTE? I do not think it did. Did the fact that thousands of people had already lost their jobs in this rural area, which is reliant on a small number of employers and not on a large urban centre where jobs can be replaced within weeks, make the latest news? Seán Dorgan was on television this evening and there was widespread reporting of what he said today. He was talking positively about the situation. He said he sees good prospects over the next few years, including the creation of 50,000 jobs by overseas companies and companies are still recruiting people. He said that he "sees important developments still coming." He said that "IDA Ireland will secure a number of significant projects in the health care, international services and pharmaceutical sectors over the next six months." That is his job, but what percentage of those jobs, if any, will come to Inishowen? Mr. Dorgan said that new jobs would match the number of jobs lost. Will he ensure in retrospection that is a geographical match? Does he remember what people have experienced in Buncrana, Raphoe, Milford, Moville, Carndonagh, Malin, Fahan and in other places I could mention?

I want to know from the Minister of State's Department and or the IDA where within Inishowen we can expect this good news will affect. I want the IDA, through the Minister of State, to inform me where is worse off than my immediate peninsula in terms of neglect and the lack of imagination exerted to resolve its level of unemployment? I need not go beyond the fact that we have been waiting for more than four years for IDA land to be transferred to county council ownership to let a local development group do what the IDA failed to do in four years, create jobs. This proves the lack of priority given by the IDA to Inishowen.

Each region may have experienced job losses, but the IDA invariably succeeds in making an announcement for those regions within weeks or months. I want an answer to why I have not heard the IDA's answer to addressing the hundreds of job losses in that region. I do not want an opt out clause about the national development plan and infrastructure. Job creation and infrastructural development must continue for the north west region.

In respect of Fruit of the Loom in particular, I trust the news – of which I await confirmation – of a new owner may bring stability. I welcome the new owner's promise of investment and development in technology and skills, but people should not consider the stabilisation of Fruit of the Loom at the level it is at as a problem solved. People there want to know the bigger picture for the full work force in the immediate, medium and long-term. We were told a few years ago what the medium and the long-term picture would be up to 2006. Under the new ownership what are the immediate, medium and long-term solutions and projections? What will happen the old plant? How many plants will the IDA market? What is the position regarding redundancy, if sought, of the workers currently employed by Fruit of the Loom who will work under the new owners? They are now working seven days a week, instead of six days. Will the workers continue to be on eight hour work shifts? There are many questions regarding the plant, none more pertinent than who owns the machinery. Has it remained in Buncrana or gone to Morocco?

I could continue ad nauseum posing questions asked of me on a daily basis. My job is to reiterate that the people in that region have suffered long and hard as a result of job losses. The advent of peace on the island should be maximised to benefit that region. The people there feel their situation is bleak, yet the IDA is confident of many new projects coming into the country. I ask that many of those be directed immediately to my area and, if they are not, I will want to know why. We will not accept that we are peripheral and do not have a suitable labour force because we are not peripheral. We have one of the best labour forces in the country.

The infrastructure in the region is adequate to attract the creation of 12,000 jobs there. Some 4,500 workers in Fruit of Loom were satisfactorily employed by the company for 12 years. If those workers could stay there for that length of time, many other people can do so.

I thank Deputy Keaveney for raising this important matter on the Adjournment.

The background to this is that on 1 November 2001, Berkshire Hathaway, a United States company, announced that it had acquired Fruit of the Loom's apparel business. I understand the deal is likely to be finalised in the first quarter of 2002. It will involve substantial investment in Fruit of the Loom's Buncrana operations.

However, the first phase of the development will see Fruit of Loom's operations in Ireland being consolidated into one plant. The purpose of this is to get full utilisation of the company's assets and implementation of a 24 hour a day, seven day a week work pattern across all its textile operations.

The logistics of the consolidation will be that the operation on Shore Road, Buncrana will transfer to Ballymacarry, Buncrana early next year. Unfortunately, the consolidation will necessitate 65 redundancies, but these will be spread over the next 12 months. Employment in Buncrana is now at 565 and this will be reduced to 500. This will be done in full consultation with the unions involved. This process is a programme to reduce costs, but it will also ensure the long-term viability of the Buncrana operation. Employment is expected to increase from 2003 onwards.

On the broader question of employment in Donegal, since the Donegal Employment Initiative Task Force submitted its report in July 1999, a number of key recommendations have been implemented. These include improved access to the county, upgrading of skills, provision of industrial and enterprise space and investment in tourism, energy and telecommunications. The infrastructural challenges need to be addressed in order to be successful in attracting further industry.

The actions undertaken to improve access cover roads, airports and harbour facilities. In order to upgrade skills, additional funding of £4.2 million was made available to FÁS in Donegal. FÁS registration and skills analysis have been put in place. Capital investment was also made in the Letterkenny Institute of Technology, enabling the provision of additional courses for the people of Donegal and people elsewhere in the country.

Industrial and enterprise space has increased throughout County Donegal with the provision of a large number of units for inward investment, community and indigenous enterprise. Civic offices have also been developed as public private partnerships to provide advanced office space.

Tourism has been boosted in Donegal with the investment of £1 million on branding and ongoing promotional material. Plans for the development of broad band infrastructure in County Donegal will introduce high speed access to the telecommunications market within the county.

The £5 million economic development fund established by Donegal County Council has been instrumental in leveraging many of the initiatives I have outlined.

Further mechanisms are being established by Donegal County Development Board in association with Donegal County Council to ensure the integrated delivery of the recommendations of the Donegal Employment Initiative Task Force, thereby ensuring that the county is a prime and competitive location for job creation. The county development board is working towards a deadline of the end of this year in this regard.

Attracting companies from Dublin and the east coast is a priority for Enterprise Ireland. It has supported six such companies to expand into County Donegal over the past two years. Approximately 160 jobs will be created, and I am delighted to be associated with some of those projects. Discussions are ongoing with a number of promoters who are interested in establishing new businesses in Donegal. Through its community enterprise centre programme, Enterprise Ireland has invested approximately £1.25 million in enterprise space in the county.

A number of IDA assisted projects have been secured in recent times for Donegal. PacifiCare plans to create an additional 160 jobs early next year. This will bring employment up to more than 300 people in this company. Prudential Insurance Company employs 190 people and plans to create an additional 410 jobs over the next two years. Kirchhoff Ireland is expanding its automotive components operation and employment will increase from 50 people to more than 100 people. Interventional Technologies, a subsidiary of Boston Scientific, which employs more than 3,000 people in Ireland, is creating 90 jobs. The Claddagh Group, a US company, is establishing an Internet recruitment facility in Buncrana and this will employ 35 people. The Donegal County Enterprise Board is continuing its successful support for micro-enterprise all over the county.

I am confident the combined efforts of all the industrial development agencies will see County Donegal continue to develop as a very good location for industrial development in the years ahead.

I assure Deputy Keaveney and her colleagues in Donegal that at every possible opportunity the Tánaiste, myself and our colleagues in the various public sector units within the Department servicing the State agencies will renew and impress on the public servants within the State agencies the importance of ensuring that we are able to support indigenous industry and attract foreign direct investment into Donegal as quickly as possible.

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