Dáil Éireann debate -
Tuesday, 20 Nov 2001

Vol. 544 No. 3

Written Answers. - Job Losses.

Bernard J. Durkan

Question:

101 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the need to restore confidence in the manufacturing and services sectors; the steps she has taken to date to avert job losses; and if she will make a statement on the matter. [28794/01]

Ivor Callely

Question:

152 Mr. Callely asked the Tánaiste and Minister for Enterprise, Trade and Employment the job losses to date due to the downturn in the Irish and world economies; the measures that are under consideration to weather this cycle and continue to attract investment; and if she will make a statement on the matter. [28453/01]

Bernard J. Durkan

Question:

173 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if interest has been expressed in the creation of replacement jobs at the various locations throughout the country in respect of which there have been job losses in the past 12 months; and if she will make a statement on the matter. [28992/01]

Bernard J. Durkan

Question:

178 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she has taken to address the recent job losses; if she has identified predominant factors; if she proposes remedial action; and if she will make a statement on the matter. [28997/01]

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

I propose to take Questions Nos. 101, 152, 173 and 178 together.

A total of 15,764 redundancies were notified to my Department in the first ten months of this year. I am very disappointed at the recent closures and job losses which are distressing and disruptive for the people being made redundant. The State agencies continue to work closely with the companies involved, to address the difficulties arising for them and to assist the people being made redundant in finding other employment opportunities.

Arising from the downturn in the global economy, especially in the US economy, we have seen a slowdown in inward investment activity since early this year, especially in the ICT sector. The tragic events of 11 September exacerbated the situation, especially in areas such as aerospace and tourism services.

However, while it must be said that there seems to be an unusual degree of investor uncertainty in the US just now, the situation is not entirely bleak. The IDA's pipeline of projects under discussion is healthier than circumstances might suggest with a number of significant new projects or expansions from clients already located here. There are good prospects of winning valuable new investments over the next six to 12 months. Also, major investments are proceeding, such as the Wyeth Medica biopharma plant, costing over $1 billion, in Grange Castle, Clondalkin, County Dublin, and agencies are pressing ahead with plans for major business and technology parks in regional centres such as Let terkenny, Sligo, Dundalk, Drogheda, Athlone and Waterford, as well as for further advance factories-offices in other centres.

It is very difficult to forecast at this stage what the effect of the current downturn may be on employment numbers in the next year. We know there are more jobs at risk than normal and this will continue until there are clear signs of a sustained recovered in the US and globally. Nevertheless, employment growth continues in some companies and sectors.

In recent months, the State development agencies have intensified their relationships with client companies in a concerted effort to find solutions to problems encountered.

It is important to bear in mind that recent closures or layoffs are not, for the most part, attributable to problems inherent in the Irish economy. Key world class ICT companies with significant activities here have assured us of their confidence in the country and its positive business environment. If we can maintain Ireland's competitiveness and continue to address issues such as skills and infrastructure, we will be well positioned not only to take advantage of the recovery in the global economy when it occurs but also to win a disproportionate share of the next wave of knowledge-intensive investments.