Dáil Éireann debate -
Wednesday, 17 Apr 2002

Vol. 552 No. 1

Adjournment Debate. - Job Losses.

Cecilia Keaveney

Where will one get the best trained, best re-trained, best skilled and best re-skilled workers in the country? Where will one get the most committed employees with a work ethic second to none? Those of whom I speak are the labour pool in Inishowen, County Donegal. It was created over the years by the collapse of the textile industry and added to in the past week by the loss of yet another 18 jobs in Clubman Omega, Buncrana and the move to a three day week in that business. In extending my sympathy to those involved, I reiterate my condemnation of the lack of adequate response from the job creation agencies to this crisis. I demand answers.

Where is the intervention for the existing textile industry to help with its markets? It was available for Moville Shirts but was it there for Clubman Omega? Is it there for Fruit of the Loom? Where is the intervention for the small number of non-textile factories that are currently hobbling along and not delivering the jobs complement they promised in their job announcements? Why do workers feel threatened with further job losses if they look for the agreed pay increases due to them in a number of the factories? Why are many employees falling between not getting enough hours to make part-time work credible or full-time work possible and, therefore, are constantly fighting a battle for their social welfare entitlements?

Where is the help to create jobs for the indigenous industries or to attract new companies? Why according to anecdotal evidence, given our Objective One status, are we deemed by businesses who talk to IDA and Enterprise Ireland uncompetitive compared to other parts of the country and to the IDB? Why do people tell me that the State agencies are actively discouraging them from setting up in Inishowen and making the requirements impossible to attain? Is this true?

This is the eve of the turning of the sod for enterprise units in my home town of Moville. The IDA spent almost seven years selling the land to Donegal County Council, despite many interventions by me at every level of the organisation under the current and previous chief executives and even, as a last resort, making representations to the Taoiseach and the Tánaiste. How many business ideas can wait seven years to get started? The IDA had the 11 acres and an advance factory in the town for 30 years and brought nothing to Moville. Locals, however, were able to create 100 jobs immediately, despite the IDA's efforts to delay this project, and in so doing put at risk the funding secured by the local community initiative. Shame on all those who were involved in blocking this project.

Given this example of a project being stymied, what confidence can there be that this will not happen to the community development project in Carndonagh? How can one face towns such as Buncrana, which are reliant not on their own endeavours but on the enthusiasm of the IDA and Enterprise Ireland to do their job, and tell them the IDA is busy marketing the empty factories that are omnipresent? How can we believe that our area is being considered when every day we hear good news of job creation throughout the country but none for us? I want assurances in relation to both Carndonagh and Buncrana.

This Government has delivered to Inishowen. It has delivered Objective One status, the peace process, £7 million for access to Derry airport, and improvements to our basic infrastructure in terms of technology, ports and roads. The Government has not let us down. It is, therefore, galling to watch those in employment being exploited and females in the over 40 age bracket without employment being given no hope. The job creation agencies have much to answer for and I want those answers.

For too long Donegal has played the peripheral card. It is not inaccessible. There is much talk about cross-Border co-operation between the IDA and the IDB but the people of Inishowen must see jobs delivered and the high hurdles currently put up against industries seeking to come to the area must be taken down. I demand accountability from the heads of the agencies who think we are not aware of and are not watching what is happening. We are aware and we will accept it no longer. It is time for action.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

I thank Deputy Keaveney for raising this matter on the Adjournment. The loss of further jobs in the textile sector is to be regretted as, indeed, is the loss of jobs in any other sector. The textile sector, in particular, continues to see significant competitive pressure, forcing companies to respond to ensure that they can survive and be competitive.

Unfortunately, there is still considerable fallout from the US economic slowdown and the reason for the current job losses is that one of the company's biggest customers has cancelled its orders. This customer represented over 30% of the company's total business. The company has been working hard to develop new customers but in order to maintain the competitiveness of the total business it has had to make 18 people redundant and introduce a three day week for May, June and July, a traditionally quieter period. The redundancies are being made in Buncrana but the company's operation in Carndonagh will not be affected. The management of Clubman are confident of the long-term future of the company and that the remaining jobs are safe as long as current plans and activities continue to be successful. A full five-day week is expected to be restored in August.

A county strategy for the future of County Donegal was launched this month. The County Development Board, through the establishment of a jobs executive forum, is continuing the work of the Donegal Employment Initiative Task Force, which was set up following the job losses in Fruit of the Loom and with which I was pleased to work and co-operate with the Tánaiste and Minister for Enterprise, Trade and Employment, the Department and the State agencies.

The focus is now on attracting higher value added companies compared to the traditional sectors such as agriculture and textiles. In this regard, Donegal has benefited from the attraction of Pacificare Health Systems, Prumerica, Intervention Technologies, Kirchhoff and the Cladagh Group. I was delighted to be involved, both internationally and nationally, with some of these decisions and in some of the negotiations.

One of the problems Donegal has encountered over the years in trying to attract investment has been access to the county. I am pleased there are now public service order flights from Dublin to Donegal and Dublin to Derry. There has been significant recent investment in both Donegal airport and Derry airport. I commend Deputy Keaveney on the representations she has made and the success that resulted from her personal efforts in this regard. Road access is being tackled and almost €160 million has been committed for national primary and secondary roads in Donegal up to 2003.

Telecommunications is also a vital area, particularly looking to the future. Approval has been given to enhance the broadband capacity of County Donegal. Donegal County Council, with the assistance of ERNACT, made a submission to the Department of Public Enterprise to provide broadband services to Letterkenny, and 90% of the funding has been approved. Funding was also approved for Údarás na Gaeltachta to develop broadband capacity in Gweedore, agus molaim na heachtairí sin freisin. In total, high speed Internet access is being given to 67 towns around the country, including, in Donegal, Letterkenny, Buncrana, Ballyshannon and Donegal town.

As regards the site in Moville, the sale of Moville formed part of a larger transaction between IDA Ireland and Donegal County Council. Indeed, IDA Ireland and the county council have worked closely over a number of years in facilitating developments in Donegal which involved exchanges of land between the two of them. Certain legalities, at times, held up proceedings. However, I understand that negotiations in relation to Moville have only been completed within the past two years.

Over the past two years IDA Ireland has radically changed its strategy with a view to achieving a better regional distribution of jobs. In this context, IDA Ireland strategies for Donegal have been tailored to meet the specific needs of the area. Its regional office was re-established in Letterkenny. Furthermore, IDA Ireland is in the process of relocating a number of key operating units into the north-west region with engineering and consumer products, with a section of international services relocating to Sligo. This is designed to stimulate and support growth from within the north-west region.

IDA Ireland and IDB in Northern Ireland have put in place a joint marketing programme for the north-west region, including Donegal and Derry. I am pleased with the co-operation of both of these organisations and their efforts North and South, particularly in the north-west region. I am confident that the strategies being pursued, not alone by IDA Ireland but also Enterprise Ireland, the County Development Board and the County Enterprise Board, will result in the creation of good and enduring employment for Donegal.

The Government's commitment to Donegal has been constant and intense. Since the setting up of the Donegal task force, Donegal has seen a number of special initiatives and considerable investment in a range of areas from infrastructure to enterprise. I look forward to visiting Donegal tomorrow and to turning the sod for the business park in Moville. This latest initiative is a very good example of collaboration between the State development agencies and the local authority in the interests of jobs and local development.

Again I congratulate the Deputy. I assure her and the people of Donegal that the Government and State agencies will leave no stone unturned to ensure that we maximise the opportunities for the skilled people of County Donegal, who have given great service over the years to the textile industry and other industries.