The Minister for Enterprise, Trade and Employment wishes to assure the Deputy that the Government is committed to ensuring the most equitable regional distribution of job opportunities and she has impressed on the industrial development agencies – IDA Ireland and Enterprise Ireland – the crucial importance of making even greater efforts to provide employment throughout the country. Both IDA Ireland and Enterprise Ireland are structured on a regional basis so as to facilitate a more balanced regional distribution of jobs.
On 21 June 2002, Sara Lee announced that it plans to restructure its operations in Killarney. These changes will result in a workforce reduction of 104 employees, as Deputy Moynihan-Cronin has said. The restructured Killarney operation will employ 82 people and cater to the high value-added market segment which the company believes can be supplied on a profitable basis from Ireland. The company has advised that the redundancies are necessary as part of a restructuring plan which it is hoped will return it to profitability. The lay-offs will take place immediately.
The company stated that the market for seamless underwear has changed dramatically in the last 18 months whereby it has become far easier for low cost countries to compete. This shift in the market makes it increasingly difficult for the Killarney operation to remain competitive. The company's forecast for the year ahead predict that there is no foreseeable pick-up in the market for the basic low cost product which has been in decline since last year.
Commencing this week the company will hold meetings with SIPTU and other groups to agree the details and timing for these changes. Sara Lee will be providing termination packages to those affected and will also assist with job placement.
The Minister expressed her disappointment last Friday, 21 June, at the announcement of the job losses at the plant and said the most immediate task was to ensure the maximum personal support for those affected by the announcment. FÁS contacted the company last Friday when the announcement was made. When the timing and profile of the job losses are finalised the agency will offer its full range of services to those affected.
ALPS Electric (Ireland) Limited has two plants in the area, one in Killarney and the other in Millstreet, 20 miles away. The company has decided to consolidate its two plants in Ireland into one location, moving its Killarney facility to Millstreet. The consolidation of the plants is pro ceeding, is ahead of schedule and is expected to be complete by the end of July 2002. To date, 30 staff have transferred from the Killarney plant to Millstreet and the remaining staff will transfer at the end of July when the company returns from its summer shut-down. To date, only five staff have left the company since the consolidation announcement. The company expects to achieve significant gains in efficiency and productivity once the consolidation is complete and has indicated that it plans to grow its overall numbers once it consolidates into one location.
When it becomes vacant IDA Ireland will actively market the Killarney premises to other suitable inward investment projects. The recent thrust of IDA Ireland has been towards regional and sectoral development and to consolidate the existing base of overseas companies. The agency has been encouraging new prospective investors involved in higher value industries to locate outside the major cities and, in particular, to locations that have not seen the emergence of modern industries. Many issues influence the locations chosen by new investors, but competitiveness, the quality of access and infrastructure and the availability of skilled workers will be crucial factors in achieving better regional development. The agency's strategy is currently concentrating its efforts to attract projects to the larger provincial towns and also addresses the need to increase the value and sustainability of overseas companies already established or about to establish in Ireland.
IDA Ireland is currently actively engaged in promoting south County Kerry as a suitable location for inward investment. Employment in IDA Ireland assisted companies has risen steadily over recent years from 1,023 in 1996 to 1,771 at the end of 2001, an increase of 73% over the past five years. This includes a net increase of 166 jobs during 2001, which has been generally acknowledged as a difficult year for the Irish and global economies.
Employment in Enterprise Ireland client companies in south Kerry has also risen steadily over recent years from 1,004 in 1996 to 1,989 at the end of 2001, an increase of 98% over five years. This includes a total of 108 new jobs created during 2001. These gains have been spread over a number of sectors, including international services, food and industrial products. A number of projects have been approved for the south Kerry region during the first quarter of 2002, which will result in a number of new jobs being created in the coming years. This should confirm to the Deputy that much has been happening in south Kerry in the last few years.
A number of Enterprise Ireland companies are operating in the Killarney region, including the Monex Group, Killarney Milk Products Limited, Killarney Plastics Limited and a number of other smaller companies. In addition, FEXCO employs over 750 people throughout the south Kerry region. There are no major job losses anticipated in Enterprise Ireland client companies at this time in the south Kerry area.
The provision of quality office and industrial premises on high quality business parks in key centres is being undertaken by IDA Ireland working in partnership with local authorities and the private sector. This is recognised as being essential to attracting new greenfield investment to the regions.
In this regard, IDA Ireland completed an upgrading project for the landscaping in the agency's Killarney business park in late 2000. Killarney Plastics Limited has developed a 1.3 acre site and constructed a 35,000 sq. ft. factory unit and Killarney Advance Factory Limited, a company approved under the BES scheme, has begun site development work for the construction of a 20,000 sq. ft. commercial building on a site still owned by IDA Ireland.
The Minister is confident that the measures outlined above, which are currently being adopted by IDA Ireland and Enterprise Ireland, as well as the continuing commitment of the Government to regional development, will bring further positive results to Killarney. She will continue, along with the industrial development agencies, to promote Ireland and its regions for suitable industrial development projects.