Dáil Éireann debate -
Wednesday, 9 Oct 2002

Vol. 554 No. 5

Written Answers. - Job Losses.

Jackie Healy-Rae

Question:

162 Mr. Healy-Rae asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the negative impact that the announcement of the reduction of 104 employees in a company (details supplied) will have on the Killarney area; if she will visit this area to witness first hand the situation for the employees; the efforts she is making to fast track a replacement industry; and if she will make a statement on the matter. [15388/02]

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

I regret the announcement by the company that 104 jobs are to be lost due to restructuring of its operations.

This is due to the fact that the market for its product 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 forecasts 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. Unfortunately, under these circumstances, the company cannot continue to sustain current employment levels.

IDA Ireland has advised that the restructured operation will now cater for the high value added market segment, which the company believes can be supplied on a profitable basis from Ireland. FÁS contacted the company on the day the announcement of redundancies was made. The full range of FÁS support services was offered to the employees. Following liaison between the FÁS employment services officer and the company, I understand that 58 of the staff have now registered with FÁS, of whom 33 are seeking training courses.

IDA Ireland is currently actively engaged in marketing Killarney as a suitable location for potential inward investment. Employment in IDA assisted companies in south Kerry has risen from 1,023 in 1996 to 1,771 in 2001. I understand that a local group of entrepreneurs will provide a new commercial building of 20,000 sq. ft. on a site owned by IDA Ireland in Killarney. The site development works have already commenced and the building is expected to be available by mid 2003. In addition, IDA Ireland has advised that two further premises are available for promotion in Killarney, that is, the Alps facility and one unit of Transmould's two facilities. Furthermore, Enterprise Ireland, under the community enterprise centre programme, 2002 has recently approved a grant of €183,487 to the Killarney Technology Innovation Centre. This will facilitate a major expansion of the centre. Employment in Enterprise Ireland assisted companies has risen from 1,004 in 1996 to 1,989 in 2001.

I regret that, due to a heavy schedule of official commitments, I am not in a position to visit Killarney at this time.