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Dáil Éireann debate -
Wednesday, 16 Oct 2002

Vol. 555 No. 3

Adjournment Debate. - Job Losses.

I am disturbed by the reports of job losses at the Oasis factory in Ballina. At one time the factory employed 300 people and it now employs only 120. A further 46 employees lost their jobs today. This problem, which is a symptom of what is happening in north Mayo, needs an urgent solution.

I call on the Government to take action to save the jobs at the factory. A previous task force was successful to a degree but it did not provide the complete answer because Government commitment to the area does not exist. I ask for the setting up of a task force which would include Enterprise Ireland, the IDA, Ballina Chamber of Commerce, Mayo County Council, Ballina Urban District Council, Forbairt, Teagasc and the local development groups.

I particularly seek a Government commitment to Mayo. The root cause of the problem of north Mayo is the lack of essential infrastructure. While funds have been available they have not come to the west and there is an onus on the Government to correct this imbalance.

We matter in north Mayo. I was raised in the area and, like people everywhere, we want to live and work in our own area and to keep our children there. We cannot do this in north Mayo. Half of our graduates must go to Dublin to get their first job. Dublin has enough problems with the number of people who are already there without attracting more people to the capital.

The answer is regional development. The Government should practise what it preaches. It preaches regional development but does not practise it. The roads in the west are worthy of the Third World. The Western Development Commission has charged that the national development plan does not address this situation. The roads are getting worse and not better. The telecommunications infrastructure is not satisfactory. Our young people go to Dublin in droves every week to get jobs which they should be able to find locally.

The Oasis factory is closing because the jobs it provides can be too easily transferred to cheaper economies. Because we do not have the telecommunications and roads infrastructure we cannot provide quality jobs to allow our young people to stay in their own area. The west of Ireland, and north Mayo in particular, cannot compete with other areas of the EU in attracting industry by providing a proper climate for development.

Objective One status has not meant anything to the people of the area. What good is a grant, no matter how large, if one cannot get it? We have had the wrong kind of consistency – consistent neglect – from successive Governments. We want a commitment to infrastructure. People in north Mayo, particularly young people, are disillusioned, and one cannot blame them. Since 1997, about 600 jobs have been lost between Heneghans and Asahi. What will happen in 2004 when Bellacorick closes? That will be another 200 jobs lost.

It is not surprising that people feel hopeless and can see no future. Employment in Oasis is down from 300 to 74. It is not sufficient to respond with lip-service and any type of task force. A task force that can address the problem, that can put pressure on Government to do what is required and that can ensure regional development takes place is necessary. It must also ensure structural funds are allocated to this Objective One area. People in the voluntary sector fought hard for that status and it is regrettable to realise it is useless.

There are many educated young people in the area. They cannot get jobs due to the failure of successive Governments to support them.

I thank the Deputy for raising this matter on the Adjournment. The Oasis facility in Ballina, part of Oasis Corporation of Ohio, employs 135 permanent staff. It was established in 1993 to manufacture water coolers for the European and Middle Eastern market, which now constitutes 90% of its business. In 1994, it commenced production of dehumidifiers, which now accounts for the balance of output. The company is the international market leader in water coolers for commercial and domestic use. Annual sales are in the region of €25 million. The company undertook expansions in 1995 and 1999. It is understood that the company is reviewing its operations due to current market circumstances and IDA Ireland is in contact with the company in relation to this review.

In relation to the Mayo area, the IDA has helped secure a significant number of job creation projects in recent years. Coca Cola has completed the construction and commissioning of its facility in Ballina; this project already employs 236 people. Lionbridge Technologies established its European software test centre in Ballina and currently employs 63 people. Dekko Heating Technologies, has established its European manufacturing operation in Ballyhaunis and current employment is 88 people. Dalkia has established operations in Ballina to provide maintenance and facilities management services to the Coca Cola facility. It is expected that this will lead to the creation of 50 new technical jobs. Fort Wayne Metals, a provider of precision wire products for the medical industry announced a new 80-job project for Castlebar in February 2002.

DeCare Operations Ireland, established a claims processing centre in Claremorris in 1999 to create 150 jobs involved in processing dental insurance claims and the company now employs 120 people. In November 2001, the Tánaiste announced a significant expansion of the facility in Mayo with 150 jobs being announced for a new facility in Crossmolina and a further 60 jobs at Claremorris. Schutz has established an industrial packaging manufacturing operation in part of the former Asahi factory at Killala to supply the needs of Coca Cola and other customers in Ireland. Currently, 25 people are employed there.

The IDA is in the final stages of acquiring a 25 acre site at Ballina and 37 acres at Westport. Development of these sites is expected to get under way in due course. Employment in IDA-assisted companies in Mayo has increased from 2,855 in 1996 to 3,742 in 2001. Enterprise Ireland has had considerable success in the promotion of indigenous business in Mayo in recent years. Between 1996 and 2001, employment in Enterprise Ireland companies has grown from 2,861 to 3,103. There are now ten community enterprise centres approved for support by Enterprise Ireland in the county. In addition, it has identified Castlebar as one of the strategic locations for the development of a webworks with the view to generating local high technology projects. This is building on Castlebar's reputation as an information age town.

Enterprise Ireland has been working with the local authority with a view to the further development of broadband services in the county. Ballina and Kiltimagh have been approved for the construction of metro rings and that was announced on 8 March 2002 by the then Minister for Public Enterprise, Senator Mary O'Rourke. I am confident that the existing co-operative framework involving the development agencies and local parties can be used effectively and efficiently to deal with job creation in the region. Accordingly, the re-establishment of the North Mayo Task Force would not achieve this objective with any greater effect.

The State development agencies are fully committed to the promotion of employment creation in north Mayo. The Government is committed to ensuring the most equitable regional distribution of job opportunities and the importance of making even greater efforts in this field has been impressed on the development agencies. The agencies work closely with each other and with the development bodies in the area, including the Mayo County Development Board and Mayo County Council, as well as other local bodies and interests in facilitating an integrated approach to enterprise development. Given the representation of the State agencies and the county council on the Mayo County Development Board, it is considered that, should any further co-ordination be necessary, the county development board would be the most appropriate forum to fulfil this function.

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