Written Answers. - Job Losses.
Denis Naughten
Question:
195
Mr. Naughten
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the action she intends to take to address the job losses in the town of Ballinasloe, County Galway; and if she will make a statement on the matter.
[1961/03]
The announcement by Square D on 15 January 2003 that it is to close its Ballinasloe plant by the end of June 2003 with the loss of all 387 jobs on its books cannot be described as anything other than a body blow for the workforce, their families and the local community. It is a priority for me to ensure that everything possible will be done to find new investment and new sources of employment for Ballinasloe, although I know that this will not be an easy task.
Established in 1971, the Ballinasloe facility manufactures the Square D brand of electrical circuit breakers which are sold primarily within north American markets. The closure decision, according to the company, reflects significant change in market demand for circuit breakers resulting in over-capacity in manufacturing operations at the group's north American division. A number of the group's north American manufacturing operations have already been moved to Mexico.
In an effort to lessen the impact of the closure, the north American division of the parent company, Schneider Electric, has stated that it is committed to working with IDA Ireland and the Irish authorities to find manufacturing firms that are interested in the Ballinasloe plant and may be in a position to offer suitable job opportunities to a well-qualified work force; to assisting Ballinasloe employees in obtaining new jobs; to providing outplacement assistance and job search training; to providing counsel and information to employees on company-paid benefits; and to providing five weeks severance pay per year of service, in addition to statutory redundancy entitlement.
The agencies under the remit of my Department are also working to lessen the impact of the closure. IDA has been aware of the difficult market conditions being experienced by the company for some time and began to intensify discussions late in 2002 when it became apparent that the future of the company was in question. IDA has already brought one potential client to view the plant and will continue to explore other possibilities as well as seeking out other potential clients.
FÁS, the State training agency, has already been in contact with the company and is to meet the company management with a view to offering its services to all staff. FÁS will register people as job seekers, provide career information and guidance and carry out a training needs analysis. It will provide a range of training courses which will be designed to meet the skill needs of individuals to enhance their employability while also providing the area with a skilled workforce.
Enterprise Ireland began discussions last week with the company to discuss supports for any possible start-ups by local senior management.
The industrial development agencies were working hard in Ballinasloe prior to the closure announcement. IDA was already active in the promotion of Ballinasloe for new inward investment, with the key focus being on providing international standard property solutions in the town to attract new companies. In light of the closure of Square D, IDA has now finalised plans and a planning application has been lodged with Galway County Council for a new 27,000 square foot technology unit on the IDA's 30 acre business park in Ballinasloe. When planning permission is granted, construction will be undertaken by private developers and IDA has already begun to actively market this facility together with promoting the Square D facility in the town.
Enterprise Ireland has approved funding of €120,000 for the work in progress at the community owned enterprise centre and it is understood that there is still some space available for potential projects.
The Galway County and City Enterprise Board has been actively involved in industrial-community development in Ballinasloe. During 2002 considerable progress was made with the area community development group, with €63,000 allocated to the small business development park which now houses four start-up businesses. Over the last three years Ballinasloe has received some €350,000 in support from the county enterprise board.
At Galway-Mayo Institute of Technology and NUI, Galway there are enterprise platform programmes with places available for staff of Square D who might have an idea to start up their own manufacturing-international traded services businesses. This programme affords the opportunity to develop business plans and to carry out market research for ideas before actually starting a business. There is also a similar new programme about to commence in the Athlone Institute of Technology.
In regard to development in the Galway area, it is significant that five new IDA investment supported proposals announced in 2002 will ultimately provide almost 2,200 new high quality jobs in the healthcare and internationally traded services sector. The companies concerned are Abbott, Churchill, Medtronic, Micros and Net IQ.
Recognising that urban environments are generally more attractive for mobile investments, IDA has adopted a target of having 50% of all new greenfield investment located in the Objective One region. IDA Ireland has sought to encourage investments in defined sectors to specific regions, which seeks to build on the relative advantages in different towns. An essential part of this endeavour has been the refining of IDA property offerings and this is a key tool in winning investments. IDA Ireland has and is continuing to design and develop high quality business parks, fully serviced up to international standards.
In Tuam, the IDA has acquired 27 acres and are currently carrying out site development works after which it intends to have a high quality facility provided by the private sector. At Loughrea, the IDA is upgrading land to make it more marketable. In Gort, the IDA has a 20,000 square foot high quality building which it is actively promoting for suitable projects.
While the IDA is convinced that it has excellent quality property solutions in the larger towns in the county, it is also cognisant of the slower inward investment climate that has prevailed for the past two years. This also has had an impact on jobs in existing client companies. Much pro gress has been recorded over the past several years in many of the companies that have been attracted here in the shift up the value chain in many of the companies and in many aspects of our competitiveness. Costs are a big issue for all companies and those costs have moved out of line with our competitors, impacting heavily on lower technology businesses. Hence, the IDA has a major emphasis on the healthcare and internationally traded services sectors. There is now a well developed healthcare cluster in the west, particularly in Galway, which includes companies like Transition Optical in Tuam, StarGuide in Oranmore, Medtronic, Boston Scientific and Abbott in Galway City.
Working with the third level institutes in the area, Enterprise Ireland has approved €2.6 million for the development of campus incubator units at Galway-Mayo Institute of Technology in Galway and €695,000 for units in NUI, Galway. A sum of €2.54 million has also been approved for the development of units at Athlone Institute of Technology. These incubation centres support the development and expansion of campus company activity, encourage and support the commercialisation of research and development carried out in the institutes of technology and embed the institutes of technology as major supports for the development of high-tech companies in the regions.
All of the State agencies under the auspices of my Department are working, and will continue to work, closely in the interests of developing Ballinasloe. I have also met with many of the Ballinasloe interest groups and hope to do so again in the near future to reassure them of my ongoing commitment and that I will continue to work on their behalf.
