Dáil Éireann debate -
Wednesday, 29 Jan 2003

Vol. 560 No. 1

Written Answers. - Job Losses.

David Stanton

Question:

199 Mr. Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures she intends to take, or has taken, to assist the former employees of Artesyn Technology in Youghal, County Cork to retain, reskill and to gain employment; the measures the agencies under her aegis have taken or intend to take to attract new industry to Youghal and east Cork generally in view of the large number of job losses in the region in recent times; and if she will make a statement on the matter. [2100/03]

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

The announcement of job losses by Artesyn Technologies at its facility in Youghal, County Cork was very disappointing. The Youghal operation supplies power conversion products principally to the telecoms industry which is continuing to experience very difficult market conditions. The company has recently closed other operations around the world as part of its global restructuring and unfortunately the job losses announced for the Youghal facility are a continuation of that process.

As a result of the announcement, approximately 160 jobs will be lost at the Artesyn facility with the job losses taking place on a phased basis which is expected to be completed by September 2003.

While these job losses are regrettable, it should be noted that the high value engineering and customer support operation, which employs approximately 80 people, will be retained in Youghal to support product design and sales.

IDA Ireland has advised that it met with the company to discuss the situation, particularly with regard to the future utilisation of the building which is to be vacated by the company. The IDA is actively working with the company to prepare a profile of the building which will assist in the future marketing of the property to potential investors.

The IDA and Enterprise Ireland have also advised that they met with the Youghal Chamber of Commerce to discuss the impact of the job losses and are currently working with the chamber in the preparation of a profile of the area. This profile will then become an intrinsic part of the IDA Ireland marketing material of the south west region.

IDA Ireland will continue to promote Youghal to potential investors and every effort will be made to secure a replacement industry for the Youghal area so that the employees losing their jobs will be in a position to find new employment in the area as quickly as possible.

FÁS, the national training authority, has already been in contact with company management and offered to put its full range of support services at the disposal of those being made redundant. These supports include skills analysis, jobs placement, guidance and counselling interviews, identification of training needs and suitable training courses.

Enterprise Ireland and the South Cork Enterprise Board will meet with all employees of Artesyn interested in starting their own business to outline the range of supports available from both organisations.

The State development agencies will continue to strongly promote east Cork in the attraction of inward investment and the development and expansion of indigenous industry, including small industry. The Government is committed to ensuring the most equitable regional distribution of job opportunities and I have impressed on the development agencies the importance of making even greater efforts in this field.

While the east Cork area has experienced a number of job losses in recent times, it has also been extremely successful in terms of attracting new overseas investments to the area with 46% of all job announcements in the south west region in 2002 being located in east Cork. This will result in the creation of 610 new jobs in east Cork in the years ahead.

Currently, the entire east Cork area is proving to be a very attractive location for foreign direct investment, particularly in the healthcare, pharmaceutical and internationally traded services sectors and IDA Ireland is hopeful that this will result in further investments in the year ahead.