Dáil Éireann debate -
Tuesday, 25 Mar 2003

Vol. 563 No. 4

Written Answers - Job Protection.

Phil Hogan

Question:

130 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the action being taken to protect employment in vulnerable industries; and the new initiatives under consideration particularly relating to companies (details supplied). [8182/03]

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

IDA Ireland continually monitors the position of its client firms in both the manufacturing and services sectors, to identify both opportunities and threats to employment. The reasons for such relocation are many, varied and complex and, on balance, Ireland continues to benefit from movement due to the underlying strength of our economy despite the recent world downturn. Companies cannot be competitive in all types of industrial activity and the agencies continue to seek to secure worthwhile employment in areas where Ireland has a competitive advantage.

The Government's strategy in facing the challenge of job losses to lower cost economies is to focus efforts on an embedding programme for existing overseas owned companies in this country. Through development programmes which IDA Ireland operates, it is aimed to have capable companies moving systematically up the value chain – from being basically-mandated subsidiary operations to being strategically-independent operations within their corporate structures worldwide. In order to maximize the potential of the existing base of overseas companies and to minimize job losses, IDA Ireland is encouraging them to add strategic functions including research and development, technical support, software development, e-commerce, logistics and shared services.

In relation to the recent closure of Square D in Ballinasloe, the parent company – Schneider Electric – has stated that it is committed to working with IDA Ireland to find potential clients for the Ballinasloe plant and to assist employees to obtain new jobs and also to provide outplacement assistance and job search training. The agencies under the remit of my Department are also working assiduously to lessen the impact of the closure. IDA has already brought two clients to view the plant and will continue to explore other possibilities as well as seeking out other potential clients. Enterprise Ireland has also begun discussions with the company to offer support for any possible start-ups by local senior management.

IDA Ireland is committed to the development of Ballinasloe and is actively promoting the town for new foreign investment. That agency acquired 35 acres of land at Creagh on the east side of Ballinasloe for development as a new business park. Development work has been completed on the park and IDA has co-operated with a local developer to construct a 27,000 square foot advance unit there. IDA has been successful in attracting Valois, a French engineering company to establish a manufacturing operation in this new unit. The company currently employs about 20 people and will build up to 60 staff. Application for planning permission has been lodged for a second business and technology building in the park.

Enterprise Ireland has approved funding of €120,000 for the work in progress at the community-owned enterprise centre in Ballinasloe and it is understood that there is still some space available for potential projects.

The Galway county and city enterprise boards have been actively involved in industrial and community development in Ballinasloe. During 2002, considerable progress was made with the area community development group which now houses four start-up businesses. Following the recent job losses in Pall Netherlands in Tipperary town, I am heartened that the remaining 75 people, involved in the manufacture of industrial filters, will continue in employment in Tipperary. There are other positive developments in South Tipperary – the ALZA Corporation is currently building a 60,000 square foot facility in the IDA business park in Cashel. Scheduled to open later this year, the facility will manufacture patch technology products. Current employment is 22 but this is expected to grow to 100 employees at production stage. Total investment in the project is expected to be €162 million.

South Tipperary has a good range of foreign direct investment companies in the growing pharmaceutical and healthcare sectors. Companies such as Guidant, Merck, Sharp & Dohme and Clonmel Healthcare in Clonmel and now ALZA Corporation in Cashel provide a solid base of employment. These are complemented by another significant employer – SRAM Ireland in Carrick-on Suir.

IDA Ireland will continue to promote Tipperary to potential investors, and the agency will also develop its business park in Tipperary town as an additional attraction. Planning permission has recently been secured to carry out an upgrade of the park by improving the entrance road and landscaping the site. An advance technology building of 16,000 square feet will be built on the park this year. Additionally in the town, the former Namco building of 60,000 square feet is available and is being actively marketed by the agency. I assure the Deputy that the State agencies under the auspices of my Department will continue to strongly promote the regions in the attraction of inward investment and the development and expansion of indigenous industry, including small industry.