Adjournment Debate.

Salmon Fisheries.

Mr. O’Shea

I welcome the opportunity to address an important issue which is having a huge impact on the lives of driftnet fishermen in County Waterford. The compensation currently being offered to salmon fishermen in the county is a joke. The driftnet ban is causing severe injustice and this must not be repeated when the time comes to allocate funds to enable fishermen to establish alternative enterprises. Waterford fishermen make a very strong case that the hardship fund payments should be the same for all licences surrendered with account taken of the years of service of the fisherman surrendering the licence, along the lines of redundancy payments in industry.

The compensation scheme seriously discriminates against Waterford salmon fishermen and their colleagues in the surrounding areas of the south-east region. In the Waterford district of the southern fisheries region, the number of driftnet licences in 2005 was 171, with an average catch per licence of 55 salmon. In the Lismore district, the number with driftnet licences in the same year was 81 and the average catch was 125 salmon. In contrast, the average catches per licence in Kerry, Mayo and Sligo were 562, 511 and 478, respectively.

As the migratory path of salmon comes down the western coast, around the south-west corner of Ireland and along the south coast, the salmon returning to rivers in Waterford run the hazard of the driftnet fisheries from County Donegal before returning to their rivers of origin. In addition, even though fishermen were given an undertaking that the information they provided regarding their catches to facilitate the quota and tagging system would not be used against them, this is not the case.

Driftnet salmon fishermen are being offered €2,020 for voluntarily surrendering their licences, with a payment from the €25 million hardship fund based on six times their annual catch of salmon for the five years to 2005, multiplied by €23. They must then verifiably decommission their nets and their boat, technically known as fixed engines, to the satisfaction of the competent authority. Given that a basic set of nets and fittings costs in the region of €2,500, the compensation for the voluntary surrender of a driftnet salmon fishing licence is less than the value of the equipment which must be decommissioned. Surely the fishermen must be at least compensated for verifiably decommissioning their nets and boats. The hardship fund payments should be the same for each licence surrendered with the length of fishing service considered.

I am calling for the entire question of compensation to be revisited and for realistic payments for those in the Waterford constituency who are being forced to give up an income and a traditional way of life for a pittance. I am also determined that a fair share of the €5 million fund for the development of new enterprises by the salmon fishermen will go to those who are badly affected by the ban in Waterford and not to those who are part of the strong lobby in the west or to large processing co-operatives which have access to other funding through Bord Iascaigh Mhara or Údarás na Gaeltachta.

The position of the Suir and Nore snap net fishermen who hold 132 licences should also be reviewed. These fishermen believe the cessation of this ancient method of fishing will cause a deterioration in their beats and that a heritage type of licence should be maintained to assist in stock assessments, counting fish and other research assignments. The salmon fishermen have repeatedly made the point that there are no fish counters in the Barrow, Nore, Suir or Munster Blackwater. Such technology is urgently needed to compile exact numbers of fish returning to these rivers because, without counters, it is impossible to know if and when the conservation limit is reached.

The fishermen believe that for the present, the sale of rod-caught salmon should not be re-introduced and that the issue should be revisited once all rivers meet their conservation limit.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. M. Ahern)

The Minister of State at the Department of Communications, Marine and Natural Resources, Deputy Browne, regrets he cannot be in the House to deal with this matter. I believe he is meeting fishermen.

It is the Government's strongly held view that our wild salmon stock is a national asset which must be conserved and protected, as well as being exploited as a resource by us all on a sustainable basis. If we do not take action now, the relentless decline in stocks will continue, leading to the inevitable demise of the wild salmon we value as a cultural, recreational and economic resource. International best practice for the management of North Atlantic salmon requires the adoption of the precautionary approach and the cessation of indiscriminate mixed stock fisheries. As Members are aware, the Government's primary motivation in its decision to align future management of the wild salmon fishery with the scientific advice and introduce the appropriate regulations to cease mixed stock fishing is the conservation of the wild salmon species, which has long been regarded as one of Ireland's most prized fish. It is vital to afford every protection to the remaining salmon stocks and to clearly prioritise conservation over catch. The current imperative is to maintain stocks above conservation limits or, at the very least, halt the observed decline.

In future, the wild salmon fishery will be managed on the basis of individual river stocks. Harvesting of salmon will be restricted to rivers which have been identified as meeting their conservation limit in compliance with Council Directive 92/43/EEC on the conservation of natural habitats and wild flora and fauna, the habitats directive.

The hardship fund adopted by the Government is aimed at alleviating hardship related to loss of income derived from salmon harvesting in recent years caused by the cessation of mixed stock fishing in the interest of conservation. The approach adopted to determining the hardship payments is based on the recommendations of an independent group which the Minister of State, Deputy Browne, appointed to examine the implications of alignment with the scientific advice for the commercial salmon fishing sector in 2007 and beyond. In its report, the group noted that the level of hardship likely to be experienced would vary both in extent and scale. Taking all factors into account and noting in particular there is no legal obligation on the State to provide compensation in a situation where it is imposing management measures that are fundamentally in the public good, it proposed to provide a measure of relief to each individual in line with the level of hardship likely to be experienced and recommended that relief should be based on the recent catch history of the individual licence holder from 2001 to 2005.

The Government accepted the recommendation of the independent group and has determined that the level of payment should be based on the average net income per salmon in the commercial fishery for the five years from 2001 to 2005. This income calculation was based by the group on the average price obtained per fish each year less the costs incurred by fishermen. Each individual licence holder who applies to the fund is set to receive six times his or her average catch multiplied by the average net income per salmon. An additional payment equal to six times the current licence fee will be made in all cases. The Minister of State and the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, believe this is a fair and reasonable allocation based on a robust and convincing assessment by the group.

The terms are applied to driftnet fishermen in the Waterford estuary in the same way as to all other driftnet fishermen. In future, the harvest of salmon by any means will be restricted to those stocks of rivers which meet their conservation limits. This means there will be no indiscriminate capture of fish. Commercial fishing and recreational angling can continue only on the scientifically identified exploitable surplus.

The standing scientific committee of the National Salmon Management Commission has advised that stocks of salmon in the rivers Barrow, Nore and Suir are below conservation limits. For this reason, no killing of salmon by any method in the River Barrow is permitted during the 2007 season. Angling on a catch-and-release basis only is permitted on the waters of the Nore and Suir. This reflects the relative status of the stocks of the rivers. The regional fisheries boards and the Marine Institute will monitor the stocks in developing a management plan for each of the rivers with a view to identifying the extent of the recovery, if any, arising from the cessation of the mixed stock commercial fishery and any stock rehabilitation works undertaken. The application of the by-laws will be kept under constant review. In the event that stocks recover in the rivers of the Waterford Estuary in the future, it should be possible to exploit the identified surplus within the constraints permitted by the habitats directive as transposed by the European Communities (National Habitats) Regulations 1997, SI 94 of 1997.

Job Losses.

Ms Lynch

The news of the likely closure of the Motorola plant with the loss of more than 300 jobs will represent an economic body blow to the Cork area. These are not old-style jobs in heavy industry, but jobs based in the knowledge economy. During his visit to Cork last week with the Minister for Enterprise, Trade and Employment, the Taoiseach lauded the knowledge economy as the cornerstone of the new Ireland. The knowledge economy is an area that has contributed very significantly to Ireland's economic growth over the past 15 years. This is part of an increasing pattern we have seen in the Cork area, with companies like this choosing to relocate to Asia or other regions where labour and other costs are lower. There are very few companies of similar size and skill requirements in Cork and it is likely that those who are about to lose their jobs will need to move elsewhere to look for jobs of a similar nature. This will worsen the economic consequences of the loss of such a plant.

The real tragedy is that I understand the Minister for Enterprise, Trade and Employment, Deputy Martin, had warnings since the beginning of the year from a number of sources that the plant was in jeopardy, but he appears to have done nothing. It would appear that Motorola decided to put all its work out to tender and its plants around the world tendered for different projects. It would appear that the project work being done by Motorola in Cork will go to Malaysia. The company in Malaysia put together a package which included incentives, labour costs, tax and all the other things we normally offer and it won out.

The Minister was told from an early date that the plant had a difficulty. Although he was contacted on several occasions by employees and other outside interested agencies, he did nothing. He did the usual, replying that the query would be dealt with. However, it was not dealt with. Nobody approached Motorola to ask how we could put together a package to ensure that Motorola stayed in Cork and save these jobs. There is now a severe threat to these jobs. These people with highly skilled high-tech jobs will move on. Dublin is the centre for high-tech jobs in Ireland and we will not be able to keep these people in Cork, which has nothing to keep them there.

I call on the Minister for Enterprise, Trade and Employment to take immediate action in response to this news. I hope it is not too late. The Minister should have done something much sooner. He must be pro-active in ensuring that job losses are kept to an absolute minimum. He should have taken action at the start of January. It emerged in recent days that the company, as part of a consortium, was awarded preferred bidder status for a massive €250 million Government contract. The contract relates to the construction of a secure national digital radio network to be used by the Garda and other emergency services, which is urgently needed. The timing of that announcement was of no help to the company. If it ultimately gets the contract I wonder where these items will now be manufactured.

I would like to read into the record a letter sent to the Minister on 4 January which states:

I was wondering if you are aware that Motorola Ireland, in Cork is on the verge of closing down? [The employees have told me that] they do not have any projects to work on for the last few months.

Most of their existing work has been transferred to Motorola units in Asia and it is common perception amongst the employees that complete closure will be announced within the next month.

As you know, Motorola is one of the largest private sector employers in Cork, particularly in the IT sector. Most people who were laid off in the jobs cuts in Motorola Ireland last year have not found jobs in Cork and have had to move to Dublin, because most IT jobs in Ireland are in Dublin. Consequently, the closure of Motorola would be a devastating blow to Cork, not just for the jobs themselves, but also about the sustainability of Cork as a centre for IT development.

In light of the above facts, I would like to know what steps the Minister is taking to prevent the closure of Motorola.

That is what we want to know tonight. What steps did the Minister take? It would appear that he took none because the letter received the standard reply stating:

I wish to acknowledge receipt of your recent letter to the Minister for Enterprise, Trade and Employment, Mr. Micheál Martin TD, regarding your concerns over the possible closure of Motorola Ireland Cork. I will bring your correspondence to the Minister's attention at the earliest possible opportunity.

Following this correspondence, there were numerous phone calls, letters and e-mails. There was no response from the Minister.

Mr. Boyle

The Minister will be aware that the Motorola factory is sited in our shared constituency. However, its 350 workers come from all the Cork city and county constituencies and hence the interest of two other Cork colleagues this evening. I would still argue that the effect will be greatest in our constituency. More of the workers come from Cork South-Central and should the Motorola company cease activities the knock-on effect on service industries will be most felt there.

The Minister's comments in the local media have not assuaged fears. Perhaps he is being realistic in his assessment. We need to know what was known when and what the reality of the situation is. I fear that we could be engaged — I am not sure on whose behalf — in a cruel act of news management. What is a 30-day consultation period and why is it that just today another company, Thomson Scientific and Healthcare in Limerick, has chosen to go down exactly the same route? Is this the new way to make job announcements? It gives the prospect of jobs being lost and perhaps, at the most positive, scaling back some of those losses or delaying the eventual decision by a number of weeks. If this is the case it is the cruellest of decision-making methods.

The Government seems to be in thrall to the globalised world. This week's Central Bank quarterly report shows that the proportion of our economy based on manufacturing industry is dwindling. The figures do not lie. More of our economic activity is in services and less is in manufacturing industry. What is the Government's response? Does it have a strategy to protect and enhance manufacturing industry? We have had a number of reports about developing indigenous industry but we have yet to see the effect of any such jobs coming on stream and becoming a more vibrant element of the economy.

We need to ask questions about manufacturing industry. We had the recent announcement of the FCI jobs in Fermoy. That operation involved a manufacturing process, albeit at a different level. Even in the industrial estate where Motorola is located, in recent years another large manufacturer, Bourns Electronics, closed. These are warning signs. That these are all located in the Cork area is of greater concern to those of us representing the area. As the Minister responsible, Deputy Martin has a particular responsibility to address the fears that exist and give some assurance that this is not the beginning of a different future industrial environment in the Cork area. We need an appropriate industrial mix in the Cork area. If the IT and electronic sectors suffer, other factories and companies may have questions about their future. We should hear about this in media reports and prepare ourselves for impending decisions in three to four weeks' time. There should be a wide-ranging analysis of manufacturing industry and the Government's policy on that, particularly in the electronics and IT sectors and particularly in the Cork area.

In a different economic climate a State agency existed to pre-empt firms or industries at risk and decide whether measures could be taken to protect them. Maybe under EU rules that has changed and the Government cannot put capital directly into such companies. We should, however, consider establishing a State agency to do the type of work that Foras Forbartha Teoranta used to do, especially because of the job displacement in this field. It could examine whether there are dangers coming down the track and whether we can protect or enhance these industries.

The Government is not asking those questions. It is taking too much of a hands in the air attitude given the number of jobs in this industry that are affected in the Cork region. More jobs are affected in the add-on industries which support and service these companies. I urge the Minister to use the opportunity of the longer than usual contribution he will make on this Adjournment debate to address these questions and at least offer some immediate hope for the future of the workers in Motorola and for the future of manufacturing industry in the Cork area.

Mr. Allen

Like the other Deputies I am very concerned by the recent announcement of the loss of 350 jobs at Motorola. It is a terrible loss for Cork city and county which have spent many years building up a high-tech jobs base. I extend my sympathies to the staff members who have been affected and their families who face a bleak future. Even at this late stage every effort must be made to safeguard these positions because the future of the plant could be jeopardised if so many staff are laid off.

Unfortunately, the predicament of Motorola in Cork demonstrates how much Ireland's competitiveness has suffered under this Government. It is particularly worrying for Cork, given that this area has invested so much in attracting high end technology jobs. Since this Government came into power it has imposed at least 40 stealth taxes and charges on businesses and consumers. By comparison with the United Kingdom, electricity costs are 50% higher, insurance 20%, landfill costs 350% and broadband approximately 10% higher. Inflation reached a dangerous level at 4.9% in January and is set to climb. Exports are becoming more expensive as a result of the rising cost of doing business here and because of cut-price competition from overseas.

That these Motorola jobs are under threat raises serious questions about the Government's economic strategy because these are precisely the type of high end job that Fianna Fáil and the Progressive Democrats want to attract into Ireland. If Motorola finds it too expensive to do business here, many other companies are sure to feel the same.

I listened with disbelief yesterday morning, Tuesday, 30 January, to the Neil Prenderville Show on Cork's 96FM when the Minister for Enterprise, Trade and Employment, Deputy Martin, said that no one expected the announcement of an immediate closure or that Motorola was considering closure because people felt there would be a window of opportunity to move into other areas. When the Minister was asked if the company had notified him he said not and that he had spoken to John Phillips the previous morning and that IDA Ireland would have been contacted the previous morning.

Like Deputy Lynch, I have a copy of a letter sent to the Minister on 4 January. The spin yesterday set out to give the impression that the Government first heard about this in recent days when a response issued to the letter of 4 January, signed by the Minister's private secretary, acknowledging receipt of the letter and stating that it would be brought to the Minister's attention. I hope the Minister does not use the same defence in this case as he used in respect of the nursing home debacle and say it was not brought to his attention. It is incredible that if the Minister was made aware of this on 4 or 5 January, he was in the Middle East, admittedly on a bona fide mission, trying to attract business while Motorola was going down the tubes. The Minister must address the issues raised by the letter sent to him and other communications sent to his Department by senior staff in Motorola.

Why was there no response to these people who in good faith sought the Minister's help to save the company? Was Motorola contacted about the contents of these letters? What steps did the Minister's office take to prevent the announcement of the closure? We need the answers tonight. Most important of all, the Minister should state how he proposes to salvage the company even at this late stage.

Minister for Enterprise, Trade and Employment (Mr. Martin)

I am glad that this matter has been raised on the Adjournment. Like every other Deputy and person in Cork, I was very concerned and disappointed to hear about the situation in Motorola. The company, which employs 330 people, informed its employees on 29 January 2006 of its intention to enter an employee consultation process regarding the future of the Cork site. The company is considering a proposal to cease all engineering functions carried out at the site. If this proposal is confirmed, it would result in most employees at the site being at risk of redundancy and could make the business unsustainable in the future. The company fully intends to carry out the consultation process with the highest possible level of consideration for all of its employees in Cork. I understand that the company does not intend to comment further in regard to the situation until the consultation process is completed.

In response to Deputy Boyle's point, the methodology by which a company announces its decisions is entirely a matter for the company. Neither I nor IDA Ireland has any role in that process. I ask the Deputy to accept that. Let us have a constructive debate on this issue. While I am not suggesting that Deputy Boyle is playing politics with jobs, we can do that too. The immediate concern here tonight is the workers at Motorola, not political point-scoring, of which we have had evidence. Other companies have announced their decisions in different ways in the past.

Mr. Boyle

Two companies have done it in exactly the same way.

Dáil Éireann debate - Wednesday, 31 Jan 2007