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Seanad Éireann debate -
Wednesday, 5 Dec 2007

Vol. 187 No. 25

Job Creation.

I had hoped the Minister of State, Deputy Hoctor, would reply to this matter as she is a fellow countywoman and constituency colleague of mine. This matter is as pertinent to her as it is to me. None the less, I welcome the Minister of State, Deputy Michael Ahern, to the House.

This matter refers to the continuing job losses in the town of Thurles which effectively has become a blackspot in the middle of Ireland. What action will the Government and the State agencies take to secure replacement jobs for the town? Ever since the loss of the sugar factory in Thurles, it has been a case of repeated job losses. Jobs were lost in Barlow, BSN Medical, GMX and Erin Foods, and nearby localities have also suffered job losses. I refer to those in Proctor and Gamble in Nenagh. This is becoming a significant issue in the area and it is very demoralising for the people of Thurles in particular.

The people of the town are disheartened. They cannot commute to work because the town is not in a commuter zone, unlike other towns in the area. Thurles needs jobs that are based in the town or centred on the locality, but such jobs are on the decline. All the major industries have left and the replacement jobs which followed the closure of the sugar factory are gone. Erin Foods was the last employer to leave.

I have met the Erin Foods workers, many of whom worked for the company for decades. I am thinking of John O'Halloran, Josie O'Driscoll and Martin Ryan. I have met their representatives as well. I have deep sympathy for their plight and the situation in which they find themselves.

It must be acknowledged that part of the reason for their situation is an interpretation taken by the Competition Authority about the lines and brands being produced. This interpretation was viewed by many as draconian. The management, on the basis of this interpretation, decided to close the main lines produced by the factory and the factory was closed ultimately.

I have also met the chamber of commerce representatives. They said that despite the booming economy, Thurles has been losing jobs over the past ten years. It is of concern that the chamber of commerce does not see an end to this trend. It notes a lack of investment in job creation and is of the view that the incubation services on offer to small and medium enterprise development have been unsuccessful.

As for the work of State agencies in the mid-west, north Tipperary in particular, Shannon Development has done good work over many years. The role of the agency has changed, however, and we have been left in a vacuum owing to the changeover to Enterprise Ireland. Shannon Development is now a tourism agency and should be called Fáilte Ireland Shannon or Fáilte Ireland mid-west. This has created a vacuum in the development of the mid-west, north Tipperary in particular. Thurles is at the edge of north Tipperary which is at the very edge of the mid-west region, with the result that Shannon Development's zone has been omitted.

Two types of people exist in Thurles. One is the employees in the 40 to 50 years age bracket who have lost jobs but do not have the information and communications technology skills required to take up other positions. Jobs must be delivered for these workers. The other group is the younger people who have graduated from the Tipperary Institute and other local colleges and who are looking for jobs, especially in the technology area. The Government has failed to attract investment by the use of tax breaks for ICT and technology companies and this is having a detrimental impact on the area.

Furthermore, the lack of investment in broadband has had an impact because a number of small to medium sized enterprises have been unable or unwilling to locate in the town due to the lack of broadband infrastructure throughout the region. Effectively, Thurles is now a black spot for job creation. This is accepted by most people, including my colleagues in other parties.

What will be done about this issue? What real actions can take place? What are the real timelines and when will there be real jobs? I make this point with genuine sympathy for those who are affected. I do not wish to hear rhetoric and would rather hear a response on the record with which all could work together. I will publish the Minister of State's response and will bring it back to the workers in order that they can see what the Government intends to do for them.

I thank Senator Kelly for raising this matter on the Adjournment. I am highly aware of the situation in Thurles. The Senator referred to the Irish Sugar Company and to Erin Foods. The constituency that I represent includes Mallow, in which the Irish Sugar Company was located——

I am aware of that.

——and Midleton, from which I come and in which Erin Foods was located. I worked there myself for a couple of summers and both factories also have closed. I assure Senator Kelly that I understand and am concerned about the consequences of job losses and their effects on the workers concerned, their families and the community. The role of FÁS, the State training agency, is particularly important in the first instance by offering assistance to workers who lose their jobs. The agency's full range of services are available if the workers wish to avail of them. I assure those concerned that the State development agencies are providing all possible assistance. The priority is to increase employment opportunities for Thurles and the surrounding area.

As recently as last month, my colleague, the Minister for Enterprise, Trade and Employment, Deputy Micheál Martin, gave an undertaking in the Dáil to develop a co-ordinated and cohesive response to the current situation in Thurles. In this regard, I understand that the Minister has already met the chief executives of the industrial development agencies to discuss marketing, promotion, investment and job creation for Thurles and the surrounding area. I understand the Minister also had a meeting on this issue with Senator Kelly's constituency colleagues, the Minister of State, Deputy Hoctor, and Deputy Lowry earlier this week. Perhaps they will be able to help the Senator.

Only those two representatives were present. Unfortunately the other public representatives were not invited.

Perhaps Senator Kelly should have a chat with them to see how they got on at that meeting.

Is that appropriate?

Yes, it is appropriate to talk to them.

No, is it appropriate that the other representatives were not invited?

The Minister of State, without interruption.

The strategies and policies pursued by the development agencies, in partnership with other key interests, are intended to ensure new employment opportunities in Thurles and the surrounding area. The objective is to replace the companies that have closed with the companies of the future. There has been a significant churn in the economy, which has been reflected in Thurles and the north Tipperary area. I am conscious of the need for the agencies to work together in tackling this situation.

The IDA Ireland strategy for Thurles and north Tipperary involves developing the knowledge economy by winning new foreign direct investment in innovation-driven, high-skills sectors. The agency is also working with its existing company base to expand their presence in Ireland by the addition of new functions of scale and by deepening their strategic functions. Another of the agency's strategies is to influence the provision of property solutions and the supporting infrastructure to meet the requirements of inward investors.

The IDA recognises the need to achieve high value employment in north Tipperary and is committed to marketing the area as part of its national goal of achieving balanced regional development. It has five supported companies in north Tipperary, employing some 680 people, one of which, a pharmaceutical distributor, is located in Thurles. In addition, investments by two companies in Roscrea and Templemore will result in significant additional employment for the entire area, including the surrounding towns.

The IDA also works closely with Shannon Development in the development, promotion and marketing of tailored property solutions to potential investors throughout the mid-west, including the development of Tipperary Technology Park in Thurles. Shannon Development has completed the first stage development of Tipperary Technology Park, which includes 25,000 sq. ft. state-of-the-art accommodation, to facilitate the attraction and development of knowledge-based enterprises. The park is a component of IDA Ireland's international marketing programme.

Enterprise Ireland activity in Thurles and north Tipperary is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies and the retention and creation of jobs in existing companies. Enterprise Ireland also works with its clients to enhance the innovation capability of Irish companies at both national and regional levels. A significant number of Enterprise Ireland client companies in the county are actively developing their businesses. A number of enterprise start programmes have been completed in recent years in conjunction with the Tipperary North County Enterprise Board and the Tipperary Institute, based in Thurles. There are further plans to run a number of enterprise start programmes of short duration in 2008 in Thurles and Nenagh to drive the potential of developing new businesses in the area. In 2006, the agency supported the North Tipperary Food Enterprise Centre in Rearcross, near Thurles, under the community enterprise centre scheme. This premises is currently under construction.

During 2006, the North Tipperary County Enterprise Board approved in excess of €295,000 to 16 projects and paid out more than €238,000 in grant assistance to 18 projects, which resulted in the creation of 21 net jobs in county enterprise board-assisted companies throughout north Tipperary. The North Tipperary County Enterprise Board also organised 56 different types of training interventions during 2006, based on meeting the wide and varied needs of the small business owners and managers of north Tipperary. Furthermore, 629 participants attended training programmes run by the North Tipperary County Enterprise Board during 2006. In October 2006, there were 934 people on the live register in Thurles and the most recent data available, which is for October 2007, show that the figure has risen by 29 to 963. However, this figure has decreased by 37 from the September 2007 figure of 1,000 people.

I believe that the strategies and policies that are being pursued by the State development agencies in partnership with other key players to drive their marketing and promotion efforts, together with the Government's ongoing commitment to regional development, will bear fruit in terms of investment opportunities and job creation for both Thurles and the north Tipperary area generally. Furthermore, I am confident that the co-ordinated and cohesive response to which I referred earlier will bring additional industrial activity to the region.

The Seanad adjourned at 8.25 p.m. until10.30 a.m. on Thursday, 6 December 2007.
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