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Job Losses.

Dáil Éireann Debate, Wednesday - 17 November 2004

Wednesday, 17 November 2004

Questions (246)

Joe Sherlock

Question:

281 Mr. Sherlock asked the Minister for Enterprise, Trade and Employment the position regarding a new IDA Ireland industry for Mitchelstown, County Cork, as an alternative to job losses at a company (details supplied); if he has requested IDA Ireland to become involved in presenting a case for the Mitchelstown region; the progress being made; and if he will make a statement on the matter. [28796/04]

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Written answers

The importance of Dairygold as an employer in Mitchelstown and the entire north Cork area is recognised by me and IDA Ireland. We are conscious of the implications of the job cuts announced recently by the company in line with the company's restructuring plans. My recent visit to Mitchelstown is testament to my very real interest in the situation in the town.

A new BES building, 2,072 sq. m. in size, has been completed in Mitchelstown and IDA Ireland has been marketing it through its network of overseas offices and project divisions, particularly engineering, ICT and international services. There have been two site visits to date, the most recent being in August 2004. However, no client interest has been expressed in the facility as yet. IDA Ireland will continue to actively market the BES facility in Mitchelstown to potential clients from a complete range of IDA Ireland target sectors in either manufacturing or international services through its project divisions and overseas offices. However, it is always the client company that makes the final decision on where it will locate.

For operational reasons, IDA Ireland markets north Cork as one area which includes Charleville, Newmarket, Kanturk, Mallow, Millstreet, Fermoy and Mitchelstown. In this context, IDA Ireland is developing a new business and technology park in Fermoy, some ten miles from Mitchelstown. IDA Ireland has purchased a 20 acre site on the outskirts of Fermoy where site development works and landscaping have been completed at a cost of approximately €1.5 million. It is IDA Ireland's intention to seek proposals from private developers for the construction of a suitable office building on the park. It is intended that this building will be available mainly for inward investment purposes by qualifying manufacturing and internationally trading services companies. In addition, IDA Ireland is also actively marketing the Fermoy business and technology park as a suitable location for potential greenfield projects. It is anticipated that the future employment opportunities generated at the business and technology park in Fermoy will also benefit the Mitchelstown area and north Cork.

From an inward investment perspective Mitchelstown, due to its proximity to Cork city, also stands to benefit from the continued development in the Cork area where, during the past ten years, direct employment in IDA Ireland supported companies in Cork city and county grew from 10,345 in 1993 to 18,162 in 2003. The sectors contributing to this growth are ICT, pharmaceuticals-health care and international services. This growth is expected to continue into the future, with IDA Ireland announcing in 2003 11 new projects for Cork with the potential to create up to 800 new jobs. To date in 2004, three new projects, Altera, Ecora and Centocor, have been announced with a job creation potential in excess of 400.

I have asked IDA Ireland, as well as the other State agencies such as Enterprise Ireland and FÁS, to work together to finds solutions to the problems being faced in Mitchelstown following the recent announcements there. I am confident that their combined efforts will bear fruit in due course.

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