Dáil Éireann Debate, Thursday - 24 February 2005
6 Mr. G. Mitchell asked the Minister for Enterprise, Trade and Employment the action he intends to take to bring alternative employment to Tallaght in Dublin on foot of the impending closure of a company (details supplied) with the loss of 200 jobs; and if he will make a statement on the matter. [6198/05]
View answerI very much regret the recent announcement by APW Enclosures that it will cease production at its plant in Tallaght, County Dublin, by June 2005. FÁS has been in contact with the company and has offered its full range of services to those who will lose their jobs. In addition to services provided from its Tallaght office, the agency also offered to make its staff available on site, to give vocational guidance and help.
The industrial development agencies are continuing to market the Tallaght area for new jobs and investment. IDA Ireland's strategy for the Dublin area is to attract and expand major foreign direct investment projects, moving up the value chain. Tallaght continues to be actively marketed by IDA Ireland to potential investors and is well equipped to compete with other areas for potential foreign direct investment, with Tallaght Institute of Technology and superb infrastructural facilities at Citywest and Grangecastle.
Wyeth Biopharma has approximately 700 people employed in Clondalkin and this figure is expected to rise to 1,300 by the end of the year. The Japanese pharmaceuticals company, Takeda Chemical Industries, which will employ 60 people, has also begun construction in Clondalkin. At Citywest, project developments by SAP support services, AOL Technologies Ireland Limited and Colgate-Palmolive support services are providing 750 locally accessible job opportunities.
Following an agreement last year, Enterprise Ireland is supporting the development of business incubation space at the institute of technology. This facility is expected to generate quality start-up enterprises. The development agencies continue to work with existing companies to assist them to move up the value chain and increase employment potential. Companies which have availed of this process, with financial assistance from IDA Ireland, include Sage and Xilinx in Citywest.
Job losses and job gains have always been, and will continue to be, part of the economic landscape. However, our overall unemployment rate is among the lowest in Europe. In that context, it should be noted that the latest CSO live register analysis shows that those claiming unemployment benefits in Tallaght fell from 3,631 in January 2004 to 3,214 in January 2005, a drop of 11.5%.
I am satisfied the strong infrastructural support already in place, including the opening of Luas, will continue to attract jobs to Tallaght and the surrounding area.
I would expect the Luas to take people out of Tallaght rather than bring them to it. It can work both ways. I am concerned with the 200 job losses in the company in question rather than the other activities the Minister mentioned. He is getting fond of IDA Ireland-speak of "moving up the value chain". Such sentiments are of little comfort to the 200 employees in Tallaght who will lose their jobs.
Will the Minister consider some initiative in conjunction with Tallaght Institute of Technology, particularly in regard to the commercialisation of research and development? Establishing linkages between industry and the third level sector, as the Minister mentioned, is a positive approach. One must wonder what purpose FÁS retraining courses will serve. In instances of job losses on this scale in any part of the country, a proactive plan should be in place based on a template that has worked in the past.
The company involved has cited higher costs as the cause of the job losses. Will the Minister indicate if he has more specific plans than what he has said in a general way to ensure those affected will be given employment opportunities in the general area as soon as possible?
I have already indicated that Enterprise Ireland is working closely with the Institute of Technology Tallaght in encouraging the commercialisation of research. It has supported the development of business incubation space at the institute to the amount of €2.54 million. In the restructuring of Enterprise Ireland we are requesting it to focus on the commercialisation of this area. Science Foundation Ireland will also have a strong role to play as part of the wider Government research and development programme. It is the position we will have to be in to maintain economic sustainability. People may not like terms such as "going up the value chain" or "research and development".
Has the Minister listened to Sean Downey's comments?
I am not listening to any particular individual.
We are all listening.
The Deputies will be aware of global trends and these terms are part of the language at any international gathering. If one examines developed economies versus developing economies, it is clear where Ireland must stand. We must work quickly in upgrading the level of investment in innovation, research and development and so forth. There are 29 IDA Ireland companies in Tallaght employing 3,029 people. Six job creation projects involving foreign direct investment announced this year are located in Dublin. The overall Dublin employment scene is benign. I came from Dundrum this morning.
Was the Minister on his way to north Kildare?
No. It is estimated that 4,000 people will work at the new shopping complex there when it is completed. A wide range of developments are occurring in different sectors. In the Dublin scene, there will be job gains and losses with opportunities arising. FÁS has a role in attuning skills sets to these opportunities. Recently at the Dublin north side partnership, I presented FETAC awards to women who went back to FÁS for training, attaining properly certified skills and gaining employment as a result.
What the Minister says is correct but, as Deputy Hogan pointed out, it is all very general. The loss of 200 jobs at APW Tallaght is part of the attrition of jobs from the low and semi-skilled sector in the economy. This is the real issue. Is the Minister aware that a large number of such jobs in the sector are hanging on by their fingertips? How is the Minister actively identifying those vulnerable jobs, some of which will go over the edge this year? How will he put in place a safety net to complete the upskilling of workers? There is a large tranche of companies where wages are a small proportion of profits. There is a larger cohort where wages are slightly larger but it is not as vulnerable. Then there is another cohort, approximately 25% of jobs, where wages are a significant proportion of profits. These need to be identified to ensure the agencies for which the Minister is responsible are active in preventing job losses by upskilling and preparing workers for the transition to this new type of employment he has described. What is the Minister doing to identify this and put in these supports?
We know the sectors going through significant restructuring in the last two years, not least the agrifood and low cost sectors. However, we, and Enterprise Ireland in particular, are meeting the companies concerned and offering assistance, particularly for value-added goods. The food sector——
Are there mechanisms in place to identify them? Do they go to the Minister or is it vice versa?
We go to them. It is evident what sectors will be in difficulty. Likewise, €27 million extra was allocated to the national training fund for FÁS in-company training. This will allow it to get ahead of the game before people are made redundant in any restructuring of a company. Traditionally, FÁS rushed in providing programmes after people were laid off. This will mean a change in mindset from some employers to facilitate this, either in the workplace or in a learning environment, and for employees to take it up.
I do not have an argument with the Deputy on the core issue. I see Enterprise Ireland as the key agency for indigenous enterprise. Its role is in identifying problems and providing whatever range of supports it can, such as marketing and research, to enable a company to reposition itself and copperfasten its sustainability. IDA Ireland's strategy continues to develop new functions in existing companies and develop a broad portfolio of functions rather than having it depend on one core activity.
