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Job Losses

Dáil Éireann Debate, Tuesday - 2 November 2010

Tuesday, 2 November 2010

Questions (501, 502)

Kieran O'Donnell

Question:

542 Deputy Kieran O’Donnell asked the Minister for Enterprise, Trade and Innovation when he first became aware of the likelihood of job losses at two facilities (details supplied) in County Clare; the action taken to mitigate these losses; and if he will make a statement on the matter. [39755/10]

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Written answers

Shannon Development notified my Department of the job losses in Shannon Aerospace on the morning of Wednesday 20th October and, in the case of Elsevier, Shannon Development notified my Department on the morning of Thursday 21st October. Both notifications were made within one hour of receiving notice from the companies in question. Notification in such cases allows the Department to ensure that all options to address threatened job losses are being exercised and that appropriate services will be made available to redundant workers in cases where redundancies are unavoidable. Information on expected job losses is of course not published in advance of affected workers being informed by the company.

In relation to all industrial jobs, the Industrial Development agencies stay in close touch with the companies and any opportunities to maintain jobs are availed of. However, the competitive world market means there will always be job losses as well as job gains. The Government is working to restore and maintain our competitiveness in order to minimise job losses and maximise job gains. We are also continuing to improve our educational and skills base and our innovation, research and development system in order to attract high value sustainable jobs.

Kieran O'Donnell

Question:

543 Deputy Kieran O’Donnell asked the Minister for Enterprise, Trade and Innovation the early warning system in place to identify jobs at risk in firms assisted by agencies operating under the aegis of his Department; if a particular section within his Department is responsible for identifying facilities that are at risk and for ensuring early intervention measures are used in these circumstances; the measures used to mitigate against job losses in such firms; and if he will make a statement on the matter. [39756/10]

View answer

My Department operates an early warning system of firms in difficulty and where jobs are at risk. The system applies to firms that have been assisted by the Industrial Development agencies operating under the aegis of my Department. Notifications of firms in difficulty and where jobs are at risk are received from these agencies as soon as the agencies become aware of the situation.

I should point out that the information is provided on a confidential basis and it must remain confidential as, invariably, it is commercially sensitive information. Such information could be of benefit to national or international competitors in the context of industrial projects already established in this country and our ability to attract further projects in the future.

The Industrial Development agencies are in regular contact with their clients. For example, when Enterprise Ireland is made aware of jobs at risk, it engages closely with those client companies reporting difficulties or potential job loses to determine what appropriate proactive measures can be put in place by the Agency to prevent or minimise the job losses.

When IDA Ireland becomes aware of a company's intention to either downsize or cease operating in Ireland, it works with the client company to safe guard/influence/minimise the number of job losses through offering relevant interventions to assist their companies in improving competitiveness; enhance their use of technology; grow the skills of their employees; engage in research, development and innovation or develop their business processes.

Similarly, as soon as Shannon Development the agency becomes aware of jobs at risk, it proactively engages with the company to offer whatever supports are available to minimise the impact as regards job losses. I would like to assure the Deputy that the Industrial Development agencies would look to anticipate potential problems and are always prepared and available to assist companies in whatever way they can in order to minimise or avoid job losses if at all possible.

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