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Job Losses

Dáil Éireann Debate, Thursday - 5 March 2015

Thursday, 5 March 2015

Questions (105, 106)

Terence Flanagan

Question:

105. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation the involvement he has had regarding job losses at a company (details supplied); and if he will make a statement on the matter. [9708/15]

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Terence Flanagan

Question:

106. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation his assessment of job creation in Coolock, Dublin 17, and the surrounding areas; if alternative jobs will be found for those set to lose their jobs at a company (details supplied) in Dublin 17; and if he will make a statement on the matter. [9709/15]

View answer

Written answers

I propose to take Questions Nos. 105 and 106 together.

My first thoughts are with the workers concerned and their families as they receive this very difficult news. All the supports of the State will be made available to workers as and when needed.

I engaged with senior management of the company in question last week and have urged them to reconsider this decision, and asked if there is anything the State or its agencies can do to mitigate its effects. However, due to a cost base which is significantly out of line with competitor countries, the company has announced job losses at its Coolock and Kerry plants and the closure of its Tallaght operation. The company has pledged to support departing workers with placement services.

In response to these developments, I have established an inter-agency group to co-ordinate the Government’s response to the job losses at the company. The group will be led by Enterprise Ireland, and will both seek to secure alternative employment for the areas affected, and also ensure that departing workers have access to supports they need from State agencies for re-training, access to social welfare supports and access to advice on employment rights.

In an effort to co-ordinate constructive cross-party action to support workers affected, I invited TDs and Senators from the areas affected to a briefing in my Department on the situation on Tuesday last. The company was also the subject of a Topical Issues Debate in the Dáil on Tuesday.

I know that the company have said that they would work closely with workers in an effort to ensure that the impact of its decision is minimised to the greatest extent possible and to discuss investment it will be making in Ireland in order to build a stronger business here for the long term. Enterprise Ireland will be involved in those discussions and as outlined above, I have directed the agencies of my Department to step up their efforts to bring employment to the areas affected.

Enterprise Ireland is in ongoing interaction with the company to support the retention of the existing jobs and to support the Group going forward. In addition, Enterprise Ireland will continue to support entrepreneurs, enterprises and job creation in Coolock and indeed North Dublin generally. More than 35,000 extra people are at work today in Dublin compared to three years ago. Almost half of these extra jobs are supported by my Department through Enterprise Ireland and IDA Ireland.

The Local Enterprise Offices (LEOs) are the first-stop-shop for support to anyone wishing to start or expand a business, focusing on the micro-enterprise sector (10 employees or less). As such, the LEOs in both Dublin and Kerry are available to support anyone with a business idea and who wants to consider entrepreneurship as a career option. I would urge anyone who was made redundant or who is in danger of losing their job to make contact with their local LEO to explore available options. Further information can be found on the LEO website at www.localenterprise.ie.

Last month, I announced details of the Action Plan for Jobs: Regional Initiative, which will seek to maximise the strengths and assets of each region to support enterprise growth and job creation. The Regional Action Plans will identify specific measures that can be taken to help each region to realise its economic potential, with a view to increasing the number of people at work in the region.

My objective is that six Regional Action Plans will be launched by July, with two remaining Plans in development at that stage. It is not intended that Regional Action Plans will target every individual town for job creation or investment but, rather, that these Plans will identify measures that can be taken to enable the region as a whole to build on its competitive strengths and increase the number of people at work.

As part of this initiative, new funding of up to €250 million will be made available over the next five years to support job creation through enterprise growth in the regions. This includes €150 million for an IDA property investment programme to attract foreign direct investment into the regions, and €100 million to Enterprise Ireland to support indigenous enterprises to start up, grow and export.

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