Dáil Éireann díospóireacht -
Thursday, 16 Oct 1997

Vol. 481 No. 6

Adjournment Debate. - North Mayo Enterprise Initiative.

Ms Cooper-Flynn

I thank the Chair for giving me a further opportunity to raise this matter on the Adjournment. I first raised it a number of months ago following the shock announcement that Asahi was to close at the end of November with the loss of 315 jobs in an area that is regarded as an employment blackspot. In recent weeks there have been a number of job announcements; 350 jobs are to be created in Dublin and 150 in Cork. It is good that the economy is booming and that the rate of job creation is at an all-time high but there have been no job announcements in County Mayo.

Following the announcement that Asahi was to close its plant in Killala the Tánaiste visited the county and informed us that the north Mayo region would be given top priority so far as job creation was concerned. She acted extremely swiftly and established the North Mayo Enterprise Initiative comprising many local bodies as well as the IDA. It has made many efforts to attract a replacement industry. It stated in a press release issued in September that it was trying to secure a project for the advance factory in Bunree in Ballina and that an attractive package of support was being put in place by the IDA to increase the attractiveness of this location. That was a welcome development but there has been no good news to date. Will the IDA be successful in the near future?

The North Mayo Enterprise Initiative has informed us that the Asahi plant and site are available and that a brochure is being prepared to attract a replacement industry. Is there information available on this? Many of Asahi's employees are beginning to panic because there is no prospect of alternative employment in north Mayo. They have written to me as their public representative seeking answers.

There is a lack of infrastructure in north Mayo. This is a major problem. Is there a commitment to carry out improvements to make it easier to attract industry to the region? The road to Ballina is in a disgraceful condition. Water and sewerage schemes are also required.

There is a view that the spinning plant in the Asahi complex is a viable option. I wrote to the Tánaiste and the Minister of State at her Department, Deputy Tom Kitt, asking if the IDA and the North Mayo Enterprise Initiative would examine this possibility. I was informed that the matter was under consideration. What is the current position? Has this option been ruled out?

What the people of County Mayo need are answers and, more importantly, jobs. Any positive indications would be welcome.

Minister for Health and Children (Mr. Cowen)

The Tánaiste, who is unable to be present, has asked me to respond on her behalf.

Following the decision by the Asahi Chemical Industry Company of Japan to close its synthetic fibre and spinning operations in Killala the Tánaiste immediately announced the establishment of North Mayo Enterprise Initiative. She attended its inaugural meeting on 14 July. In the three months since its establishment, it has been active. It has met on five occasions and established two subcommittees which are examining ways and means of addressing the urgent employment needs of north Mayo. The Tánaiste expects to receive an interim report from the chairman around the end of this month.

The task of the North Mayo Enterprise Initiative is to explore what options remain to secure the future of the Killala plants as synthetic fibre manufacturing operations; to ensure maximum endeavours are made to market north Mayo for foreign direct investment and actively encourage indigenous business opportunities; to assist employees with training and retraining opportunities, and to assist employees who wish to pursue entrepreneurial ventures in their own right.

The North Mayo Enterprise Initiative recently issued a press release detailing its work to date. It has taken the following specific measures: it is working closely with IDA Ireland to encourage site visits into the north Mayo area. The IDA has had discussions with companies involved in the synthetic fibre business, some of which have visited Killala. Further site visits are planned.

Every effort is being made by the IDA to secure a project for the advance factory in Bunree in Ballina. Site visits to this location have also taken place. An attractive package of support is being put in place by the IDA to increase the attractiveness of this location.

Now that the Asahi plant and site are available the North Mayo Enterprise Initiative is preparing to publish an up to date marketing brochure setting out the benefits of investing in north Mayo and to highlight the attractiveness of the area. The brochure will incorporate the various incentives available for investment in the area.

In association with SIPTU, the trade union representing the workforce, the North Mayo Enterprise Initiative is seeking to identify areas where the workforce of Asahi can be assisted either with career change training, retraining, job searching or setting up their own enterprise. The resources of FÁS, the county enterprise board and the regional technical colleges in Castlebar and Sligo are assisting in this programme. With the co-operation of Forbairt and Moy Valley Resources, the North Mayo Enterprise Initiative is examining the need and suitability of establishing an enterprise centre in Killala and Ballina.

When the Tánaiste established the North Mayo Enterprise Initiative she emphasised that it would liaise closely with public representatives and local interests to ensure every opportunity is exploited to maximum advantage. To this end the North Mayo Enterprise Initiative has opened a public office in the offices of Ballina UDC and invited submissions from interested parties — individuals, community groups, businesses or business organisations — who wish to offer assistance.

The Government urges all those who consider they have a contribution to make to the work of North Mayo Enterprise Initiative to take up this invitation and make direct contact with it. The members of North Mayo Enterprise Initiative have committed a great deal of time and effort to their task to date for which I express my appreciation and that of the Government.

Since the establishment of North Mayo Enterprise Initiative there have been some positive results in employment creation in the north Mayo area. It was announced on 5 October that Carrokeel Seafoods Limited is to expand its manufacturing operations. The Forbairt backed investment of £2.3 million will create an additional 85 jobs in Killala. Another positive development is the proposal by Hydro Energi, a subsidiary of Norsk Hydro, to establish a smokeless fuel manufacturing facility in Bunnahowen, west of Ballina. While I am not in a position to give details of this until the company has finalised its plans, I understand a number of people are employed in the construction phase. Others were given seasonal employment during the summer. These new developments are welcome news for all those working to create employment in the area.

I am pleased that there is a spirit of co-operation between the workers in Asahi and the company. I understand there has been general acceptance by the workforce of the generous redundancy terms offered by Asahi. The positive industrial relations climate can only enhance the prospects of attracting replacement industry. I compliment the Asahi management and the workforce in this regard.

I will take up the issues raised by the Deputy, including the need for improved infrastructure in the Ballina area, with the relevant Ministers and ask them to reply to her directly.