Dáil Éireann díospóireacht -
Tuesday, 1 Dec 1998

Vol. 497 No. 5

Adjournment Debate. - Auto Turning Centre.

Mr. Higgins

(Mayo): There is no auto turning training centre in this country. Mechanical engineering continues to stride ahead, yet it does so handicapped and hamstrung. This industry requires specialist, precision, highly-trained auto turners. In 1996, the industry took the initiative. It identified its needs and a solution — an auto turning school of excellence. This heralded the possibility of a new, exciting venture which would be a partnership between FÁS and the industry. This was a novel approach and was the perfect marriage based on a partnership approach.

FÁS was to provide the training and the industry would provide the plant and all the machinery. A series of businesslike meetings took place. I attended several of them and was amazed at the enthusiasm and determination on both sides. It looked as if everything was set for the most perfect industrial marriage one could imagine.

A curriculum expert was appointed and the curriculum was agreed. Ballina, County Mayo, was identified as the most suitable location. A site was identified adjacent to the FÁS training centre in Ballina and planning permission was obtained. A 10,000 square foot building was mooted and a general specification agreed. A building contractor came up with a novel and progressive approach which seemed acceptable to FÁS. This approach was a build and lease back proposal.

When the rainbow Government left office in 1997 it was all systems go as regards this project. I have a letter on file from Mr. John Lynch, director general of FÁS, dated 14 March 1997, in which he indicates that he would bring the project to the board of FÁS at the earliest possible date. He also gave the assurance that FÁS was progressing the project with due haste. However, there has been no progress since. The project seems bogged down and matters are at a standstill. What looked like the perfect partnership, a novel venture and an exciting approach, seems lost in some lacuna. This project is a first for the industry and for FÁS.

Shortly after the closure of Asahi last year with the loss of 260 jobs, the Tánaiste, Deputy Harney, visited Ballina and set up a task force. This task force had a tailor made venture on its desk which was ready to go, namely, the auto turning centre. However, this project is no further progressed today. I have not seen any jobs delivered to Ballina by this task force. This makes me extremely sceptical about task forces in areas experiencing industrial difficulties.

The Minister of State, Deputy Treacy, will cite Coca Cola. However, this project was well in the pipeline by the time this Government took office.

Mr. Treacy

That is not what Deputy Yates said.

Mr. Higgins

(Mayo): The industry has assured me that its needs have never been greater. Those needs have expanded. There are more exports and there is more competition. Standards have gone up and people want items made to higher specifications. This centre would raise industry standards to new heights and bring new results. However, there are no optimistic indications as to the future of this project which only required the push of a button to go ahead. Where stands this project and what developments can be expected in Ballina? Everything seemed ready to go 16 months ago.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The background to the proposed auto turning centre is that Auto Turning Excellence Ireland, a non-profit making company, limited by guarantee, approached FÁS in 1995 with a proposal to establish a centre of excellence in auto turning to be located in the west. It was proposed that the centre should train people in the operation and setting of the machine tools used to produce precision engineered components. FÁS appointed an external consultant to evaluate the proposal.

In late 1997, following its consideration of the consultant's report, FÁS made an offer of assistance to the promoters. I understand the FÁS response to the promoters was based on the essential underlying rationale that the proposed centre would be industry-led. That is to say, it would be driven by industry needs and managed by the industry. The question of official approval for the centre does not arise. The only point at issue is the level of FÁS support which may be forthcoming.

Against that background, I understand the FÁS proposal involves a financial contribution towards the operation of the centre and the provision of training allowances for new trainees at the centre. These would be paid at standard FÁS rates. In line with the industry-driven nature of the proposal, the management and day-to-day operation of the centre would be the responsibility of Auto Turning Excellence Ireland.

The Government welcomes the increasing involvement of industry in determining and addressing its developmental needs. My Department is collaborating with the Irish Business and Employers' Confederation in the establishment of an employer-led training network programme which will commence shortly.

In addition, the new indigenous development agency, Enterprise Ireland, is implementing a client-centered business development model involving a close partnership between the State and industry in the drive for sustainable, competitive advantage. I welcome the positive response by FÁS to the proposal from Auto Turning Excellence Ireland, which has been framed in the context of support for an industry-led initiative. Equally, I share the agency's concern to ensure that an appropriate balance of assistance is struck which maintains the essential industry-led character of the project and provides good value for money for the Exchequer resources applied to it.

I am also conscious of the very strenuous demands being placed on the State training infrastructure. We are facing an unprecedented demand for skills in response to the continuing accelerated growth of the economy. The Government is responding to this challenge on a range of fronts. I have provided additional resources in the 1999 Estimates to allow FÁS to cater for significantly increased apprentice numbers and to address the recommendations of the expert skills group on the provision of training in information technology and electronics. I again stress that I am positively disposed to industry-led initiatives. I encourage FÁS and Auto Turning Excellence Ireland to make every effort to engage in constructive dialogue and to bring the matter to a conclusion as soon as possible. I will ensure that the concerns expressed in the House are brought to the attention of FÁS immediately.

I also stress the constant commitment to this project of the Minister of State, Deputy Moffatt, who is the local Deputy. I have discussed this matter with the promoters and they have my full support. It is now a matter for the industry and FÁS to bring this project to a positive conclusion. This was an unfinished symphony which the Government inherited and we are confident we can conclude the matter in the interests of north Mayo, the west and the industry. The Deputy and the House can be assured that the Government will continue to make further investment in north Mayo as soon as possible, similar to investment in the recent Coca Cola project which will create many jobs. Other Members and parts of Ireland were not pleased that project went to Ballina. However, the Government made the decision on a regional basis and the need to provide jobs and economic growth in north Mayo. That will continue to be the hallmark of the Government while in office.