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Dáil Éireann díospóireacht -
Thursday, 21 Mar 2002

Vol. 550 No. 5

Written Answers. - Company Closures.

Jim O'Keeffe

Ceist:

46 Mr. J. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the alarm at the current spate of factory closures and lay-offs which are having a major adverse effect on the country and in par ticular in rural areas; and her proposals to reverse this trend. [9130/02]

I share the Deputy's concern at the increase in the level of job losses here in recent months. These events are a consequence of the slowdown over the past year or so in the world economy, the most severe in almost 30 years. The situation has been exacerbated by the increased uncertainty following the events of 11 September in the US.

Where closures or major job losses occur, the services of the agencies of my Department are available to work closely with the companies involved in addressing the difficulties arising for them and to engage directly with those facing redundancy to find alternative employment or training. These agencies, which include IDA Ireland, Enterprise Ireland, Shannon Development, FÁS and the county enterprise boards, also work closely with the county development boards and county councils as well as local development and other interests in areas affected by job losses in order to facilitate an integrated development approach and to promote a favourable environment for business.

As regards the impact on rural areas, the Government is committed to a policy of a more even geographical distribution of investment and job creation. Figures for 2001 show an improved regional balance of job creation by the State development agencies, with the BMW region accounting for 25% of gross job gains, compared with 20% in 2000 and 17% in 1999.

It is also necessary to see recent job losses in the context of our record level of job creation over the past few years. Over the life of this Government, the number of people in employment has increased by over 300,000. I believe that, because of the policies this Government has pursued, the necessary fundamentals are in place for Ireland to take advantage of a recovery in the world economy when it occurs. It is necessary that we continue with these policies, and that we address those factors which impact on our competitiveness, in areas such as the cost environment for enterprise, infrastructure, for example, telecoms, transport and energy, education and training, and research and development. How we manage these issues will be critical to future success in attracting investment and in job creation. This in turn will largely determine our continuing ability to provide replacement employment where job losses occur.

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