Vol. 561 No. 4
104 Mr. Connolly asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will establish an enterprise task force for County Monaghan to develop opportunities and seek alternative industries for vacant plants (details supplied) in view of its spatial hub status and its strategic location in the BMW region. [4568/03]
I share the concern and disappointment of the Deputy at the recent loss of jobs in a number of companies in County Monaghan. I recognise that in addition to the impact these closures have on the workers and their families, there is a significant effect on the economic life of the areas involved.
Where difficulties arise for companies, or where major job losses occur, the full services of the agencies of my Department are available to work closely with the companies involved in addressing the difficulties arising and to provide whatever assistance possible to the workers affected.
I note that of the four plants identified by the Deputy, three are still operating. In the case of one of these, while there has been a reduction in employment numbers over the past 12 months, I am not aware of any plans to close or to further reduce employment. In the case of the other two companies, in the event of failure to maintain the businesses as going concerns, the facilities will be marketed by the agencies with a view to securing their take-over as manufacturing operations.
Despite recent setbacks, we can be confident about the future of County Monaghan and its economic development. Job vacancies remain very buoyant, with over 1,200 applications for work permits from employers granted last year and a further 180 work permits sought since 1 January 2003. The county's location within the Objective One region, together with the recent designation of Monaghan town as a hub in the Government's national spatial strategy, leave the county well placed to benefit from future investment inflows.
The State agencies work closely with each other and with the development bodies in the area, including the Monaghan County Development Board and county council, as well as other local bodies and interests, in facilitating an integrated approach to enterprise development. Enterprise Ireland is currently facilitating a num ber of new start-up businesses in the prepared consumer foods sector, to be based in the Lough Egish Food Park, and is also working with the furniture industry in the county in relation to design and technology. Also, with IDA support, a company servicing the consumer foods market was recently established in Carrickmacross and employs 60 people. It is anticipated that this number will increase as the company goes into full production.
There have been some significant changes since I submitted this question; CPV Limited can now be saved. Is the Tánaiste aware, however, that in recent times County Monaghan has suffered a quadruple whammy? The closure of Monaghan Poultry Products meant the loss of 300 jobs, 99 jobs were lost in CPV in Clones, 60 jobs in Lissadell Towels in Carrickmacross and 60 jobs were lost in Montex Holdings Limited in Monaghan. Yesterday, in neighbouring County Cavan, Teradyne announced that it was removing its operations from the area.
We are seeing the erosion of long established industries, all of which produced high quality products. In most situations, we exported much of the produce, bringing much needed funds into the State. County Monaghan will slide into a depression unless urgent action is taken by the Tánaiste to set up a task force to seek alternative industries.
We have been told that balanced regional development is the objective of both the national spatial strategy and the BMW authority. We want to see evidence of that with the establishment of a task force and a hands-on approach. Development must be targeted at County Monaghan. We are aware of Monaghan's newly acquired hub status but this requires both industrial and infrastructural development throughout the country. We are reliant on the indigenous industries of mushroom growing, furniture and shoe manufacture.
I am aware of the position in the companies mentioned by the Deputy. The main reason for this is loss of competitiveness in sectors under intense pressure from low wage economies and this is certainly not a low wage economy. Also, to a large extent County Monaghan is heavily dependent on agricultural industry or basic manufacturing.
The IDA is discussions with CVP Limited about the current situation. Its difficulties arise from extremely difficult market conditions coupled with the build-up over the past four years of compensation claims from employees, currently estimated at €1.5 million. To improve efficiency, CPV initiated a voluntary redundancy programme in November 2002 and 40 people availed of it.
If a task force could solve the problems, I would gladly establish it but it is not that simple. The designation of Monaghan as a hub and its Objective One status will make it more attractive for a better balance of investment than has previously been the case. I hope new investment will be in areas other than agriculture and basic manufacturing, similar to the investment announced in Roscrea this afternoon. We must bring investment from that sector to counties that have not experienced high value added activity. The IDA tells me the pipeline for such investment is good for this year and Monaghan will benefit from that.
Will the Tánaiste intervene directly, taking a direct hands-on approach in relation to CPV in Clones? There are 99 jobs involved and the company has a full order book. The problem is that the parent company wishes to sell off the company. It is a profitable company and jobs can be saved. I ask the Tánaiste to intervene. This is a rare situation. The only thing holding back the sale is an IDA Ireland grant issued eight years ago, which has about one year to run.
Yes, there is an outstanding grant of €400,000 from taxpayers' money. Clearly, that is a matter for IDA Ireland and there are legal commitments in that regard. We have to protect such investment in companies but that is not a matter for me. It is for the agency involved to negotiate in relation to those matters. However, in the event that the company cannot be saved, it would be a priority to find an alternative investor. I understand that another party may well be interested in that facility and that will certainly be pursued.
May I again ask the Tánaiste to—
We must proceed to the next question.
