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Dáil Éireann díospóireacht -
Wednesday, 11 Jun 2003

Vol. 568 No. 2

Adjournment Debate. - Job Losses.

I thank the Ceann Comhairle for the opportunity to raise this matter, the closure of Fitzpack Ballindine Limited, on the Adjournment. The loss of jobs to the Ballindine area is equivalent to the loss of 150 jobs to a place like Galway or Limerick. If the company is to close, a replacement industry must be found.

Ballindine is trying hard to succeed. It is a small rural village with a population of approximately 300 people. The population has increased in the recent past and the number of pupils in the local school has also increased. It is a five teacher school. The increasing population in the past ten to 15 years led to talk that the school might become a six teacher school but that will not happen now unless steps are taken to help the area. This is a vibrant community with new housing estates but it is now under threat. That is regrettable. I urge the Government to do something to prevent these job losses or, if the jobs are lost, to secure a replacement industry.

Is it time to stop grant aid being paid to Dublin? We have received the recent report from the IDA. The CSO is ringing alarm bells about what is happening in Dublin. Traffic moves at the pace of an ass and cart. However, half the graduates from the west have to go to Dublin to get their first job. What is happening in Ballindine is bad news. The IDA has not been helpful in Mayo. Recently it failed to secure an industry for the town of Ballinrobe because it would not provide the support the industry believed was required.

According to the IDA report, there were only seven IDA projects outside Dublin or Cork last year. Ballindine has Objective One status but what good is that when it cannot get industry to locate there? What good are the higher grants when there is no industry to get those grants? Total employment in IDA-supported jobs fell by 10% in the BMW area whereas, in the east, it increased by 0.4%. This is extremely worrying. Nobody knows what will happen in 2006 but there will be severe restrictions on grant aid.

The developments in Ballindine and Ballinrobe are worrying but the IDA seems to be impotent, especially in view of its last report. Is the game up for the west of Ireland? The north-west of Mayo is the most deprived area in the country. The IDA has been paying €120,000 per year for a vacant factory in Ballinrobe for the past 15 to 20 years. There are another 15 years to run on the lease, which means an expenditure of €1.8 million. Where is the balanced development if the jobs in Ballindine are allowed to go and no replacement industry is found? Where is the national spatial strategy in all of this? Where does north Mayo fit in? I ask the Government to address the Ballindine situation, which is a good example of what is happening in this area of the west.

I thank Deputy Cowley for raising this matter on the Adjournment. It has also been raised with me by Deputy John Carty, and Deputy Ring mentioned it earlier.

The company in question has two plants in County Mayo, which employed a total of 32 people, including nine in Ballindine. The company only confirmed today that the Ballindine facility closed on 6 June 2003, with the loss of seven of these jobs, and that the remaining two jobs were transferred to Ballyhaunis. The company's reasons for the closure were a downturn in business, a major increase in overhead costs and competition from imports.

Competition from abroad has been increasing for the company's products with packaging products being supplied up to 30% cheaper. Last year, Enterprise Ireland held discussions with the company to assist in addressing competitiveness issues and Enterprise Ireland's supplier development programme is available to the company. This programme is designed to help companies to get accreditation and support up to a value of €10,000 for consultancy, project management and training.

New Enterprise Ireland funding arrangements recently announced by the Tánaiste have been introduced to tackle directly the issues facing client firms in their drive for competitiveness and export business. Applications to Enterprise Ireland for funding support from its client companies must include exports as part of the company's business strategy. Unfortunately, in this case, the company was trading on the home market only. There is also now more emphasis on funding for research and development and training with increased support ceilings under the RTI scheme and a new €10 million fund for SMEs to help build international competitiveness.

Enterprise Ireland's non-financial support to its existing client companies includes developing export sales, that is, seeking to identify real sales prospects in overseas markets for clients which is done by researching prospects and introducing clients and potential key buyers; and providing technology advice and access to knowledge and expertise in identifying new product/process opportunities in the research institutes in Ireland or through partners in Ireland and/or overseas.

In the event of job losses in firms, FÁS can meet with staff and offer advice and guidance to those seeking alternative employment or training. I understand that in this case FÁS has already made arrangements to meet with the employees to bring its services to their assistance. These will include intensive interviews, individually and/or in groups, with affected workers which will outline the range of supports and services available; preparation of a skills analysis report by FÁS based on identified workers' needs and local opportunities; referral by FÁS of redundant workers to jobs, training courses or other options; establishment of special or customised training courses where necessary; and ongoing support and action to keep redundant workers in touch with the labour market.

As regards job creation, recent IDA Ireland job announcements for the Mayo area include Fort Wayne Metals in Castlebar, DeCare in Claremorris and Crossmolina and AMO in Westport. Indeed, Fort Wayne Metals is the first tenant in the new 17 acre business and technology park in Castlebar. Other business parks have been developed in Ballina and Westport. Enterprise Ireland has also provided support to nearby Claremorris under its community enterprise programme in 2000 for an enterprise centre. This is now complete and the first tenants are in occupation.

The full resources of the development agencies, including the county enterprise board, are available to assist. The CEB is available to assist any employees who may have ideas for establishing their own businesses. I am confident therefore that a focused agency approach, together with a local based approach, will be successful in addressing jobs in the area.

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