Dáil Éireann díospóireacht -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Job Creation.

Brian O'Shea

Ceist:

92 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created in each case to date in respect of the series of job announcements made by her on 18 April 2002, in respect of Galway, Limerick and Birr; when it is expected that the balance of the jobs will be created; and if she will make a statement on the matter. [29920/03]

Jan O'Sullivan

Ceist:

105 Ms O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent announcement by a company (details supplied) based at Plessey Technology Park in Limerick that it is to close with the loss of 173 jobs; the steps she intends to take to try to secure alternative employment in the area; and if she will make a statement on the matter. [29921/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

I propose to take Questions Nos. 92 and 105 together.

On 18 April 2002, I announced that Churchill Insurance Group Limited was to create 600 new jobs in Galway over the next five years. This facility, a customer interaction centre was necessary to support current and future growth of Churchill's insurance business in the British market, which consists mainly of household and motor insurance. IDA Ireland have informed me that the company currently employs about 130 people.

I also announced on 18 April 2002, that Thomson NETg, one of the world's leading providers of learning solutions to the corporate and academic markets, was to expand its e-learning product development and innovation centre operation in Limerick with the creation of 360 new jobs, bringing total employment at Thomson NETg in Ireland to 700 by the end of 2005. As part of the proposed expansion, the company agreed with IDA Ireland that up to 80 of the new jobs announced in April 2002, would be located in Birr, County Offaly. However, NETg subsequently decided to postpone its expansion plans and would not undertake the establishment of an operation in Birr due to the adverse economic climate, particularly in the e-learning sector. On 19 November 2003, NETg announced that as part of an ongoing assessment and reorganisation of its global business operations, a decision had been made to consolidate its global product development activity at its plant in Naperville, Illinois. As a result of this decision, the company's product development facility in Limerick will cease operations with the loss of 173 jobs, and plant closure is expected to be being completed by March 2004. It is understood that the closure decision was only taken after considerable examination of the corporate structure and a review of options. The company is operating in an increasingly challenging IT environment which necessitated taking measures in order to align the cost base with revenue.

The availability of the Limerick plant for a new project will be marketed strongly by IDA Ireland in co-operation with NETg. FÁS has already been in contact with the company and offered its range of training, job placement and other services to workers affected by the proposed closure.