Dáil Éireann Debate, Tuesday - 31 May 2005
55 Ms C. Murphy asked the Minister for Enterprise, Trade and Employment the measures his Department intends to take to assist the 240 workers who are to be made redundant at a company (details supplied) in Naas; and if a replacement industry is being sought for the area. [18036/05]
Amharc ar fhreagra290 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the number of job replacements achieved or anticipated in respect of job losses at a company (details supplied) in County Kildare and proposed job losses at a company in County Kildare; and if he will make a statement on the matter. [18467/05]
Amharc ar fhreagra291 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which he has examined the cause or causes for the proposed relocation of the jobs of more than half the workforce at a company (details supplied) in County Kildare; if his attention has been drawn to the increased incidents of the relocation of manufacturing jobs to more competitive economies; if he proposes to take steps to address this issue before service industry jobs are similarly affected throughout County Kildare and nationwide; and if he will make a statement on the matter. [18468/05]
Amharc ar fhreagraI propose to take Questions Nos. 55, 290 and 291 together.
I am aware of the recent announcement by Magna Donnelly Electronics Limited of a major restructuring and upgrading of its plant in Naas that will involve redundancies and of the other companies that closed in Celbridge and Naas in 2004. I understand that Magna Donnelly has decided to choose Ireland as the international manufacturing site for its next generation electronic mirrors and that this will involve substantial new capital investment at its Naas plant. This is expected to ensure the long-term future viability of the plant. The company employs 480 people at its Naas facility and 235 people will be employed following the restructuring.
The 245 redundancies are expected to be achieved through a voluntarily redundancy and early retirement scheme. The company intends that the restructuring plan will be implemented before the end of 2005. Finding alternative employment for the workers affected is a priority for the industrial development agencies. Already, FÁS has made available its full range of support services including training provision and a career planning process for the staff affected. The State development agencies continue to market and promote Naas and County Kildare as a whole for employment creation and investment.
IDA Ireland is working with its existing base of companies with a view to supporting such companies with potential expansions and diversification of activities, which strengthen their presence in the county. In addition, IDA Ireland targets potential new investment projects and there have been two site visits hosted by IDA Ireland to County Kildare over the past two years.
Recently, I opened the new International Fund Services (Ireland) Limited office in Naas, the company's second operation in Ireland. This facility is on target to employ 140 people by the end of 2005 and 240 by the end of 2006. The county continues to thrive across a broad range of activities in the housing, commercial, services and industrial sectors. As a result, many job opportunities are being created within the county. The population of the county continues to grow ahead of the national average and, last year, significant overseas investments were announced by both Intel and Hewlett Packard. Other overseas companies in the county such as Wyeth Medica, Oral B, Tegral Products and Athy Concentrates continue to provide significant job opportunities. Similar opportunities are being provided by the services and local industrial sectors.
Enterprise Ireland is actively involved in assisting client companies based in Naas to grow and develop their businesses. The agency's activity in terms of job creation is focused on supporting entrepreneurs setting up new high potential start-up companies, the retention of existing jobs and the creation of new jobs and in enhancing innovation capability at a national and regional level.
Between 2002 and 2004 Enterprise Ireland approved more than €3.4 million in support to 22 companies in the Naas area and since the beginning of 2002, it has approved €9.3 million for companies in County Kildare to help them grow their sales, improve innovation and develop new products in order that they can compete on world markets. Green Isle Foods announced in January 2005 a major expansion investment due to begin production this autumn, supported by Enterprise Ireland, which will lead to the creation of 130 new jobs from a current base in Naas of approximately 630.
I am aware of instances of manufacturing jobs relocating to lower cost economies. A more attractive cost environment abroad will inevitably attract some firms that are unable to produce in the high wage environment of modern industrial economies like ours. The continuing structural transformation of our economy is economically inevitable and some plant transfers and other adjustments are bound to happen, but where relocation has occurred to date, it has largely been limited to low-technology activities. The enterprise support agencies under my Department have adjusted their support strategies to meet both the needs of society and of businesses in terms of high quality employment opportunities. They have had a good deal of success in attracting higher value replacement enterprises, in line with our policy of moving enterprise in Ireland up the value chain to the higher value output of products and services. Sustainable employment will be driven by companies with higher profitability, that are more technologically advanced and prove a better fit with the competitive characteristics of our economy and that are therefore less likely to relocate on the basis of competitive influences.
I am satisfied that the strategies and policies being pursued by the State development agencies, under the aegis of my Department, will continue to maximise sustainable job creation and investment opportunities. The capacity of our economy to expand quality employment opportunities consistently, not only for our own labour force but for thousands of immigrants as well, strongly suggests that we have significant competitive strengths in the global context.
