Paudie Coffey (Waterford, Fine Gael)
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I thank the Leas-Cheann Comhairle for allowing me to raise this important topic. I am glad the Minister, Deputy Bruton, is in attendance in the Chamber to hear my concerns in this regard. Over the years, the manufacturing sector has contributed substantially and positively to the Irish economy. It has provided good and honest employment to thousands of workers and their families. I believe the manufacturing sector was neglected during the Celtic tiger years, unfortunately. Competitiveness was lost and priority was given to an unsustainable construction sector. We lost our focus on manufacturing.

As the Minister knows, Waterford city and the rest of the south east have traditionally had a strong manufacturing base due to the presence of companies like Waterford Crystal, Waterford Stanley, ABB, Teva, Honeywell, Bausch and Lomb and GlaxoSmithKline. Many hundreds of small and medium sized enterprises in the region have been and are very productive in the manufacturing sector. The thousands of jobs provided by these companies have sustained the lives of workers and their families, and in turn the local economy, for many years. That is why we cannot give up on this essential sector. It needs continued Government focus and support.

Bausch and Lomb continues to employ over 1,700 people in Waterford city. GlaxoSmithKline employs over 750 people in its Dungarvan plant. Teva employs more than 450 people and Waterford Stanley employs more than 100 people. Small and medium sized enterprises in the area continue to employ thousands of people in the manufacturing sector. We heard the sad news on Tuesday that Honeywell, which is a strong traditional company in Waterford, had announced a redundancy programme for 74 of its employees. The only positive thing I can take from this devastating news for these employees and their families is that the company is committed to retaining 700 jobs in the city. The redundant workers must be given every assistance and support at this difficult time. More importantly, they need to be given some hope that they have a real prospect of finding new employment opportunities.

Today, I carry a message directly from the people of Waterford to the floor of this Chamber and to the Minister. Waterford city and the south east region are in urgent need of Government assistance and intervention to achieve economic recovery. We all know the region has suffered and continues to suffer disproportionately by comparison with the rest of the country. It is very difficult and frustrating to note that more than 3,000 manufacturing jobs have been lost in Waterford and the south east region over the last six years. I know that the Minister and IDA Ireland are doing their best and have been very active over the past couple of years. IDA Ireland visits to Waterford have increased substantially. According to figures I have seen, there were 11 such visits in 2011, 26 in 2012 and 12 to date in 2013. We need delivery on that now. We need to see some foreign direct investment in Waterford city.

The Government and the Minister have been proactive. We have seen some positive progress since we came into government, having taken the reins of power during the worst economic crisis this country has ever seen. I would like to compare the employment situation in the south east in June 2011 with the position in June 2013. The number of people in employment in the region increased by approximately 3,000 during that period. I welcome that increase. The unemployment rate in the region has decreased from a high of over 20% to the current figure of 18.3%, which is still far too high in comparison with the State unemployment figure of 13.3% last month. The live register in Waterford is now at its lowest level since April 2009. This is further progress.

I have mentioned some positive statistics, but I emphasise that we are starting from a very low employment base. The job losses in Honeywell highlight the fact that the recovery in Waterford and the south east is extremely fragile. Additional help is now required to address the higher than normal unemployment rates being experienced in Waterford and the rest of the south-east region. Direct Government intervention is required to help us at this stage.

Richard Bruton (Dublin North Central, Fine Gael)
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I thank Deputy Coffey for raising this important issue. I would like to express my sympathy to those workers who are affected by Honeywell's decision. Obviously, I share the Deputy's concern about the loss of jobs at Honeywell. As the Deputy knows, this turbo-technology company notified IDA Ireland on 8 October that due to forecasted reductions in demand for its products, it intends to begin a voluntary redundancy programme to reduce its current workforce by up to 34 positions by the end of November.

Honeywell currently employs 375 people in Waterford. It has informed its employees of its plans to make these redundancies. It manufactures and supplies turbo-wheels to Honeywell turbo-charger assembly sites in Italy, the Czech Republic, Romania and Slovakia. These sites sell to automotive engine manufacturers globally. Honeywell's parent company, Honeywell International Inc., is a diversified technology and manufacturing company that serves customers worldwide with aerospace products and services, control sensing and security technologies, automotive products including turbo-chargers, specialty chemicals, electronic and advanced materials and process technology for refining petrochemicals.

Honeywell in Waterford has had to review its business structures to increase its competitiveness as the global automotive industry has become increasingly more competitive. Car demand is weak in Europe at present, with many automotive companies realigning production with current demand. The company will now enter a consultation process with the workforce in Waterford. It is expected that the redundancies will be voluntary, in line with previous reductions. We are seeing more and more companies engaging in this type of restructuring, where companies are looking strategically at opportunities in the global market and taking steps, such as making redundancies, to position themselves for future growth. The proposed redundancies in Waterford are part of the adjustments the company is making to meet the evolving needs of the business and to remain competitive in a challenging global environment.

Honeywell has two sites in Waterford involved in the parent companies activities, which I am glad to say will not be affected by the proposed redundancies. IDA Ireland will discuss the plans for the site with the company and will remain in regular contact with local management.

On Deputy Coffey's wider issue, I fully recognise that manufacturing has been neglected. It suffered through a loss of competitiveness, which resulted in a loss of markets, leading to a tough attrition on employment and manufacturing. Overall, there has been a massive decline in employment in the sector from about 300,000 to 200,000.

There are opportunities in the manufacturing sector, and I established a forum to look at those. Next year, we will introduce a national step change initiative to assist manufacturing companies, both Irish and non-Irish, to lift their capability and open up new markets. Improved competitiveness, changes in the markets and increasing personalisation or customisation of product lines have opened up opportunities and we need to seize those, which is what the initiative is about.

I also recognise the point Deputy Coffey rightly made that Waterford and the south east have suffered disproportionately. As the Deputy knows, after the TalkTalk closure, I established a forum on the south east and put a special focus on Waterford through the IDA and, as the Deputy acknowledged, there has been a big step up in activity. We have had some successes. For example, Nypro, a multinational company, made a significant investment in Waterford. We have further ambitions. It is encouraging also to see in the south east a strong resurgence of many indigenous enterprises, including Glanbia, Dawn Meats, Eishtec, which has been stellar in its performance since the closure of TalkTalk, and FeedHenry. There is good activity in the area, but I will continue the emphasis on the south east and to target my activities.

Paudie Coffey (Waterford, Fine Gael)
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I acknowledge the Minister's response. I appreciate that he has visited Waterford and is working to improve the economic lot of the citizens of Waterford and the south east.

Since TalkTalk's high profile closure, we have seen economic reports. Indeed, I welcome the Forfás economic development strategy. The Joint Committee on Jobs, Enterprise and Innovation's south-east economic development strategy was also published recently and we also have the DKM economic strategy for Waterford city and county. The reports highlight the same issues and show what city and regional weaknesses need to be addressed. Some of those need direct Government support and intervention. I will name some of the requirements, but key is the establishment of a regional technological university. That is in the programme for Government, and it needs to be delivered as soon as possible in order that we can help the economy of Waterford and the south east. Under the Minister's direct responsibility is the location of a regional director for the IDA. The joint committee's report and the economic strategy for the region identify that we are at a disadvantage because we do not have a regional director for the IDA located in the gateway city of Waterford. That issue must be addressed. Furthermore, I know that the Minister of State at the Department of Public Expenditure and Reform, Deputy Brian Hayes, is looking into matters at the Mount Congreve gardens, which are being run by the Office of Public Works. That international attraction can help the region's economy. In addition, the extension of the runway at Waterford Airport also needs to be looked at. Those are some key areas where Government intervention and support will help to address the huge deficits in economic activity and employment figures in Waterford and the south east.

Only four Deputies represent this active constituency. Waterford is the gateway for the south east. We are demanding Government support. In fact, we expect Waterford to be supported on the same level as other cities. I ask the Minister and his Cabinet colleagues to give Waterford the focus it deserves. There are positive signs. As I have mentioned, 3,000 more people are employed in the Waterford and south-east region than there were when this Government came into office, but we need to see further progress.

Richard Bruton (Dublin North Central, Fine Gael)
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I fully recognise, and this came out in the south-east action forum we established, that there are serious structural problems in Waterford and the south east that go beyond, if one likes, enterprise agency activity. Continuous investment is needed in those areas. There also needs to be collaboration across many interests, which is a positive feature arising from the forum's work. In establishing what are the competitive advantages of the region and promoting them effectively, there are stellar organisations, such as Waterford Institute of Technology, WIT, which is Willie Donnelly's operation. That impressive operation has been a significant magnet for new start-ups.

I recognise that there are deeper and wider problems, and I look forward to meeting the joint committee and going through its report. As Deputy Coffey rightly recognises, from the enterprise perspective, although there is a long way to go, there are positive trends in the south east's employment. Our task is to consolidate and expand that progress.