Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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I thank the Ceann Comhairle for the opportunity of raising this important issue. I welcome that the Minister of State, Deputy Sherlock, is here to hear my concerns.

EJ Cavanaghs in Birr was a well known employer for many decades. It was a family owned iron foundry business which manufactured manhole covers and drainage grates for the construction industry. In 2000, it was taken over by an American company called EJ and is now known as EJ Ireland Access Solutions Limited. It is also a family owned business and has taken an inclusive approach in ensuring that the company grew and developed. Sadly, when it began to lose money owing to the decline in the construction industry it took the difficult decision to enter into consultation with 32 of its workers with a view to downsizing the operation. The 32 people concerned are young skilled workers, many of whom have young families. Having met on Monday last with management I know how difficult this decision was for them and the owners. I sympathise with the road they have to go down over the next couple of weeks.

I accept this decision cannot be reversed. We are all aware of the decline in the construction industry over the past number years and the knock-on effect this has had on other areas. I am anxious to ensure that every effort is made by the Government and its agencies to assist the company and, should the result of the consultation process be redundancy, the redundant workers. It now appears this may well be the case. These people should be provided with the advice and training required to help them re-enter the workforce. The people concerned are hard workers who know the benefits of work to them, their families, their communities and the local economy. Thirty-two jobs may not be a lot to people living in built up urban areas. However, 32 jobs in a small community is equivalent to 300 jobs in a larger area. The knock-on effect of these job losses will be significant.

The midlands region has many small and medium enterprises skilled in manufacturing and engineering. While I welcome the positive benefits of the efforts of Government in terms of job creation during the past couple of years, the jobs secured have in the main been in built-up and satellite areas in the larger cities like Limerick, Cork and Dublin. There is a need for a regional enterprise strategy to provide the regional counties with the opportunities they deserve. The unemployment rate in Offaly is higher than average and it has the second lowest disposable income in the country. We have moved to decision-making based on evidence. There is evidence to suggest that action is urgently required in Offaly. Offaly is also home to the highest percentage of workers in the industrial sector. Again, this points to the fact that urgent action will be needed.

I am anxious to hear what IDA Ireland and Enterprise Ireland are doing for Offaly. Tullamore is a gateway town and Birr, which is not too far from Tullamore, has good connectivity and accessibility to all of the major motorways. It is also located in the centre of the country. I would welcome concentrated and urgent attention being given to the preparation of a regional enterprise plan so that Offaly and other regional counties experiencing decline will get their fair crack of the whip and the jobs they so badly need as a result of the downturn.

Seán Sherlock (Cork East, Labour)
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I thank Deputy Corcoran Kennedy for raising this issue. I share her concern in relation to the jobs being lost at EJ Ireland Access Solutions Limited, formerly EJ Cavanaghs.

IDA Ireland notified the Department of Jobs, Enterprise and Innovation on 21 October that EJ Ireland Access Solutions Limited is currently engaged with workers regarding a restructuring proposal, which will result in the loss of 32 jobs. The company currently employs 51 people. The company has been impacted by the collapse of the construction

sector within Ireland, which was its primary market. The company will retain 18 staff at the Birr plant to deal primarily with sales, marketing, distribution and steel fabrication. It has had to review its business structures due to the collapse of construction activity in the Irish market. Ireland was its primary market when its sales peaked in 2008. Exports at that time accounted for less than 5%. However, at year end 2012, company exports accounted for 30% of its revenue. More and more companies are engaging in this type of restructuring, with companies looking strategically at opportunities in the global market and taking steps, unfortunately, such as making people redundant, in order to position themselves for future growth.

The proposed redundancies in Birr are part of adjustments the company is making to meet the evolving needs of the business and to remain competitive in a challenging global environment. IDA Ireland will remain in ongoing contact with the company. Owing to the downturn, all businesses face competitiveness issues, including the manufacturing and services sector. It is clear that, arising from greater globalisation, reduction of tariff barriers and the ease of transporting goods, the nature of industry and the location of specialisations will be changing. The Government's action plan for jobsis a key part of the process. We are endeavouring to create the right environment for additional job creation. While employment levels in the manufacturing sector have fallen, in common with every other industrialised country in Europe, we still have 205,000 people directly employed in manufacturing and, when account is taken of indirect employment, this means about 400,000 people depend on manufacturing for a livelihood in Ireland.

Last year, the Minister, Deputy Bruton, initiated two research projects, one by Forfás entitledMaking it Happen - Manufacturing 2020and the other by the expert group on future skills entitled, The Future Skills Needs of the Manufacturing Sector to 2020. Both of these reports complement each other and will assist Government in reaching the target of creating an additional 20,000 jobs in manufacturing by 2016. The private sector has created 3,000 jobs per month over recent times and we hope to build on this positive trend. IDA Ireland is continuing its efforts to attract FDI to this area and the midlands region. There are currently 11 IDA supported companies operating in County Offaly. In 2012, there were nine IDA site visits to the midlands region and three visits to County Offaly. The Deputy will appreciate that while the IDA makes strenuous efforts to attract multinational companies to specific regions, the ultimate decisions on whether to visit and subsequently locate are matters for the companies concerned. In 2012, Enterprise Ireland had 79 client companies in County Offaly, employing over 2,600 people in full time jobs and 56 client companies in North Tipperary, employing over 2,100 people in full time jobs. Enterprise Ireland paid over €1 million to its client companies in County Offaly in 2012 and has paid over €750,000 to date in 2013. The corresponding figures for North Tipperary were over €2.7 million in 2012 and over €500,000 to date in 2013.

In terms of new initiatives for job creation in counties Offaly and north Tipperary, Enterprise Ireland activity is focussed on the creation of new jobs through continuing to work with established companies in its portfolio. Enterprise Ireland is part of a local inter-agency committee which is developing a new promotional and information portal for Tipperary, www.Tipperary.com.

In addition, Offaly County Enterprise Board and Tipperary North County Enterprise Board have taken a proactive approach, together with a range of services and supports for people considering self-employment. These services are of course available to any EJ employee considering self-employment.

I do not wish to provide political platitudes. I do not know the company or the people personally. Deputy Corcoran Kennedy knows these people; they are her own people. We sympathise with them on the loss of these jobs and we will do everything through our State agencies to try to replenish them with the supports that are available.

Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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I thank the Minister of State for his response. It is heartening to hear about the efforts being made by the IDA and Enterprise Ireland in Offaly and in the wider region. I am very interested in the pieces of research that are being conducted. I look forward to hearing what the manufacturing development forum identify as the skills that are needed for businesses in the future, because that will be critical in developing new training for people, and to encourage people into the type of courses at third level that will be required. I welcome this and I urge that the skills needs are identified as soon as possible.

The good news in all of this is that staff are being retained at the company in Birr. They will be working in the sales, marketing, distribution and steel fabrication sectors of the company. I hope the agencies there to support will help them examine what aspect of the steel fabrication business could be developed further to help grow that side of the business and to create further jobs where they are so badly needed.

I would also like to refer the Minister of State to the two other fantastic areas available for people to come and create employment, namely, the Birr Technology Centre and the Shannon Development sites, given that Shannon Development is now under the auspices of the Shannon Airport Authority. I am keen to find out what are the plans for that. Who will now be responsible for those sites, the fantastic facilities of which can be used to attract business or support local people to create businesses? It is a shame to see so much public money gone into development of these sites, particularly the Birr Technology Centre, if it is allowed to lie vacant when it could be used productively.

Seán Sherlock (Cork East, Labour)
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I acknowledge the points made by the Deputy. It is important to note that 18 jobs are still being retained and it is surviving as an entity. One hopes that it will grow over time and that the lost jobs could be clawed back. I also note the point that the Deputy makes on the other technology centres that are available. If the Deputy contacts the local agencies and Department officials about those sites, I am sure there will be a positive engagement on their potential in that region.

I acknowledge fully that these are job losses. They are going from 51 employees down to 18, which is a significant number. I understand the Deputy's point on the impact in a more rural setting than in a larger urban conurbation. If we are to have any meaningful role on renewing the manufacturing industry in this country, then it must be on the basis of balanced regional development. However, when companies decide to go to a particular region, it is ultimately a company decision. We all acknowledge in this House that a corporate decision has been made and we can only set out what is available on the ground for these companies, but they are the ultimate deciders of where they locate. However, I acknowledge the points made by the Deputy.