Tony Killeen (Clare, Fianna Fail)

I thank Deputy Cooper-Flynn for raising this matter. I was disappointed to hear of the recent decision announced on 18 April by Contact Partners Communications Limited to close its Castlebar operation. That decision was undoubtedly a setback to the area.

The parent company decided that keeping the Castlebar operation open is not a viable option. It has decided to close Castlebar and consolidate all business at its other Irish operation in Shannon. The company has stated that, operationally, it is not practical for it to continue to incur the additional costs of operating from two centres in Ireland when it could do so from only one.

Current employment at Castlebar is 101 — there are 50 people employed in Shannon — and the company is planning final closure on 18 May next. I understand the staff is being offered the option of relocating to Shannon. The offer will include a relocation package. Finding alternative employment for the workers affected is a priority for FÁS and the State development agencies. FÁS has already been in contact with the company to offer its full range of support services. The company indicated that it would reply to FÁS at a later date.

Achievement of balanced regional development is a central goal for IDA Ireland. The national spatial strategy provides a framework for achievement of that goal through the prioritisation of development and investment in the linked hub of Castlebar-Ballina and in other key towns so that the needs of foreign direct investment can be met. IDA Ireland is committed to the development of Castlebar and County Mayo and is actively promoting the county for new foreign investment. Since January 2004, there have been seven first-time site visits to the county.

In 2004 alone, four IDA Ireland-supported companies committed themselves to research and development projects in County Mayo, with potential spending of approximately €5.5 million. That is a significant development essential for the development of high-quality employment in County Mayo. The current property investment programme represents cumulative planned spending of approximately €11 million by IDA Ireland in County Mayo for the four years ending in December 2005.

IDA Ireland is investing significantly in the provision of planned and focused property solutions in Castlebar and County Mayo. That is seen as an essential marketing tool in the process of attracting potential new investors to the county. IDA Ireland is developing world-class business and technology parks in Ballina and Westport, as well as Castlebar. In Castlebar, a new 16-acre, state-of-the-art business and technology park has been fully developed and is being actively promoted by IDA Ireland for new FDI projects.

Enterprise Ireland provides preferential funding for companies with detailed export plans that are expanding or establishing a business in Castlebar or County Mayo. Enterprise Ireland approved funding support of more than €5.8 million and paid more than €4.8 million to companies in the county for the years 2001 to 2004. To date in 2005, some €563,000 has been approved in support to the indigenous sector. That financial support will enable the companies to fund their plans for innovation and new product development.

Enterprise Ireland has also approved funding for ten community enterprise centres in County Mayo. Eight centres have now been completed, including one in Castlebar. The incubator unit at the Galway-Mayo Institute of Technology in Castlebar received a capital grant of €1,280,000 in 2002 from Enterprise Ireland. A further €76,000 was also approved towards the cost of a centre manager. The main objectives of those incubation centres are to support the development and expansion of campus company activity and to encourage and support the commercialisation of research and development carried out in the third level sector.

Galway-Mayo Institute of Technology is an important local source of highly skilled graduates for industry in Castlebar and County Mayo. The campus is currently working with local industry to develop specific courses to meet industry needs in information and communications and medical technologies.

I am encouraged by the most recent live register analysis figures for Castlebar and County Mayo released by the Central Statistics Office. The year-on-year figures for Castlebar show a decrease of 99 people, from 964 to 865. Overall, the numbers on the live register for County Mayo stood at 5,297 in March 2005, down from 5,863 in March 2004, a decrease of almost 10% in unemployment using that indicator.

I am satisfied the strategies and policies pursued by the State development agencies, including the county enterprise board, together with our ongoing commitment to regional development, will continue to bear fruit in overseas investment, business development and increased employment opportunities for both Castlebar and County Mayo. The relevant State agencies will continue to make every effort to secure alternative employment for the staff affected by the job losses at Contact Partners Communications Limited.

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