Dick Roche (Wicklow, Fianna Fail)

I thank the Deputy for raising the issue and apologise on behalf of the Minister for Enterprise, Trade and Employment, Deputy Martin, who unfortunately cannot be present. The Minister has asked me to say how concerned he is that Seafield Technical Textiles Limited has announced that owing to adverse trading conditions, it has become necessary to cease trading with the loss of 38 jobs. He is conscious of the adverse effects on workers in Youghal of these job losses and other job losses in recent years.

Seafield Technical Textiles Limited manufactures technical fabrics for industrial and specialised apparel. Most of the production is exported. The company has experienced difficult trading conditions over recent years, but these have become even more acute during 2005. In common with other companies in the sector, customers have switched sourcing their supply of goods to lower cost economies.

Management at the company had tried to diversify into new markets and new product areas. The company has also tried to cut costs, including putting staff on three-day week schedules. However, the rate of decline of its present customer base during 2005 means that the drain on cash is too severe to give the company time to recover through diversification. The last quarter of the company's financial year is usually the busiest period and management delayed the decision to close to see if a seasonal increase in orders from September would arise. However, this did not occur and I understand the company was left with little option but to close. FÁS has contacted the company and the full range of FÁS services are being offered to the staff.

Unfortunately, the investment decisions of some companies are influenced by the competitive attractions of alternative geographic locations. As with most other European countries, there are areas of activity in which Ireland's competitiveness is seriously challenged. In the main these are areas where availability of capable lower cost locations makes costs the primary driver behind business decisions.

The industrial development agencies will make every effort to secure alternative employment for the area and I will convey the specific comments made by Deputy Stanton re gas and so on. IDA Ireland promotes east Cork to potential investors on an ongoing basis and every effort is being made to secure further advanced knowledge-based industry for the east Cork area, including Youghal. IDA Ireland will continue to promote east Cork actively to potential investors from across the full range of IDA Ireland targeted sectors such as pharmaceuticals, medical technologies, information and communications technologies and internationally traded services.

In addition to attracting new foreign direct investment, IDA Ireland continues to work closely with its existing clients in Youghal and east Cork to encourage them to expand their operations in the area. There are currently 137 IDA-assisted companies in County Cork employing in excess of 18,500 people. Over recent years, in terms of new foreign investment in east Cork, pharmaceuticals, medical technologies and internationally traded services are among the area's strongest performers. I have seen for myself that the economy of the general area is strong. Such investments are attracted to east Cork due to the availability of a high quality workforce, a well-developed infrastructure and very positive business environment. In the period from 2002 to 2004, more than 50% of all jobs announced in Cork came from companies locating in the broader east Cork area. Due to its proximity to the greater Cork area, Youghal has also benefited from this development. As Deputy Stanton has said it is an extraordinarily attractive place to live and rear a family.

Enterprise Ireland works with just under 750 client companies in County Cork, which according to the Forfás Annual Employment Survey 2004, employ a total of 19,617 people. Approximately 140 of these companies are in the east Cork area, including Youghal, with a total employment of approximately 3,700. Enterprise Ireland has worked closely with community groups in the towns of east Cork including Youghal, to foster further embryonic enterprise and to encourage young graduates to set up businesses in their own localities. Enterprise Ireland has approved feasibility study funding to explore the possibility of a community enterprise centre in Youghal. I am sure if that comes about it would be a very positive development.

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