Tim O'Malley (Limerick East, Progressive Democrats)

The company conducted a review of its operations at its Sligo plant, which led it to the conclusion that the business should be relocated with the resultant loss of jobs for all employees. The review was the direct result of the competitive pressure being experienced by its customers and the requirement for Tractech to continue reducing its manufacturing costs. The most likely scenario will be a phased shutdown of the Sligo operation beginning in spring 2006 with final closure by the end of the year.

FÁS will contact the company shortly and the full range of its services will be offered to the workers to retrain and upskill them if they wish. Job losses in the region are of ongoing concern and the Government is doing all in its power to create structures through its enterprise, development and training agencies which will facilitate those who have lost jobs to gain new ones that offer greater opportunity both in terms of skills and permanence.

Ireland has a predominantly modern manufacturing base which competes in a range of growth sectors. However, as with most other European countries, there are areas of activity in which Ireland's competitiveness is seriously challenged. In the main, these are in areas where the availability of lower cost locations is making cost the primary driver behind business decision making.

It is inevitable that the investment decisions of some companies will be influenced by the competitive attractions of alternative geographic locations. Our focus is firmly concentrated on managing the current transition with the best possible blend of policies to strengthen both national and firm level competitiveness.

Manufacturing has been a key driver of prosperity across the economy for many years and enterprise policies will continue to emphasise the strategic importance of the sector to future economic growth. Indeed the enterprise strategy group recognised the importance of the sector in providing a foundation of skills and technologies in which to build a high performance, high value added and technologically orientated manufacturing sector into the future.

Our objective is to ensure that our economy remains a globally competitive, profitable and secure location for business. We can best help enterprise, including the manufacturing sector, by continuing to implement policies that are pro business and by implementing the right balance of enterprise supports and at the right time to help business. When provided with the best supporting and competitive environment, business and industry will develop to capitalise on investment and growth opportunities. It is the Government's intention to enable enterprise growth by policies tailored to address the competitive pressures transforming the global economy.

A key element of the Government's strategy to help enterprise is to encourage increased levels of investment in research, business related technological development and innovation across all enterprise sectors. These increased levels will assist firms to produce improved products and services with added value. In the longer term, this approach will provide more sustainable and higher quality jobs.

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