Tony Killeen (Clare, Fianna Fail)

I thank the Deputy for raising this matter. On 13 October 2005, the company in question wrote to the Minister for Enterprise, Trade and Employment saying that the plant in Easkey would close over the next three months. As a result of this, the company would make 31 people redundant on a phased basis with the first job losses occurring on 11 November 2005. I understand that the decision to close was taken with considerable regret by the company.

The decision was particularly difficult as the company felt it had established an excellent team of workers with a strong service ethic. The directors.were particularly impressed with the commitment and hard work of the employees and said that they would work with them to help them gain alternative employment. The full services of FÁS will be available to the workers if they wish to avail of them. Up to the end of last week, almost half of the workers had been interviewed by FÁS officers and the remainder are being interviewed this week.

The company has been involved in manufacturing in Sligo since 1996. However, it has experienced four years of difficult trading conditions. Unfortunately, the business is now uneconomic, leaving the directors with no alternative but to cease trading and close the company. The loss of 122 jobs at the second company was discussed on the Adjournment in the Dáil on 22 November 2005. The jobs losses in both Sligo companies are of 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, particularly ones that offer more opportunity 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 being 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. Indeed, the company in Easkey has cited the movement of its competitors to low cost manufacturing centres as one of the main reasons for its decision to close. 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 company level competitiveness. The industrial development agencies are making every effort to secure alternative employment for Sligo. IDA Ireland is promoting County Sligo to potential investors on an ongoing basis and every effort is being made to secure further industry by progressing the development of a knowledge economy in order that the region can compete both nationally and internationally for foreign direct investment. The agency is also working with its existing client base to expand its presence in the county.

To support the strategy of moving to a more knowledge based economy, IDA Ireland is working closely with educational institutions in the Sligo region to develop the skill sets necessary to attract high value added employment to the county. The agency is also working with FÁS to provide guidance in developing the skill sets needed by those in the workforce who are interested in upskilling. As part of the transition to repositioning the county to a more knowledge based economy, IDA Ireland is marketing Sligo as a key location for investment in the pharmaceuticals, chemicals, medical technologies, engineering, consumer product and financial services sectors.

Recent job announcements include Abbott Ireland, which is to add 350 new jobs to its existing diagnostics facility there, and the consumer telecommunications company IDT Toucan, which will create 300 new jobs at its customer service centre in Sligo. Since the beginning of 2002, Enterprise Ireland has approved over €3.4 million in support to its client companies in County Sligo and made payments of over €2.4 million. In the same period, Enterprise lreland has approved support of over €1.2 million for third level-industry partnerships with the Sligo Institute of Technology to encourage the adoption of new technologies by industry.

I assure the Deputy that the State development agencies, including the local county enterprise board, under the auspices of the Department of Enterprise, Trade and Employment, will continue to work closely together and with local interests in promoting Sligo for further job creation and investment.

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