Tony Killeen (Clare, Fianna Fail)

I thank the Deputy for raising these matters. I was disappointed to hear that Glen Dimplex had announced it would close its Tralee operation in April 2006 and that Fleet Street Travel Ireland Limited was to reduce its workforce in the town. I am conscious of the effect that these job losses will have on the workers involved and their families as well as the community in the surrounding area, as this is disappointing news for those who will lose their jobs as a result of the announcements. I assure the people concerned that the State agencies will give every support they can. The priority will be to find alternative employment for those involved.

Shannon Development met Dimplex Heating Systems late last year and learned it was likely that the company would close with the loss of 70 jobs. The closure was confirmed to Shannon Development on 4 January 2006. I understand the reason for the closure is the fall off in the company's traditional markets for low cost cylinder cleaners due to competition from China, and the very slow uptake of its new products in the commercial cleaning market. The company has commenced a consultation process with SIPTU and directly with staff members.

Unfortunately, Fleet Street Travel Ireland Limited has lost a key contract to one of its global competitors and is, therefore, obliged to reduce the workforce at its Tralee operation. I understand that the reduction in the workforce is being made to safeguard the remaining jobs in Tralee and the company is fully committed to ensuring this. All staff have now been informed of the situation and the company has entered into a period of consultation with its staff. The company will also continue to search for viable alternative solutions.

The role of FÁS, the State training agency, will be especially important in assisting those who are to lose their jobs. The agency has already met Glen Dimplex to discuss the closure and to inform the company of the range of its services available during company closures. The agency has also met Fleet Street Travel and a second meeting has been scheduled to finalise arrangements for the registration of the workers. The full range of FÁS services, particularly for retraining and upskilling, will be made available to the workers of both companies if they wish to avail of those services. Finding alternative employment for the workers will be a priority for the State development agencies. I assure the Deputy that IDA Ireland and Shannon Development, in addition to FÁS, will play their part in developing a way forward for both sets of workers.

Both IDA Ireland and Shannon Development are confident that the strategies and policies being pursued in Tralee, together with the ongoing commitment to regional development, will continue to bring investment and job creation to the area. There has been an increase in employment of 55 people over the past year at Kerry Technology Park in Tralee. This increase was spread across a number of companies, all of which operate in the knowledge-based business sector.

There is a diverse range of companies located in County Kerry representing a number of industry sectors such as pharmaceuticals, engineering and consumer products. The sectoral emphasis of IDA Ireland in the mid-west region is on attracting new knowledge intensive projects in information and communications technology, international services, medical technologies and life sciences.

To foster collaboration between industry and academia, IDA Ireland works closely with the local educational infrastructure, particularly the institute of technology in Tralee and the University of Limerick. Last year, eight IDA Ireland companies in the mid-west committed themselves to research and development projects worth €19 million. The agency continues to work closely with educational institutions in the region in developing the skills sets necessary to attract high value added employment to the county.

Shannon Development has approved a €1.5 million support package for two Kerry-based indigenous companies, Altobridge Limited and Freeflow. The support will lead to increased research and development activity in both companies and will generate an additional 43 jobs at Kerry Technology Park over the next five years. The support for Altobridge has also brought about substantial private equity funding.

I assure Deputy Deenihan that the State agencies will continue to work closely with each other and with the development bodies in the area, as well as with local interests, in facilitating an integrated approach to enterprise development in Tralee.

See this speech in context