Dinny McGinley (Donegal South West, Fine Gael)

I appreciate this opportunity to raise this important matter on the Adjournment. Last Friday's announcement by Magee's of Donegal town that it will cease production of its clothing manufacturing unit with the loss of 60 jobs is but the latest in a long litany of such announcements throughout Donegal in recent times.

Last August the town received a major body blow when Hospira announced its closure with the loss of 560 jobs. Within a number of months a small town is losing more than 600 jobs. Surely it must be evident to all, even to the Minister and the Government, the devastation, human misery and suffering that is being inflicted on the employees and their families, not to mention the other businesses and services in the region.

I pay tribute to Magee's and its employment record in Donegal town which dates back almost 150 years. This was and still is a family friendly orientated industry in every sense of the word. Many generations of the same families were employed in it and looked upon their co-workers as almost family members. The imminent closure of its clothing manufacturing unit is entirely due to the astronomically escalating costs, including rates, labour, energy and insurance. Together they became an almost impossible financial burden on the company and the Government must accept a major share of the blame for allowing these overheads to get out of control.

What is happening in Donegal town at present has been happening in many other parts of County Donegal in recent years. Between 1997 and 2004 Donegal lost almost 6,500 jobs in IDA supported industries. These figures do not include Hospira, Magee's, Unifi in Letterkenny or the thousand or more job losses in Údarás na Gaeltachta aided industries.

One can justifiably say that since 1997 total job losses in Donegal must be verging on the astronomical total of 9,000 to 10,000, and that is a conservative figure. The list of closures and job losses is almost endless and includes: Donegal Rubber Company in Ballyshannon; Hospira and Magee's in Donegal town; Herdsmans and Nena Models in Ballybofey-Stranorlar; and Fruit of the Loom in Buncrana, Malin, Raphoe, Milford and Dungloe. Killybegs is almost a ghost town due to the depression in the fishing industry and Gweedore industrial estate in my parish once the jewel in the crown of Údarás na Gaeltachta is but a pale shadow of its former glory.

It is no exaggeration to state that Donegal is being turned into an industrial wasteland. Our industrial base is being completely eroded and that is causing an exodus of our young people from the county.

It is now almost three years since more than 400 decentralised jobs were promised to the county. Since then little or no progress has been achieved, and it could be another five or six years before these jobs are located in Donegal. Surely the recent spate of job losses will at least expedite the process of decentralisation to the county. It is true that we have task forces, plans and promises but no jobs have been created to replace what we have lost.

Donegal town and the county has much to offer and I compliment Donegal Town Community Chamber Limited in that respect. It has responded positively to the crisis in the town outlining the many advantages for businesses to locate there, including health services, child care facilities, educational services, competitive house prices, easy access by air and road and the availability of an educated and skilled workforce.

Donegal has given the Government more support than any other county. There are six Deputies in the county and five support the Government on a daily basis — that number would probably more than equal the number of Deputies supporting the Government in the Acting Chairman's county. That is tremendous support in any language, well in excess of 80%. However, that loyalty and support has not been reciprocated by the Government. Donegal has been taken for granted.

The economy of Donegal is over-dependent on the construction industry. Any downturn in that sector would trigger an economic freefall. I ask the Government to recognise the needs of the county and to act before it is too late. What we need is more action and jobs, not plans and platitudes. Radical action is urgently required.

See this speech in context