Michael Ahern (Cork East, Fianna Fail)

It is happening.

I thank the Deputy for raising this matter on the Adjournment. It has also been brought to our attention by the Minister, Deputy Coughlan, and the Minister of State, Deputy Gallagher. There is a united front in Donegal South-West on this matter.

I learnt with grave disappointment of the recent decision by Magee Clothing Limited to cease manufacturing at its Donegal facility in 2007 with the loss of 60 jobs. The Magee company has been one that is synonymous with good quality suits and other clothing and it is a pity to see it go out of existence.

Approximately 50 jobs will be retained within Magee Clothing Limited together with 60 in Magee Weaving and 45 in the Magee shops. Enterprise Ireland is continuing to work with the company to secure its future development and is supporting a strategic review of the business due to take place in the next month.

The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. It has already been in contact with the company and will provide advice and training opportunities for the employees being made redundant. FÁS will make its full range of services available to the workers, which include top level agreement with the company on responsibilities and actions; intensive interviews, individually and in groups, with affected workers that will outline the range of supports and services available; preparation of a skills analysis report by FÁS based on identified workers' needs and local opportunities; referral of affected workers to jobs, training courses or other opportunities; the establishment of special or customised training courses where necessary; and ongoing support and action to keep redundant workers in touch with the labour market.

In the period 1999 to 2004, total new jobs created in IDA supported companies in the north west amounted to 3,286. Since 1999, total employment in overseas firms in counties Donegal, Sligo and Leitrim has risen by more than 6% to approximately 6,000 persons in 2004. IDA Ireland estimates that indirect employment would be at least comparable to this figure, if not higher. The agency will continue its efforts to attract new foreign direct investment into the region.

Enterprise Ireland is also playing its part. The agency is intensifying its efforts to assist existing, established client companies in Donegal through the provision of both financial and non-financial services. These include assistance to increase sales and support export development through its network of 33 overseas offices worldwide. It is also supporting research and development and harnessing the expertise within third level colleges while providing preferential funding for companies planning to expand their business in the BMW region. From 2004 to end 2005 Enterprise Ireland approved almost €4 million to client companies in County Donegal.

Enterprise Ireland has also introduced a new programme called Enterprise Start aimed at people considering a career move who would like to learn more about starting their own business. This programme is a joint venture between Enterprise Ireland and FÁS and has been designed to address the gap in provision of training for those mainly, though not exclusively, in employment seeking training in how to start a new enterprise. The programme has been rolled out in Sligo and will commence in Letterkenny in March 2006.

There have been significant job announcements in Donegal recently with over 210 new jobs announced in September 2005 by Zeus Industrial Products in Letterkenny and PowerBoard in Burnfoot. These projects are being supported by IDA Ireland and Enterprise Ireland, respectively. These projects were in addition to 423 jobs which my colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin, announced earlier this year for the north west.

The State development agencies, IDA Ireland, Enterprise lreland, FÁS and Donegal County Enterprise Board, are fully committed to supporting and promoting job creation and job retention in Donegal. In addition to recent job announcements, this commitment is also demonstrated through the ongoing development and support by the agencies for a number of business parks and enterprise centres in Donegal. These include the completion of the IDA Ireland Letterkenny business park, the provision of a 25,000 sq. ft. advance office building at Windyhall and the work under way on the development of technology units and two new additional advance office buildings.

Planning permission has been obtained for a new facility at Ballyshannon where IDA Ireland has undertaken a significant amount of site development work recently. In Donegal town, work is under way on the design of a 1,500 sq. m. advance office and the upgrading of the estate at Lurganbuoy. This design will be lodged for planning permission at an early date. In Buncrana a new extension to the estate has been developed and planning permission has been obtained for a 2,000 sq. m. factory. IDA Ireland is working with a local private developer in the provision of a manufacturing facility and an office building on the estate.

In addition to providing support for nine community enterprise centres in Donegal, Enterprise Ireland has provided substantial support for the expansion of the Letterkenny Institute of Technology business development centre.

There have been significant job losses in Donegal in recent years, particularly in traditional sectors such as textiles and clothing. The Minister, Deputy Martin, has visited Donegal twice since becoming Minister for Enterprise, Trade and Employment and has met many groups and companies on these visits. His colleagues in Government also recognise the particular difficulties in Donegal and will work together to assist in improving the overall environment to increase the attractiveness of Donegal as a location for enterprises. The Minister for Enterprise, Trade and Employment established an interdepartmental group on Donegal which is chaired by the Secretary General of his Department and it held its first meeting in November last.

Support for job retention and creation in Donegal will continue to remain a high priority for the Government.

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