Michael Ahern (Cork East, Fianna Fail)

I thank Deputy Devins for raising this matter. I was very concerned to hear that Saehan Media Ireland Limited, Sligo, has announced that it will close with the loss of 70 permanent and 22 temporary jobs at the end of April 2006. The decision was communicated to the employees on the 17 February last, at which time the company requested employee representatives to enter into consultations on the basis for the implementation of the redundancies.

I am very conscious of the effect of these job losses on the workers involved and their families, as well as the community in the surrounding area. This is very disappointing news for those who will lose their jobs and I wish to assure the people concerned that the State agencies will provide every support they can. The priority will be to find alternative employment for those involved. The role of FÁS will be particularly important in assisting those who are to lose their jobs. FÁS has already been in contact with the company and its full range of services will be made available to the workers concerned if they wish to avail of those services.

Saehan Media plans to offer redundancy terms of five weeks per year of service inclusive of statutory redundancy, similar to the norm in previous lay-offs at the plant. The company will also draw up a skills profile of its staff to assist in establishing contacts for them with other companies who may be seeking employees.

As Deputy Devins stated, the market for their product has been in decline since the late 1990s with the advent and growth of DVD technology and its increasing affordability. Because of keener competition in a diminishing market the company has recorded a series of increasing losses which are not sustainable. These market conditions are also being experienced by Saehan in the US, where the company expects to close a video tape production plant with the loss of 180 jobs in the coming months. In both cases, demand for the product will be serviced by the company's Korean and Chinese facilities, which have spare capacity.

The industrial development agencies will be making every effort to secure alternative employment for the area. IDA Ireland is promoting Sligo and County Sligo to potential investors on an ongoing basis and every effort is being made to secure further industry for the area, by progressing the development of a knowledge economy in order that the area can compete both nationally and internationally for foreign direct investment. The agency is also working with its existing client base to expand their combined presence in the county.

To support this strategy of moving to a more knowledge-based economy, IDA Ireland is working closely with educational institutions in the Sligo region in developing the skill sets necessary to attract high value-added employment to the county. As part of the transition to re-positioning 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. It is also working with FÁS to provide guidance in developing the skills needed by those in the workforce who are interested in up-skilling.

Over the past five years, IDA Ireland's focused strategy for Sligo has been to promote the county as part of an integrated north-west region with access to a population base of over 220,000 people. Job announcements for Sligo during the last year include the consumer telecommunications company, IDT Toucan, which will create 300 new jobs at its customer service centre in Sligo, and Litec Moulding Limited, which announced its intention to increase its workforce to 42 as a result of new business and the expansion of existing operations.

Enterprise Ireland has introduced a new programme called Enterprise Start aimed at people who are considering a career move and would like to learn more about starting their own business. Last year Enterprise Ireland organised a briefing on the new Enterprise Ireland strategy, which was launched in Sligo in May 2005 by the Minister, Deputy Martin, to companies from across the north-west. The strategy sets out the role Enterprise Ireland will play in transforming Irish companies into market-focused and innovation-driven businesses with the ability to compete successfully on world markets.

I assure the Deputy that the State development agencies under the aegis of my Department will continue to market Sligo and the surrounding area for investment and will make every effort to secure alternative employment for the staff who will be made redundant. I will examine the redundancy issue and I will contact the Deputy later in this regard.

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