Michael Ahern (Cork East, Fianna Fail)

I thank the Deputy for raising this matter. I was very disappointed to hear that NEC Semiconductors Ireland Limited based in Ballivor, County Meath, had announced on 21 February that it was closing, with the loss of 350 jobs. The decision to cease production at Ballivor was taken by NEC's parent company in Japan. On 22 February, the Minister for Enterprise, Trade and Employment met representatives of Meath County Council and the State development agencies to discuss the follow up to the closure announcement. The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, was also part of a deputation that visited NEC's offices in London last week but it did not have great success.

The reasons for the closure include a poor business performance by the parent company and increasing operating costs. The overall competitiveness of the Ballivor plant has been reduced, especially when compared to plants in China, Singapore and Malaysia. Full closure is expected by September 2006.

I am very conscious of the effect that these job losses will have on the workers involved and their families, as well as on the local community. This is very upsetting news for those who will lose their jobs. I assure the people affected, however, that the State agencies will provide every support they can. The priority will be to find alternative employment for those involved in the shortest timeframe.

The role of FÁS, the State training agency, will be particularly important in assisting those who will lose their jobs. The agency met company representatives on 27 February and an action plan has been drawn up. The agency envisages an on-site employment services office, which will provide daily access to its full range of services. Following one-to-one consultation with staff over the coming months, FÁS will deliver on site training for staff in conjunction with the company. The company has initiated discussions with employee representatives and State agencies on compensation packages and professional support services to ensure the impact on employees, their families, and the local community and economy is minimised.

Recent data produced by management highlights that the Irish plant is the least competitive in terms of productivity when compared with NEC's three plants in Japan as well as its other plants in China, Singapore and Malaysia. On competitive issues in general, maintaining Ireland's attractiveness as a competitive and profitable location from which to do business is a key priority for my Department. Our economy is undergoing a fundamental transition to a higher value added, knowledge economy and we should no longer expect to compete as a low cost location for manufacturing investment. It is inevitable that the investment decisions of some companies will be influenced by the low cost attractions of alternative locations. The focus of my Department and its agencies is firmly concentrated on managing this transition of our economy through the use of the best blend of policies to strengthen competitiveness both at national and company level.

Finding alternative employment for the NEC workers will be a priority for the State development agencies. I assure the Deputy that lDA Ireland, Enterprise Ireland and the county enterprise board, in addition to FÁS, will play their part in developing a way forward for both the affected workers and the surrounding area.

As part of its new strategy, Enterprise Ireland is working intensively with high potential start up companies at their initial start up phase in order to accelerate their growth. Since 2003, Enterprise Ireland has approved over €7 million in support to its client companies in County Meath and paid out over €5 million. Funding of over €635,000 has been approved by Enterprise Ireland in support of community enterprise centres at three locations in the county, including nearby Trim. These centres foster the development of micro-enterprises and particular emphasis is placed on creating and developing employment and enterprise space for people who lose their jobs.

The NEC workforce in Ballivor is highly skilled, some with almost 30 years experience. It is possible that some of the workforce will avail of the supports provided by Enterprise Ireland to develop their own technology-based businesses.

The Meath county enterprise board, in liaison with Enterprise Ireland, is preparing a number of initiatives to promote the idea of new start ups to the employees of NEC. The enterprise board has advised NEC that it is prepared to co-ordinate a general information evening of all State agencies at a local venue to make presentations and provide advice to the employees on the range of services and opportunities that they may wish to avail of. The State bodies to attend will include Enterprise Ireland, FÁS, the Department of Social and Family Affairs, Meath Leader 2 and TIDE.

Meath County Council will host a business showcase at the IFSC in Dublin on 8 March to promote the county as an attractive business location. Enterprise Ireland and IDA Ireland are actively supporting the council in organising this event.

The NEC workforce in Ballivor is highly skilled and I know that the loss of these jobs will be a severe blow to the area. I am confident that the industrial development agencies will strengthen their marketing and promotion efforts in County Meath. This will be done in partnership with the county council and other key players to maximise the flow of potential investors for the county and to convert these into investment and job opportunities for Ballivor and the surrounding area.

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