Tony Killeen (Clare, Fianna Fail)

I was concerned to hear that Oasis in Ballina has announced that it will reduce its workforce to approximately 12 people over the next two months. The rationalisation of its operation in Ballina has been sought by its parent company and will end all manufacturing activities at the plant. The remaining staff will be engaged mainly in customer support and marketing activities.

The company has been experiencing increased competition in its market, particularly from Chinese manufacturers, and employment has steadily declined in recent years. Oasis established a manufacturing site in Poland in 2001 and I understand the remaining production in Ballina will now transfer to Poland. The company's difficulties are not unique to Ireland as I understand it is experiencing similar difficulties in the US market where major rationalisation is expected at its plant in Ohio.

I am very conscious of the effect these job losses will have on the workers involved and their families as well as the community in the surrounding area. This is very distressing news for those who will lose their jobs as a result of the announcement. I 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 at the earliest possible opportunity. The role of FÁS, the State training agency, will be particularly important in assisting those who are about to lose their jobs. FÁS has already made contact with the company and the full range of its services will be made available to employees concerned if they wish to avail of them.

The industrial development agencies will make every effort to secure alternative investment and employment for Ballina and north Mayo. A central goal for the agencies is the achievement of balanced regional development. The national spatial strategy provides a framework for achievement of this goal through the prioritisation of development and investment in the gateway and hub locations. IDA Ireland seeks to attract foreign direct investment into the linked hub of Ballina and Castlebar, as well as a small number of additional locations throughout County Mayo.

The agency is promoting Ballina for new foreign investment as well as working with the existing base of overseas companies in Ballina to encourage them to expand. Since January 2003 there have been five first time site visits to Ballina. IDA Ireland's sectoral emphasis is on attracting new knowledge intensive projects in the medical technologies, life sciences, information communications and technology and international services sectors.

The agency is investing significantly in the provision of planned and focussed property solutions. Specifically, IDA Ireland is developing world class business and technology parks at a number of towns. The goal is to ensure that these locations have the appropriate property solutions, tailored to specific key sectoral targets, to attract inward investments. IDA Ireland has been in discussions with Mayo County Council regarding the acquisition of a site in local authority ownership in Ballina.

Enterprise Ireland activity is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, the retention and creation of new jobs in existing companies and in enhancing the innovation capability of Irish companies at a national and regional level. Enterprise Ireland provides preferential funding for companies with detailed export plans who are expanding or establishing a business in County Mayo. Enterprise Ireland has approved funding support of almost €1 million to client companies in the Ballina-Killala area in the period 2003 to 2005.

A new Enterprise Ireland-supported high potential start-up company, Heatsolve Limited, commenced operations in Ballina last year. Enterprise Ireland has committed funding of more than €700,000 to IRD North Mayo-West Sligo Limited, for the development of enterprise space in Ballina. The Minister for Enterprise, Trade and Employment officially opened this centre during his visit to Ballina in January 2006.

According to provisional figures from the Forfás employment survey 2005, the total number of people employed in Enterprise Ireland client companies in County Mayo in 2005 was 3,054, an increase of 468 people on the number of people employed ten years earlier. In addition, in the past 12 months, a number of new businesses have been set up in the Castlebar area, all in the retail sector, creating approximately 150 to 200 jobs.

I am confident that the State development agencies will strengthen their marketing and promotion efforts in Ballina and north Mayo and will make every effort to secure alternative employment for the area. This will be done in partnership with other key players to maximise the flow of potential investors for the area and to convert these into investment and job opportunities for both Ballina and County Mayo in general.

See this speech in context