Pat Carey (Dublin North West, Fianna Fail)

I thank the Ceann Comhairle for selecting this matter for discussion. Last week's announcement that 81 jobs are to go at the PCTel factory in Finglas is a major blow for the area. The parent company, based in Chicago, has stated that PCTel's financial losses are now at an unacceptable level and that plans are under way to transfer the technology operation to eastern Europe. The loss of these 81 well paid and high level manufacturing jobs should not be allowed to happen without significant discussion of the implications for these workers and without discussion of what these losses represent in broader economic terms.

Redundancy negotiations will begin tomorrow morning. To comprehend fully the workers' disappointment and disillusionment with this closure, it is important to point out a number of factors. PCTel is involved in the design, manufacturing and marketing of specialised antennae for mobile operators. It is recognised as a technology innovator within the emerging mobile markets such as TETRA and 3G. It has a long established history within the Finglas area and has operated there and employed people from the area since 1956.

Long before the boom began, Sigma was among the first high-tech companies to be established in Ireland and achieve international success. The company has a highly skilled and committed workforce. It is a successful company and is trading well. Many of the workers have worked there for more than 20 years and the average length of service is 25 years. This week I spoke to a man who has worked at the company for 43 years. In the general election campaign of 1992, the then Taoiseach, Albert Reynolds, opened the factory on a rather wet and dreary morning and a great future was heralded at that time.

PCTel purchased this company, which was previously known as Sigma Wireless Technologies, less than a year ago in July 2005. In 2002 along with Motorola it designed and developed the real time signage which is used on Luas trams. Like like many other firms in this sector, it had experienced losses during 2001 and 2002, but at the time, Sigma was doing very well. It had a projected turnover of €15 million 2005 and employed more than 100 people at the Finglas plant.

On 22 February, the company notified the office of the Minister for Enterprise, Trade and Employment that 22 jobs were to be made redundant. This was further amended by letter on 1 March, just a few days ago, when a further 65 redundancies are being sought. It is uncertain whether this is a total of 65 redundancies or 65 plus 22. As one would expect, the sale in July 2005 caused the workers some concern. However, the previous owner stated at the time that this represented very good news for the Dublin plant. Given Sigma's customer base throughout Europe, the Middle East and Asia, it was assumed that this Chicago-based company wanted to expand into these markets and therefore that business would continue as normal from Finglas.

PCTel bought the company for €19.5 million in cash and assumed €2.5 million in pension liabilities. The pension deficit should have been corrected by the previous owners. It is also worth noting that PCTel did not buy the land on which the plant stands. This remains in the hands of the previous owners, who will, I have no doubt, profit from its future sale or redevelopment. These previous owners should examine their obligations to the present staff who have been their loyal workforce for many years. I have no doubt that these workers will find other employment in the same or in another sector. The Forfás expert group on future skills needs recently estimated a demand in the electronics and micro-electronics sector of up to 2,500 professional engineers and 900 technologists a year.

None of this will ease the fact that losing one's job can be a thoroughly unpleasant and dispiriting experience for the person concerned and for his or her family. Economic growth does not benefit everyone all the time. There are losers, even if they are mostly losers only in the short term. Even in the best days of the Celtic tiger, substantial job losses occurred. In 1999, for example, a year that saw gross domestic product rise by an unprecedented 11%, more than 9,000 jobs or 8% of the total were lost in IDA Ireland-supported companies alone. It is a fair bet that most of the people affected have long since been re-employed and at higher wages. However, that does that mean that we should shrug off these losses so easily.

These job losses are in Finglas where many cannot afford to go through the uncertainty of short-term unemployment. It is for this reason that efforts must begin immediately to find a replacement industry. I ask the Minister of State to ensure that Finglas is listed as a priority area for the State's job creation and training agencies. Finglas has many advantages for an employer, including ease of access to major markets and a talented, educated workforce to fill high-tech jobs. It is now important that agencies such as IDA Ireland, FÁS and Enterprise Ireland highlight these advantages to future employers.

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