Tony Killeen (Clare, Fianna Fail)

I thank Deputy Lowry for raising this matter.

I was very concerned to hear that BSN Medical had announced it was to cease manufacturing. I am very conscious of the implications of these job losses for the workers involved and their families, as well as the community in the surrounding area.

The company was established in Thurles in 2001, having initially established operations under a different name in 1976. The operation in Thurles produces custom made orthopaedic garments on a subcontract basis and ships the garments to 28 countries.

In July 2005 the company announced it was to reduce its workforce by 40 people with a voluntary redundancy offer. Then, in December 2005 it was announced the company was being sold.

Earlier this month, IDA Ireland was informed that the company in Thurles was to close with the loss of all remaining jobs and that all production was being consolidated in China. The managing director of the company wrote to the Minister for Enterprise, Trade and Employment on 13 April last stating that, following a major manufacturing review, the company had informed its 80 employees that it would be ceasing the manufacture of orthopaedic soft goods at its Thurles plant by the end of 2006. The decision was due to excess manufacturing capacity and the need to maintain cost competitiveness resulting in a change of manufacturing strategy.

The priority will be to find alternative employment for those involved. The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. The full range of FÁS services will be made available to the employees concerned, if they wish to avail of these services.

The industrial development agencies are making every effort to secure alternative employment for Thurles and north Tipperary. A central goal for the agencies is the achievement of balanced regional development. Statutory responsibility for the attraction of foreign direct investment to north Tipperary, including the town of Thurles, rests with IDA Ireland. Shannon Development has responsibility for the provision of industrial property solutions in the area. Its role in supporting indigenous enterprise will transfer to Enterprise Ireland under the new mandate granted by the Minister for Enterprise, Trade and Employment to Shannon Development last year.

Initiatives undertaken by Shannon Development in the provision of property solutions include the development of the Tipperary Technology Park in Thurles and the acquisition of a 29 acre site in Roscrea with a view to developing a business park. These facilities are being actively marketed by IDA Ireland to potential clients through its network of overseas offices. That agency's sectoral emphasis in the mid-west region is on attracting new knowledge intensive projects in information communications and technology, globally traded businesses, medical technologies and life sciences.

Shannon Development, in association with local authorities in the area, is also spearheading a drive to bring high speed Internet access to the region. The Department of Communications, Marine and Natural Resources has recently approved funding for metropolitan area networks to be installed in a number of towns, which should assist in attracting foreign direct investment and indigenous industry.

The Tipperary North County Enterprise Board is a source of support, specifically for the micro-businesses sector. The role of the board is to develop indigenous enterprise potential and to stimulate economic activity and an enterprise culture within north Tipperary. This is done through both direct financial assistance and non-financial assistance. Subject to certain eligibility criteria, enterprises may qualify for support from the CEB primarily in the form of feasibility, employment and capital grants, while there is a broad range of non-financial supports available such as mentoring, business advice, information, management development and training.

I am confident the strategies and policies being pursued by the development agencies in furtherance of their statutory functions, together with the ongoing commitment of Government to regional development, will bear fruit in terms of additional sustainable investment and jobs for the people of Thurles and the wider north Tipperary area.

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