Dáil debates

Wednesday, 17 May 2006

3:00 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)

The Deputy's questions pose some dilemmas for me as I am wearing both a national and a Cork hat. I assure her, however, that the proposed job losses are not, under any circumstances, due to deficient infrastructure or any issue of that nature. Cork city was, for example, one of the first areas to develop the metropolitan area network infrastructure. Unfortunately, the issue facing the company is that its global network business is the only one of its four business segments showing a decline in sales, having recorded a drop of 14% in the first quarter of 2006 compared to 2005. The company faces cost reduction pressures from which Cork will not escape.

In its consultations with employee representatives Motorola has agreed to seek alternative business in the global company for the operation in Cork. This could create jobs elsewhere. A significant number of redeployment opportunities have also been identified in the facility and these have been communicated to employee representatives. This development may reduce the number of staff eventually made redundant.

The decisions by companies such as McAfee, Citco and Amazon to invest in Cork speak volumes for the quality of skills and communication networks available in the area. Although these companies are reasonably satisfied with skills and infrastructure, Ireland will always be open to the vagaries of commercial life, trading patterns for individual corporations and shifts in the global economy. That is what we are witnessing here. Different issues apply to different companies. As regards the Deputy's overall point, competitiveness is important. It is also important that both management and the workforce realise the world is changing rapidly and there are no real guarantees down the line. We must change as well. Fortunately, in this situation management and employers are working to resolve the issues in the best interests of all concerned. That is the way we want to see it. We will certainly be of assistance to Motorola in any way we can through the State agencies to help it in its attempts to achieve competitiveness, which is ultimately important for all of us.

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