Dáil debates
Wednesday, 31 January 2007
Job Losses.
8:00 am
Bernard Allen (Cork North Central, Fine Gael)
Like the other Deputies I am very concerned by the recent announcement of the loss of 350 jobs at Motorola. It is a terrible loss for Cork city and county which have spent many years building up a high-tech jobs base. I extend my sympathies to the staff members who have been affected and their families who face a bleak future. Even at this late stage every effort must be made to safeguard these positions because the future of the plant could be jeopardised if so many staff are laid off.
Unfortunately, the predicament of Motorola in Cork demonstrates how much Ireland's competitiveness has suffered under this Government. It is particularly worrying for Cork, given that this area has invested so much in attracting high end technology jobs. Since this Government came into power it has imposed at least 40 stealth taxes and charges on businesses and consumers. By comparison with the United Kingdom, electricity costs are 50% higher, insurance 20%, landfill costs 350% and broadband approximately 10% higher. Inflation reached a dangerous level at 4.9% in January and is set to climb. Exports are becoming more expensive as a result of the rising cost of doing business here and because of cut-price competition from overseas.
That these Motorola jobs are under threat raises serious questions about the Government's economic strategy because these are precisely the type of high end job that Fianna Fáil and the Progressive Democrats want to attract into Ireland. If Motorola finds it too expensive to do business here, many other companies are sure to feel the same.
I listened with disbelief yesterday morning, Tuesday, 30 January, to the Neil Prenderville Show on Cork's 96FM when the Minister for Enterprise, Trade and Employment, Deputy Martin, said that no one expected the announcement of an immediate closure or that Motorola was considering closure because people felt there would be a window of opportunity to move into other areas. When the Minister was asked if the company had notified him he said not and that he had spoken to John Phillips the previous morning and that IDA Ireland would have been contacted the previous morning.
Like Deputy Lynch, I have a copy of a letter sent to the Minister on 4 January. The spin yesterday set out to give the impression that the Government first heard about this in recent days when a response issued to the letter of 4 January, signed by the Minister's private secretary, acknowledging receipt of the letter and stating that it would be brought to the Minister's attention. I hope the Minister does not use the same defence in this case as he used in respect of the nursing home debacle and say it was not brought to his attention. It is incredible that if the Minister was made aware of this on 4 or 5 January, he was in the Middle East, admittedly on a bona fide mission, trying to attract business while Motorola was going down the tubes. The Minister must address the issues raised by the letter sent to him and other communications sent to his Department by senior staff in Motorola.
Why was there no response to these people who in good faith sought the Minister's help to save the company? Was Motorola contacted about the contents of these letters? What steps did the Minister's office take to prevent the announcement of the closure? We need the answers tonight. Most important of all, the Minister should state how he proposes to salvage the company even at this late stage.
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