Brian Cowen (Laois-Offaly, Fianna Fail)

I am not sure whether legislation is promised, but I can reply to the Deputy if he wishes. At Waterford Wedgewood's AGM on 11 October, the company outlined that its sales were down by 9% due to the impact of the dollar exchange rate, which has since deteriorated further. That issue is not within the Government's control. The group announced that it was in final talks to place 50 million preference shares with a major international investor and a significant root and branch restructuring of the business. Enterprise Ireland has been in constant contact with the company to give every assistance possible.

Yesterday, the company spoke to its workers and stated that it would be seeking voluntary redundancies, which could mean a loss of up to 500 jobs during the next 18 months to two years. It is a disappointing development for the workers and their families. The Government is urging the agencies to be on alert to assist workers in finding alternative employment following the redundancies and extra skills training will be provided to those who need it.

Two years ago in Dungarvan, 300 workers were made redundant, but only approximately 20 of them are currently on the live register thanks to the co-operation of Government agencies. This shows what can be done with a proactive approach. Alternative employment was found for 280 people and every effort will be made to repeat that success in respect of the people who received yesterday's bad news.

This issue arises against a backdrop of significant job announcements in Waterford in the past five years. The latest development in the case of a major company so closely associated with the city and county is disappointing. It is trade-related and we must use the previous Dungarvan example to determine how to assist workers at this difficult time.

Deputy Gilmore referred to the child care subvention scheme for 2008-10, which arises from a timely review of the development of child care facilities since the Government first began providing significant funding in this necessary area. The scheme will provide child care services to disadvantaged parents at reduced fees. It is not a cutback, rather it will receive €157 million in the next three years, 16% more funding in 2008 than was allocated to the 2007 staffing grants. It is untrue to state that 10,000 child care places are at risk or that community child care facilities might be forced to close.

The scheme is part of an overall funding package for the next three years of more than €575 million under the national child care programme and it will create 50,000 child care places in addition to the 35,000 created under the previous scheme. Grant funding under the previous scheme was capped, but such is not the case under the new scheme. Subvention rates under the new scheme are €80 for people on welfare and €30 for people on FIS, with an additional supplement of €30 in the case of a baby place. All parents using these services will benefit from child care at a lower cost than is generally available.

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