Mary Coughlan (Donegal South West, Fianna Fail)

I thank the Deputy, my constituency colleague, for raising this matter on the Adjournment. Like him, I was disappointed to hear about the liquidation of James Likely Limited in Ballyshannon with the loss of 75 jobs. The company has been in existence in Donegal since being set up in 1970. My first concern is with the workers who will lose their jobs and every effort will be made to assist them. The services available from the training and development agency FÁS will be important in this regard.

James Likely Limited is a mechanical building services contractor. Unfortunately, this company along with a number of similar companies has suffered from the downturn in the construction industry. I understand that the company's directors regret yesterday's developments, but they believed that they had no alternative. In earlier times, the company would have received assistance from Enterprise Ireland with the development of the company's business. However, the agency has not been actively involved with the company for a number of years.

The jobs will be a great loss to the town of Ballyshannon and the surrounding area. I can assure the House that the IDA and the local county enterprise board, CEB, are making every effort to attract new jobs to the south of the county. In this regard, the IDA is encouraging new investment for Donegal in knowledge-based industries. This is part of a focused strategy to replace the more traditional-type industries that have, unfortunately, been declining in the north west region in recent times. Donegal's industry base is moving to high-tech, high-skill activity.

In the past five years, five IDA-supported companies have created more than 750 new jobs in the county. Some 12 IDA companies in Donegal employ more than 1,700 people in software development, systems development and the medical technology industries. The agency is also building up an international and financial services cluster and is progressing in this area, as evidenced by the announcement of 123 jobs by SITA Incorporated. Significant investment has been undertaken in developing property solutions in Ballyshannon and Donegal town in particular. These investments will enhance south County Donegal's ability to attract further industry and jobs.

Following a meeting between the IDA, Enterprise Ireland, the Donegal CEB, the local community and myself last August, it was agreed that a study would be undertaken into the needs of the area to address the economic difficulties. Enterprise Ireland was a co-sponsor of the report, which is due to be finalised shortly.

So far this year, Enterprise Ireland has paid out in excess of €360,000 to its client companies in the county. In February, the agency held an enterprise start event in Buncrana to promote entrepreneurship in the area, identify potential entrepreneurs and help develop their projects. Following this, the agency has promoted the new year-long Propel programme, an enterprise development programme for the Border region that is heavily supported in the county. In all, 20% of all applicants and 25% of the successful participants to the programme are from the county. Phase 1 of the programme starts on 23 May. The objective is to develop ten to 12 investor ready high-potential start-up businesses within 12 months. In addition, Enterprise Ireland worked closely with the Donegal CEB in its enterprise week at the end of March, providing speakers for a number of events, including the First Flight programme, the objective of which is to encourage and facilitate companies to pursue export markets.

In the course of 2008, the CEB paid out more than €690,000 in grant assistance to 31 clients, thereby assisting in the creation of 187 jobs in the region. I am pleased to say that this year, the CEB will continue to support enterprise and job creation in the area through direct and indirect assistance.

I am confident that the strategies being pursued by the industrial development agencies, in partnership with other key players and local interests with the Government's ongoing commitment to regional development, will drive investment and job creation for the south of the county. It is my wish that, working with the agencies, we will continue to pursue the matter vigorously.

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