Dáil debates

Wednesday, 14 October 2009

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)

Given the stone ended up in Deputy Kenny's shoes, it is no wonder that David did not slay Goliath this time. The Deputy's stonethrowing was misdirected. To take the serious point that has been raised by the Deputy, the economic situation and macroregional strategies will form part of the agenda, as indicated thus far, on 29 and 30 October. This matter has been at the heart of the discussions taking place at both the European Council and at the European Council of Finance Ministers, ECOFIN, on an ongoing basis in an effort to respond to the depth and range of the crisis with which we are dealing in both economic and financial terms. The European Union, through its membership of the G20 and its work through that process, is influencing global strategy on how to restore world economic growth as quickly as possible and will continue to do this.

It is unfair to blame the European Union for the redundancies at Dell in Limerick. Given the excellence of the workforce and management there, the maintenance of that Dell manufacturing facility for such a length of time was a major achievement. Moreover, the reorganisation of the Dell business model, which unfortunately saw the relocation of manufacturing capacity to Poland, also was part of ensuring that Dell would maintain a presence, albeit much reduced, in the mid-west, albeit and much. However, it is important that Members should acknowledge the contribution this company made for a long time in the mid-west region and that in the event of it not changing its business model, the prospect of any jobs remaining in Ireland or in other parts of the world would have been put at risk. Unfortunately, while such developments are not welcome, we also must avoid suggesting it was possible to maintain the status quo on a sustainable basis over the long term. The flexibility, responsiveness, initiative and creativity of the management and workforce at Dell, Limerick, kept that manufacturing facility there for as long as it was possible to so do, given the costs involved. The fact that so much was achieved there is an indication of how flexible they have been.

Moreover, the President of the European Commission, Mr. Barroso, stated in Limerick that the Commission had approved an application from Ireland for co-financing under the European globalisation fund to assist redundant workers at the Dell computer manufacturing plant at Raheen, as well as ancillary enterprises throughout the mid-west. Instead of portraying the European Union as being the cause of the loss, it would be more accurate to refer to the European Union in respect of the assistance it is giving to those who unfortunately have lost their jobs. This is the reality with which we are obliged to content and therefore I do not agree.

There are issues in respect of state aid. Ireland provides assistance as part of its industrial policy to attract jobs here. If an investment comes to country A, be it Ireland or anywhere else, on foot of the provision of assistance that is within state aid guidelines, such a policy is as applicable to other member states as it is to Ireland. The European Union did not provide assistance regarding investment in Poland by Dell or any other company. It was provided by Polish taxpayers within a framework of stated guidelines that apply a level playing pitch throughout the European Union. The existence of such a level playing pitch has been of great assistance to Ireland's ability to attract investments as it prevents large countries from simply using their economic muscle to provide aid to industries regardless of rules that are implemented or imposed by the European Commission. The European Commission has been the best guarantor of fair play to small countries in respect of inward investment policies. Again, the negative portrayal of the European Union in this regard is both wrong in its analysis and unfair in respect of what the Commission does generally as the guardian of the treaties and in ensuring fair play to all countries.

The Commission approved the Irish application for €22.8 million under the European globalisation fund, of which the European Union will contribute €14.8 million and the Government €8 million to retrain, upskill and offer further educational opportunities to up to 2,400 affected workers. The European Union, through its funding initiatives, is providing prospects of retraining to 2,400 workers who have lost their jobs as a result of a decision by Dell and not as a result of a decision by the European Union. The European Union, through its policies, is providing assistance to those who unfortunately have lost their jobs. This is the accurate portrayal of the European Union's involvement in this issue. To portray it otherwise is to do it a disservice because it would not be an accurate portrayal of what happened.

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