Dáil debates

Thursday, 28 January 2010

Mid-West Task Force: Statements

 

12:00 pm

Photo of John CreganJohn Cregan (Limerick West, Fianna Fail)

I welcome the opportunity to make some contributions to this important segment in today's business. Like other Members, I had the opportunity to be briefed by Mr. Denis Brosnan and other members of the task force in Limerick last Friday. I commend them on their tremendous work and the service they are doing for the region and the country at great inconvenience to themselves. Other Members referred to the priorities that Mr. Brosnan asked us to highlight such as the Lynx cargo hub project. We all recognise the importance of this project to Shannon Airport. Fortunately, the newly appointed chairman of the Shannon Airport Authority, Mr. Brian O'Connell, was present at the briefing and he also pointed out the economic boost the project could be to the airport and region. 1 o'clock

However, when a Government is asked to support an airport it can raise difficulties. We are all aware of how careful the Government must be in terms of the provision of State aid. I welcome that the Tánaiste in her speech referred to this matter in a positive manner and that the Government, Dublin Airport Authority and Department of Transport are examining ways of supporting it. I believe it will be beneficial to the region.

Mr. Brosnan also raised the issue of the development of a technological park, which is practical and can be done quickly. I refer again to the Tánaiste's remarks in this regard. She stated: "In relation to the National Technological Park in Limerick, it has appointed consultants to audit the existing infrastructure and to carry out preliminary design work on appropriate layouts, budgets, estimates and timelines for the further development of the NTP into a more strategic site for the attraction of industrial investment from Irish and foreign companies." In my humble estimation, that is action. The matter is being dealt with. Rather than being negative, Members should acknowledge that the Lynx and technological park projects are being examined and supported. I welcome the Tánaiste's comments in this regard.

Mention was made by Mr. Brosnan and previous speakers of the IDA, Enterprise Ireland and Shannon Development. I encourage these three organisations to in the strongest possible terms continue to prioritise the mid-west region in terms of its need for jobs in the months and years ahead. Deputy Dooley referred in his contribution to the number of visits last year from potential overseas investors. While many of them have decided not to invest in the region, the IDA and Enterprise Ireland have a job to do and must continue to attract investors to the region and to sell the region to them. We must ensure we have in place the critical infrastructure necessary to win that investment. It is hoped we will do so in the future.

Another point worth mention is the back to education schemes. Applicants wishing to return to education are experiencing difficulties owing to the embargo in the teaching profession and public sector generally. Perhaps when globalisation fund moneys are being disbursed this matter could be re-examined in the context of assisting the mid-west region. It is critical people have access to education, in particular Dell workers, many of whom are interested in going that route.

I welcome that the Government has secured €22 million from the European globalisation fund. This funding will soon be disbursed to organisations to assist people who have lost their jobs. The closure of Dell was a huge blow to the region. Many other industrial jobs have been lost subsequent to the closure of Dell. As regards the Dell workers, I believe these people are county enterprise board type clients. However, the criteria within which the county enterprise boards must work needs to be changed. I recently spoke to Mr. Ned Twomey, the CEO of the county enterprise board in Limerick who agreed with me when I pointed out that many of the people who are losing their jobs will be inclined to get into small service-type industries such as hairdressing, small garages and so on. We need to support these people. The criteria currently laid down for county enterprise boards is too rigid and should be changed. I asked Mr. Twomey to contact the other agencies to see if they could come up with practical ways these people can be helped. People want practical support on the ground.

I ask the Tánaiste to take into account, in the critical weeks ahead in terms of the disbursement of funding from the European globalisation fund, the following suggestions. Support could be provided through feasibility study reports in respect of which normal feasibility rules would apply, the rate of support would be 80%, balanced by individuals' own time and by allowing people to retain their back to work allowance. I accept the prior agreement of the Department of Social and Family Affairs would be required in this regard. In terms of priming grants under the European globalisation fund, EGF, a special category should be established for Dell and other workers in relation to providing aid for self employment or entrepreneurial activity. This is in keeping with the EGF regulations which state that the EGF should provide specific, one off support to facilitate the reintegration into employment of workers in areas, sectors, territories or labour market regions suffering the shock of serious economic disruption. This may include out-placement assistance and entrepreneurship promotion and aid for self employment. This proposal should be considered. An employment subsidy targeting eligible European globalisation fund participants and paid to employers who employ and retain an eligible participant for 12 months could be introduced. There are many ways we can offer practical help to workers on the ground, including loosening some of the regulation and removing some of the red tape. This is a critical time for the mid-west region and for those who have lost their jobs. We should not be tying ourselves up in knots with red tape, stringent regulation. We must allow agencies the discretion to offer practical support on the ground.

Other suggestions include an interest-free loan of up to €25,000 per applicant repayable over five years with a 12 month moratorium on repayments, the purpose of which would be to promote entrepreneurship and business creation. A mentor could be appointed as a condition of the loan. Conditions as apply in the new county enterprise board micro-credit proposal enterprise loan fund could also be applied. These are ways through which we can provide practical help and support to people. I appeal to the Tánaiste to examine these suggestions. I believe county enterprise boards can be effective. Many of the people losing their jobs are typical county enterprise board clients who need help.

Mr. Brosnan asked that representatives of the mid-west region - all Deputies and Senators present that day agreed with this - work together to support the region, which is exactly what we should be doing. I see no benefit in launching a personal attack on the Tánaiste who has been accused of not being honest and fair with the people of Limerick. It was also stated that her speech was bluff, which is not helpful. We must be positive and proactive and support our region. We can do so by refraining from making these type of comments and remarks. I am not here today trying to score political points or make political charges. I have come here in good faith as a messenger to the Dáil, sent this week by Mr. Brosnan with a clear message for Government, namely, that he needs assistance in regard to three or four suggestions. The Tánaiste addressed those issues during her speech. We should respect that and should continue in our efforts in our constituencies. We must work together and be proactive to ensure we obtain the best possible results for our people in the shortest period.

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