Dáil debates

Thursday, 6 December 2012

Topical Issues

Job Losses

8:45 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for allowing me highlight this important issue, the recent loss of 100 jobs at Ericsson in Athlone. The implications of this on the local and national economy are undisputed, as is the need for the Minister, Deputy Bruton, and my friend, the Minister of State, Deputy Perry, in tandem with IDA Ireland, to support the workers and prioritise jobs for the midlands. I have been seeking a debate on the cutbacks since the announcement on 8 November.

I fully support the need to put every structure in place to assist the workers who have lost so much, and who must be given every assistance to gain new employment. My thoughts are with these workers and their families and I hope to work with the Minister in a positive way to assist them. All the supports of the State must be made available to these workers and their families. This is an issue about which my colleague, Deputy McFadden, is also very concerned.

Ericsson employs 700 people in Athlone and 1,200 countrywide. These jobs must be protected. The supports the Minister plans to put in place are of the utmost importance in the context of the potential fallout for workers from what the company describes as global restructuring.

This has also resulted in job losses in other Ericsson facilities around the world. The reality in my constituency of Longford-Westmeath is that the midlands are haemorrhaging jobs. Athlone has been left in shock by the latest losses. The announcement by Ericsson that approximately 100 workers are to be let go is nothing short of devastating for Athlone and the midlands generally.

Over 9,000 new jobs have been created nationally in IDA Ireland-supported companies since the start of 2011, but very few have come to the midlands. While I am delighted that the company is still committed to its Athlone facility, as demonstrated by the announcement last July of 100 high-end research and development jobs in Athlone, I am somewhat disturbed that 100 workers who are described as being in older, low-cost activities are now being shed six months later. No matter how this is rationalised, the end result is that 100 workers and their families are being left to cope with the devastating financial implications and adverse impact on their well-being. It is more than time for jobs to be prioritised for the midlands. Ongoing job losses must sound a note of alarm to IDA Ireland and focus its efforts on Longford-Westmeath.

The ten-point plan for small and medium enterprises in yesterday's budget is the most positive news for growth and will probably provide a window of opportunity for the midlands. Over the past few years, Longford-Westmeath has seen the closure of Chemical Electric and B3 Cables, and losses at C&D Foods, all in Longford. There have been agricultural losses in Longford and Westmeath, in addition to the loss of Army barracks in Mullingar and Longford, and the courthouse in Granard. It was announced yesterday that seven Garda stations are being closed in the Longford-Westmeath area. Meanwhile, the M4 from Mullingar to Rooskey is not assured, which represents an infrastructural loss for the midlands.

Longford-Westmeath is urgently in need of a rapid injection of inward investment. While the proposed Chinese hub in Athlone is an exciting prospect, there is no assurance that it will go ahead. I am reminded of the fanfare associated with Cardinal Health in Longford back in 2004 and the incredible fallout from the loss of a potential 1,300 jobs. Proportionally, the midlands have been neglected in terms of job creation opportunities and denuded of services to an excessive extent. Each loss contributes to the economic downturn, which is turning vibrant areas into dying centres. Communities are demoralised, while health services, educational facilities and businesses are operating at an inadequate level.

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