John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I would like to thank Deputy Bannon for raising this important issue. Ericsson originally established a manufacturing operation in Ireland in 1957 and now has three business groups based in Athlone and in Clonskeagh in Dublin. The research and development unit in Athlone employs 800 people. The Clonskeagh site employs 489 staff in its operations competence centre and 52 in its marketing unit.

The Athlone research and development unit has global responsibility for Ericsson's operation support systems. In June 2011, the Athlone unit announced its intention to create an additional 100 research and development positions over its then existing research and development staff level of 620. To date, it has created an additional 180 research and development positions, well in excess of the original plan. Over the past four years there has been a corporate emphasis on shifting research and development to the east in order to drive costs down. The latest corporate focus is on high performance rather than low cost and is driving a review of all research and development activities.

The job reductions announced by Ericsson on 5 November 2012 will take place under a voluntary programme. This is a significant aspect of this unfortunate reduction in numbers and one to be strongly welcomed. These job reductions result from a review undertaken by Ericsson's global operation support systems research and development business. The total headcount reduction in Athlone of 100 staff comprises 50 outsource management roles and 50 legacy systems development roles. The proposed rationalisation programme will solidify the Athlone operation and position it for further future growth.

Ericsson is fully committed to Ireland and has confirmed Athlone's global research and development status. It has also acknowledged the Irish management team's leadership in shifting towards a lean and agile operation, and is using it as the model for all its other research and development operations worldwide to follow. The company is a major contributor to the economy paying annual salaries of €108 million, PRSI and corporation tax of €11 million and expending €80 million in the local economy. Given the company's commitment to Athlone, I am confident that Ericsson will remain a strong employer with a significant economic presence here.

The midlands region, including County Westmeath, has the linked gateway of Athlone, Tullamore and Mullingar and, as such, will continue to be a key location of focus for the winning of foreign direct investment. My Department and its agencies will continue to promote Athlone and the surrounding area for industrial projects and enterprise development. These activities will, in turn, help to protect existing jobs in the area.

Job creation is central to our economic recovery and the programme for Government has this at its core. It is obvious that the Government does not create jobs - entrepreneurs and successful businesses do. However, the Government has a key role to play in providing the environment where businesses can start-up, expand and create jobs. The action plan for jobs, which was launched earlier this year, aims to transform the operating environment for business in order to support enterprise growth and job creation. The Government will achieve this objective by systematically removing obstacles to competitiveness, putting downward pressure on business costs, promoting innovation and trade, supporting new and existing businesses to develop and expand, and deepening the impact of foreign direct investment in Ireland.

In the action plan, the Government has also identified a number of key sectors where Ireland can gain competitive advantage in global markets. The role of my Department is to ensure that we have the right policies in place that will support and grow our enterprise base in order to facilitate both job creation and job retention. The programmes supported by my Department and its agencies will be critical in achieving economic growth and I know that the agencies - Enterprise Ireland, IDA Ireland and the county enterprise boards - will continue to promote Athlone and the surrounding area for industrial projects and enterprise development.

I am convinced that the actions we are taking across Government through this process will result in improvements to the operating environment for business and bring about a reduction in the numbers on the live register, as was shown in the most recent data from the Central Statistics Office earlier this week.

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