Seán Sherlock (Cork East, Labour) | Oireachtas source

I thank Deputy Corcoran Kennedy for raising this issue. I share her concern in relation to the jobs being lost at EJ Ireland Access Solutions Limited, formerly EJ Cavanaghs.

IDA Ireland notified the Department of Jobs, Enterprise and Innovation on 21 October that EJ Ireland Access Solutions Limited is currently engaged with workers regarding a restructuring proposal, which will result in the loss of 32 jobs. The company currently employs 51 people. The company has been impacted by the collapse of the construction

sector within Ireland, which was its primary market. The company will retain 18 staff at the Birr plant to deal primarily with sales, marketing, distribution and steel fabrication. It has had to review its business structures due to the collapse of construction activity in the Irish market. Ireland was its primary market when its sales peaked in 2008. Exports at that time accounted for less than 5%. However, at year end 2012, company exports accounted for 30% of its revenue. More and more companies are engaging in this type of restructuring, with companies looking strategically at opportunities in the global market and taking steps, unfortunately, such as making people redundant, in order to position themselves for future growth.

The proposed redundancies in Birr are part of adjustments the company is making to meet the evolving needs of the business and to remain competitive in a challenging global environment. IDA Ireland will remain in ongoing contact with the company. Owing to the downturn, all businesses face competitiveness issues, including the manufacturing and services sector. It is clear that, arising from greater globalisation, reduction of tariff barriers and the ease of transporting goods, the nature of industry and the location of specialisations will be changing. The Government's action plan for jobsis a key part of the process. We are endeavouring to create the right environment for additional job creation. While employment levels in the manufacturing sector have fallen, in common with every other industrialised country in Europe, we still have 205,000 people directly employed in manufacturing and, when account is taken of indirect employment, this means about 400,000 people depend on manufacturing for a livelihood in Ireland.

Last year, the Minister, Deputy Bruton, initiated two research projects, one by Forfás entitledMaking it Happen - Manufacturing 2020and the other by the expert group on future skills entitled, The Future Skills Needs of the Manufacturing Sector to 2020. Both of these reports complement each other and will assist Government in reaching the target of creating an additional 20,000 jobs in manufacturing by 2016. The private sector has created 3,000 jobs per month over recent times and we hope to build on this positive trend. IDA Ireland is continuing its efforts to attract FDI to this area and the midlands region. There are currently 11 IDA supported companies operating in County Offaly. In 2012, there were nine IDA site visits to the midlands region and three visits to County Offaly. The Deputy will appreciate that while the IDA makes strenuous efforts to attract multinational companies to specific regions, the ultimate decisions on whether to visit and subsequently locate are matters for the companies concerned. In 2012, Enterprise Ireland had 79 client companies in County Offaly, employing over 2,600 people in full time jobs and 56 client companies in North Tipperary, employing over 2,100 people in full time jobs. Enterprise Ireland paid over €1 million to its client companies in County Offaly in 2012 and has paid over €750,000 to date in 2013. The corresponding figures for North Tipperary were over €2.7 million in 2012 and over €500,000 to date in 2013.

In terms of new initiatives for job creation in counties Offaly and north Tipperary, Enterprise Ireland activity is focussed on the creation of new jobs through continuing to work with established companies in its portfolio. Enterprise Ireland is part of a local inter-agency committee which is developing a new promotional and information portal for Tipperary, www.Tipperary.com.

In addition, Offaly County Enterprise Board and Tipperary North County Enterprise Board have taken a proactive approach, together with a range of services and supports for people considering self-employment. These services are of course available to any EJ employee considering self-employment.

I do not wish to provide political platitudes. I do not know the company or the people personally. Deputy Corcoran Kennedy knows these people; they are her own people. We sympathise with them on the loss of these jobs and we will do everything through our State agencies to try to replenish them with the supports that are available.

See this speech in context