Dinny McGinley (Donegal South West, Fine Gael)
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I thank the Chair for allowing me to raise this important matter on the Adjournment. Last week's announcement by Donegal Parian China that its factory in Ballyshannon is to close with a loss of 44 full-time and ten part-time jobs is a severe blow not alone to Ballyshannon but to all of County Donegal. Parian China has been producing ceramic ware in Ballyshannon for more than 23 years and has been looked upon as a flagship company within the county. Donegal Parian China is a nationally and internationally recognised brand name and has given County Donegal a worldwide profile. Not only does it provide valuable employment in the area but the factory attracted thousands of visitors annually to its impressive showrooms in Ballyshannon. With the imminent closure of the factory all of this is gone and will deal another body blow to the economy of Ballyshannon and the morale of its inhabitants. This is the latest in a long litany of job losses in Ballyshannon and south Donegal. Some years ago Donegal Rubber Company closed with the loss of 100 jobs that have never been replaced. A task force was promised at that time but we still await its establishment. In recent years, Rogan's international fishing fly company closed with the loss of 15 highly skilled jobs. The ESB has reduced its workforce in Ballyshannon from a peak of 200 to 40 employees. The long-established Donegal Democrat that was synonymous with Ballyshannon for many years has been relocated in other parts of Donegal. All these jobs have been lost but not even one industrial replacement job has been created there in the past ten years. One can justifiably say that so far as industrial jobs are concerned, Ballyshannon is a virtual wasteland. To add insult to injury the Parian China jobs are going to Belleek, four miles across the Border into County Fermanagh. This must be an eloquent testament to how the employment environment has deteriorated in the county, even compared to Northern Ireland.

The position in Ballyshannon is a reflection of the serious unemployment problem throughout Donegal. How can the Minister and the Government justify an unemployment rate of 16% in Donegal compared to a national average of approximately 4%? This Government and its predecessor have boasted about the 300,000 to 400,000 new jobs created by the Celtic tiger economy. While I cannot deny these estimates how many of these jobs have gone to Donegal or to Ballyshannon? Donegal has lost more jobs during the years of boom than were created within the county.

Our textile industry in the county has been decimated. One need only mention Fruit of the Loom which closed its centres in Buncrana, Milford, Raphoe and Dungloe, Comer Yarns, in Gweedore industrial estate in my parish, Nenagh Models and Herdsman in the Finn Valley and many others. These jobs have gone from Donegal and have been relocated in other parts of Europe and the world. Is it any wonder that our unemployment rate in Donegal is four times the national average? What has happened in Ballyshannon is a reflection of what is happening throughout County Donegal. Our traditional industries are also in crisis. The fishing industry is at a low ebb. Killybegs is a ghost town. Having visited the town last Monday with our spokesman on the marine, Deputy Perry, we encountered at first hand the serious position there. In previous years one could expect from 1,500 to 2,000 to be employed in onshore processing facilities at this time of year. Currently there are approximately 100 employed there, which is a catastrophic decrease, a wipeout.

We have task forces, reports and plans for many years. What we have not had in Donegal is the provision of new jobs. It is a terrible indictment that only 4% of graduates of the Institute of Technology in Letterkenny obtain employment within the county. This cannot be allowed to continue. I ask the Minister and the Minister of State to come to Ballyshannon and Donegal as soon as possible to see for themselves the seriousness of the position. I ask the Minister to direct his energies and the energies of all the agencies, including IDA, Údarás na Gaeltachta, Forbairt Ireland and others to set annual employment targets for Donegal. Only with such a radical and planned approach can the crisis be addressed. The fight back should commence immediately in Ballyshannon and should spread throughout the rest of the county without further delay.

Tony Killeen (Clare, Fianna Fail)
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I thank Deputy McGinley for raising this matter on the Adjournment.

The announcement by the company that it is to close its Donegal Parian China facility is most disappointing and particularly devastating for the workers and families directly affected.

I understand the decision to close is due to a reduction in product demand. However, I am also advised that the company is to consolidate its production in its existing Beleek facility and that some 15 of the 54 Donegal employees may be offered employment in Beleek.

The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. FÁS will provide advice and training opportunities for the Parian China workforce. FÁS will make its full range of services available to the workers, which will include top level agreement with the company on responsibilities and actions; intensive interviews, individually and-or in groups, with affected workers that will outline the range of supports and services available; preparation of a "skills analysis report" by FÁS based on identified workers' needs and local opportunities; referral by FÁS of affected workers to jobs, training courses or other options; establishment by FÁS of special or customised training courses where necessary; and ongoing support and action to keep redundant workers in touch with the labour market. In addition to the foregoing, Enterprise Ireland is also providing information and support for those who might wish to start their own businesses.

On 2 December 2004 my colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin, visited North Donegal and met with a number of groups and companies. He undertook this visit in recognition of the relatively difficult employment situation in Donegal. It is his intention, in the very near future, to visit south Donegal and meet with local interest groups to discuss the employment position.

The IDA is actively marketing all areas of Donegal for new investment and jobs and has invested significant moneys in developing a business park to international standards in Letterkenny. In Ballyshannon, the IDA has obtained planning permission for a new facility and a significant amount of site development work has been recently completed. Also in Ballyshannon, Enterprise Ireland has recently partnered with the local community development company, Erne Enterprise, to develop new high quality enterprise space. Enterprise Ireland is providing €300,000 in support to this new 10,000 square foot enterprise centre.

While the IDA and Enterprise Ireland continue to work with their existing company client base to encourage them to grow, the Donegal County Enterprise Board continues to be active in helping new and existing micro-enterprises in the county. I assure the Deputy that tackling the difficulties in Donegal is a priority for the Government and the Minister for Enterprise, Trade and Employment, Deputy Martin, a point which he has also reiterated to the State development agencies operating in Donegal.