Dáil debates

Thursday, 24 February 2005

3:00 pm

Jerry Cowley (Mayo, Independent)
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Question 5: To ask the Minister for Enterprise, Trade and Employment the steps he is taking to address the notorious unemployment problem in County Mayo, particularly north Mayo; if his attention has been drawn to the hardship caused by the loss of jobs at companies (details supplied); the steps he has taken or intends to take to provide replacement jobs in the region; if, in view of this matter, he will consider setting up a task force to address this urgent situation; and if he will make a statement on the matter. [6446/05]

4:00 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The recent job losses announced by companies in County Mayo are a major blow to the workers affected and their families. I am conscious of the adverse effects of such closures on the surrounding area. Every effort will be made by FÁS and the State development agencies to find and create alternative employment for people who have been or are due to be made redundant.

At 5,495, the live register figure for County Mayo for January 2005 shows a decrease of 11% compared to January 2004. While the live register is not a true record of the level of unemployment, it is nevertheless a useful indicator of the current employment trend. Furthermore, the most recent quarterly national household survey figures, third quarter 2004, shows an unemployment rate for the west of 3.8%. That is substantially down on the 4.8% figure for 2003 and is below the national average figure of 4.7%. These figures reflect the overall upward trend in the economy in recent months.

I assure the Deputy that IDA Ireland continues to actively promote County Mayo to potential investors from a variety of sectors, including manufacturing and international services, with every effort being made to secure new investments for the area. Since January 2004, there have been seven first-time site visits to the county by potential investors.

In addition to targeting potential new projects, IDA Ireland and Enterprise Ireland continue to work with the existing base of companies in the region with a view to supporting such companies with potential expansions and diversification of activities. The Mayo County Enterprise Board provides support for small businesses to develop indigenous enterprise potential and stimulate economic activity at local level.

IDA Ireland is investing significantly in the provision of planned and focused property solutions in the west region, specifically County Mayo. This is viewed as an essential marketing tool in the process of attracting potential new investors to the county. IDA Ireland is developing world class business and technology parks in Ballina, Westport, and Castlebar. The goal is to ensure that key locations have the appropriate property solutions, tailored to specific key sectoral targets, to attract inward investments. This means providing high quality business and technology parks and buildings in the main towns and undertaking long-term planning with the local authorities in order that the region is viewed by investors as having location solutions, such as property, infrastructure, business and lifestyle services, to support the growth and development of their operations. Given the representation of the State development agencies on the Mayo County Development Board, it is considered that, should further co-ordination be necessary, the county development board would be the most appropriate forum to fulfil this function. In the circumstances, I do not propose to establish a task force for the region.

Additional information not given on the floor of the House.

I recognise the need to provide high value employment opportunities in the key towns in Mayo that provide sustainable long-term jobs. IDA Ireland's strategies have proved successful to date despite the difficult and ever-changing global economy. The level of foreign direct investment in Ireland relative to the size of the economy is one of the highest in Europe. IDA Ireland is confident the strategies and policies being pursued in the county together with the ongoing commitment to regional development will bear fruit in terms of overseas investment and jobs.

Jerry Cowley (Mayo, Independent)
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I thank the Minister for his detailed reply. County Mayo is the most socio-economically deprived area in the country. The Minister quoted figures in regard to the west but the latest statistics indicate that the western and northern regions of Mayo are in terminal decline, having lost thousands of their population.

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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Deputy Cowley will talk the statistics to death.

Jerry Cowley (Mayo, Independent)
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Hundreds of jobs have recently been lost in Hennigans, Allergan and the Bellacorrick peat-burning station. If one considers the losses at Bellacorrick, approximately 1,000 jobs have been lost in the area in the past five years. By contrast, three new power stations are being developed in the midlands while the Bellacorrick facility is closing with the loss of more than 200 jobs. A recent study indicated that 8 million tonnes of peat are available at Bellacorrick. In this context, there can be no reason not to rebuild the peat-burning station there.

There is no doubt that Mayo is the national employment blackspot, with a relative poverty rate 40% above the national average. Will the Minister acknowledge the existence of this employment problem in Mayo, particularly in north Mayo and Ballina, and will he prioritise this area as a location for job creation? We have seen approaches made to industrialists providing jobs in this country to ask them to relocate in China. Will the Minister consider the employment supports available for the overpopulated pale and provide better employment prospects for the west? Will he support the rebuilding of Bellacorrick, which has adequate stores of peat? It is the Minister's job to act and if he does not do so, the well-being of the next generation in this area is under threat.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We must stop using such language as "deprived" and "most deprived" in this debate. It does not serve the interests of Mayo as we endeavour to market the county. IDA Ireland is not in the position described by the Deputy. The factual position is that unemployment is down 11% from 2003 to 2004.

Jerry Cowley (Mayo, Independent)
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My question relates to north County Mayo.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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IDA Ireland is quite benign about the prospects for Mayo in coming years. As I outlined, it has taken decisions regarding the development of business parks, for which the total amount invested will be €11 million by the end of 2005. IDA Ireland is currently at an advanced stage in the acquisition of 27 acres of land on the Sligo Road in Ballina for the development of a high quality business and technology park. Planning permission has recently been approved for the site development and IDA Ireland is finalising the purchase of the site from Mayo County Council, at which point tenders will be invited from the private sector for site development works. It is expected this work will commence in 2005. This is an important infrastructure for Ballina, which will enable IDA Ireland to attract companies into a fully serviced and developed site of world-class quality.

Likewise, a 16-acre state-of-the-art business and technology park has been fully developed at Castlebar and is being actively promoted by IDA Ireland. In Westport, IDA Ireland has acquired 37 acres of land where it plans to develop a new business and technology park. Work is in progress on site development there and it is anticipated that the first phase will be completed by mid-2005.

These developments represent tangible evidence of the commitment of IDA Ireland and the Government — it is the Government which funds all this — to Mayo.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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It is funded by the taxpayer.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We are committed to building on what is now a significant cluster of foreign direct investment activities in the county, particularly in the medical technology area, with companies such as Baxter Healthcare, Allergan, AMO Ireland, Hollister, Fort Wayne Metals and Charles River Laboratories. These have given a certain strength to the Mayo area. In addition, AMO Ireland announced the establishment of a shared services centre in Westport. The Castlebar campus of Galway Institute of Technology is another significant infrastructure, on which IDA Ireland has worked to provide an incubation facility for business start-ups. This is an important new development taking place in all the institute of technology campuses.

Jerry Cowley (Mayo, Independent)
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The loss of 1,000 jobs, including those at Bellacorrick, in five years is significant. Will the Minister give his support to the peat-burning station in Bellacorrick? The peat supplies available will provide more than 200 jobs for 15 years. This would be a wonderful development for the area, which will replace what has been taken away. The Minister's support in this regard is extremely important.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I do not interfere in the ESB's development programme and its reorganising and restructuring operations. Therefore, I am not in a position to give assistance to the Deputy in this regard, but I point out that the number of jobs in foreign direct investment companies in Mayo has increased in recent years.

Séamus Pattison (Carlow-Kilkenny, Labour)
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The time for Priority Questions has expired. We must, therefore, take the remaining questions in ordinary time.