Dáil debates

Tuesday, 31 May 2005

2:30 pm

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
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Question 32: To ask the Minister for Enterprise, Trade and Employment the steps he has taken and intends to take to address the serious unemployment levels in Carrick-on-Suir; the steps which have been taken by the industrial agencies to bring industry to the town, including the number of site visits to the town by these agencies for prospective industrialists; and if he will establish a jobs task force to address the jobs crisis in the town. [18179/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Support for job creation and investment on a regional or local basis comes within the remit of the industrial development agencies, IDA Ireland, which is actively marketing individual areas as a location for additional foreign direct investment, and Enterprise Ireland, which concentrates on the development of indigenous industries, with the 35 city and county enterprise boards having primary responsibility for the regional promotion of indigenous industry in the micro-enterprise sector. Under the Industrial Development Acts, I may give general policy directives to IDA Ireland and Enterprise Ireland but I am precluded from giving directives regarding individual undertakings or from giving preference to one area over others.

The latest quarterly household survey published by the Central Statistics Office on 2 March 2005 shows that the unemployment rate in the south east was 5.6%. While this figure is above the national average, which is now down to4.3%, it is a significant decrease on the figure in the previous quarterly household survey which showed unemployment at 6.2% in the region. In addition, the numbers on the live register in south Tipperary fell from 3,733 in April 2004 to 3,275 in April 2005. The corresponding figures for Carrick-on-Suir show a reduction from 942 to 914, which reflects a positive trend.

FÁS is assisting those who are unemployed to join or re-enter the labour force by offering skills analysis, training and retraining programmes and a job placement service. A full-time local employment service office operates in Carrick-on-Suir. FÁS also sponsors a jobs club in the enterprise centre in the town. This latter initiative is aimed at increasing the skills levels of those concerned. The agency also works closely with the Carrick-on-Suir RAPID steering committee. RAPID is a special designation project for areas of high deprivation aimed at establishing innovative actions which aid growth and social and economic inclusion in the designated areas.

IDA Ireland supports two overseas companies in Carrick-on-Suir. While it has not hosted any recent site visits by prospective investors to Carrick-on-Suir, there have been 11 such visits to the surrounding area in the past 12 months. However, ultimately it is the investor who decides where to locate a project, including what areas to visit as potential locations. The announcement in May 2004 by Guidant Corporation of a 1,000-person job expansion at its Clonmel plant should have considerable knock-on benefits in terms of other investment and employment opportunities for people in the immediate vicinity and surrounding areas, including those living in Carrick-on-Suir.

Enterprise Ireland, EI, also continues to promote job creation in south Tipperary. Its job creation activity is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, the retention and creation of new jobs in existing companies and on enhancing the innovation capability of Ireland at a national and regional level through support of research in companies and third level institutions. In the past three years, EI made payments of more than €4.5 million to client companies in south Tipperary to assist them with development projects.

Since its inception, the Tipperary South Riding County Enterprise Board, CEB, has assisted 40 micro-enterprises in the Carrick-on-Suir area and has provided more than €448,000 in grant assistance resulting in the creation of 67 jobs in Carrick-on-Suir.

Additional information not given on the floor of the House.

In addition to providing direct financial assistance, the Tipperary South Riding CEB also provides non-financial assistance such as advice, mentoring and a broad range of training programmes which are beneficial to either prospective entrants or established participants in the micro-enterprise sector. In the period since 1993, a total of 110 people from the Carrick-on-Suir area have participated in a range of management development courses held by the Tipperary South Riding CEB in Carrick-on-Suir, including courses in starting a business, web design, front office skills and information technology training. In addition, enterprises from Carrick-on-Suir have also participated in courses run in other areas of the region such as Clonmel. Any further initiatives in job creation should be addressed at local level in co-operation with the county development board where the industrial development agencies are already involved. This would be in line with the position adopted in other areas of the country.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
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It appears from the Minister's reply that he can tell us what is happening everywhere except in Carrick-on-Suir. He has told us the position in south Tipperary and in the south east generally. It seems the Minister will not accept that a persistently high level of unemployment in the town of Carrick-on-Suir is serious or indicates a crisis. Since the Government came to power in 1997, an unemployment problem of this magnitude has existed in Carrick-on-Suir. It is a town of 5,000 people with more than 900 unemployed. That represents an unemployment rate of close to 20%, close to four times the national average — a million miles away from 5.6%, or indeed 6.2%, in the south east. Does the Minister accept that this is a serious situation and that regardless of whatever has happened in the south east or in south Tipperary, a particular problem regarding unemployment and job creation exists in Carrick-on-Suir? As Minister for Enterprise, Trade and Employment, the Minister has a responsibility to ensure that every area gets its fair share of investment and job creation. As Carrick-on-Suir has persisted as a blackspot area in this regard, would it be opportune for the Minister to establish a task force for the town to ensure that it avails of job creation and investment?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I do not wish to be adversarial, but the surest way of turning foreign direct investment away from an area is to label it a blackspot. Anything I said in my reply did not understate any difficulties there may be in Carrick-on-Suir in terms of creating employment. If we want to attract foreign direct investment to a particular location, we should avoid headlines or titles using the term "blackspot" because that does nothing for the area and nothing to enhance its prospects for attracting jobs and employment.

The south east is relevant. Everything I said in the reply is relevant because it impacts on Carrick-on-Suir. Between 2005 and 2010, IDA Ireland will bring 1,000 jobs to Clonmel, jobs which are just beginning to arrive. It is ridiculous to suggest that the success of IDA Ireland in attracting an investment of that size and quality to Clonmel, which is about 14 miles from Carrick-on-Suir, will not have an impact on Carrick-on-Suir's unemployment figures. It defies logic.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
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It has not had an impact.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I suggest to the Deputy that in the context of the Guidant Corporation investment or other investments in the area, the State agencies, in particular FÁS, the training agencies and the Tipperary Institute, should look at ways in which we can ensure that a significant proportion of the population in Carrick-on-Suir is in a position to access the jobs bring created in companies like Guidant. I will work with the Deputy, local interests and the State agencies to see if we can ensure that this happens. Through FÁS, Enterprise Ireland and the country enterprise board, we will continue to work on training and education to achieve a higher work participation rate in employment for people living in Carrick-on-Suir, and to build more employment to the area, either through indigenous companies, by attracting new companies or expanding the facilities in companies already located in the area.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
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We must be factual and cannot bury our heads in the sand. When nearly 1,000 people are unemployed in a town of 5,000 people, that is a serious situation. Will the Minister meet a deputation from Carrick-on-Suir Town Council to discuss the matter?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I will consult the Deputy and other Deputies in the area on the matter rather than meet only a town council delegation.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
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Will the Minister meet a deputation from Carrick-on-Suir?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I will talk to the Deputy afterwards about the best way to approach the matter.