Dinny McGinley (Donegal South West, Fine Gael)
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Go raibh maith agat, a Cheann Comhairle, as deis a thabhairt dom an cheist seo a thógáil. I also acknowledge the presence of the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Treacy, who will respond to the debate. It is certainly better than having a Minister or a Minister of State here who has nothing to do with that Department.

The bombshell announcement by Hospira of Donegal town on 23 August last is still sending shock waves throughout the entire county. This was the latest in a savage litany of such job loss announcements in Donegal over the past five years that have brought the total of industrial job losses in the county to more than 7,000. Our industrial base has been virtually wiped out, leaving the county with the highest unemployment rate in the country, at more than four 4 times the national average.

Prior to the Hospira announcement the vast majority of job losses in the county were in the textile sector. Names such as Fruit of the Loom, Comer Yarns, Herdsman's, Nena Models and, more recently, Clubman Omega come to mind. The textile and clothing industry in Donegal — with a few honourable exceptions, such as Magee and Company of Donegal town and Sioen Protective Clothing in my own parish of Gweedore — has vanished off the employment map.

We were conditioned into accepting that the loss of these traditional type jobs was inevitable and were transferring to low-cost economies. However, Hospira, a pharmaceutical company involved in the production of health care products, was looked upon as the industry of the future, a virtual flagship for the county. The 560 workers were confident of their future. Such modern type industries require the skills and training of an educated work force, or so we were told. However, we now realise that even such modern industries are not immune to closure. The Hospira jobs are not being lost. They are simply being transferred to Costa Rica and the Dominican Republic in Central America.

The loss of the Hospira jobs will have devastating economic and social consequences for south-west Donegal, an area already suffering from economic depression from the crisis in the fishing industry. The main breadwinners for hundreds of families are being consigned to the already bulging ranks of the unemployed, with little or no immediate prospects of finding alternative employment in their own county. Many have huge financial and family commitments. Mortgages are outstanding and families have to be educated.

The fall-out is not confined to those immediately losing their jobs in Hospira. It will have a knock on effect on every business and service industry in the area, including hotels, restaurants, cafés, hairdressers and crèches. Every single service will suffer from the impact.

The management of Hospira had the highest praise for the skills and the commitment of the workforce. The closure is not a reflection on their loyalty or dedication. Instead, the finger of blame has been pointed directly at the Government's failure to control costs for manufacturers. Many of these costs are imposed directly by the Government in the form of stealth taxes. Others arise where the Government has a direct influence, such as the high cost of energy, insurance, PRSI payments and exorbitant commercial rates.

When the news broke we had the usual chorus of sympathy and promises from Ministers, saying that "every effort must be made" and "we must harness all the agencies". The old time-worn scripts were just being recycled and regurgitated. We have heard it so often before. Empty promises and pious platitudes are no longer sufficient. They do not put bread on the table.

A new departure is required. We do not need yet another task force or the commissioning of a further report. The special status of the county must be recognised. An extraordinary situation requires extraordinary measures. Incentives must be offered to industries willing to locate in County Donegal. This can be done in many ways, such as tax incentives and rates concessions. Access and communications must be further improved.

In spite of the industrial body blows in recent years, County Donegal has so much to offer — an attractive and pleasant environment, excellent educational facilities, a skilled and educated workforce, excellent housing at reasonable prices and the absence of traffic jams, to name but a few attractions.

With proper marketing, promotion and commitment, jobs can be attracted to the county. Our citizens only wish to live and work in their own environment. It is the responsibility of the Government to deliver these jobs. We are often told of the numbers of jobs created in the past seven years and I do not dispute the figures, which are probably accurate. However, very few of these have been created in County Donegal. We have lost more than 7,000 jobs in the period and fewer than 1,000 jobs have been created to replace these losses. In future the Government will not be judged on what it promises but on the number of jobs provided for the thousands of unemployed throughout the county. I ask for the commitment of the Minister of State and his colleagues. I hope that in his response he will hold out some hope for the thousands who have lost their jobs and the many who never had jobs in Donegal.

Tony Killeen (Clare, Fianna Fail)
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I thank the Deputy for raising this matter. The announcement by the company that it is to close its Donegal facility is most disappointing and particularly devastating for the workers and families directly affected. The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. FÁS has already been in contact with the company and will provide advice and training opportunities for the Hospira workforce. The agency 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, Enterprise Ireland is also providing information and support for those who might wish to start their own businesses. IDA Ireland is also in discussion with the company regarding the possible future use of the facility in Donegal town. The full support of the Donegal County Enterprise Board is also being made available.

The Deputy will be aware that there have been significant job announcements in Donegal recently, with more than 210 new jobs announced last week by Zeus Industrial Products and PowerBoard. These projects being supported by IDA Ireland and Enterprise Ireland, respectively, are in addition to 423 jobs which the Minister for Enterprise, Trade and Employment announced earlier this year for the north-west region. The State development agencies, IDA Ireland, Enterprise Ireland, FÁS and the county enterprise boards, under his auspices, are fully committed to supporting and promoting job creation and job retention in Donegal.

In addition to recent job announcements, this commitment is also evidenced by ongoing development and support by the agencies for a number of business parks and enterprise centres in Donegal. These include the completion of the IDA Letterkenny Business Park; the provision of a 25,000 sq. ft. advance office building at Windyhall; the completion of site development work at Ballyshannon for a new facility, and at Buncrana, where IDA Ireland is working with a local developer to provide new manufacturing and office buildings; support for nine community enterprise centres in Donegal by Enterprise Ireland; support for the expansion of the Letterkenny Institute of Technology business development centre; and the development of a marine biotechnology centre at Letterkenny IT.

I recognise that Donegal has experienced significant job losses in recent years, particularly in traditional sectors such as textiles and clothing. Since his appointment, the Minister for Enterprise, Trade and Employment, Deputy Martin, has visited Donegal twice and has met many groups and companies on these visits to discuss both difficulties and positive developments in the county. His colleagues in Government also recognise the particular difficulties in Donegal and in that context will be working together to assist in improving the overall environment to increase the attractiveness of Donegal as a location for enterprises.