David Stanton (Cork East, Fine Gael)
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I thank the Ceann Comhairle for allowing me to raise this matter. I speak on behalf of the town of Youghal which in recent years has experienced substantial job losses: 230 jobs in Artisan Technology, 130 jobs in Eastman Kodak and 40 jobs this week in Seafield Technical Textiles Limited which has decided to close.

I am concerned that there does not appear to be any urgency on the part of the State agencies or the Government to attract additional industry to Youghal. The town is an attractive coastal one in east Cork with much in its favour. Recently we have all lobbied for a new swimming pool and community school, both of which will proceed and be beneficial. However, people in Youghal must leave the town every morning and drive to Carrigtwohill, Cork city, Fermoy and Dungarvan for employment purposes. This has a knock-on effect on businesses in Youghal. I ask the Minister to use his good offices and those of the Government, IDA Ireland and Enterprise Ireland to encourage and attract industry to Youghal. A number of small industries in the town would work wonders.

That Bord Gáis is not in the town acts as a disincentive to industry. There is a chicken and egg scenario in this because Bord Gáis will not supply the town unless there is industry and industry will not locate until there is a gas supply. Perhaps the Minister can shed some light on that conundrum and help us resolve it. I am informed that broadband will arrive in the town shortly.

It would also help if the National Roads Authority would look at Castlemartyr because that village between Youghal and Cork city badly needs to be bypassed. I have written to the NRA on many occasions about it. There are tailbacks more than a mile long every evening and it is worse on summer Sundays. That acts as a disincentive for industry to locate to Youghal. I ask the Minister to dust down that file and have a chat with the NRA. Perhaps he would come back to me on the timescale and procedure for bypassing Castlemartyr and, thus, bring Youghal closer to Cork city and make it more attractive.

If decentralisation were to come to the town, it would help as it would bring more people. I would hope they would live and work there. Property prices in the town are still manageable. As part of the overall package, perhaps the Minister would let the House know what is happening in that regard and the timescale.

At one stage Youghal had full employment and was a thriving manufacturing base. Unfortunately the type of industry there and in many other centres is leaving owing to international competition. Seafield Technical Textiles Limited produced Gore-Tex type fabric used for military uniforms, postbags and so on. It has come under pressure from eastern European imports. When the Irish Army produced a new uniform some years ago, it was regrettable it did not use the top class Gore-Tex type cloth produced in Youghal for the uniform. Instead the cloth was imported from China and tailored in eastern Europe.

Altana Pharma, a company that located in Carrigtwohill, was not encouraged by IDA Ireland to locate in Youghal. Having looked at the town, it was a disappointment the company did not locate there. I am concerned about the policy of IDA Ireland to promote small provincial towns such as Youghal. Is it Government policy that people would live and work in their own area and cut down on traffic and congestion on the roads, something the Minister would like to see happening? I await his response with hope. We are all working together to try to benefit our areas. At this time of year when the tourists have left, Youghal goes into the doldrums, a matter I would like to see reversed.

Dick Roche (Wicklow, Fianna Fail)
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I thank the Deputy for raising the issue and apologise on behalf of the Minister for Enterprise, Trade and Employment, Deputy Martin, who unfortunately cannot be present. The Minister has asked me to say how concerned he is that Seafield Technical Textiles Limited has announced that owing to adverse trading conditions, it has become necessary to cease trading with the loss of 38 jobs. He is conscious of the adverse effects on workers in Youghal of these job losses and other job losses in recent years.

Seafield Technical Textiles Limited manufactures technical fabrics for industrial and specialised apparel. Most of the production is exported. The company has experienced difficult trading conditions over recent years, but these have become even more acute during 2005. In common with other companies in the sector, customers have switched sourcing their supply of goods to lower cost economies.

Management at the company had tried to diversify into new markets and new product areas. The company has also tried to cut costs, including putting staff on three-day week schedules. However, the rate of decline of its present customer base during 2005 means that the drain on cash is too severe to give the company time to recover through diversification. The last quarter of the company's financial year is usually the busiest period and management delayed the decision to close to see if a seasonal increase in orders from September would arise. However, this did not occur and I understand the company was left with little option but to close. FÁS has contacted the company and the full range of FÁS services are being offered to the staff.

Unfortunately, the investment decisions of some companies are influenced by the competitive attractions of alternative geographic locations. As with most other European countries, there are areas of activity in which Ireland's competitiveness is seriously challenged. In the main these are areas where availability of capable lower cost locations makes costs the primary driver behind business decisions.

The industrial development agencies will make every effort to secure alternative employment for the area and I will convey the specific comments made by Deputy Stanton re gas and so on. IDA Ireland promotes east Cork to potential investors on an ongoing basis and every effort is being made to secure further advanced knowledge-based industry for the east Cork area, including Youghal. IDA Ireland will continue to promote east Cork actively to potential investors from across the full range of IDA Ireland targeted sectors such as pharmaceuticals, medical technologies, information and communications technologies and internationally traded services.

In addition to attracting new foreign direct investment, IDA Ireland continues to work closely with its existing clients in Youghal and east Cork to encourage them to expand their operations in the area. There are currently 137 IDA-assisted companies in County Cork employing in excess of 18,500 people. Over recent years, in terms of new foreign investment in east Cork, pharmaceuticals, medical technologies and internationally traded services are among the area's strongest performers. I have seen for myself that the economy of the general area is strong. Such investments are attracted to east Cork due to the availability of a high quality workforce, a well-developed infrastructure and very positive business environment. In the period from 2002 to 2004, more than 50% of all jobs announced in Cork came from companies locating in the broader east Cork area. Due to its proximity to the greater Cork area, Youghal has also benefited from this development. As Deputy Stanton has said it is an extraordinarily attractive place to live and rear a family.

Enterprise Ireland works with just under 750 client companies in County Cork, which according to the Forfás Annual Employment Survey 2004, employ a total of 19,617 people. Approximately 140 of these companies are in the east Cork area, including Youghal, with a total employment of approximately 3,700. Enterprise Ireland has worked closely with community groups in the towns of east Cork including Youghal, to foster further embryonic enterprise and to encourage young graduates to set up businesses in their own localities. Enterprise Ireland has approved feasibility study funding to explore the possibility of a community enterprise centre in Youghal. I am sure if that comes about it would be a very positive development.

David Stanton (Cork East, Fine Gael)
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Yes, it would.

Dick Roche (Wicklow, Fianna Fail)
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On behalf of the Minister for Enterprise, Trade and Employment, Deputy Martin, I assure the House that the State development agencies, including the local county enterprise board, under the auspices of the Department of Enterprise, Trade and Employment, will continue to work closely together and with local interests in promoting Youghal and the surrounding area for further job creation and investment. I will pass on the point the Deputy made about decentralisation of the NRA, which is under the aegis of the Minister for Transport, Deputy Cullen. I will also pass on the points made about gas supply and Altana Pharma to the Minister for Enterprise, Trade and Employment, Deputy Martin.