John Perry (Sligo-Leitrim, Fine Gael)
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I thank the Ceann Comhairle for allowing this matter to be raised and I thank the Minister of State for being here.

The decision taken by the company, SP Wine Products Limited, to close its plant in Easkey, County Sligo, is a massive blow to that community. This will be felt in particular in the whole region of west Sligo. The north west has been dealt several severe blows in recent months. Tractech closed its plant in Sligo recently with the loss of 122 jobs and three months ago Hospira closed its plant in Donegal. The loss of so many jobs is a significant blow to the entire region. In Easkey, however, the SP Wine Products decision means that 31 people will lose their jobs, the equivalent of 300 jobs in the greater Dublin area.

This is a close-knit community where the company has operated since 1996. SP Wine Products makes bottle opening devices and tableware and is a subsidiary of Le Creuset, a successful company worldwide. It is never a good time for workers to hear that their employer is packing up and leaving the country, but it is particularly difficult at this time of the year. SP Wine Products is a very important employer for Easkey. I am not sure what the Minister of State can do, but perhaps Enterprise Ireland as well as the special task force for the enterprise boards might be able to encourage the company to reassess the opportunities on offer. I know it is looking at lower cost opportunities elsewhere. It is, perhaps, an indictment of the high cost of jobs in Ireland that companies are locating to lower cost countries. We cannot sit idly by, however, and watch jobs leave. This is a major loss.

This company is the biggest employer in west Sligo. The entire coastal community around Easkey very much welcomed this development in 1996 and it is regrettable that the company no longer finds it profitable to continue employing people in the region.

The high cost of doing business in Ireland is steadily increasing with added stealth taxes. The Government will have to look seriously at the sustainability of manufacturing jobs in the west. Quite a number of manufacturing jobs still exist there and there must be more incentives to encourage employers to remain. SP Wine Products is similar to Tractech, with its competitors moving to low cost manufacturing centres greatly influencing its decision.

I am confident that the Minister of State, Deputy Killeen, is aware of the difficulties of small companies since they form the backbone of the successful Irish economy. The loss of jobs in the north west has been quite startling in recent times. Figures released yesterday show that one in four people in the north west is living on the edge of poverty compared to a national average of 19%. The Government must work harder to keep companies in Ireland and we must do more to develop the north west. As regards Enterprise Ireland, the Western Development Commission and all the statutory authorities, hopefully some encouragement will be given as regards incentives towards retention of those jobs in this region.

There are difficulties when it comes to profitability and most companies are driven by the bottom line. The Government is in the business of giving incentives to companies to set up. The high cost base, however, and the competition elsewhere in the world tend to drive the marketplace in a different direction. I hope in light of the Tractech announcement and now SP Wine Products in Easkey, the Minister of State can offer some possibility of a reassessment of the situation. With the involvement of Enterprise Ireland and IDA Ireland, perhaps there could be a meeting with the management of the company so that it might be persuaded to reconsider its decision and hold on to those valuable jobs in Easkey.

Tony Killeen (Clare, Fianna Fail)
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I thank the Deputy for raising this matter. On 13 October 2005, the company in question wrote to the Minister for Enterprise, Trade and Employment saying that the plant in Easkey would close over the next three months. As a result of this, the company would make 31 people redundant on a phased basis with the first job losses occurring on 11 November 2005. I understand that the decision to close was taken with considerable regret by the company.

The decision was particularly difficult as the company felt it had established an excellent team of workers with a strong service ethic. The directors.were particularly impressed with the commitment and hard work of the employees and said that they would work with them to help them gain alternative employment. The full services of FÁS will be available to the workers if they wish to avail of them. Up to the end of last week, almost half of the workers had been interviewed by FÁS officers and the remainder are being interviewed this week.

The company has been involved in manufacturing in Sligo since 1996. However, it has experienced four years of difficult trading conditions. Unfortunately, the business is now uneconomic, leaving the directors with no alternative but to cease trading and close the company. The loss of 122 jobs at the second company was discussed on the Adjournment in the Dáil on 22 November 2005. The jobs losses in both Sligo companies are of concern and the Government is doing all in its power to create structures through its enterprise development and training agencies, which will facilitate those who have lost jobs to gain new ones, particularly ones that offer more opportunity in terms of skills and permanence.

Ireland has a predominantly modern manufacturing base which competes in a range of growth sectors. However, as with most other European countries, there are areas of activity in which Ireland's competitiveness is being seriously challenged. In the main, these are in areas where the availability of lower cost locations is making cost the primary driver behind business decision-making. Indeed, the company in Easkey has cited the movement of its competitors to low cost manufacturing centres as one of the main reasons for its decision to close. It is inevitable that the investment decisions of some companies will be influenced by the competitive attractions of alternative geographic locations.

Our focus is firmly concentrated on managing the current transition with the best possible blend of policies to strengthen both national and company level competitiveness. The industrial development agencies are making every effort to secure alternative employment for Sligo. IDA Ireland is promoting County Sligo to potential investors on an ongoing basis and every effort is being made to secure further industry by progressing the development of a knowledge economy in order that the region can compete both nationally and internationally for foreign direct investment. The agency is also working with its existing client base to expand its presence in the county.

To support the strategy of moving to a more knowledge based economy, IDA Ireland is working closely with educational institutions in the Sligo region to develop the skill sets necessary to attract high value added employment to the county. The agency is also working with FÁS to provide guidance in developing the skill sets needed by those in the workforce who are interested in upskilling. As part of the transition to repositioning the county to a more knowledge based economy, IDA Ireland is marketing Sligo as a key location for investment in the pharmaceuticals, chemicals, medical technologies, engineering, consumer product and financial services sectors.

Recent job announcements include Abbott Ireland, which is to add 350 new jobs to its existing diagnostics facility there, and the consumer telecommunications company IDT Toucan, which will create 300 new jobs at its customer service centre in Sligo. Since the beginning of 2002, Enterprise Ireland has approved over €3.4 million in support to its client companies in County Sligo and made payments of over €2.4 million. In the same period, Enterprise lreland has approved support of over €1.2 million for third level-industry partnerships with the Sligo Institute of Technology to encourage the adoption of new technologies by industry.

I assure the Deputy 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 Sligo for further job creation and investment.