Dan Boyle (Cork South Central, Green Party)
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I thank the Leas-Cheann Comhairle and the Ceann Comhairle's office for giving me the opportunity of raising this matter. I am grateful for the presence of the Minister of State at the Department of Enterprise, Trade and Employment, to respond to my concerns, shared by many in the Cork region but particularly those representing the Cork city area. The Minister of State may be aware that the previous Minister at his Department visited this company, GN Resound, at the end of 2002. The Tánaiste launched an expansion of activities at the company to expand the range of manufacturing, the types of products and the types of jobs available at the plant.

While that was welcomed by those who wish to see the development of economic matters in the Cork region, it is disturbing to note that since then the company has decided to move its manufacturing operations to China. This is indicative of a trend in many manufacturing industries. The Minister of State may feel pleased with news pertinent to his constituency announced this week. While announcements of new jobs in the regions are always welcomed, the distribution of such jobs and the industries they are in is something of which we must take greater cognisance.

The Cork area is reliant on the pharmaceutical, chemical and biotechnology areas. The announcement in the Minister of State's constituency is a further example of this. The region has seen a sad deterioration in high-tech, electronic manufacturing in recent years. The technology park in which GN Resound is based, on Model Farm Road, Bishopstown, on the outskirts of the city, is a sad testament to how that aspect of industrial development is not working as well as it could. The technology park has a number of empty units due to similar decisions by companies involved in manufacturing, particularly electronics. Some closed their operations for economic reasons and some for the reasons announced by GN Resound, namely, that profitability could be better obtained in a country with different economic circumstances where the workforce is prepared to be paid less.

The Government must decide to what extent such decisions represent a trend. What other type of manufacturing industry are we prepared to see leave our shores in coming years because of the effect of globalisation? It is not acceptable for the Minister of State to reply that we have high employment in this country or that announcements have been made for the Cork region in the past few days.

We must offer an industrial development policy that is varied, for the sake of workers with different skills in this economy, but also because we cannot become over-reliant on any one industry in the event of that industry being subject to economic factors in the future. We are placing all eggs in one basket and this may cause difficulties later. For the people who will lose their jobs at this company in April, what the Minister of State is likely to state in his reply, concerning high employment and recent job announcements, does not cut ice.

Besides the fact that people have been put in a disadvantageous employment situation, the company's product, hearing aids, is no longer made in this country. This will have implications for imports if this situation is repeated in other industries. Trade will be affected as well as employment. I am interested in the comments of the Minister of State at the Department of Enterprise, Trade and Employment in response to this.

Michael Ahern (Cork East, Fianna Fail)
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I thank Deputy Boyle for raising this matter. GN Resound announced to its staff on 19 January 2006 that it would cease operations in Cork with the loss of 180 jobs. The company had informed IDA Ireland of this decision ten days earlier. I am conscious of the adverse effect the announcement of the closure of this company will have on the workers and their families, as well as the community. Our first thoughts are for the workforce and their families. This is extremely disappointing news, coming so early in the new year, for those who will lose their jobs as a result of the announcement. I assure the people affected that the State agencies will give every support and the priority will be to find alternative employment tor those involved. The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. FÁS will provide advice and training opportunities for the GN Resound workforce as well as making its full range of services available to all the workers.

GN Resound, a subsidiary of Danish telecommunications firm GN Great Nordic, is a hearing health care company that designs, develops, manufactures and markets technologically advanced hearing devices, digital hearing instruments, analog instruments and audiological equipment. I understand that the decision by the company to cease activities in Cork is part of a broadly based plan to consolidate its standard manufacturing and distribution into China and Denmark. The company's corporate headquarters relocated from the United States to Denmark some years ago.

The manufacturing element in Cork, which employs 120 people, will transfer to China, while the remaining activities, which include a global distribution centre, customer service and new production introduction pilot manufacture will transfer back to the company's headquarters in Denmark. The timeframe for the completion of these activities is for manufacturing to cease by 31 March 2006 and global distribution, customer service and new production introduction to cease by 30 April 2006. However, a small number of key staff members will remain at the company for a number of months. I understand that the company will offer a six week redundancy package, inclusive of statutory redundancy, plus three months health care insurance, together with an outplacement service and the establishment of an internal staff resource centre for all staff members. I trust that this will help to ease the burden on the workers affected in what is a non-union site.

Finding alternative employment for the workers affected is a priority for the State development agencies. I assure the Deputy that IDA Ireland and Enterprise Ireland as well as FÁS will play their part in developing a way forward. However, on a positive note, yesterday the Minister for Enterprise, Trade and Employment, Deputy Martin, announced that Amgen, the largest biotechnology company in the world, has chosen Carrigtwohill, County Cork, for major new development and manufacturing investment projects. Supported by IDA Ireland, Amgen will invest more than $1 billion, equal to €820 million, in the projects and will employ more than 1,100 people in Cork by 2010. This investment is a symbol of Cork's, and Ireland's, ability to compete and win the most advanced and innovative business, coming as it does from such a big player in the biotechnology area.

In addition, Citco, the independent global financial services organisation and one of the world's leading providers of hedge fund services, will open a second Irish hedge fund administration centre in Cork and is to expand its existing data processing operation in Cork. These two developments by Citco will create more than 250 new jobs during the next four years. There were also announcements in December last by VMware, Alps Electric Company Limited and Parsons of investments and job creation in Cork city and county.

I assure the Deputy that the State development agencies, under the auspices of the Department, will continue to work closely together and with local interests to promote Cork city and county for further investment and job creation. However, I accept that this will in no way detract from the immediate concerns and needs of the workers in GN Resound.