Tom Hayes (Tipperary South, Fine Gael)
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I thank the Minister for Enterprise, Trade and Employment, Deputy Martin, for coming before the House to listen to Deputy Healy, and I making a case for Carrick-on-Suir. As the Minister will be aware, it was announced today that 42 jobs will be lost in SRAM Ireland, which is located in the town, with a further 11 jobs set to be transferred elsewhere in the region. This is a major blow to the constituency of Tipperary South, specifically Carrick-on-Suir.

In this time of unprecedented prosperity we expect to gain rather than lose jobs. I am concerned about the 42 people who will be left with no work, some of them in as soon as three months' time. I am also disappointed that only 11 jobs will be transferred to SRAM Ireland's new facility in the south east. The company cited competition from the Far East as the reason for the job losses. The Government must step in to protect workers. Towns such as Carrick-on-Suir can be devastated by a closure of a factory, however small. The Government must take a proactive role in protecting jobs in factories when there is a danger of job losses occurring due to competition from countries with lower production costs. In these circumstances, it must actively source alternative employment for workers, particularly in heavily dependent towns such as Carrick-on-Suir. I urge the Minister to take serious measures on behalf of the people of the town and its surrounding areas which have received a devastating blow today.

Séamus Healy (Tipperary South, Independent)
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Carrick-on-Suir has been felled by the news that 53 jobs will be lost to the town as a result of the closure of SRAM Ireland. This is a bad blow, particularly as the town already has an unemployment rate of more than 20%, with 890 people on the live register. Carrick-on-Suir is one of six blackspots in the south east identified by the South East Regional Authority. The town's circumstances have been brought to the attention of the Minister and his predecessors. Oireachtas Members and local elected members and officials met the Minister on 19 July last to discuss the issue and I raised the matter with him on 28 September 2005. In view of the job losses announced today, I repeat the request I made at the July meeting that job creation and investment be prioritised for Carrick-on-Suir and a dedicated task force established for the town.

Last September, the Minister indicated that the Department would not fulfil this request and referred to similar circumstances prevailing in other towns. The situation in Carrick-on-Suir is extremely serious and not comparable to that of other towns. As a result of today's developments, the town will have an unemployment rate in excess of 25%, which is almost unique. Carrick-on-Suir must be prioritised for job creation and the only way to do so is to create a task force specifically for the purpose of targeting jobs for the town.

In September 2005 the Minister stated: "I am confident the policies and strategies pursued by the development agencies, together with the ongoing commitment and support from Government, will bear fruit in terms of sustainable additional investment for all the towns in south Tipperary." This has patently not been the case. We need specific strategies for Carrick-on-Suir. We cannot continue to allow more than 20% of the workforce of the town to remain on the live register. It is not good enough that unemployment rates in Carrick-on-Suir have not improved one iota since 1997. I urge the Minister to establish a task force for the town immediately.

Micheál Martin (Cork South Central, Fianna Fail)
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I thank the Deputies for raising these matters. As they noted, SRAM Corporation announced to its staff that it would cease operations in Carrick-on-Suir with the loss of 53 permanent and temporary jobs. Some 11 permanent staff will be retained in distribution support activities and finance. This is devastating news for the workers in question and their families and our thoughts are with them.

The company attributed the redundancies to ongoing cost pressures and falling sales. It informed IDA Ireland of its decision earlier in the day. SRAM Corporation intends to end manufacturing production and distribution activities at the Carrick-on-Suir site and transfer the remaining employees, who are involved in support activities, to new offices in Waterford city.

The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. The agency will, as a matter of urgency, make contact with the management and staff of the company to outline the support services FÁS can provide, particularly advice and training opportunities for the workforce. Finding alternative employment for the workers affected will be a priority for the State development agencies.

I assure Deputies that IDA Ireland, Enterprise Ireland and FÁS will play their part in developing a way forward. Deputy Healy is correct that there is little point setting up more groups and task forces when there is a uniform response across the country, and in areas where there is significant unemployment in given localities or where redundancies take place, the State agencies which are in place respond in a proactive manner to the issues.

Séamus Healy (Tipperary South, Independent)
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Nothing has happened since the Minister met a deputation from Carrick-on-Suir last year.

Micheál Martin (Cork South Central, Fianna Fail)
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The present IDA Ireland strategy for south Tipperary is to concentrate future economic development in Clonmel by developing the town as a first-class location for overseas investment. This strategy has been agreed with the South Tipperary County Development Board. At a meeting of Carrick-on-Suir Town Council last year the agency's plans for south Tipperary and Waterford city were outlined to the council and the need for Carrick-on-Suir to find a way to link into the economic growth centres of Clonmel and Waterford underlined. This is a key issue. I have stated across the country that people must view their position in a regional context to determine how they can maximise investment in the region.

Séamus Healy (Tipperary South, Independent)
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Nearly everyone from Carrick-on-Suir with a job is employed outside the town. We need employment in the town.

Micheál Martin (Cork South Central, Fianna Fail)
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I want to stress however, that Carrick-on-Suir is not being neglected. I met a delegation from the town council last year and then met with FÁS. The town council specifically brought the FÁS service to my attention and asked us to expand and improve it. Following a meeting with the council the agency agreed to increase its level of engagement with the long-term unemployed in the town. This process, which commenced last October, will continue throughout 2006. While the main focus from the IDA's perspective is on Waterford and Clonmel, there are knock-on benefits in sectors such as supply, distribution and transport thus creating further investment and employment opportunities for people in surrounding areas including Carrick-on-Suir. Carrick-on-Suir can benefit from its close proximity to both Waterford and Clonmel. The largest single IDA job creation project in 2004 was Guidant with a 1,000 job expansion project in Clonmel, which must have a ripple effect across the area.

Séamus Healy (Tipperary South, Independent)
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Carrick-on-Suir has the same number of unemployed today as it had 12 months ago. It had no effect.

Micheál Martin (Cork South Central, Fianna Fail)
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The company will seek to recruit approximately 200 staff per year, both graduates and non-graduates, for the next five years. The development of community based enterprise centres is a crucial part of the drive to create new regional enterprise. Enterprise Ireland provided support of €54,852 in 1998 for the setting up of the enterprise centre in Carrick-on-Suir. This centre has been sold to a private developer and the proceeds of that sale have been invested in a new community resource centre for the town. The community enterprise centre is now incorporated into a state-of the-art resource centre. A high quality training facility is now at the heart of the community enterprise centre and should bring long-term benefits to the town. The unemployment rate for the south east, according to the latest quarterly national household survey, is 6.7%. The latest CSO live register analysis shows that those claiming unemployment benefit in south Tipperary fell to 3,238 in December 2005——

Séamus Healy (Tipperary South, Independent)
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What about Carrick-on-Suir?

Micheál Martin (Cork South Central, Fianna Fail)
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Would the Deputy please listen? That was a fall from 3,411 in December 2004.

Séamus Healy (Tipperary South, Independent)
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Is it true that the same number of people are unemployed in Carrick-on-Suir today as 12 months ago?

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Minister without interruption.

Séamus Healy (Tipperary South, Independent)
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It is a pity he will not tell us the truth.

Micheál Martin (Cork South Central, Fianna Fail)
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The focus of my Department and its agencies is firmly concentrated on managing this transition of our economy through the use of the best possible blend of policies to strengthen both national and firm-level competitiveness. An integral element of the Government's policies is to encourage enterprises to undertake increased levels of investment and research, to use more technology in product development and to encourage more innovation across all sectors of the economy. This will help firms produce improved value-added products and services. In the longer term this will provide longer lasting and higher quality jobs. I assure the Deputies——

Séamus Healy (Tipperary South, Independent)
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That he will do nothing for Carrick-on-Suir. It is the same reply I received four months ago.

Micheál Martin (Cork South Central, Fianna Fail)
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——that the State development agencies, under the auspices of my Department, will continue to work closely together and with the County Development Board, as well as participating in the special working groups set up in October 2004 by the county manager of Tipperary south to deal with job creation issues in the towns of Carrick-on-Suir and Tipperary. The working group is already established. Should any further co-ordination be required, I consider——

Séamus Healy (Tipperary South, Independent)
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Decentralisation, Minister.

Micheál Martin (Cork South Central, Fianna Fail)
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——that the County Development Board and the special working groups on which the State agencies are represented, would be the appropriate fora to fulfil this function. There is no point in setting up a similar forum again with the same people.

Séamus Healy (Tipperary South, Independent)
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It requires a high-level jobs taskforce because this is a specific case.

Micheál Martin (Cork South Central, Fianna Fail)
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We will work to see what we can do for the workers concerned. They are our immediate priority and we will see what we can do.

Séamus Healy (Tipperary South, Independent)
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The Minister will do nothing for Carrick-on-Suir. It is the same reply I received four months ago.