Jimmy Devins (Sligo-Leitrim, Fianna Fail)
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I thank the Ceann Comhairle for allowing me raise this important issue. As no doubt the House will be aware, Saehan Media recently announced that it is to cease manufacturing capability in Sligo in the near future. This will result in the loss of approximately 90 jobs and will bring to an end the company's involvement in Sligo dating back to the mid-1980s. In its heyday the factory employed more than 400 people. Unfortunately, for the past number of years there has been a steady decline in the number employed in Saehan Media.

The factory manufactures video cassettes and following the introduction of DVDs there has been a considerable decrease in the world-wide market for video cassettes. It could be argued, with some justification, that the company should have seen the threat posed by DVDs and responded accordingly. However, the company did not do so and all these arguments are now academic because the workers are losing their jobs.

Our thoughts must be with those workers. I understand that if a worker leaves the factory between the announcement of the closure and the actual closure he or she may not be entitled to full redundancy, yet the natural inclination of any worker is to look for alternative employment once he or she has been informed of the job loss. I ask the Minister of State to consider putting in place some mechanism whereby workers can avail of redundancy in such a situation.

These job losses in Saehan Media follow previous job losses in Tractec Limited and Platters Food. While there are different reasons for the closures of the three factories and I acknowledge that the overall unemployment rate in Sligo is still low, it constitutes a worrying trend. I am delighted that the Minister of State has responded to my request and the requests of my Oireachtas colleagues from Sligo-Leitrim to meet us. We look forward to proposals from him on how the situation can be resolved in the future.

I mentioned the closure of Platters Food. The excuse offered by the company concerned, Kerry Group plc, was that there was not enough room for expansion of its operation in Sligo. Instead, the company is moving its manufacturing to Dublin. I have been in touch with the local employment agencies and I am assured that there is plenty of room for expansion, yet here is an Irish multinational moving an indigenous Sligo industry to the over-populated and over-resourced east coast. This is contrary to the national spatial strategy and Government policy in this area. It is a move I deplore. I ask Kerry Group plc, even at this stage, to reconsider the decision to move. I know that all the local agencies such as Enterprise Ireland and FÁS will be very supportive.

I mentioned previously the closure of Tractec Limited. This factory, although successful, was taken over by the Eaton Corporation of America a short while before its closure. The same company has a factory in Manorhamilton in north Leitrim. I have been in touch with IDA Ireland and am assured that it has every confidence in the long-term viability of Eaton in Manorhamilton. The importance of Eaton, not just to Manorhamilton but to north Leitrim, cannot be underestimated. I ask the Minister of State to use his good offices to ensure that IDA Ireland and all other State agencies actively continue to work with Eaton so that this vitally important industry remains in Manorhamilton.

Michael Ahern (Cork East, Fianna Fail)
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I thank Deputy Devins for raising this matter. I was very concerned to hear that Saehan Media Ireland Limited, Sligo, has announced that it will close with the loss of 70 permanent and 22 temporary jobs at the end of April 2006. The decision was communicated to the employees on the 17 February last, at which time the company requested employee representatives to enter into consultations on the basis for the implementation of the redundancies.

I am very conscious of the effect of these job losses on the workers involved and their families, as well as the community in the surrounding area. This is very disappointing news for those who will lose their jobs and I wish to assure the people concerned that the State agencies will provide every support they can. The priority will be to find alternative employment for those involved. The role of FÁS will be particularly important in assisting those who are to lose their jobs. FÁS has already been in contact with the company and its full range of services will be made available to the workers concerned if they wish to avail of those services.

Saehan Media plans to offer redundancy terms of five weeks per year of service inclusive of statutory redundancy, similar to the norm in previous lay-offs at the plant. The company will also draw up a skills profile of its staff to assist in establishing contacts for them with other companies who may be seeking employees.

As Deputy Devins stated, the market for their product has been in decline since the late 1990s with the advent and growth of DVD technology and its increasing affordability. Because of keener competition in a diminishing market the company has recorded a series of increasing losses which are not sustainable. These market conditions are also being experienced by Saehan in the US, where the company expects to close a video tape production plant with the loss of 180 jobs in the coming months. In both cases, demand for the product will be serviced by the company's Korean and Chinese facilities, which have spare capacity.

The industrial development agencies will be making every effort to secure alternative employment for the area. IDA Ireland is promoting Sligo and County Sligo to potential investors on an ongoing basis and every effort is being made to secure further industry for the area, by progressing the development of a knowledge economy in order that the area can compete both nationally and internationally for foreign direct investment. The agency is also working with its existing client base to expand their combined presence in the county.

To support this strategy of moving to a more knowledge-based economy, IDA Ireland is working closely with educational institutions in the Sligo region in developing the skill sets necessary to attract high value-added employment to the county. As part of the transition to re-positioning 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. It is also working with FÁS to provide guidance in developing the skills needed by those in the workforce who are interested in up-skilling.

Over the past five years, IDA Ireland's focused strategy for Sligo has been to promote the county as part of an integrated north-west region with access to a population base of over 220,000 people. Job announcements for Sligo during the last year include the consumer telecommunications company, IDT Toucan, which will create 300 new jobs at its customer service centre in Sligo, and Litec Moulding Limited, which announced its intention to increase its workforce to 42 as a result of new business and the expansion of existing operations.

Enterprise Ireland has introduced a new programme called Enterprise Start aimed at people who are considering a career move and would like to learn more about starting their own business. Last year Enterprise Ireland organised a briefing on the new Enterprise Ireland strategy, which was launched in Sligo in May 2005 by the Minister, Deputy Martin, to companies from across the north-west. The strategy sets out the role Enterprise Ireland will play in transforming Irish companies into market-focused and innovation-driven businesses with the ability to compete successfully on world markets.

I assure the Deputy that the State development agencies under the aegis of my Department will continue to market Sligo and the surrounding area for investment and will make every effort to secure alternative employment for the staff who will be made redundant. I will examine the redundancy issue and I will contact the Deputy later in this regard.

Damien English (Meath, Fine Gael)
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The announcement last week that 350 employees will lose their jobs at NEC in Ballivor was a devastating blow. Many of them were married and had bought new houses. Five, six and seven members of families were employed by the company. Our hearts go out to them following this bad news, which is a devastating blow to Ballivor and counties Meath and Westmeath where most of the workers reside. The knock on effects will be significant. It is estimated the company was worth €20 million to the local economy because many spin-off companies were set up in the area.

NEC was established in Ballivor in 1976 and last week's announcement was a bolt from the blue. County Meath has suffered significant job losses, particularly over the past ten years. The number of IDA supported jobs in the county has reduced. CTM Limited in Kells closed a number of years ago with 270 jobs lost. Navan Carpets closed in 2003 with the loss of more than 200 jobs, while 50 jobs were lost at Crannac Furniture in Navan. Trimproof Limited, another manufacturing company, relocated its operations from Trim a few years ago.

County Meath has taken a number of hits and the IDA should make it a priority. Recently I obtained information on the number of IDA visits to the county. It has been the subject of half the visits of neighbouring counties, which is dismal. Political will needs to be devoted to the county so that it has a fair opportunity to develop the local economy. Meath's population has increased by one third over the past few years to 160,000 and will soon reach 200,000, but no new jobs have been created during the Celtic tiger era. More than 20,000 people commute to work in Dublin every day.

What notification had the Minister of State's Department or the State agencies such as the IDA of NEC's intention to pull out? Did discussions take place? What efforts were made to persuade the company to remain? The company requested meetings. Were its representatives seeking anything in particular? Was there an opportunity to save the jobs? Was an effort made to save jobs in the research and development section or to divert a number of jobs elsewhere?

What does the Minister intend to do to find suitable employment for the 350 employees who will lose their jobs next September? What will he do to retain jobs in the area, attract new business or provide replacement jobs? What courses are being offered to the employees? What opportunities will they have to upskill? They have been specifically trained to work in NEC and they do not want to have to spend hours commuting to jobs in Dublin. Congestion costs Dublin €650 million a year and additional commuters from County Meath are not needed to add to that. What efforts have been made by the Department to retain the NEC factory so that it will be easy to attract a replacement employer or to use as it an enterprise centre for smaller companies to start up in incubator units? It is essential that the building should be retained. NEC and Ballivor have been good for each other over the years. I ask that the company should be asked to give a little extra back to the community. It has always done its bit for local clubs but we need it to go a step further.

Will the Minister of State re-examine the national spatial strategy, which we were informed in 2003 would direct investment and infrastructure and so on? Meath was practically left out of the strategy. No hubs or gateways were selected in the county, yet it should play a vital role in linking Dublin with hubs such as Dundalk, Monaghan and Cavan. A minor reference is made to Meath in the context of the greater Dublin region but that is no good.

The rate base in the county is suffering badly because of a lack of jobs. NEC was the second largest employer in the county after Tara Mines. The local authority cannot afford to lose companies such as this and the finance it derives from them. The council does not have the money to service the increased population in County Meath. A recent report highlighted that the Government has also neglected the county in the area of local authority funding. The council receives 70% of the national average, yet Meath people pay 110% of the national average in tax.

The county is getting a raw deal. Thousands of IDA jobs have been lost over the past ten years and Meath needs a break. The Department should set up a task force in the county. Significant numbers of people are moving into the county but investment in jobs has not increased. The unfortunate people of Ballivor are an example of that. They will have to travel outside the county to seek employment. A political effort must be made to secure replacement jobs. We have a well educated workforce and it is only fair that the county should be given a fair opportunity to develop. As our local Minister, Deputy Noel Dempsey said, Meath is suffering from an infrastructural deficit but he has been in office for almost ten years. I question how he could go on local radio last week and state he did not know of the problems relating to job creation in County Meath and the first he heard about it was from council staff. I have been blue in the face saying it in the House.

The Minister for Communications, Marine and Natural Resources and our new Minister for trees surely know the problems we have in County Meath regarding jobs. It is not good enough for him to say he was not aware of the problems. We have been neglected. While the Minister of State may not be able to save this company, more jobs must be provided. The employees affected must be given an opportunity to upskill. Action and political will are needed.

Michael Ahern (Cork East, Fianna Fail)
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I thank the Deputy for raising this matter. I was very disappointed to hear that NEC Semiconductors Ireland Limited based in Ballivor, County Meath, had announced on 21 February that it was closing, with the loss of 350 jobs. The decision to cease production at Ballivor was taken by NEC's parent company in Japan. On 22 February, the Minister for Enterprise, Trade and Employment met representatives of Meath County Council and the State development agencies to discuss the follow up to the closure announcement. The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, was also part of a deputation that visited NEC's offices in London last week but it did not have great success.

The reasons for the closure include a poor business performance by the parent company and increasing operating costs. The overall competitiveness of the Ballivor plant has been reduced, especially when compared to plants in China, Singapore and Malaysia. Full closure is expected by September 2006.

I am very conscious of the effect that these job losses will have on the workers involved and their families, as well as on the local community. This is very upsetting news for those who will lose their jobs. I assure the people affected, however, that the State agencies will provide every support they can. The priority will be to find alternative employment for those involved in the shortest timeframe.

The role of FÁS, the State training agency, will be particularly important in assisting those who will lose their jobs. The agency met company representatives on 27 February and an action plan has been drawn up. The agency envisages an on-site employment services office, which will provide daily access to its full range of services. Following one-to-one consultation with staff over the coming months, FÁS will deliver on site training for staff in conjunction with the company. The company has initiated discussions with employee representatives and State agencies on compensation packages and professional support services to ensure the impact on employees, their families, and the local community and economy is minimised.

Recent data produced by management highlights that the Irish plant is the least competitive in terms of productivity when compared with NEC's three plants in Japan as well as its other plants in China, Singapore and Malaysia. On competitive issues in general, maintaining Ireland's attractiveness as a competitive and profitable location from which to do business is a key priority for my Department. Our economy is undergoing a fundamental transition to a higher value added, knowledge economy and we should no longer expect to compete as a low cost location for manufacturing investment. It is inevitable that the investment decisions of some companies will be influenced by the low cost attractions of alternative locations. The focus of my Department and its agencies is firmly concentrated on managing this transition of our economy through the use of the best blend of policies to strengthen competitiveness both at national and company level.

Finding alternative employment for the NEC workers will be a priority for the State development agencies. I assure the Deputy that lDA Ireland, Enterprise Ireland and the county enterprise board, in addition to FÁS, will play their part in developing a way forward for both the affected workers and the surrounding area.

As part of its new strategy, Enterprise Ireland is working intensively with high potential start up companies at their initial start up phase in order to accelerate their growth. Since 2003, Enterprise Ireland has approved over €7 million in support to its client companies in County Meath and paid out over €5 million. Funding of over €635,000 has been approved by Enterprise Ireland in support of community enterprise centres at three locations in the county, including nearby Trim. These centres foster the development of micro-enterprises and particular emphasis is placed on creating and developing employment and enterprise space for people who lose their jobs.

The NEC workforce in Ballivor is highly skilled, some with almost 30 years experience. It is possible that some of the workforce will avail of the supports provided by Enterprise Ireland to develop their own technology-based businesses.

The Meath county enterprise board, in liaison with Enterprise Ireland, is preparing a number of initiatives to promote the idea of new start ups to the employees of NEC. The enterprise board has advised NEC that it is prepared to co-ordinate a general information evening of all State agencies at a local venue to make presentations and provide advice to the employees on the range of services and opportunities that they may wish to avail of. The State bodies to attend will include Enterprise Ireland, FÁS, the Department of Social and Family Affairs, Meath Leader 2 and TIDE.

Meath County Council will host a business showcase at the IFSC in Dublin on 8 March to promote the county as an attractive business location. Enterprise Ireland and IDA Ireland are actively supporting the council in organising this event.

The NEC workforce in Ballivor is highly skilled and I know that the loss of these jobs will be a severe blow to the area. I am confident that the industrial development agencies will strengthen their marketing and promotion efforts in County Meath. This will be done in partnership with the county council and other key players to maximise the flow of potential investors for the county and to convert these into investment and job opportunities for Ballivor and the surrounding area.