Kathleen Lynch (Cork North Central, Labour)
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Question 66: To ask the Minister for Enterprise, Trade and Employment his views on possible job losses at a plant (details supplied) in County Cork; the discussions his Department has had with the plant on the matter; the steps he intends to take to safeguard those jobs; his plans to bring other jobs to the area in the event of job losses going ahead at the plant; and if he will make a statement on the matter. [18204/06]

Micheál Martin (Cork South Central, Fianna Fail)
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Last month, the company in question informed IDA Ireland that it was entering into a consultation period with its staff with a view to seeking up to 150 redundancies at its Cork facility. While the company started consultations with employee representatives on 3 May 2006, it was also seeking alternative business for the Cork facility. Fortunately, I understand there is scope for redeployment within the facility and this option has been communicated to the employee representatives.

The Cork facility is part of the company's networks business, one of the parent company's four business segments, and the potential loss of jobs is directly due to falling sales in the networks business area. In the event that there are redundancies, it is expected that they will commence in June and continue into July of this year and I am satisfied that they will be kept to a minimum. I understand that, as of now, a significant number of opportunities have been identified in the form of redeployment.

The industrial development agencies continue to promote Cork for employment opportunities. The strategy of IDA Ireland to create employment in Cork is to progress the development of a knowledge economy in order that the city 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 Cork as well as providing modern property solutions with supporting infrastructure in the area. New investment announcements made this year include Amgen, Citco, AIB-Bank of New York and Amazon. These four projects alone will create some 2,000 jobs in the next few years. A number of job announcements for the city and county were also made at the end of last year.

Enterprise Ireland is also actively involved in assisting its client companies to expand their businesses. To date this year Enterprise Ireland has approved grants totalling €5.2 million for County Cork, with four new companies approved in the first four months of 2006 and a strong pipeline ahead. Two of the approved new companies are located in Mahon. Since the beginning of 2005 Enterprise Ireland has made payments of over €10 million to its client companies in County Cork. This investment was primarily to support new business employment as well as research and development, capital investment and staff training. I am confident the industrial development agencies will continue to bring sustainable investment and job opportunities to the Cork region in the foreseeable future.

Kathleen Lynch (Cork North Central, Labour)
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Like me, the Minister is aware that while it is not the largest employer in Cork, Motorola makes a substantial contribution to Cork in terms of employment and access to the rest of Europe and the knowledge based, networks business sector in which it operates. While I do not expect the company to provide specific information on internal redeployment given the fears it may have about competitiveness, it is worrying that a company such as Motorola is even considering redundancies. Cork did not catch up with the rest of the country in employment and infrastructure terms until five years after significant economic growth commenced. Now that parity has been achieved, I would hate to see any slippage. Will the Minister indicate a timeframe for the complete roll-out in Cork of broadband infrastructure, on which Motorola and similar companies depend? Will he ensure that such companies are given every encouragement to remain in the Cork region and that direct communications and the necessary infrastructure will be provided quickly?

Micheál Martin (Cork South Central, Fianna Fail)
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The Deputy's questions pose some dilemmas for me as I am wearing both a national and a Cork hat. I assure her, however, that the proposed job losses are not, under any circumstances, due to deficient infrastructure or any issue of that nature. Cork city was, for example, one of the first areas to develop the metropolitan area network infrastructure. Unfortunately, the issue facing the company is that its global network business is the only one of its four business segments showing a decline in sales, having recorded a drop of 14% in the first quarter of 2006 compared to 2005. The company faces cost reduction pressures from which Cork will not escape.

In its consultations with employee representatives Motorola has agreed to seek alternative business in the global company for the operation in Cork. This could create jobs elsewhere. A significant number of redeployment opportunities have also been identified in the facility and these have been communicated to employee representatives. This development may reduce the number of staff eventually made redundant.

The decisions by companies such as McAfee, Citco and Amazon to invest in Cork speak volumes for the quality of skills and communication networks available in the area. Although these companies are reasonably satisfied with skills and infrastructure, Ireland will always be open to the vagaries of commercial life, trading patterns for individual corporations and shifts in the global economy. That is what we are witnessing here. Different issues apply to different companies. As regards the Deputy's overall point, competitiveness is important. It is also important that both management and the workforce realise the world is changing rapidly and there are no real guarantees down the line. We must change as well. Fortunately, in this situation management and employers are working to resolve the issues in the best interests of all concerned. That is the way we want to see it. We will certainly be of assistance to Motorola in any way we can through the State agencies to help it in its attempts to achieve competitiveness, which is ultimately important for all of us.

Kathleen Lynch (Cork North Central, Labour)
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I fully accept that the situation in Motorola is still fluid and the introduction of other companies is very welcome. We were all there for the announcement. Politicians, whether local or national, are always conscious of ensuring that people feel welcome and needed in any area. I understand the broadband programme but I still ask questions about it. New companies come into an area because the Government and its agencies have presented certain specifications. We all do that but all I want to know is whether promises were made and whether the expectations of these companies have been met. I have a major worry about broadband and the related infrastructure, particularly concerning companies like this. They need such infrastructure and if they do not find it here they will not stay, no matter what the tax breaks are. I am worried about that.

Micheál Martin (Cork South Central, Fianna Fail)
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On that score, the feedback from the companies I have mentioned has been positive. Some of the companies I mentioned have been established recently and the feedback has been strong in terms of their perception of the ease of establishment in Ireland, including Cork, and the availability of skills in particular. So far, so good in that respect.

Broadband is a competitive issue for the country and we have not made the kind of progress we would have liked. Hence the State had to intervene directly in the metropolitan networks programme but progress has been made. The other side of that coin is stimulating greater demand for and utilisation of broadband. A more competitive scene is emerging and we are keen to increase availability, access and use of broadband.