Dáil debates

Wednesday, 27 September 2006

8:00 pm

Jerry Cowley (Mayo, Independent)
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I am grateful for the opportunity to raise this very important matter on the Adjournment. I am glad to see the Minister for Enterprise, Trade and Employment, Deputy Martin, present.

I raised the difficulties in Ballina on a great many occasions and on a weekly basis in Dáil Éireann. It is certainly an unemployment blackspot. Although the Minister might dispute this, the reality is that 1,000 jobs have been lost over nine years and have not been replaced. Any area that loses so many jobs is in trouble.

There are construction and service industries in Ballina but they are just giving the impression that things are happening. However, the jobs are not industrial jobs. The industrial base has been significantly weakened thanks to the closure of a series of very valuable industries in the area, such as Asahi, Hennigans and Oasis. Since I raised this in the Dáil, Duffy's Bakery has lost 42 jobs.

Ballina, the capital of north Mayo, with its large population, is an unemployment blackspot. I previously referred to the unemployment rate of 11%, which is twice the national average, and stated there are more on the live register there than in County Roscommon. This speaks for itself.

We clearly need proper infrastructure. The IDA says the lack of infrastructure is the difficultly and this has been raised time and again. Progress on the N26 and Ballina-Bohola bypass seemed to stop in mid-stream. Construction took place as far as Carrowntreila but was never completed. We need infrastructure such as a proper industrial site and it is a scandal that there is still none. The issue of the 27-acre industrial park on the Sligo road has been ongoing for almost a decade. It is a total fiasco and an indictment of the failure of the local authority, in association with the IDA and Enterprise Ireland, to address the very serious unemployment that exists.

The area is crying out for some positive initiatives. The Taoiseach was in Ballina about two weeks ago with Dara Calleary, the Fianna Fáil hopeful. I asked the Taoiseach what he was doing for Ballina and whether he would make a positive statement about the town before he left. He went around the town with Mr. Calleary but said nothing about the terrible situation that exists there. Worse still, he did not take my advice and make a positive statement on what could be done. The problem is due to a lack of infrastructure and balanced regional development, to which the Government says it is committed. However, it is just paying lip service to the idea because there is almost a €3.9 billion underspend under the national development plan. The reality is that the area is uncompetitive. If people are to develop the area, proper investment is required.

I raised this issue in the Dáil with the Minister previously and he made all sorts of promises that there would be action and stated the IDA, Enterprise Ireland, etc., were doing wonderful things. I was told progress on the 27-acre site on the Sligo road was at an advanced stage but there is still no progress although it is the end of September. This is intolerable.

In March the Minister of State, Deputy Killeen, expressed regret at the Oasis closure and said there would be positive developments. However, there were none. He stated it was a great priority to find alternative employment for those who lost their jobs but this has not been done either. The IDA is supposed to be doing all sorts of things and bringing all sorts of people to set up industry in Ballina but this has not happened. How could it happen when there is no industrial site?

There was talk of prioritising expenditure in the BMW area but it amounts to nothing. The Minister is very confident that the State development agencies will strengthen, promote and market Ballina and north Mayo but it is just more words. The time for words is long gone and I hope the Minister will do something more positive than the Taoiseach, rather than just giving me the same old line that so much is happening. The reality on the ground is that jobs are continuing to be lost, and those affected are real people. The job losses at Duffy's Bakery serve as another example.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I thank the Deputy for raising this matter.

I was very concerned to hear that the company in question has announced it will reduce its workforce during October and November. According to the company, this difficult decision was taken due to the non-viability of the wholesale section of the business.

I am very conscious of the effect these job losses will have on the workers involved, their families and the community in the surrounding area. This is very distressing news for those who will lose their jobs as a result of the announcement. I assure the people concerned that the State agencies will provide every support they can and that the priority will be to find alternative employment for those involved at the earliest possible opportunity.

The role of FÁS, the State training agency, will be particularly important in assisting those who are about to lose their jobs. The agency has already made contact with the company and is awaiting a response from it so a convenient date for a meeting can be agreed. The full range of the agency's services will be made available to the employees concerned if they wish to avail of them. These include training, education and helping people secure alternative employment in other enterprises in the area.

The industrial development agencies will be making every effort to secure alternative investment and employment for Ballina. The national spatial strategy provides a framework for achievement of this goal through the prioritisation of development and investment in the gateway and hub locations. On this basis, IDA Ireland seeks to attract foreign direct investment into the linked hubs of Ballina and Castlebar. The authority is promoting Ballina for new foreign investment as well as working with the existing base of overseas companies in Ballina to encourage them to grow and expand. Since January 2003, there have been five first-time site visits to Ballina. The authority's sectoral emphasis is on attracting new knowledge-intensive projects in the medical technologies, life sciences, information and communications technology and international services sectors.

The authority is also working closely with local groups, utility providers, the local authorities in the county and other agencies to enhance the attractiveness of the county, including Ballina, for new investment. In that regard, the authority has been deeply involved with local partners in the development of regional planning guidelines.

The Deputy mentioned the industrial park and referred to failure. It is important in a debate such as this that we be straight and upfront. One cannot blame IDA Ireland for the logjam in the courts. I understand that a particular legal difficulty, which is extremely unfortunate, is holding up the development of a very important property solution that would facilitate the attraction of inward investment. It is not enough simply and straightforwardly to attack a State agency as if the situation were its fault.

Jerry Cowley (Mayo, Independent)
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There is another site on the Foxford Road.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Enterprise Ireland has approved funding of over €1.2 million to client companies in the north Mayo area since 2003. A new Enterprise Ireland supported high potential start-up company, Heatsolve Limited, commenced operations in Ballina in 2005. I was with it in South Africa last week. Enterprise Ireland has committed funding of over €700,000 to the IRD North Mayo-West Sligo Limited for the development of enterprise space in Ballina. As the Deputy is aware, I officially opened the centre during my visit to Ballina in January 2006. His colleague, Dara Calleary, was there to meet me in the company of Deputy Carty and Frank Chambers. Dara Calleary was very strong on identifying needs in Ballina, and the Deputy is correct in detecting his interest in the situation, with that of Deputy Carty. I should point out that in August 2005——

Jerry Cowley (Mayo, Independent)
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That is the same answer. Nothing has changed.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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This is an important point. I did not interrupt the Deputy and it is important in a debate such as this that we put facts on the table.

In August 2005, there were 1,605 people on the live register in Ballina. The most recent data available, which are for August 2006, show that the number has fallen to 1,448.

Jerry Cowley (Mayo, Independent)
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It is still 1,448.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Going back four years to August 2002, the figure for Ballina was 528 higher than now, with 1,976 people on the live register.

The Deputy's use of the words "unemployment blackspot" to describe a growing and developing town does nothing to help its position regarding future investment.

Jerry Cowley (Mayo, Independent)
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What will happen?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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That negative profile does nothing to help any agency attract anything. We will make every effort regarding indigenous industry and to attract foreign direct investment, but overall the message that must emanate from Mayo is that we are open for all kinds of investment, including those that use the natural resources of our seas.

Séamus Pattison (Carlow-Kilkenny, Labour)
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We must move on to the next matter.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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What is going on with the campaign regarding the oil discoveries off the Mayo coast does nothing to enhance the county's external perception as a place where one can do business.

Séamus Pattison (Carlow-Kilkenny, Labour)
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We must move on.

Jerry Cowley (Mayo, Independent)
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All the Minister wants to do is clog up the roads.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Deputies Cregan and Neville are raising the same matter, so they will be taken together, with each Deputy receiving five minutes.