Dinny McGinley (Donegal South West, Fine Gael)
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Question 127: To ask the Minister for Enterprise, Trade and Employment the efforts being made to replace jobs lost in the Donegal town, south Donegal region as a result of the closure of a company (details supplied) with the loss of almost 200 jobs; and if he will make a statement on the matter. [2704/07]

Dinny McGinley (Donegal South West, Fine Gael)
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Question 149: To ask the Minister for Enterprise, Trade and Employment his plans to address the continuing unemployment crisis in County Donegal which is four times the national unemployment average; and if he will make a statement on the matter. [2703/07]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 127 and 149 together.

Since Hospira made its announcement in respect of its Donegal plant, IDA Ireland had been working closely with the company to secure a replacement for the facility. In March 2006, Abbott, one of the world's largest health care companies, announced that it was acquiring the facility from Hospira and that it planned to make a €36 million investment, with the support of IDA Ireland, to establish a manufacturing facility for its diabetes care products in Donegal town. This new investment will create 155 high quality jobs at full production. Abbott has now taken possession of the plant and recruitment of key executives is under way along with the redevelopment of the site to meet the needs of the new company.

As regards employment generally in Donegal I published the report of the interdepartmental group on Donegal in July 2006. I established the group at the request of the Government following a number of major job losses in the county in recent years. I asked the interdepartmental group to focus on the progress being made on infrastructural requirements to make Donegal a more attractive location for enterprise creation, particularly as it makes the transition from traditional to more modern and higher value-added industries. The report showed that Donegal has no shortage of advantages and opportunities in so far as the promise of a brighter future for its inhabitants is concerned. A dynamic combination of State development agencies is active in Donegal, committed to enhancing the attractiveness of the county for business. These agencies have demonstrated the ability to provide a clear vision and focus for future economic development. IDA Ireland will pursue more knowledge-based greenfield FDI sites for Donegal and convince existing IDA clients to transform their current operations to higher value activities. Enterprise Ireland will encourage and assist more innovative, technology-led companies and promote a greater level of start-up activity. These actions are a recognition of the challenges facing traditional industry and both agencies are responding, as is Údarás na Gaeltachta. The county enterprise board will continue to provide existing and new supports to microenterprises complementing the work of both IDA Ireland and Enterprise Ireland.

The provision of much needed infrastructure has been highlighted as an obstacle to job creation in Donegal over a number of years. I was pleased that the report identified much good news in terms of developments under way or planned in the areas of roads, air, water supply and treatment, broadband, energy and education. These have been solidified and strengthened in the National Development Plan 2007-2013 just launched. Particular emphasis has also been placed in the NDP on North-South co-operation and developments which will be of direct benefit to Donegal.

I also believe that what has already been achieved in terms of job creation in the past year is largely as a result of the ongoing commitment to Donegal of the State development agencies, the infrastructural developments recently completed and the commitment to ongoing and planned developments. In addition to the Abbott announcement, recent major job announcements include SITA, ZEUS, PowerBoard and AssetCo.

I assure the Deputy that the Government and the State development agencies are fully committed to fostering the environment for job creation in Donegal.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister will understand why Deputy McGinley and I are concerned about the level of unemployment in County Donegal, which stands at 14%, significantly above the national average. It requires special attention because, notwithstanding the Minister's reply, County Donegal feels isolated from the rest of the country. Not enough has been done in recent development plans to ensure infrastructure such as broadband, access to roads and other services which the Minister mentioned are delivered to Donegal. There is a willingness to provide this infrastructure in the current plan but implementation is what matters. Despite several national development plans, Donegal has lost competitiveness in both traditional and other industries. I welcome what the Minister said on announcements in the past year but he will realise that Donegal is starting from a low base in terms of employment opportunities.

When will the Government be in a position to announce further infrastructural developments for Donegal, particularly those with a North-South dimension? The economic well-being of Donegal is often intertwined with the economic activities of Northern Ireland.

Micheál Martin (Cork South Central, Fianna Fail)
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A significant investment package was announced for the North in the national development plan, which will be of direct benefit to Donegal. I am not sure 14% is an accurate figure for unemployment in the county.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The figure is high, in any event.

Micheál Martin (Cork South Central, Fianna Fail)
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There have been job losses in traditional industries in Donegal, such as textiles, creating considerable difficulties for those affected. However, the number of people on the live register has been reduced from 9,900 in 2002 to 8,774 in December 2006, although we would like there to be a more rapid decline. Significant companies supported by the IDA such as PacifiCare, Pramerica Systems, SITA and others have announced the creation of an extra 1,200 jobs. Enterprise Ireland has also worked hard in the area, leading to AssetCo relocating from the UK to Donegal. Companies such as PowerBar and PowerBoard are other companies to have set up in Donegal.

The Letterkenny business park has now been completed and construction, involving Donegal County Council, to extend the Letterkenny ring road to the park is nearing completion. Work has commenced on an office building of 2,300 sq. m at Windyhall and work is under way on the development of technology units and an additional advance office building at Lisnenan. In Donegal town, IDA Ireland has commissioned architects to design a 1,000 sq. m office building in Lurganboy and has applied for planning permission. Also, IDA Ireland has taken on a significant amount of site development work in Ballyshannon, which is now complete, and land has been purchased in Buncrana and planning permission obtained for a factory of 2,000 sq. m. The IDA is working with a local private developer in the provision of additional buildings on the estate.

Regarding the interdepartmental report alluded to, my Department was the main catalyst and brought other Departments into the process. We managed to accelerate a range of infrastructural developments, including roads, transport, water and so on. Electricity continues to need a push. When I met members of the council at the publication of the report, I told them it is important to have consensus in the community and society on the provision of badly needed infrastructure, including electricity. There have been planning issues and campaigns against the development, but the continued attraction of big industrial players will require power generation infrastructure and electricity transmission capacity. This issue requires political consensus and a collective endeavour among all political parties and groups that are anxious to see County Donegal advance industrially and economically.

Ruairi Quinn (Dublin South East, Labour)
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Is anyone against the development?

Micheál Martin (Cork South Central, Fianna Fail)
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Yes.