Dáil debates

Tuesday, 6 March 2007

Priority Questions

Unemployment Levels.

3:00 pm

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

Question 93: To ask the Minister for Enterprise, Trade and Employment the action he has taken in view of the continued unprecedented unemployment levels affecting the town of Carrick-on-Suir (details supplied) since his appointment to address this unacceptable situation; the action he will take; the number of site visits to the town in 2006 organised by the various industrial promotion agencies; the instruction he has given to the industrial promotion agencies to prioritise Carrick-on-Suir; if he will establish a joint task force for the town; and if he will make a statement on the matter. [8617/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Under the Industrial Development Acts I am specifically precluded from giving directives to the industrial development agencies regarding individual undertakings or from giving preference to one area over another.

IDA Ireland's strategy for achieving a better regional distribution of overseas mobile investment is to work in partnership with other stakeholders to present companies with credible alternatives which go as far as possible towards meeting their demands for critical mass in terms of population, skills and infrastructure. In line with this strategy, and in agreement with South Tipperary County Development Board, IDA Ireland strategy for south Tipperary is to concentrate future economic development in Clonmel and develop the town as a first-class location for overseas investment. Therefore, while no site visits by prospective overseas investors to Carrick-on-Suir were specifically hosted by IDA Ireland in 2006, the agency believes the town is very well located to capitalise on its position between Clonmel and the gateway city of Waterford, which are both approximately a 20 minute drive away.

At present, south Tipperary has 12 IDA Ireland supported companies, employing approximately 2,027 people with a further 1,000 jobs to come on-stream over the next two to three years. The key industry sector in the county is life sciences, which accounts for almost 60% of employment. The presence of foreign direct investment companies within the region has knock-on benefits in sectors such as supply, distribution and transport, thus creating employment opportunities for local people.

During the past three years Enterprise Ireland approved funding of more than €4.46 million and made payments of more than €2.2 million to client companies in south Tipperary. The agency is actively engaged with 96 client companies in south Tipperary which employ a total of 2,717 people.

The development of community based enterprise centres is a crucial part of the drive to create new regional enterprise. Enterprise Ireland provided support of approximately €54,000 in 1998 to set up the enterprise centre in Carrick-on-Suir. The management team of the Carrick-on-Suir community enterprise centre played a very active role in securing the establishment of Blarney Woollen Mills in the Tipperary Crystal facility. This project is a major success and resulted in creating 30 new jobs in the area. Further expansion of this project is now under way, and will result in additional new jobs for the area.

The live register provides data on a county and local office of registration basis but it is not designed to measure unemployment. It includes part-time workers as well as seasonal and casual workers entitled to job seekers allowance or benefit. In the 12 month period to February 2007, the live register decreased by 4.7% in Carrick-on-Suir compared to a decrease of 0.1% in the south-east region and a similar decrease of 0.1% in the nation as a whole. FÁS also provides a range of services for unemployed persons in Carrick-on-Suir and the surrounding areas.

Additional information not given on the floor of the House.

The practice of establishing task forces has changed since the establishment of the county development boards. Rather than creating a further layer by establishing task forces, the relevant CDB is now seen as the body best placed to oversee any additional response that is required over and above the work of the industrial development agencies under the auspices of my Department.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

Is the Minister for real? Is he not aware that 890 persons in Carrick-on-Suir are signing on the live register, and this has probably been a consistent figure over the past ten years? The figure reached a maximum of approximately 950 but has hovered around the 900 mark for about ten years. This represents approximately 25% unemployment in the town.

Would the Minister accept that his comments have condemned Carrick-on-Suir to that level of unemployment into the future? That is the meaning of what the Minister has stated. He has traipsed all over south Tipperary and all over the south east but he has effectively said nothing about positive action for job creation in Carrick-on-Suir. If the town was Passage West, in the Minister's constituency, would I have got that sort of reply?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Yes.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

I asked if the Minister would accept there is a long-term and unacceptably high level of unemployment in Carrick-on-Suir, and whether a jobs task force consisting of high-profile heavy hitters is necessary to do something for employment in the town.

I plead with the Minister to set up such a jobs task force because the town has done its part over the last number of years. It has become involved in a series of local community endeavours. It is a fine town, well located in a good area and with a good tourism and road infrastructure. It is near ports in Waterford and Rosslare. Yet it is unfortunately an unemployment blackspot in the south east and south Tipperary.

It is very fine to state there are jobs in Clonmel, Waterford, Dungarvan, Limerick and elsewhere, but there are still levels of unemployment in Carrick-on-Suir that are absolutely unacceptable. The figure has remained effectively the same for ten or more years. Will the Minister establish a high-profile jobs task force for the town?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The Deputy asked if I was for real but the Deputy should get somewhat real as well.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

There are nearly 900 people unemployed, that is the reality.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I did not interrupt, Deputy.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

It is the reality.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The idea that the creation of thousands of jobs 20 minutes from a town does not provide employment opportunities for people in the town is not realistic or valid. In terms of attracting inward investment to the regions, we must move towards gateways and hubs.

Identifying Clonmel and ensuring it becomes a very attractive location for inward investment is a good idea that would provide opportunities for people living within a significant radius of Clonmel. It is likewise for Waterford. That is the overall point.

The year 2006 was very good for south Tipperary in terms of high-quality jobs coming in. Merck, Sharp & Dohme created 120 jobs, Cordis Communications could potentially create 500 jobs in Cashel and Abbott Vascular is looking at 500 life-science jobs in Clonmel. These are high-quality jobs by any standard.

On the other side of the equation there are structural issues which must be addressed, and we have met with representatives from the town regarding a stronger FÁS input to enable those unemployed in Carrick-on-Suir to perhaps access a range of training and skills programmes to access employment in the area. Enterprise Ireland is also anxious to work with people in the town to advance the agenda there. As the Deputy knows, the county manager has set up a number of working groups involving local interests and agencies. Enterprise Ireland will be supporting the county manager in that regard and representatives will attend those meetings. The county development board is also relevant.

In my frank opinion, the last thing we need is another layer of bureaucracy, or a new board, to somehow go over all the existing layers. The key issue is that the agencies, including FÁS, the IDA and Enterprise Ireland, work together with the county manager, the county development board and the enterprise board to try to create an environment for the growth of micro-enterprises in Carrick-on-Suir and locally developed companies. Then they should ensure people can be upskilled to enable them to access employment being created within 20 minutes of Carrick-on-Suir.

The Deputy asked if I would give the same answer if he asked about Passage West in Cork and the answer is "yes." I would, as people are willing to travel 20 odd minutes. Unfortunately, some people around the country are travelling for an hour and a half or two hours to employment, such as those around Dublin.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

There is 25% unemployment in the town.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

We know the difficulties of commuting in those contexts.

Our priority is to regionalise employment. In its discussions with companies, the IDA endeavours to get them to regional and rural locations. The idea of identifying a place like Clonmel as the magnet to bring significant industry into that particular area is good. It offers the best chance to people who are unemployed in Carrick-on-Suir.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

Is it not true that the Minister's comments have condemned Carrick-on-Suir to becoming a dormitory town with high levels of unemployment into the future? Is it not true that the working groups referred to by the Minister have been unsuccessful over the past number of years? Unemployment is unacceptably and stubbornly high in Carrick-on-Suir, so does this mean this Government, in office for 18 of the last 20 years, has effectively abandoned the town? Is it not time for a high-profile and heavy-hitting task force to be put together for the town?

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

All the key personnel are working for the town, including the respective agencies and the county manager.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

They have not been successful.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

The numbers on the live register have decreased by 4.7%.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

There are 890 unemployed in a population of 5,000.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

In addition, it is important to point out the most recent quarterly national household survey, covering September to November 2006, showed that unemployment in the south-east region decreased by nearly 10% in the previous 12-month period.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

We are talking about Carrick-on-Suir, not the south east.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

This is in comparison to a decrease of 2.8% nationally.

Photo of Séamus HealySéamus Healy (Tipperary South, Independent)
Link to this: Individually | In context

The Minister is talking about everywhere but Carrick-on-Suir.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Employment in the region has increased by 7.5%, equating to approximately 15,000 jobs in the region. That is the context in which we should view the case of Carrick-on-Suir. The challenge is then to figure out how to ensure people can access the increased number of jobs being created in the general region.