Ruairi Quinn (Dublin South East, Labour)
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Question 11: To ask the Minister for Enterprise, Trade and Employment his plans for job creation in the south and south west following the recent high-profile job losses at three companies; his view on the fact that high-technology jobs are being lost in the region; the steps he is taking to ensure retention of high-tech jobs in the region and the introduction of new high-tech jobs; and if he will make a statement on the matter. [15487/07]

Micheál Martin (Cork South Central, Fianna Fail)
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I understand that the Deputy is referring to recent announcements of job losses in IDA client companies, Motorola and Bourns Electronic in Cork, which is part of the south-west region, and Thompson Scientific in Limerick, which is part of the mid-west region. Job losses are regrettable, no matter where they occur, but they are a feature of economic development in all countries as various sectors expand and contract in response to market forces.

The development agencies under the remit of my Department are working with a range of local bodies in the south west and mid-west regions to develop a competitive knowledge economy and to assist their client companies in moving up the value chain. IDA Ireland is actively promoting both of these regions through its network of overseas offices to prospective investors across the full range of IDA Ireland targeted sectors, such as pharmaceuticals, medical technologies, information and communications technologies and internationally traded services.

While we have been successful over the past decade in attracting investment and jobs we now face new challenges. We are no longer a low cost country with high levels of unemployment. In Cork and Limerick, as elsewhere, there is a need to mobilise initiatives and resources on a regional rather than a purely local basis so as to compete effectively with other city regions for mobile investment.

The development of the gateway and hub locations in the south and mid-west under the national spatial strategy will assist in providing the critical mass in terms of population, skills and infrastructure that are needed to attract, sustain and grow investments in these regions.

In recent years, Cork has been particularly successful in attracting investment in the pharmaceuticals, medical technologies and ICT sectors. Such investments are attracted to Cork due to the availability of a high quality workforce and a well developed infrastructure as well as a positive business environment. Limerick's employment base is dominated by the ICT sector, with companies such as Dell, Analog Devices and Banta. The medical technology and life science sector is also strong, making up approximately 26% of FDI employment in the county, as is the engineering and consumer products sectors with 16% of employment.

This transition from a low-cost economy has resulted in some companies moving operations to lower cost locations in eastern Europe and Asia, but, more importantly, it has resulted in some companies expanding their remit to include higher value activities in their Irish operations.

In terms of job creation, Enterprise Ireland activity is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies, the retention and creation of new jobs in existing companies and in enhancing the innovation capability of Ireland at a national and regional level through support of research in companies and third level institutions. I am confident the policies and strategies the agencies are pursuing will deliver the best results in terms of maximising investment and jobs.

Ruairi Quinn (Dublin South East, Labour)
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I have a supplementary question but it is possibly linked to Question No. 14 which we may not reach.

Ruairi Quinn (Dublin South East, Labour)
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I accept the overall situation with regard to employment creation in the economy is positive, but that generalisation does not include people, of whom there are many, as the Minister's figures suggest there were 440,000 at the last count, who only have second level educational achievement within a labour force of just over 2 million. I do not dispute the points made by the Minister. They are the facts of life and we have done well out of riding them, as it were, in terms of job creation.

What tracking mechanisms are available to the Department and FÁS when redundancies occur due to relocation? For the individuals directly concerned and with the support services of FÁS, what is the expectancy for someone with limited skills who is made redundant in a plant that has closed due to relocation? How long does FÁS stay involved with an individual and at what point is he or she cut loose in terms of finding another job? The level of satisfaction of ex-employees depends on their sense of security in getting back into the labour market at a salary level at least similar to what they had enjoyed previously, even though their formal educational skills and experience may not give them that expectation. I am not sure whether that question makes sense to the Minister but I think he may know what I am trying to say.

Micheál Martin (Cork South Central, Fianna Fail)
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When a redundancy takes place or a closure occurs, FÁS has a structured response which involves going into the company concerned and conducting a dialogue with the employer, seeking to profile the collective employee group and inviting employees to engage with FÁS. Not every employee does this. The feedback from the intervention by FÁS in a number of cases in the past year and a half has been positive. The number of people who do not engage present a problem as this may not be picked up. Those who engage with FÁS remain engaged until they get something. That is a part of the FÁS service which has become increasingly more important and more effective.

FÁS also liaises with Enterprise Ireland and IDA Ireland as the two services offered are the provision of training and reorientation programmes and the creation or sourcing of new job opportunities in a given locality for the individuals involved. It is very much a three-pronged approach by the three agencies; to get in on the ground in a particular company, assess the profile of the staff, see what is required, offer courses and programmes and to enable the staff to take up training for other jobs. That approach is being taken and will continue to be taken.