Dáil debates

Thursday, 1 November 2007

Adjournment Debate

Unemployment Levels.

5:00 pm

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
Link to this: Individually | In context

I thank the Leas-Cheann Comhairle for once again giving me the opportunity of raising the matter of chronic unemployment in Donegal on the Adjournment. What prompted me to raise this issue again this evening is the planned closure of the Seagate plant in Limavady. This highlights once more the continuous high level of unemployment in the north west and particularly in Donegal, where unemployment is at the appalling rate of four times the national average.

Since 1997, almost 10,000 industrial jobs have been lost throughout County Donegal, not just in my own constituency but in the entire county. In my own parish, Gweedore, a small Gaeltacht parish with which I am sure the Minister of State, if not the Leas-Cheann Comhairle, is familiar, 1,200 industrial jobs have been lost in the last few years. This is perhaps the equivalent of 100,000 jobs in my colleague Deputy Varadkar's city of Dublin. For example, 115 jobs were lost in Dianorm, 300 jobs in RMT, 50 jobs in Europlast, 280 jobs in Qualtron, 200 jobs in Comerama, 60 jobs in MDR, and 120 jobs in BMR. The list goes on.

These high levels of unemployment are not confined to my own parish. Last year we lost 600 jobs at Hospira in Donegal town, preceded by the loss of 120 jobs at Nena Models in Ballybofey and Stranorlar. There was also the closure of the Fruit of the Loom plants, which were located in five areas of Donegal, with the loss of 3,200 jobs. Almost 10,000 industrial jobs have been lost in ten years. What a terrible record for any Government or two successive Governments. As a senior trade union official in Donegal, who is leaving the county, said last week, the county has been shamefully neglected by this Government and its two predecessors. It is time something was done about this. We have had plans, task forces, suggestions and much talk. Everything has been delivered except jobs.

Three areas must be given priority in the county to attract industry and jobs because our industrial base is decimated. First, there is need for a major improvement in the infrastructure in the county, whether through access to the county, communications and telecommunications within it or facilities such as sewerage and water, recreation and education.

Having said that, our educational facilities in the north west are excellent. LYIT in Letterkenny is excellent and there is something similar in Galway, with graduates being produced every year. We all are invited to conferrings this at time of the year and I cannot see any reason that positions should not be available to some of these highly qualified, trained, eager, anxious young people in their areas.

The second area the Government must improve is access to the county, whether through the Republic or through Northern Ireland. Perhaps this is an area where both Administrations, the new devolved Government in Northern Ireland and ourselves, could get together with the support of Westminster.

Third, and perhaps most important, a county such as Donegal, with four times the national unemployment rate and which has lost 10,000 industrial jobs in the past ten years, is crying out for tax designation. This has been provided in other parts of the country. A number of years ago it was given to the upper Shannon basin — parts of Cavan, Sligo, Roscommon, Leitrim, etc. Last year in the budget it was again extended to the lower or mid-Shannon basin by the Minister for Finance. Something imaginative such as that must be provided for Donegal if we are serious about tackling in a meaningful way this chronic, long-lasting continuous unemployment problem.

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
Link to this: Individually | In context

I thank Deputy McGinley for raising this matter. I am taking the debate on behalf of the Minister, Deputy Martin.

On the unemployment rate for Donegal quoted by the Deputy, I point out that the Central Statistics Office does not compile county-by-county unemployment data. CSO data for the second quarter of 2007 show an unemployment rate of 5.3% for the Border region as against a national average of 4.5%. While it is recognised that Donegal has suffered particular difficulties in the past owing to the demise of traditional industries such as agriculture, fishing and textiles, there is clear evidence that the county is successfully engaged in a transition to the new economy. Live register figures at 8,340 and 8,370 for September 2006 and September 2007, respectively, are lower then any year going back to 1993.

The interdepartmental group report on Donegal, which my colleague, the Minister for Enterprise, Trade and Employment, Deputy Micheál Martin, launched last year, identified the various infrastructure developments required to support enterprise development in the county. The report noted not just that much progress had been made but also that financial provisions were available to complete major infrastructure projects, especially new roads, to equip Donegal further as an attractive location for enterprise development.

IDA Ireland has identified Donegal as a key target location, with the county now competing for a different type of business from labour-intensive manufacturing on which it relied successfully in the past. The overseas investor now seeks locations for more knowledge intensive manufacturing or office-based solutions, to a great extent depending on advanced skills and higher value-added activities. This has required a significant change of strategy by IDA Ireland with a focus on a limited number of key locations nationally.

IDA Ireland has developed a new modern business park in Letterkenny with modern building solutions capable of competing with other locations nationally and internationally. IDA Ireland has been working with the third level sector in the region, namely, Letterkenny Institute of Technology and the third level sector in Northern Ireland, to offer the necessary courses aimed at its target areas of medical technologies, international and financial services and high-end engineering.

Progress has been made over recent years in securing new investments from PacifiCare, Pramerica, SITA and Abbott Diabetes, with approximately 1,200 new jobs being added in the county by overseas firms over the past five years. These companies continue to recruit and are actively seeking new staff.

Pramerica Systems is expanding its services centre in Letterkenny to create 70 new jobs in software development and testing, operations, call centre and financial services with added capacity to recruit a further 80 personnel. Abbott, one of the world's largest health care companies, is establishing a manufacturing facility for its diabetes care products in Donegal town with the creation of 155 high quality jobs at full production. Abbott has now taken possession of its plant from Hospira and recruitment of key executives is under way along with the redevelopment of the site to meet the needs of its new occupant. SITA will expand its software operation in Letterkenny, leading to the creation of 123 high quality software development jobs. Zeus Industrial Products has made a capital investment of more than €7 million, principally in state-of-the-art premises, production machinery and equipment. There are 71 permanent staff members employed in the firm and recruitment is ongoing.

With regard to the Enterprise Ireland input in Donegal, during the years 2004 to 2006, a total of 1,156 jobs were created in Enterprise Ireland client companies in County Donegal, as against job losses of 980, leaving a net gain of 176 jobs.

The following are some specific Enterprise Ireland initiatives in County Donegal. Enterprise Ireland supports the CEIM enterprise platform programme, in partnership with Letterkenny Institute of Technology, the Institute of Technology in Sligo and Border Action, in providing a training programme for entrepreneurs wishing to set up their own businesses. This programme is now going into its fourth year.

Enterprise Ireland, in partnership with Invest Northern Ireland and the special EU programmes body, commenced recruitment in May 2007 for the Transform programme, a new cross-Border enterprise incubation programme. The programme was launched in September 2007 with a total of 43 participants, nine of whom are from the north-west region.

In 2006 Enterprise Ireland approved support of €650,000 for the provision of enterprise space in Carndonagh and Donegal town as part of the community enterprise centre scheme. Enterprise Ireland has approved a sum of €2.54 million to extend the business development centre at Letterkenny Institute of Technology to cater for increasing demand and the building work is due to commence in 2008.

Enterprise Ireland's policy objectives for balanced regional development are reflected in the structure of its funding offer whereby funding for existing company expansion and start-up businesses is biased towards regions. The maximum grant level is higher than in Dublin and the mid-east and a higher proportion of this funding is non-repayable.

In addition to the above, Donegal County Enterprise Board, funded by the Department of Enterprise, Trade and Employment, provides support to micro-enterprises in the start-up and expansion phases to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. Financial support is available in the form of capital grants, employment grants and feasibility study grants. From the board's inception in 1993 to date, it has paid out more than €6.7 million in grant assistance to more than 300 clients, which has assisted in the creation of 1,385 jobs.

The Department of Enterprise, Trade and Employment made additional funding available to Donegal CEB to develop and deliver two new initiatives, namely, a business information service and a "Let's Do Business" schools programme. The business information service involves the provision of a comprehensive business information service to individuals and businesses in the county. The "Let's Do Business" schools programme seeks to develop a spirit of enterprise within national and secondary schools through active learning in a range of enterprise competitions, events and enterprise clubs.

I assure the Deputy that funding supports and initiatives for enterprises in County Donegal is, and will remain, a priority for the State development agencies under the auspices of the Minister for Enterprise, Trade and Employment.