Noel Coonan (Tipperary North, Fine Gael)
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I welcome my constituency colleague, the Minister of State at the Department of Health and Children, Deputy Hoctor. While I am pleased she is taking this Adjournment debate, I am disappointed the relevant Minister is not addressing this serious issue.

As the Minister of State is aware, Erin Foods in our constituency finally closed this month with a loss of the remaining 96 jobs. This time last year, the plant employed more than 130 people. From its formation in 1962 until the 1970s and 1980s, the company employed up to 300 people. Erin Foods was established as a subsidiary of the Irish Sugar Company and is the final link with the Irish sugar producing era. The Minister of State's party colleague from Nenagh had the privilege of closing the sugar factory in Thurles.

I am anxious to learn what hope the Government can give to the people of Thurles, bearing in mind that the IDA has let down north Tipperary which has not secured foreign direct investment for 24 years. Perhaps there is significance in the fact that the Minister of State's party has been in control of North Tipperary County Council for the past 24 years. Thurles has not been given due regard from the other authorities, although I compliment Shannon Development on opening a technology park. Under a master plan, another park will be developed in the medium to long term at Archerstown outside Thurles. What hope can the Minister of State offer the workers of Thurles for retraining? What hope can she offer them for attracting employment back into Thurles? The Government's national spatial strategy has been a disaster for Tipperary. There is neither a hub nor a gateway, and Thurles is not included in it. This is what has happened.

In order to create employment, we need to tackle the issue of competitiveness and costs. These problems are being exacerbated by the lack of proper finance for local government, which then has to introduce stealth taxes. These taxes impact on ordinary people who want to set up business, as they must pay substantial charges to the county council before they even turn a sod. Thurles is crying for an initiative from this Government. I am looking forward to the Minister of State's response on initiatives in the pipeline that will attract industry and employment to Thurles. The last major manufacturing industry closed a few days ago, which is a tragedy for the area.

Máire Hoctor (Tipperary North, Fianna Fail)
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I thank the Deputy for raising this matter. I am also familiar with the concerns of the people of Thurles about the closure of the factory, and I will give the response of behalf of the Minister for Enterprise, Trade and Employment.

Following notification of the redundancies by the company in question, representatives of FÁS visited the company with a view to carrying out a needs analysis while the staff were still in employment. Unfortunately, this analysis did not get under way before the agency learned last week that the workers had been made redundant on 16 May. In its efforts to offer the most prompt and efficient service possible, the agency contacted all of the company's workers who had registered their interest with FÁS and invited them to an open information session last Friday. Comprehensive information was provided about FÁS services to approximately 40 staff who attended. FÁS will examine fully the information gathered at that information session and it is envisaged that this exercise will be completed by 6 June 2008. The Department of Social and Family Affairs also attended this meeting to answer questions about its own services.

The State development agencies are adopting a co-ordinated approach in response to these job losses. In addition to FÁS, IDA Ireland, Enterprise Ireland and the county development board will be lending their assistance. This multi-agency approach is directed at assisting all the employees affected and seeks to enhance the future employment prospects of the workforce. The agencies will also support any individual who wishes to start his or her own business.

The IDA strategy for Thurles and north Tipperary involves developing the knowledge economy by winning new foreign direct investment in innovation driven, high skills sectors. The agency is also working with its existing company base to expand its presence in Ireland, with the addition of new functions of scale and by deepening their strategic functions. Another of the agency's strategies is to influence the provision of property solutions and supporting infrastructure to meet the requirements of inward investors.

The agency recognises the need to achieve high value employment in Thurles and is committed to marketing the area as part of its national goal of achieving balanced regional development. The transition to a knowledge-based economy in north Tipperary can be achieved by winning new overseas investment in innovation driven, high value, high skill sectors. However, the final decision on where to locate a particular project rests ultimately with the promoter.

IDA Ireland has four supported companies in north Tipperary which employ nearly 600 people. A small UK company acquired the burn garment business from BSN Medical in Thurles. The company subsequently leased incubation space at the Tipperary technology park and employs eight people. The agency also works closely with Shannon Development in the development, promotion and marketing of tailored property solutions to potential investors. This includes the development of the Tipperary technology park in Thurles to which I have already referred. Shannon Development has completed the first stage development of the technology park and it is now fully occupied. The agency has lodged a planning application for a second 20,000 sq. ft. building.

IDA Ireland is a partner in the Thurles Marketing Group, which was established with a view to developing a pilot marketing initiative in north Tipperary as part of the implementation of the county economic and cultural strategy for 2002-12. The focus of the marketing initiative is to promote Thurles as a location for business investment. The Tipperary North County Enterprise Board also supports the work of the group and, since its inception in 2003, the board has made available a financial contribution of €27,500.

A significant number of Enterprise Ireland client companies in the county are actively developing their businesses. There were 60 agency-assisted clients in north Tipperary employing over 3,200 people in 2007. The agency approved funding of over €7.9 million in 2007 to its client companies in north Tipperary. In 2007, Tipperary North County Enterprise Board paid out over €250,000 in grant assistance to 20 clients in the north Tipperary area and assisted in the creation of 25 net jobs. The board grant-aided the creation of ten full-time jobs in Thurles in 2007 in a new call centre set up in the Thurles technology park. A number of small micro-businesses have also received financial support in the Thurles area over the past 12 months that will yield a further 12 jobs when fully operational.

The strategies being pursued by the State development agencies, in partnership with other key players, together with the Government's ongoing commitment to regional development, will drive investment and job creation for both Thurles and north Tipperary.