Deirdre Clune (Cork South Central, Fine Gael)
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Question 5: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the loss of high quality jobs that require quality education and training, most notably a company, the details of which are supplied, in County Cork whose employees have third or fourth level education qualifications; her views on whether Ireland is losing knowledge economy jobs; her plans to address this problem; and if she will make a statement on the matter. [24099/08]

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I express my disappointment at the decision of the company to close its Cork operations and I have asked the State development agencies under the aegis of my Department to make every effort to assist the workers being made redundant in securing alternative employment.

Freescale is a large global company that regularly makes adjustments to resources as a normal course of operations to meet changing business requirements in a very dynamic industry. The company has decided to streamline its cellular design centres and as part of this decision is proposing that all programmes in its Cork design facility be transferred to other locations and the facility be closed. The closure of the facility is expected in September 2008 and will result in 47 employees losing their jobs.

IDA Ireland is providing ongoing assistance to local management in Freescale, Cork, and is using its network of overseas offices to find alternative employment in the radio frequency and wireless technology area for affected employees in the company. FÁS has been in contact with the management of Freescale and will make arrangements to register the employees. The full range of FÁS services will be made available to the employees, as will the services and supports of Enterprise Ireland and the county enterprise board for any worker who is considering establishing her or his own business.

A variety of differing and complex factors, not just cost related, might influence a decision to relocate all or part of a firm's functions. In addition to costs, factors might include business takeovers, consolidations and changes in product or market focus. The result is flows of investment and employment across borders. Ireland successfully manages this process through our policies on growing indigenous enterprise and attracting and embedding foreign direct investment. These policies have enabled us to win many prestigious and value added investments and have enabled us to replace lost jobs with others of equal or higher value in the economy.

The pipeline of new business for which the IDA is competing is as strong as at any time in recent years. We measure success now in terms of the number, quality and spread of investments, not just in job numbers alone. Ireland is now a global competitor for research and innovation investment from multinational companies and leading research institutions.

Additional information not given on the floor of the House.

We are progressing on several fronts to meet the targets of the strategy for science, technology and innovation and the development of a knowledge economy. I believe we will continue to achieve and sustain our excellence in research from which our economy will reap rewards. The key to our success will be derived from seeing the outputs of current research in terms of new innovations and discoveries that will directly impact on peoples lives. That is to say these outputs will lead to jobs, improvements in healthcare and new products and services.

We continue to have an educated and skilled workforce which will be the cornerstone of the next phase of our economic development. We are investing in infrastructure, people, innovation and enterprise. We are confidently investing for our future. I am confident that the strategies and policies being pursued by the State development agencies will continue to support enterprise development and job creation. I reaffirm that the State agencies will continue to work closely with each other and with local interests to assist in delivering an integrated approach to investment and enterprise development, not just in County Cork but throughout the State.

Deirdre Clune (Cork South Central, Fine Gael)
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I asked about this company because the jobs lost were high-tech in nature. Some 10% of employees had post-graduate qualifications while 50% of those in the technology centre had attained a fourth-level standard of education. In the Taoiseach's acceptance speech recently he spoke of the value of science, technology and innovation and suggested these are the types of jobs we seek to create. I am concerned about these developments and I wish to hear the Minister's reaction to these job losses, as they are high-end in nature and the type of jobs on which we are basing the future of the economy. The Minister of State mentioned cost factors in his reply. Perhaps he could expand on the cost factors influencing this decision.

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I said "in addition to cost factors", as cost factors affect any company or business environment.

Deirdre Clune (Cork South Central, Fine Gael)
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Were costs not a factor in the closure?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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There are other factors such as firm consolidation, business take-overs and market forces. County Cork has benefited from an increase in overall jobs from 13,000 in 1998 to more than 20,000 last year. These are largely in the bio-pharmaceutical and ICT sectors. The Deputy is correct in that the Government is committed to developing jobs at third and fourth level, which we call value-added jobs. It is committing €300 million this year to both Science Foundation Ireland and Enterprise Ireland to help progress this aim.

Deirdre Clune (Cork South Central, Fine Gael)
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It is important that we encourage a take up-in the study of science and technology. However, the Freescale closure sends out the wrong message to students such as those who have just completed the leaving certificate. The Minister of State encourages such people to study science and technology, yet the type of job that the Government and the IDA seek to attract is gone. Does this send out a message to potential students of science?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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No, the opposite is the case. The thrust of our development is to encourage new jobs in this area. For example, Google encourages employees to go along that line. The primary and secondary education sectors have a very active programme to encourage children to take up science and engineering. This is starting to bear fruit already.

Deirdre Clune (Cork South Central, Fine Gael)
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If we are losing jobs in the area——

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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We are not losing jobs; we are actually increasing jobs in the area.

John O'Donoghue (Kerry South, Ceann Comhairle)
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The time for Priority Questions has expired. We must, therefore, take Questions No. 6 in ordinary time.