Dáil debates

Wednesday, 8 October 2008

9:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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I thank the Ceann Comhairle for allowing me to raise this matter but I am very disappointed that the Minister for Enterprise, Trade and Employment is not in the Chamber. This is a critical issue for the people in Limerick. Some 3,000 staff in Dell are worried about their jobs and their futures in Limerick. There is no person in Limerick without a family member, neighbour or friend working in Dell, or in some way associated with it. The company is an integral part of Limerick and has been a fantastic employer. We want it to continue to be so.

There has been a veil of silence from the Government regarding the future of Dell. In view of the growing uncertainty and confusion about the future of the company, it requires urgent clarification. I ask the Tánaiste to give a comprehensive statement, even though she is not in the Chamber. The Minister of State, Deputy Kelleher, is in the Chamber and I mean no disrespect to him but this is of such grave importance to Limerick and requires clarification that the Tánaiste should be here.

I raised the matter yesterday when both the Tánaiste and the Taoiseach were present. I asked if the Tánaiste could confirm or deny if she or any member of the Government were contacted directly or indirectly by Dell about the future plans for the Limerick plant and what steps she would take to avert what would be an appalling disaster for Limerick and the mid-west. I seek a comprehensive statement on this issue. I wrote to the Taoiseach on 12 September, over three weeks ago. I received a response on 25 September and it was like getting a response from the HSE. It was passed onto the Tánaiste and I have yet to receive a reply from her. Dell is a great employer for the area with over 3,000 staff and of interest to thousands more. The Government must clear the air for once and for all and spell out exactly what is Dell's position and what steps it has taken to avert this crisis.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Like Deputy O'Donnell I am very disappointed that the Tánaiste has not come to the House tonight. I hope the Minister of State, Deputy Kelleher, will be able to give us answers. We need them and we also need action because there are over 3,000 people working for Dell. It is a very significant employer for the region and is extremely important not only for those directly employed but for a number of other companies that feed into or out of it. A considerable number of families are dependent on Dell. We have heard a variety of stories in the international press stating that there is a question mark over Dell worldwide, and specifically over the Limerick plant.

I tabled a question to the Minister last week and she told me that the IDA has been engaged in extensive discussions with the company at the highest level and that she has been fully briefed. She has not told us more than that, however. We must know more and the workers in particular must know exactly what is happening. I urge the Minister to clarify the situation. I will go further than that. I want the Minister to go to Dell headquarters and talk to the company, to assure them, first, of its importance in Ireland and also of its productivity. Dell has been good to Limerick but Limerick has been good to Dell. It has produced a fine productive work force and that basis has enabled Dell to go to other countries and set up plants in them. Limerick cannot now be let down by Dell.

I am convinced that if the Minister went to the company and assured it of the full support of the Government and of governmental concern that the plant be maintained in Ireland, then there would be a successful outcome. We see Ministers going to all parts of the world trying to attract industry here. Surely it is much more important, or at least as important, to go to companies when there is a question mark over them and make sure to take proactive action. It is better to do that before we get to a situation wringing our hands because the company has made an announcement that cannot be turned around. I urge the Minister to go to Dell, express these concerns and offer the full support of the Government in maintaining the plant in Limerick.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I thank the Deputies for raising this matter. It is a very sensitive issue for both of them in that Dell is located in Limerick.

Dell is undertaking a fundamental review of its global manufacturing operations. That is well known and has been in the public domain for some time. IDA Ireland will keep in contact with its client companies in Ireland in the context of any global review being carried out. I can confirm that the IDA has been in close discussions and contact with Dell concerning the Limerick operation.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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What about the Minister? Why is she not here?

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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The Minister of State, without interruption.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I can tell the Deputy that the Tánaiste has been fully briefed on this and is kept abreast by the IDA. Her absence from the House tonight is in no way a disrespect to the concerns of the workers or to the Deputies opposite who have raised the matter.

This issue is very sensitive. Discussions with companies such as this are done on a confidential basis. When the IDA goes abroad and attracts companies into this country, as it has been doing very successfully down the years, all remains on a confidential basis until such time as contracts are drawn up and an announcement is made. Equally, when the IDA is in discussions with a client company that is reviewing its global operations, we must respect the confidentiality of that company and of the IDA in making sure that they can go about their business. The Government is fully committed to ensuring that we have facilities such as Dell and other global operators in this country.

It has been a successful strategy and the IDA has been very successful in attracting business into this country, particularly in the ICT sector. We all know the importance of Dell and of many other global companies that are located in Ireland. It is a considerable employment base and is equally important in the context of our net exports. We are fully aware of the importance of Dell and of other companies and are committed to ensuring that Dell remains in Limerick and, in general, that other companies remain in Ireland.

For that reason we are trying to ensure that we remain competitive and are seen as an attractive location. We have reduced corporation tax and have a highly educated, skilled, mobile and flexible workforce. We must ensure the continuance of those key ingredients that first attracted companies such as Dell and many other multinationals into this country. The Government is continually investing in education, up-skilling and re-training. It also makes sure that there is flexibility in the workforce——

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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The Minister of State has not answered the question.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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——which is a very important factor.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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He should deal specifically with the issue of Dell.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I will deal with it as specifically as I can in the context of protecting confidentiality. I do not think the Deputy or I or anybody else should jeopardise any contacts made by the State agency and by Dell——

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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What about the Tánaiste?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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——in ensuring Dell is made fully aware of how important it is to Limerick and to Ireland.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Has the Tánaiste met with Dell?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I make the point that Ireland is seen globally as an attractive place to do business. We have considerable competition from other countries such as Puerto Rico, Singapore and elsewhere that have reduced corporation tax, where there is a highly flexible and educated workforce and huge sums are being invested in infrastructure in order to attract businesses. We are competing globally against those countries. Anything that we can do we will do. Equally, the Deputy should understand, and I hope he respects, the need to ensure that confidentiality in any discussions that take place——

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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What is the Government doing of a proactive nature?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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That may not appease the Deputy and may not satisfy him but I am sure that he understands the reasons I have outlined.

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Will Dell be in Limerick next year?

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)
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One minute remains for the Minister of State.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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We are committed to ensuring that is the case. The IDA, as I said, is in continuous discussions with any client company when it locates in this country and equally when it carries out reviews. Over the next number of weeks people will say they are hearing things etc. Until such time as decisions are made it is best to leave the matter with the State agencies. The Tánaiste is being kept abreast of this particular issue——

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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What is the Tánaiste doing?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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——and I assure the Deputy that people are working hard to ensure Dell is an integral part of the Irish economy.