Dáil debates

Tuesday, 11 November 2008

10:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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I wrote to the chief executive of IDA Ireland last January, Mr. Barry O'Leary, requesting a meeting about the decision to put the Tralee-based company Telestone on the market, and about growing unemployment figures. In my six years in this House I have pointed out that Kerry and the south west have been neglected by IDA Ireland and by the Government. There is almost twice the national average of unemployment in my constituency. Mr. O'Leary and two of his colleagues met with Deputy Jimmy Deenihan, Senator Ned O'Sullivan and myself in Tralee in April. They accept that what we had been saying is true, and they also recognised that Kerry had many advantages in terms of the promotion of foreign direct investment.

The latest figures from the CSO show that in the past year, the level of unemployment in Kerry has jumped by 78%. These figures are not surprising, given the downturn in the construction industry. The overall level of unemployment in Kerry has increased from 6,144 in October 2007 to 10,259 in October 2008. In Tralee, unemployment has jumped from 3,045 to 4,518, which is an increase of almost 1,500 people. In Listowel, unemployment has risen from 1,038 to 1,843 in one year. This has also led to an increase in emigration, as people find it impossible to get work in the area.

The vast majority of people leaving the country work in the construction sector. Most young people over the last seven years got a trade and went into the construction sector, and the local economy was built on this sector, which was unsustainable. Young people are now emigrating to England, the US or Australia to seek employment.

More IDA Ireland investment should have been targeted to Kerry over the years. There should have been a level playing pitch for the people of the west. From the replies to many of my parliamentary questions, it is clear that very few IDA Ireland companies have been established in Kerry, despite the fact that we have a technology park and an institute of technology. IDA Ireland appears to be devoting little effort to interesting companies to come to the county.

As 21% of the labour force work for IDA Ireland supported companies, more people in Kerry are employed by companies established under the Leader programme. These companies have a 70% success rate. We need to see more emphasis put on ensuring that indigenous industries are promoted and supported. That is one way to help the current situation. We are close to a 15% unemployment rate in Kerry, given the rise over the last 12 months. Before that, we were running at twice the national average.

Coastal communities in the region have suffered greatly with the closure of the drift net salmon fishing industry. That has contributed to the decline in the economy in rural and coastal communities. We need to see support for indigenous industries. IDA Ireland needs to pursue a policy of positive discrimination towards counties that are badly in need of investment. The best of our young population are currently leaving the country to seek employment. That is not good enough. Other Deputies from the constituency have been highlighting the problems in Kerry and the west since 2002.

I await the Minister's response. I urge that political direction be given and that positive discrimination used to bring jobs to Kerry and other areas that are suffering at the moment.

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I thank the Deputy for raising this matter on the Adjournment. The recent increase in the numbers on the live register is unwelcome and is an indication of the challenges that are now facing the labour market. The Government is taking specific measures to address these challenges and to ensure that job losses are minimised as much as possible. Our priority is to create the environment that will allow those who have lost their jobs to return quickly to the labour market. The enterprise development agencies, along with FÁS, are actively engaged in facilitating job opportunities in Kerry.

IDA Ireland is concentrating its efforts in the linked hub locations of Killarney in south Kerry and Tralee in north Kerry. IDA Ireland's strategy for Kerry has been to promote the county as part of an integrated region with access both to the county population as well as to the expanded population of both the mid-west and south-west regions. There were 16 IDA Ireland supported companies in Kerry at the end of 2007, employing approximately 1,838 people. Based on the strengths of the region, IDA Ireland is particularly targeting the ICT, international financial services and globally traded business sectors via its network of overseas offices and project divisions.

Due to the high value projects targeted by IDA Ireland, companies that decide to visit Ireland have more sophisticated business requirements. The key needs in determining where they will potentially locate tend to centre on the following criteria: a high quality business environment with access to a large population base; close proximity to an international airport and top quality road infrastructure to allow ease of access; proximity to other similar types of companies; and a location adjacent to a third level institution and in a business and technology park, with high quality office accommodation and telecoms infrastructure.

These requirements may not be fully met in many towns and this can be inhibit the attraction of overseas investment. In Kerry, as elsewhere, there is a need to mobilise initiatives and resources on a regional rather than on a purely local basis, in order to compete effectively with other strong regions, cities and countries.

IDA Ireland is also working closely with educational institutions in the region to develop the skills necessary to attract high valued-added employment to the county. It is also working with FÁS to provide guidance for those in the workforce who are interested in up-skilling. In Tralee, IDA Ireland is marketing Shannon Development's Kerry Technology Park. The institute of technology, located in the park, is providing a skilled work force for companies that wish to set up there. Enterprise Ireland has provided over €2 million in capital as well as other supports for the development of incubation facilities also located in the park. IDA Ireland continues to market all available land and buildings in the county, including its 12 acre business and technology park in Tiernaboul, Killarney.

New indigenous companies have also been established and have created new employment in the county. In 2007, an investment of €21 million was announced under the community enterprise centre scheme which will run from 2007 to 2009. It is expected to generate 330 new businesses and create over 1,500 new jobs. Enterprise Ireland will target funding at those communities in which job losses have been most acute. In September 2008, 70 new jobs were announced for Aetna in Castleisland. Earlier this year, it was announced that the Tralee-based company Donseed Limited is to invest €1.2 million to accelerate international growth. This investment will enhance the company's in house research and development and sales functions, and create 26 new high-value positions at the company over the next two years.

A full range of FÁS services to the unemployed is available in the FÁS offices in Tralee and Killarney, and these are further supported by a twice weekly clinic service in Cahirciveen, Castleisland, Dingle, Kenmare, Killorglin and Listowel. There are approximately 1,172 people currently participating in FÁS training programmes in Kerry, with 961 participating in community employment projects in Killarney and Tralee. The other programmes in the region include local training initiatives, supported employment, national learning networks and community training centres.

In response to changes in the labour market in 2008 and projections for 2009, the FÁS training centre in Tralee is currently finalising activity proposals next year. A new range of training initiatives will be rolled out for 2009, which includes a number of new short courses of approximately six weeks duration, which will be scheduled through contract arrangements at locations throughout County Kerry. These courses are aimed at providing additional skills to recently unemployed people with a view to equipping them quickly to re-enter the work force. It is envisaged that up to 300 training places will be available on these courses in Kerry.

An additional 1,000 places will be offered to the unemployed who wish to participate in self-financing evening courses. These courses will be offered at a number of venues in the county on Saturdays and on afternoons, as well as evenings. On-line training options using a number of learning supports will be available to approximately 700 people, with priority access for the unemployed. This measure will be facilitated by the new multi-media room, which was installed in the Tralee training centre in the middle of this year.

Approximately 100 traineeship places in specific skills areas are also planned between in-centre and outreach locations in Kerry next year. For those who have lost their jobs and also for those in employment, the importance of upskilling in the context of this economy's competitiveness is vital. The skills of our workforce will need to be able to adapt quickly to meet the challenges posed by a rapidly shifting global economic market. The participation of ever-greater numbers of our population in life-long learning is essential to ensuring that this country's economy remains adaptable against the background of the kind of economic challenges that we and most other developed nations are facing today. Through individually tailored training programmes, run both by FÁS and Skillnets, the Government is demonstrating its commitment to life-long learning for our workforce.

Taking all the above factors into account, it is clear that we are taking action to deal with the economic and employment challenges facing the people of Kerry and throughout the country.