Dáil debates

Tuesday, 27 January 2009

Adjournment Debate

Employment Action Plan.

8:00 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Once again I am disappointed that the Tánaiste is not in the House. This is a matter of grave importance to Limerick city and county overall. The fact that I, as a Deputy for Limerick city, am obliged to raise this matter in the Dáil, three weeks after Dell announced it was to close its manufacturing facility, with the loss of 1,900 jobs, is an absolute disgrace. The fact is that I am forced to do it as the Tánaiste came to Limerick only on 13 January, nearly a week after the Dell announcement was made.

Almost three weeks after the closure was announced, we still have no indication as to when the multi-agency task force will be put in place, or its configuration. One begins to believe the Government wants the Dell issue and the issue of unemployment in Limerick — with companies such as Banta which are directly linked to Dell — to slip off the pages of the national media, in the hope that it will disappear. It will not, because the local media have kept this top of the agenda. As a public representative, I will continue to keep it top of the agenda. This task force should have been set up long before these jobs went. I called on 4 November for such a task force to be established because there was large-scale unemployment in Limerick and a continuing overhang as regards the Dell manufacturing jobs. I wanted a proactive measure, but what one gets from this Government is not even reactive — it is crisis management, pure inertia. Here we find the people of Limerick are suffering. Some 450 of the 1,900 people working in Dell are due to lose their jobs at the end of April. Banta, a plant related to Dell where more than 700 people work, will shed jobs on a pro rata basis, likewise Kostal in west Limerick. What is this Government doing? What is the delay with this task force? Why has it not been announced? Why was it not in place to provide a contingency plan before these jobs went? I cannot understand why that was the case, unless due to bad management and a lack of understanding of how serious is this situation.

The Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Coughlan, was in the House earlier today. I mentioned that I would raise this on the Adjournment tonight and I expected her to be here because that is her job. I mean no disrespect to the Minister of State, Deputy Kelleher, but this is of such magnitude in Limerick that it warrants direct ministerial intervention. I want to hear this task force announced tonight. I want to hear what it consists of, that it is a multi-agency task force including business interests. We want action. The time for talking is long over.

Photo of John CreganJohn Cregan (Limerick West, Fianna Fail)
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I thank the Ceann Comhairle for accepting this matter and allowing me to raise this issue which is of great importance to my constituency. Since the recess we had some devastating job losses in county Limerick, 1,900 Dell workers, 200 in Kostal, Abbeyfeale and 100 in Kostal, Mallow. The positives should be pointed out. Dell will keep 2,000 high-end jobs, which is very welcome. We are not losing Dell but some of the manufacturing jobs there. That is regrettable and a terrible blow to those who held those jobs. Kostal has been an exemplary employer and has kept its staff informed for the last number of weeks. In previous situations when it has asked for voluntary redundancies it has looked after its staff very well and I hope that follows through this situation. I hope Dell can do likewise and look after and compensate its workers who have been loyal to it for many years.

The Tánaiste, Deputy Coughlan, visited Limerick at her earliest opportunity. She was asked to give some space to the workers and their employers, and that happened. It was announced on Thursday morning and she was in Limerick on the following Tuesday or Wednesday. She met the workers, the public representatives in the area, the mayors of the city and county and gave them a very full briefing. I have the fullest confidence in the Tánaiste putting a task force in place.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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When?

Photo of John CreganJohn Cregan (Limerick West, Fianna Fail)
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I spoke to her earlier this evening and she has assured me that announcement is imminent. I welcome the fact that the Minister of State, Deputy Kelleher, who is attached to the office of the line Minister, is here tonight to listen to our concerns. He, too, has been more than helpful in this situation through his responsibility for FÁS and other agencies and I appeal to the Government to ensure we have the fullest support for those people. I further appeal to the Tánaiste, the Minister of State, Deputy Kelleher and the Government on job replacement.

I have mentioned this on a few occasions recently. A business park was opened in Askeaton 20 years ago when the State agreed to buy 200 acres of land. Not one sod was turned on that business park and not one job was created. With respect to Limerick city and my colleague's constituency, they have had the benefit of many thousands of job announcements over a number of years because multinationals tend to go to the urban centres. We have an ideal opportunity for the Newcastle-Wests, Kilmallocks and Askeatons of County Limerick to take up the slack and create employment there. I have the fullest confidence. The Tánaiste has identified the proper person to head up the task force and personnel to take part in it. She will be totally committed to ensuring we can replace many of the jobs lost in county Limerick.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I have answered questions on numerous occasions and on Adjournment debates in this House from many Deputies, particularly Deputy O'Donnell opposite. He has a very strong concern about the impact of the job losses in Dell on Limerick and the mid-west region and the further spiral of job losses this will create. We all accept that. We are all practising politicians in this House and we on this side of the House are fully aware of the concerns of public representatives and, more important, the devastation job losses can cause to the employees, families and the broader community. Any practising politician would be well aware of this because no constituency is immune to potential job losses, or they have happened in previous times. We are well aware of the concerns out there.

The Government wants to keep this on the agenda because we must acknowledge a number of very important points to which Deputy Cregan alluded. Dell is still in Limerick. It is a very good employer and we want to ensure the contribution Dell has made to the mid-west region for many years since it came——

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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We all agree with that.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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It is important to put it on the record. Dell, an international company, is still a good employer in Limerick and Cherrywood in Dublin. We want to acknowledge that.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Some 1,900 people are about to lose their jobs

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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On 8 January last, Dell announced its intention to reduce its workforce by 1,900 at its plant in Raheen, Limerick. As I said, I am keenly aware of the impact that will have on the employees and the broader mid-west region. We had established a group of the relevant State agencies to prepare for a major job loss situation to specifically deal with the needs of any workers to be made redundant. The group, chaired by my Department, has been working to take the appropriate actions to support those to be made redundant to find new employment, including assistance to reskill and retrain to enhance their future employment potential.

Immediately following the Dell announcement, this group met with Dell on 9 January and established appropriate contacts as to who will work with the company. Since then, FÁS has had a number of meetings with Dell and will commence meeting Dell staff next week on 2 February. In preparation for job losses at Dell, FÁS mid-west had put in place a team to deal specifically with redundancies in Dell and other companies in the region. As an initial step, at a meeting held on its premises on 12 January last, four days after the announcement of the redundancies, the team offered Dell employees group briefing sessions to outline the range of FÁS services available to them.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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What about the multi-agency task force?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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It also offered individual one-to-one guidance interviews to include: identification of current qualifications and job requirements; provision of information on job opportunities, mid-west, national and EU; identification of upskilling training requirements; provision of a broad range of training programmes in response; referral to educational providers where appropriate; and referral to enterprise boards regarding start your own business initiatives, where appropriate. In addition FÁS will host training and job opportunities events in Limerick, Clare and north Tipperary. These events will have local, national and European vacancies on display as well as employers in attendance.

FÁS, Enterprise Ireland and the City and County Enterprise Boards, University of Limerick and Limerick Institute of Technology have developed a web portal to assist people who find themselves out of work in the mid-west. This web portal will guide people through the initial orientation process into new opportunities. Through this co-ordinated approach, the affiliated organisations are ensuring that valuable time is not lost and people will get clear and comprehensive individual guidance. The web portal will provide information and direct access to designated contact people within the organisations.

In the mid-west area, IDA Ireland has been working diligently to secure new investments, and over the past year companies like Vistakon, Zimmer, Cook, DTS and Microsemi have announced jobs in the region. The agency has a pipeline of projects under consideration. These potential investments are being pursued and IDA will do everything possible to speed up the investment decisions in Limerick's favour.

IDA Ireland's regional strategy reflects the NSS, with an emphasis on the Limerick-Shannon gateway and on the hub town of Ennis. IDA Ireland's strategy for the mid-west region and Limerick is and will continue to be — transition to a knowledge economy by winning new foreign direct investment, FDI, in innovation driven, high value, high skills sectors; to work with the existing company base to expand their presence by increasing the number and scale of functions being carried out and by adding further strategic functions; to promote balanced regional development; to influence the provision of modern property solutions with supporting infrastructure; and to work with local authorities and other partners to influence the creation of the right infrastructural environment to help win new FDI throughout the region. The investment projects the IDA seeks to attract to Limerick——

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I was going to speed up the Minister, but his time has expired.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Could the Minister address the point of whether the Department will establish the multi-agency task force?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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To be helpful to the Deputy, may I go on? This is a very sensitive issue and I am trying to give the Deputy as much information as possible. We do not need any lectures about job losses. We are fully aware of the concerns of the Deputies opposite and on this side of the House——

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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I have a simple question. When will the multi-agency taskforce——

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Enterprise lreland is specifically targeting potential business start-ups through the following supports and programmes: a dedicated opportunities fair to be held in March in Limerick to encompass all enterprise, employment and education institutions, together with private and voluntary sector organisations, including financial institutions, MABS, Citizens Information and recruitment agencies; a new collaborative information brochure detailing contacts, business start-up supports and financial assistance available via Enterprise lreland and the county enterprise boards; a new series of one and two night seminars and workshops——

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Minister of State has run well over his time.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I apologise.

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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In addition, Enterprise lreland is addressing the challenges facing the sub-supply base in the mid-west with a dedicated sub-supplier event in April to facilitate supply companies to explore new opportunities, new business leads and new markets with assistance from Enterprise lreland's overseas market network.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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When will the agency be announced?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I assure the Deputy that the new task force for the mid-west region is being finalised and will be announced imminently. There will be some very fine people on the task force.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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When?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I will inform the Deputy personally when it is being announced.