Dáil debates

Wednesday, 18 November 2009

9:00 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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I thank the Ceann Comhairle for facilitating me in raising this matter on the Adjournment tonight. Perhaps the Ceann Comhairle will inform me when I have one minute remaining.

The mid-west task force was established by Government in February of this year to consider and make recommendations in regard to the implications of the serious economic downturn on the mid-west, which was added to by the decision of Dell to end manufacturing in Limerick, and in response to calls from many Deputies on the Opposition side.

I, along with other public representatives, expressed the importance of ensuring that the task force, when established, be more than a cosmetic exercise. I was concerned that it would end up as another Government talk shop with no action on the real issues. Some four months later, following publication by the chairman, Mr. Denis Brosnan, of the task force's interim report, no action has been taken. Last week, the Tánaiste, when in Limerick, commented that the recommendations of the interim report would not be implemented. This announcement has set back the region yet again.

The task force is about to enter stage two of its work and the Government is dithering about what to do with the initial findings, which is absolutely disgraceful. It begs the questions, why was the task force established and what is the Government prepared to do in response to its findings and recommendations. The chairman of the task force has warned that the mid-west region could be faced with an unemployment rate of 20% by end 2010 if his report is not responded to by Government. This stark warning was given by Mr. Brosnan in response to a letter I wrote to him.

The mid-west is experiencing a severe economic downturn. It has gone through a poor tourism season, coupled with weekly job losses across Counties Clare, Limerick and North Tipperary. There is no justification for Government sitting on this report. If its recommendations are implemented, the economic carnage being experienced by the mid-west region will cease. The interim report gives an economic overview of the mid-west region and sets out the issues relating to cost competitiveness, how to tackle growing unemployment, the need to accelerate infrastructural projects, education and training. It also deals with enterprise and tourism in the region. The task force has met with and received presentations from 24 groups representing the major stakeholders and interest groups responsible for economic development in the region. The recommendations put forward in this report need to be implemented because they are critical.

The report makes approximately 20 recommendations which are a roadmap to address the economic situation in which we find ourselves. They relate to issues such as competitiveness and point out that Ireland has lost 32% in the international price competitive league.

While this is a national issue, the mid-west relies heavily on manufacturing, construction and tourism. In response to calls for a national competitive strategy, the report recommends employment subsidies, a reduction in employers' PRSI, and credit for corporation tax paid; it also points out the need to encourage people to stay in education or return to education for retraining and skills development. It identifies the necessity of funding the infrastructure to enable the establishment of a linked cargo facility at Shannon Airport and the urgent need for a marketing strategy for the airport. It also points out the potential of the region to develop the Shannon Estuary as an alternative renewable energy hub. There are many other recommendations, including the need to prioritise foreign direct investment in the region by the IDA.

For four months this report has been passed from Department to Department. We now need a commitment from Government that its recommendations will be implemented in a timely fashion. The implementation of all recommendations is critical for the survival of our region. Either the Government is committed to the mid-west or it is not. I call on the Government to implement all the recommendations in full and to put the necessary plans and funding in place as a matter of urgency.

Photo of John MoloneyJohn Moloney (Laois-Offaly, Fianna Fail)
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I thank the Deputy for raising this matter on the Adjournment and apologise that the Minister for Enterprise, Trade and Employment cannot be here to answer directly.

The mid-west task force, which was, as the Deputy has pointed out, established by the Minister under the chairmanship of Mr. Denis Brosnan, completed an interim report which was presented to the Minister on 2 July last. Given the wide range of recommendations included in the report, it is currently being considered by a number of different Departments. The Minister is grateful for the work Mr. Brosnan and the other members of the task force have undertaken to date and she is in ongoing contact with the task force.

The wide range of recommendations in the task force interim report cover both local and national issues. The Government has been responding to the economic downturn generally and has taken numerous initiatives, including competitiveness and employment activation measures and use of the EU globalization fund for individual companies. All of these measures have been of particular benefit to regions affected by job losses, including the mid-west region.

Since the job losses announcement by Dell last January, all of the State development agencies, under the auspices of the Department of Enterprise, Trade and Employment, have come together and intensified their efforts and activities to support Dell and other workers being made redundant in the region. The strategy of the IDA is to reposition the mid-west as a centre for knowledge-based industry, while focusing on marketing the Limerick-Shannon gateway area as a key location for investment by building on the strengths already evident in the region. The IDA also co-operates with the existing base of employers to encourage additional investment, particularly in activities such as research and development, customer support and back-office functions. For example, eight projects with a job potential of 1,073 were announced by multinational companies in the mid-west in 2008 and the beginning of 2009.

Shannon Development has intensified its engagement with its Shannon Free Zone clients and, along with the other State development agencies, is actively promoting a range of support measures announced by the Government to assist companies that are experiencing trading difficulties at this time. Enterprise Ireland is also working collaboratively with other State agencies in providing information and support to those facing redundancy. Túsnua was set up in late 2008 to alleviate the impact of pending lay-offs announced by a number of major employers in the Shannon region which were to take effect in early 2009. Túsnua has hosted a number of information events in the region, with more than 1,500 attendees to date.

Enterprise Ireland and the Limerick County Enterprise Board have run a series of workshops in-house at Dell and are in constant contact with the company in order to respond quickly to requests for programmes or meetings with people wishing to start a business. FÁS Employment Services has also engaged on a one to one basis with 900 staff who have exited the Dell facility through redundancy since May 2009. FÁS has provided intensive on-site guidance and information services to the affected workers with the primary aim of securing other employment, training or further education.

In order to meet the substantial additional costs of the measures described above, as well as other costs, my Department has submitted an application to the European Commission under the EU globalisation fund for support in the provision of labour market services to redundant workers from Dell and downstream companies. A decision is expected on this shortly.