Dáil debates
Tuesday, 2 February 2010
Other Questions
Job Losses.
12:00 pm
Jan O'Sullivan (Limerick East, Labour)
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Question 104: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the interim report of the mid-west task force established following the announcement of job losses at a company (details supplied) in County Limerick; the action she has taken arising from this report; and if she will make a statement on the matter. [4842/10]
Joe Carey (Clare, Fine Gael)
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Question 105: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recommendations of the mid-west task force, which she established when almost 2,000 workers at a company (details supplied) in County Limerick were made redundant; the recommendations that she agrees with and those with which she disagrees; and if she will make a statement on the matter. [4942/10]
Pat Breen (Clare, Fine Gael)
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Question 116: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the additional enterprise supports she is planning for the mid-west task force region; and if she will make a statement on the matter. [4932/10]
Simon Coveney (Cork South Central, Fine Gael)
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Question 135: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the initiatives she has taken to ensure the implementation of the recommendations of the mid-west task force with which she agrees; and if she will make a statement on the matter. [4951/10]
Dara Calleary (Mayo, Fianna Fail)
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I propose to take Questions Nos. 104, 105, 116 and 135 together.
The Tánaiste made a detailed statement to the House last Thursday on this issue, as did I and my colleagues, the Minister for Defence, Deputy O'Dea, and the Minister of State, Deputy Kelleher. Fuller detail on the Government's responses to the task force recommendations are in the statements, which have been circulated to Deputies, than in the summary I propose to provide today.
The task force completed an interim report which was presented to the Tánaiste by Mr. Brosnan last July. Since then the Government has responded to the recommendations under the various headings. Last September the Tánaiste sent the task force a report on responses up to that time. She has now completed a broad consultation, taking account of Departments' budgets for 2010, with other Ministers and all relevant divisions and agencies within her Department. The Tánaiste will send a further report to the task force shortly.
Throughout 2009, a multi-agency response to the Dell-related job losses has been taking place at two levels, providing information and services to individual employees facing unemployment to facilitate them to retrain, re-educate or to start a new business, and delivering specific initiatives to indigenous sub-supply companies in the mid-west to explore alternative markets, products and business opportunities. These measures will be continued and expanded up to September 2011 under a successful application which the Tánaiste made last June under the European Union's globalisation adjustment fund.
In regard to industrial employment in the mid-west, 1,100 new jobs are now coming on stream in Limerick and Clare in eight projects approved by the IDA and Shannon Development in 2008 and 2009. Five new high potential start-ups were established in the region in 2009 with Enterprise Ireland support. In addition, a €26 million Bank of Ireland seed and early stage equity fund supported by Enterprise Ireland and the University of Limerick Foundation to invest in start-up and early stage companies was recently announced. Shannon Development has begun the further development of the national technology park in Limerick into a more strategic site for the attraction of industrial investment from Irish and foreign companies. The Tánaiste has asked IDA in its new strategy, to be published later this month, to make a renewed effort in the regions, including the mid-west, and particularly the broader Limerick area, which have recently fared less well in industrial employment.
In regard to Shannon Airport, the Lynx Cargo Group and the Dublin Airport Authority are now completing an examination of the feasibility of developing a major cargo facility there. In addition to the national tourism marketing fund of €44.25 million in 2010, Tourism Ireland will engage in co-operative marketing campaigns with air carriers to promote ease of access and to stimulate demand for travel to the Shannon region from key source markets. Shannon Development will continue its annual tourism spend in the region, a support which is not available to other regions.
The response of the Minister for Transport in regard to roads in the mid-west will be included in full in the Tánaiste's next report to the task force. The region has recently seen the completion of projects such as the N18 Ennis bypass, the N85 western relief road and phase one of the N7 southern ring road. The National Roads Authority's work programme will see further extensive development to the road network in the region, including routes such as the N7, N18 and N17, the M20 to Cork, several link and bypass roads close to Limerick city, and the northern ring road. The Minister for the Environment, Heritage and Local Government is currently finalising arrangements to develop the governance structures in terms of the broader Limerick area.
Apart from initiatives relating specifically to the mid-west region, the Government has responded to the economic downturn generally and has taken several initiatives. Many of these respond to task force recommendations and the mid-west has already benefited from them. Cost competitiveness and wage competitiveness have been significantly improved, and the price of energy for industry significantly reduced. The enterprise stabilisation fund has helped to keep viable businesses going and to keep jobs in place. Some 148 companies were approved for funding of €59 million under the scheme by the end of 2009. The Government has supported more than 80,000 jobs under the employment subsidy scheme, at a cost of some €135 million. The referral capacity for FÁS employment supports was doubled in 2009 to 147,000 places. The recent budget also introduced a new jobs stimulus measure for this year under the employer's PRSI incentive scheme.
The recommendations of the mid-west task force have been helpful in focusing the response of the relevant Departments and agencies at both regional and national level. We are all grateful for the work undertaken to date by Mr. Brosnan and the other members of the task force. The Tánaiste will continue to keep the task force informed on the Government's work on matters covered in the interim recommendations. The task force has identified several issues for further study in its final report, which we look forward to receiving in the coming months.
Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister of State for his comprehensive reply. When this matter was debated in the Chamber last Thursday, I allowed my colleague, Deputy Jan O'Sullivan, who is from the area, to make the Labour Party contribution. She did a great job and I was transfixed by the various contributions. I was a little taken aback by the hollowness and the tardiness of the response. A number of recommendations were made by the task force, which is under the chairmanship of an eminent person. Why can we not break out of the bureaucratic mentality and grab something that is innovative?
Willie Penrose (Longford-Westmeath, Labour)
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It might make a difference.
Willie Penrose (Longford-Westmeath, Labour)
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That is the question. Why can we not break out of the bureaucratic circle? Is that not a question? Are we afraid to break out of it? This new time needs new solutions and innovations.
Willie Penrose (Longford-Westmeath, Labour)
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Limerick and the mid-west are no different. I wonder if IDA Ireland, which was mentioned in the Minister of State's response, will have as much success in attracting industry to Limerick and Clare as it has had in attracting industry to Westmeath. It has not attracted anything to its 70-acre park in Mullingar.
Willie Penrose (Longford-Westmeath, Labour)
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We have not got anything for ten years. Limerick has not got anything for four or five years. It will have to wait until it has reached the decade. I would like to ask a few simple questions. I understand that the 70-acre site behind the Vistakon plant is ready to be upgraded, although there is an infrastructural deficit in the area. When will money be provided from the €7 million fund? I think that was the figure.
Willie Penrose (Longford-Westmeath, Labour)
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I refer to the fund that has been provided to make sure the potential of the Shannon cargo hub is developed.
Kieran O'Donnell (Limerick East, Fine Gael)
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Some €7 million has been provided for that.
Kieran O'Donnell (Limerick East, Fine Gael)
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There are two different funds, worth €17 million in total.
Willie Penrose (Longford-Westmeath, Labour)
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Right. It is important that we attract tourists to this country. I happen to live in the same county as somebody who acts as an entrepreneur. I am proud to say he went to the same school as me. Why was the travel tax introduced? It is stopping people who would spend money from coming to this country. It has caused a depression in the industry for the sake of collecting a measly few pounds. Why not take the innovative step of abolishing it to hell's blazes? If it is not worth a penny, it should not be there. It is an impediment.
Kieran O'Donnell (Limerick East, Fine Gael)
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It was done for short-term gain.
Willie Penrose (Longford-Westmeath, Labour)
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I understand that the Minister of State met the workers to discuss the European globalisation fund. Is he prepared to guarantee that the fund will be operated in a flexible manner? Can he guarantee that this operation will not be imposed on people from the top down? Those who wish to start small businesses should be able to go into education. It should not be circumscribed.
Brendan Howlin (Wexford, Labour)
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I would like to call a number of other Deputies.
Willie Penrose (Longford-Westmeath, Labour)
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This is a very important matter.
Willie Penrose (Longford-Westmeath, Labour)
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Will the Minister of State put in place specific targets, as part of this strategy, so that we can evaluate the progress made by the task force every three, six, nine or 12 months?
Dara Calleary (Mayo, Fianna Fail)
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I will respond to the general thrust of the Deputy's remarks. We have provided for a specific response in the mid-west. We are engaging with Mr. Brosnan and the task force on a regular basis. As I was reflecting on that response, it struck me that I would give my left arm to have such a response in County Mayo. I refer to the commitment from the Government, for example. In respect of tourism, the expansion of some services from Shannon Airport was announced this morning. As the Deputy said, I met a group of Dell workers yesterday.
Dara Calleary (Mayo, Fianna Fail)
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The Minister, Deputy Willie O'Dea, the Minister of State, Deputy Peter Power, and Deputies Kieran O'Donnell, Jan O'Sullivan, John Cregan, Niall Collins and Timmy Dooley were present at the meeting. It was a very robust engagement.
Dara Calleary (Mayo, Fianna Fail)
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I think it was very constructive, ultimately, as I would expect in Limerick.
Kieran O'Donnell (Limerick East, Fine Gael)
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The Minister of State's colleagues were the most robust.
Dara Calleary (Mayo, Fianna Fail)
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An important two-day information fair will take place in the South Court Hotel on 11 and 12 February. Up to 40 agencies will be available at that forum to answer the questions of the 2,800 workers who have been contacted. Yesterday, we appointed Mr. David Smyth of FÁS to act as a link person with regard to the implementation of the globalisation fund in the mid-west. He has already established a relationship with the workers' group. I have given a commitment to visit Limerick again at the end of February to meet all concerned and to reflect on the two-day fair. We have also said that a full review of the globalisation response in the mid-west will take place in June of this year, for example, to ensure its expenditure profile is on target.
Joe Carey (Clare, Fine Gael)
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I wish to ask the Minister of State about the Government's commitment to the Lynx Cargo facility that is proposed for Shannon Airport. The time for talk is over. We want action with regard to the project, which has the potential to breathe life back into the mid-west. That is what we need at this juncture. The facility would provide valuable construction jobs in the short term and would attract manufacturing and assembly jobs to the region in the longer term. Between €5 million and €7 million is needed to roll out the facility. Is the Government committed to the project? Is it prepared to give the Dublin Airport Authority the €7 million that is required to drive it? Is the Minister of State prepared to put his shoulder to the wheel and deliver for the mid-west region? If the regions are strong, the whole country will be strong. If the Government is committed to this project, it should put its money where its mouth is. Is it committed to the Lynx Cargo facility project? Will it provide the €7 million that is required?
Dara Calleary (Mayo, Fianna Fail)
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We have made a commitment to the development of the entire mid-west region. The Tánaiste has discussed the specific project mentioned by the Deputy with the Minister for Transport. It appears that certain EU issues need to be resolved if progress is to be made. We are addressing them at EU level. We will continue to keep the Deputy updated on the matter.
Kieran O'Donnell (Limerick East, Fine Gael)
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During the Dáil debate, the Minister, Deputy Willie O'Dea, said that an announcement on the Lynx Cargo project was "imminent". I would like to know how the Minister of State, Deputy Calleary, would define "imminent", as he appears to be suggesting that an announcement is a little further away. When Mr. Denis Brosnan gave a briefing to Members of the Oireachtas last week, I asked him to name the IDA Ireland officials with whom the task force had held meetings. He said that meetings had taken place at regional level only. The task force had not met Mr. Barry O'Leary of IDA Ireland. Will the Tánaiste arrange for Mr. O'Leary to meet Mr. Brosnan of the task force, so that Limerick and the rest of the mid-west can become a priority region for foreign direct investment? Contrary to what the Minister of State, Deputy Calleary, has said, Mr. Brosnan felt it necessary to call a public meeting with Members of the Oireachtas, at which he expressed his dissatisfaction and frustration about the ignoring of the report of the task force. Does the Tánaiste agree that the report in question, which is very good, needs to be implemented in full? I suggest that an organisation like Shannon Development should be responsible for implementing the recommendations of the report and given sufficient resources to that end. It should have the power to borrow funds, for example, to develop the technology park in Plassey. It does not have that power at present. We have an opportunity to allow the region to take up the reins. It needs to be given the resources and controls to enable it to do so. I welcome the fact that the Dell fund is on stream. I am pleased that the Minister of State, Deputy Calleary, came to Limerick. The most important thing is that we ensure the fund has the flexibility to get up and running. There needs to be proper consultation with the Dell workers. The key factor is that the entire process should lead to jobs.
Dara Calleary (Mayo, Fianna Fail)
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I have taken on board the message that was transmitted at yesterday's meeting. We will continue to have discussions on the issue of flexibility, particularly in the areas of enterprise development and support. A high-level official in IDA Ireland is responsible for promoting the mid-west. If the task force wishes to meet the chief executive of IDA Ireland, we will be happy to facilitate that. Mr. John O'Brien, who is a significant and heavyweight official in IDA Ireland, is addressing the issues. There is ongoing contact between-----
Kieran O'Donnell (Limerick East, Fine Gael)
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With all due respect-----
Kieran O'Donnell (Limerick East, Fine Gael)
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On a point of order-----
Kieran O'Donnell (Limerick East, Fine Gael)
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The point of order is that IDA Ireland saw fit not to take part in the task force.
Brendan Howlin (Wexford, Labour)
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That is not a point of order. A number of people want to ask supplementary questions. I understood the Deputy was in a hurry, so I facilitated him.
Brendan Howlin (Wexford, Labour)
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Let the Minister of State answer your questions.
Dara Calleary (Mayo, Fianna Fail)
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There are ongoing discussions between the Tánaiste, the Department and the mid-west task force. We are engaging with the task force on the basis of its interim report. We will respond to the report's recommendations in the context of the 2010 budgetary decisions. There is an ongoing dialogue on these matters.
Kieran O'Donnell (Limerick East, Fine Gael)
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What about giving Shannon Development responsibility for implementing the report of the task force?
Brendan Howlin (Wexford, Labour)
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I ask the Deputy not to barrack other Members of the House.
Arthur Morgan (Louth, Sinn Fein)
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Not for the first time, a Government reply has totally baffled me. Does the Minister of State understand why I feel misled by his answer, in which he described the task force's recommendations as "helpful" and thanked the chairman of the task force, Mr. Brosnan, for his work? I am baffled because a full six months after the Government received the report, not one of its 20 recommendations has been implemented.
Does the Minister of State accept this makes it appear to the House as though the task force was a cosmetic exercise in the first instance? It makes it appear as though the Government is not taking seriously the entire issue of the jobs crisis in the mid-west. Does the Minister of State accept that when one compares and contrasts the Government's inactivity regarding this report and its 20 recommendations with the way it managed to get finance through to the banks, it demonstrates a lack of credibility on the Government's part, particularly in desolated regions such as the mid-west?
Mary Coughlan (Donegal South West, Fianna Fail)
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What about the north east?
Brendan Howlin (Wexford, Labour)
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The Tánaiste should allow the Minister of State to speak.
Dara Calleary (Mayo, Fianna Fail)
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-----of the task force's report related to general macro-competitiveness issues. My response outlined how such issues have been addressed, including energy costs and a range of issues.
Dara Calleary (Mayo, Fianna Fail)
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The Government is engaging to a considerable degree on specific regional recommendations, such as the example I provided in respect of the cargo facility, and will continue to do so. The Government does not have a magic wand and I cannot wish this report into action.
Arthur Morgan (Louth, Sinn Fein)
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The Minister of State has not introduced the recommendations.
Dara Calleary (Mayo, Fianna Fail)
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The Deputy and I served together on the Joint Committee on Enterprise, Trade and Employment on which we attempted to address the issue of bank credit. This issue is intimately linked with recapitalising the banks and unfortunately this cannot be ignored.
Leo Varadkar (Dublin West, Fine Gael)
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The issue is simple. A group was appointed and an eminent person was asked to chair it. It has issued an interim report containing approximately 20 recommendations, most of which are very good and should be implemented. At the very least, the Government should issue a reasoned response. Will it do so on a recommendation by recommendation basis? It should state which recommendations it intends to implement and the timeframe involved, as well as which ones it will not implement and the reason This is the simplest thing to do but the Minister of State did not do so last Thursday. He came nowhere near doing so.
Dara Calleary (Mayo, Fianna Fail)
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A highly detailed response was given to the interim report. I repeat there is ongoing engagement in the context of budget 2010-----
Leo Varadkar (Dublin West, Fine Gael)
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Ongoing engagement again.
Dara Calleary (Mayo, Fianna Fail)
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-----and the specific recommendations will be included therein. It is neither right nor true to state that no response has been given to that report.
Brendan Howlin (Wexford, Labour)
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As there is time, did Deputy O'Donnell wish to ask a further supplementary question?
Kieran O'Donnell (Limerick East, Fine Gael)
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I did. I would have many supplementary questions to ask, were the Leas-Cheann Comhairle to afford me the time.
Willie Penrose (Longford-Westmeath, Labour)
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I thought the Deputy was in a hurry.
Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Would he receive a reply?
Kieran O'Donnell (Limerick East, Fine Gael)
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I thank the Leas-Cheann Comhairle for his indulgence. Briefly, would the Tánaiste not see fit to appoint an organisation such as Shannon Development, which has a regional remit in the mid-west, to oversee the implementation of the task force report's recommendations? The Tánaiste should answer the question herself rather than effectively spoon-feeding her junior Minister.
Mary Coughlan (Donegal South West, Fianna Fail)
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I take umbrage to those remarks. The Minister of State is more than competent to deal with the responses.
Kieran O'Donnell (Limerick East, Fine Gael)
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This is a hugely important issue to the mid-west.
Brendan Howlin (Wexford, Labour)
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Please, if the Deputy would simply-----
Mary Coughlan (Donegal South West, Fianna Fail)
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Why is the chief executive office of Shannon Development the secretary of the task force?
Brendan Howlin (Wexford, Labour)
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Does the Tánaiste intend to answer the question?
Kieran O'Donnell (Limerick East, Fine Gael)
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I refer to funding. That is a matter related to the task force. I seek the appointment of-----
Brendan Howlin (Wexford, Labour)
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Will the Tánaiste or the Minister of State answer the question?
Kieran O'Donnell (Limerick East, Fine Gael)
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-----Shannon Development to oversee the implementation of the task force report's recommendations.
Willie Penrose (Longford-Westmeath, Labour)
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The Leas-Cheann Comhairle is losing control of the House.
Brendan Howlin (Wexford, Labour)
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Will the Tánaiste answer the question?
Brendan Howlin (Wexford, Labour)
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The Minister of State will yield to the Tánaiste.
Mary Coughlan (Donegal South West, Fianna Fail)
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I have been hugely supportive of the role of Shannon Development.
Brendan Howlin (Wexford, Labour)
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Sorry, before I call on the Tánaiste to respond, I will take one final supplementary question from Deputy Joe Carey.
Joe Carey (Clare, Fine Gael)
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I wish to establish the Tánaiste's views on the removal of the €10 travel tax. Is she committed to reviewing this issue in the near future and will she do so in the interests of Shannon?
Mary Coughlan (Donegal South West, Fianna Fail)
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First, of all the Ministers who have been supportive of the mid-west region, my team and I have been to the fore. Second, as for Shannon Development and its role, Members may have read the suggestion in the bord snip nua report that Shannon Development should be abolished. I have augmented and supported the development of Shannon Development, as well as the appointment of its chief executive officer to be fully integrated as secretary to the task force. I also provided resources from Forfás to ensure these issues were dealt with. Many pertain to national competitive issues that are ongoing and are being dealt with. I provided an extremely accurate report and response to the task force. I have met many of my colleagues in respect of the delivery of other recommendations. A final report will be produced in due course and in that context, I will continue to support the regional development needs of that area.
Mary Coughlan (Donegal South West, Fianna Fail)
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I do not simply refer to the city of Limerick but to all the other counties within the mid-west region.
Kieran O'Donnell (Limerick East, Fine Gael)
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Yes, the mid-west.
Noel Coonan (Tipperary North, Fine Gael)
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The Tánaiste should not forget north Tipperary.
Mary Coughlan (Donegal South West, Fianna Fail)
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My Department is working on getting people back to work and on training and investment. These matters are under the stewardship of my Minister of State, who is more than competent to deliver that programme and to deal with the issues pertaining to the mid-west.
Kieran O'Donnell (Limerick East, Fine Gael)
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No one said otherwise.
Mary Coughlan (Donegal South West, Fianna Fail)
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Moreover, I will continue to have further engagement with those whom I appointed to that task force on the basis of their experience, expertise and ability to take on board the absolute necessities of the mid-west region. I look forward to the chairman's final report and I will work with him to deliver those recommendations, which will be of great importance to the development of that region.
Kieran O'Donnell (Limerick East, Fine Gael)
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He sought that the recommendations of the interim report be delivered on before considering the final report.