John O'Mahony (Mayo, Fine Gael)
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I thank the Ceann Comhairle for selecting this important topic. Last week, the House spent two days discussing the serious financial position of this country with agreement on all sides on the need to do something about it. There was agreement, too, to offer some hope to people on the employment front in order that any potential growth would not be stifled and that some jobs would be provided. Only a few hours after that debate news began to filter through from Castlebar about 200 job losses in Baxter Healthcare in coming months. These include jobs in administration, manufacturing and people employed on temporary contracts. Baxter has been a fantastic employer in County Mayo for the past 38 years and is committed to keeping the 900 jobs it still has in the county. It is very important that the Government puts everything in place, first, to find new jobs for the people being let go and, second, to support the jobs already in place.

I have a few suggestions. The four multinational companies that directly employ 3,000 people in the county, namely, Baxter Healthcare, Allergan in Westport, Hollister and Coca-Cola in Ballina, appealed to the Taoiseach at a meeting on the need to address the infrastructural deficit of access to and within County Mayo, with particular reference to the N5 and the N26. If I am correct, that meeting was arranged by the Minister of State, Deputy Calleary. One of the reasons given last week for the recent job losses was the need to improve cost competitiveness. One of the points made at that meeting concerned the terrible condition of the N5, the main access road to Mayo, and the urgent need for bypasses in Ballaghderreen and Longford. The leader of one of those companies stated directly to the Taoiseach that because of the poor condition of the road his company has to increase the quality of the packaging on its products in order to have them survive the journey to Dublin. This put €400,000 extra on the costs of one company. I have no doubt if that cost was not there cost competitiveness would be improved.

The availability of broadband in many areas in Mayo is totally deficient. A small business contacted me in recent weeks to say it would be in a position to employ five or six extra staff if it had acceptable broadband reception.

Why can small businesses, which employ 800,000 people in this country, not be supported in protecting the jobs they have and be incentivised to take on extra workers with PRSI relief, or in other ways? Another way would be to get rid of the stifling regulations that hinder and put obstacles in the way of small business. One need only look at any town centre throughout the country and in my county, Mayo.

I urge the Government to create the environment and provide the infrastructure - the N5, N26, broadband, the western rail corridor - to make Mayo an attractive location for inward investment for jobs in the county. Almost 13,000 people are on the live register at present in County Mayo. It needs action now.

I conclude by offering the Minister of State a direct quote from the chief executive officer of one of the companies that give substantial employment in Mayo, taken from a recent newspaper interview. The words are his, not mine.

There just doesn't seem to be any realisation at Government level that failure to address the N5 situation is putting jobs at risk. We are competing with plants in other parts of the world where there is excellent infrastructure and we are at a serious competitive disadvantage. If any one of these companies go they will not be replaced in this part of the world.

This is not a matter of whether we can afford to take on board the outlined suggestions. We cannot afford not to. Three thousand people employed directly provide €350 million annually to the Exchequer. We need to secure those jobs and improve the situation and attractiveness for new ones.

Dara Calleary (Mayo, Fianna Fail)
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I apologise to the House. I made some late changes to my script and no copy is available. I shall provide one to the Deputy and the House first thing in the morning.

I thank Deputy O'Mahony for raising this issue on the Adjournment. I share his concerns. As he is aware, Baxter Pharmaceuticals announced last Thursday that it planned to seek 150 permanent voluntary redundancies and the conclusion of 50 temporary contracts. As Deputy O'Mahoney indicated, the company stated this position was due to the economic downturn and its subsequent impact on European health care cost saving measures and the ongoing need to improve cost competitiveness. However, it is important to stress that the company will continue to employ almost 900 people when these redundancies are completed and it has committed its future in the Castlebar plant.

I assure the Deputy that the IDA and Enterprise Ireland, together with Mayo County Enterprise Board and Mayo County Council are working to facilitate and support enterprise development in Mayo. Key to the IDA strategy for Mayo within the western region is to progress the development of a knowledge-based economy so that Mayo, and, in particular, the linked hubs of Castlebar and Ballina, with Westport as a priority location, can compete both nationally and internationally for foreign direct investment. IDA's strategy for its west region is to support the growth and development of the region's existing clients by working with them to increase their strategic importance through additional functions and activities, to market the west region to overseas clients in order to secure new greenfield investment, to strengthen the region's product by working with relevant partners, including local authorities, third level institutions and service providers to enhance the region's eco system and to provide property solutions with supporting infrastructure to attract foreign direct investment. In this regard the IDA has invested and continues to invest significantly in the provision of plant and focus property solutions in the west, specifically in County Mayo with the development of business and technology parks in Westport and Castlebar and the purchase of 11.5 hectares of industrial-zoned land on the Sligo road in Ballina.

There are 18 IDA-supported companies in County Mayo employing more than 2,900 people in permanent jobs with a further 500 temporary positions and contract employment. Enterprise Ireland activities focus on the creation of new jobs through supporting entrepreneurs who set up new high-potential start-up companies, the retention and creation of new jobs in existing companies and enhancing the innovation capability of Ireland at national and regional level through supporting research companies in third level institutions. Enterprise Ireland-supported companies in County Mayo in 2009 included Construction Management Software Limited, INTIME Group Limited and the Ovegen Group. Enterprise Ireland also supports community enterprise centres in eight locations, including Ballina, Ballyhaunis, Brickens, Castlebar, Claremorris, Foxford, Killala and Kiltimagh, and funding for the community council has recently been reactivated.

I accept Deputy O'Mahony's concerns in regard to infrastructure. As he stated, we organised a meeting recently with the Taoiseach, specifically in regard to the bypasses he mentioned at Ballaghaderreen and Longford and the completion of the N5. We continue to make the case for those projects. I noted the comments he gave made by a chief executive officer but draw his attention to comments from another CEO who complimented Government enterprise policy in regard to decisions his company came to in announcing expansion of its existing facilities. I also noted commentary in local newspapers by Castlebar town council about its willingness to work on new solutions with the IDA. I would be happy to facilitate that and will facilitate Deputy O'Mahony in any initiative to encourage enterprise in the county and specifically to encourage a response to the situation in Baxter Healthcare. Our thoughts are with the workers affected and I am happy to assure the House that the agencies involved will be on hand to support them in any way they can.