John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Sunday, 7 October will mark one year since 525 people lost their jobs in Waterford with the closure of TalkTalk. The last time I raised the matter of unemployment in Waterford and the south east with the Minister was last June. At that time, the Minister said Waterford was being treated as a special case by development agencies and that this point needed to be reflected elsewhere across Government in order to meet the infrastructural problems in the area. Since then, there has been more joined-up thinking between the Departments and progress has been made. However, generally, the situation in the south east is getting steadily worse. Last week, another 55 jobs were lost at Kel-Tech Engineering and many jobs are being shed, including those at engineering companies, electrical firms and small businesses.

The last time I raised this matter with the Minister, I pointed out that the national unemployment rate in 1989 was 18.7%. In the south-east today it is 20% and the rate in some parts of Waterford city is 25%. The last time I raised the matter, I pointed out that we had seen a significant number of job announcements, such as Allergan Pharmaceuticals Ireland in Westport, Abbott, Big Fish Games, Hewlett-Packard, PayPal in Dundalk, Eli Lilly and Apple in Cork, and Mylan and Cisco Systems in Galway, but nothing in Waterford. That trend has continued. Since June, we have seen Fujitsu in Galway, 350 jobs at Electronic Arts in Galway, 400 jobs at the Northern Trust in Limerick, and further jobs at Radio Systems in Dundalk and Aspen in Dublin but nothing in Waterford. Someone in a senior position in a local authority in Waterford reminded me today that the last major announcement by foreign multinational in Waterford was 11 years ago.

I received a letter from a small businessman in the city on Monday and he correctly identified the mood in the city. He said that on one day he had spoken to two established traders who believed they are weeks away from closing and he pointed out that the city will lose yet more jobs and services and that other businesses will suffer a knock-on effect.

He says that for most of these businesses, his own included, the only reason doors have remained open is that everyone is taking his or her share of the burden. Suppliers are discounting and trying to keep their own ships afloat and staff are taking pay cuts and reduced working hours while working extremely hard and giving great value to their employers. Landlords are taking a hit and most business owners are taking home little or nothing. That, pretty much, sums up the mood in the business community in the city.

There is another issue, about which we must be careful. Social problems tend to manifest themselves when there is long-term, ingrained and chronically high levels of unemployment. When Garda numbers are being reduced the medium and long-term risks of serious crime heighten considerably. Waterford city, in particular, faces that scenario.

When the Minister has responded I would like to make a suggestion to him.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank Deputy Deasy for raising this matter. I understand that Enterprise Ireland was informed in late September that Kel-Tech engineering was facing a situation involving some of its customers which would have a significant immediate impact on the business. Enterprise Ireland has been informed that a number of jobs will be lost immediately, as all the business concerned has been pulled back in-house by the customer.

I am conscious of the anxiety job losses create for the workers involved and their families, as well as the local community. I assure the House that Enterprise Ireland will continue to work with the company to find replacement business for it. The State agencies will make every effort they can to develop new employment opportunities and support existing jobs in Waterford and the south east.

As the Deputy acknowledged, I initiated the south-east employment action plan, following the closure of TalkTalk in 2011, and I instructed all the State players to work together for job creation in the region. The severity of unemployment in the region has been a long-standing problem going back many years and will not change overnight. I have been to Waterford several times this year to ensure the urgent focus on employment in the region is maintained. Notwithstanding the regrettable loss of jobs in Kel-Tech and the entrenched nature of unemployment in the region, some progress is being made, as Deputy Deasy has acknowledged.

The agencies under the remit of my Department are actively focused on bringing employment to the south east. Following my direction to assign a clear priority to the region, the number of IDA company site visits there in the first six months of 2012 was greater than the total for 2010 and 2011, which is a positive indicator of future progress in attracting foreign direct investment to the area. Enterprise Ireland supported the establishment in Waterford of the Eishtec call centre, where employment has reached 230. That was a significant achievement and came from the skill sets in TalkTalk. Former employees of TalkTalk were at the back of that establishment.

Other recent initiatives by Enterprise Ireland include the approval of 14 high quality projects under its competitive feasibility fund, 12 companies being approved for graduate placement. In addition, five community enterprise centres have been approved for funding for full-time business development managers and a high take-up of the Enterprise Ireland innovation voucher scheme has been recorded in Waterford. The two county enterprise boards in the city and county have created 59 new jobs and the South-East Regional Authority has secured EU funding for a number of enterprise and innovation focused projects. Science Foundation Ireland has funded eight research awards to the Waterford Institute of Technology.

While progress has been made under the auspices of the south-east region employment action plan, I believe there is a need to develop new sectors in the region and to upgrade the skills base in general. The enterprise development agencies have adopted a spotlight on Waterford and the south east region and implemented such actions as continue to focus on the sustainability and growth opportunities through intense engagement with their existing client base, building on the potential in cleantech and life sciences for the region, pursuing opportunities for Waterford in the area of cloud computing, e-games, international financial services, e-commerce and other content businesses and building in particular on the evaluation and research strengths in the region. My agencies and I remain committed to working with Deputy Deasy and others to ensure the sharp focus on job creation in the region established under the south-east action plan is maintained.

I am somewhat encouraged that the latest quarterly national household survey data show that employment in the south east, which had fallen by 38,000, or 17%, in the three years to the first quarter of 2011, has stabilised and the latest data show an increase of 1,300 people at work in the past 12 months. This is a small but welcome sign that there is something of a turnaround. That is not to understate the need for a continuing focus on the region, which I will pursue with vigour.

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

My guess is that 1,300 have left the region.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The figure is for people at work. There are 1,300 more people at work.

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am guessing that 1,300 people have emigrated.

When the jobs were lost in TalkTalk the Government initiated the south-east area action plan. The Minister has shown a real commitment to the region, and I appreciate that. There has been progress in the interdepartmental joined-up thinking process that is important with regard to infrastructure.

At the time, the Minister acknowledged that new industry had not taken hold as strongly in Waterford as in other regions. We know that to be true. Since then, we have seen more site visits organised by the IDA, more itineraries and far more activity by the development agencies. Again, I thank the Minister in that regard. Unfortunately, we have not yet seen any tangible benefits. Much is going on in the Minister's Department. He has been extremely inventive with regard to designing measures to spur employment creation.

I have a suggestion with regard to Waterford and the south east. It would be helpful, in order to maintain the focus of the IDA and Enterprise Ireland on the south east and Waterford, for the Minister's Department to arrange briefings, at least quarterly, with officials of the Department, the IDA and Enterprise Ireland on their efforts to bring industry to Waterford and the south east. If necessary, this could be done on a confidential basis.

The situation is getting worse. I appreciate the efforts of the Minister and his officials to date. However, a new protocol needs to be put in place to make sure the level of intensity by the development agencies does not fall away. This is a very serious situation and new arrangements have a place. I hope the Minister can help in facilitating that arrangement.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank Deputy Deasy for his constructive approach. I already have regular follow-up meetings with the various agencies which have made commitments. We have structured those into a programme against which people measure performance and movement and we have a better matrix and vision of what the various agencies are doing. We are getting a level of collaboration that was not there before.

We would like to see more flagship projects to show progress. The data I quoted, however, at least show that enterprise in Waterford, as in the rest of the country, is undergoing a transformation. Good stories are coming out of Waterford, just as there are continuing difficulties in some sectors.

I would be happy to meet public representatives from the region on a regular basis and update them on what is happening. I would be happy to organise that. I go to Waterford and meet groups, particularly those within my own remit, but also other important regional players such as the city and county managers and Waterford Institute of Technology.

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister and I appreciate his offer. It is important the IDA, Enterprise Ireland and the people who are active on the ground and doing their job in the region would be included in these meetings.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

When I go to the south east, I work with authorities that are well beyond my own departmental remit. It is vital that we bring in other players and get joined-up thinking. I would be quite happy to have representatives of my agencies come with me to meet Deputies in the region.