James Bannon (Longford-Westmeath, Fine Gael)
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I thank the Ceann Comhairle for allowing me highlight this important issue, the recent loss of 100 jobs at Ericsson in Athlone. The implications of this on the local and national economy are undisputed, as is the need for the Minister, Deputy Bruton, and my friend, the Minister of State, Deputy Perry, in tandem with IDA Ireland, to support the workers and prioritise jobs for the midlands. I have been seeking a debate on the cutbacks since the announcement on 8 November.

I fully support the need to put every structure in place to assist the workers who have lost so much, and who must be given every assistance to gain new employment. My thoughts are with these workers and their families and I hope to work with the Minister in a positive way to assist them. All the supports of the State must be made available to these workers and their families. This is an issue about which my colleague, Deputy McFadden, is also very concerned.

Ericsson employs 700 people in Athlone and 1,200 countrywide. These jobs must be protected. The supports the Minister plans to put in place are of the utmost importance in the context of the potential fallout for workers from what the company describes as global restructuring.

This has also resulted in job losses in other Ericsson facilities around the world. The reality in my constituency of Longford-Westmeath is that the midlands are haemorrhaging jobs. Athlone has been left in shock by the latest losses. The announcement by Ericsson that approximately 100 workers are to be let go is nothing short of devastating for Athlone and the midlands generally.

Over 9,000 new jobs have been created nationally in IDA Ireland-supported companies since the start of 2011, but very few have come to the midlands. While I am delighted that the company is still committed to its Athlone facility, as demonstrated by the announcement last July of 100 high-end research and development jobs in Athlone, I am somewhat disturbed that 100 workers who are described as being in older, low-cost activities are now being shed six months later. No matter how this is rationalised, the end result is that 100 workers and their families are being left to cope with the devastating financial implications and adverse impact on their well-being. It is more than time for jobs to be prioritised for the midlands. Ongoing job losses must sound a note of alarm to IDA Ireland and focus its efforts on Longford-Westmeath.

The ten-point plan for small and medium enterprises in yesterday's budget is the most positive news for growth and will probably provide a window of opportunity for the midlands. Over the past few years, Longford-Westmeath has seen the closure of Chemical Electric and B3 Cables, and losses at C&D Foods, all in Longford. There have been agricultural losses in Longford and Westmeath, in addition to the loss of Army barracks in Mullingar and Longford, and the courthouse in Granard. It was announced yesterday that seven Garda stations are being closed in the Longford-Westmeath area. Meanwhile, the M4 from Mullingar to Rooskey is not assured, which represents an infrastructural loss for the midlands.

Longford-Westmeath is urgently in need of a rapid injection of inward investment. While the proposed Chinese hub in Athlone is an exciting prospect, there is no assurance that it will go ahead. I am reminded of the fanfare associated with Cardinal Health in Longford back in 2004 and the incredible fallout from the loss of a potential 1,300 jobs. Proportionally, the midlands have been neglected in terms of job creation opportunities and denuded of services to an excessive extent. Each loss contributes to the economic downturn, which is turning vibrant areas into dying centres. Communities are demoralised, while health services, educational facilities and businesses are operating at an inadequate level.

Michael Kitt (Galway East, Fianna Fail)
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Is the Deputy aware that he has two further minutes after I call the Minister of State?

James Bannon (Longford-Westmeath, Fine Gael)
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I know. Following the closure of seven Garda stations, security will be at crisis level. The recent job losses are another wake-up call which I am asking the Minister of State not to ignore. For many years, I have been calling for a task force which needs to be established to drive the economic recovery and provide jobs for sustainable growth in the midlands.

John Perry (Sligo-North Leitrim, Fine Gael)
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I would like to thank Deputy Bannon for raising this important issue. Ericsson originally established a manufacturing operation in Ireland in 1957 and now has three business groups based in Athlone and in Clonskeagh in Dublin. The research and development unit in Athlone employs 800 people. The Clonskeagh site employs 489 staff in its operations competence centre and 52 in its marketing unit.

The Athlone research and development unit has global responsibility for Ericsson's operation support systems. In June 2011, the Athlone unit announced its intention to create an additional 100 research and development positions over its then existing research and development staff level of 620. To date, it has created an additional 180 research and development positions, well in excess of the original plan. Over the past four years there has been a corporate emphasis on shifting research and development to the east in order to drive costs down. The latest corporate focus is on high performance rather than low cost and is driving a review of all research and development activities.

The job reductions announced by Ericsson on 5 November 2012 will take place under a voluntary programme. This is a significant aspect of this unfortunate reduction in numbers and one to be strongly welcomed. These job reductions result from a review undertaken by Ericsson's global operation support systems research and development business. The total headcount reduction in Athlone of 100 staff comprises 50 outsource management roles and 50 legacy systems development roles. The proposed rationalisation programme will solidify the Athlone operation and position it for further future growth.

Ericsson is fully committed to Ireland and has confirmed Athlone's global research and development status. It has also acknowledged the Irish management team's leadership in shifting towards a lean and agile operation, and is using it as the model for all its other research and development operations worldwide to follow. The company is a major contributor to the economy paying annual salaries of €108 million, PRSI and corporation tax of €11 million and expending €80 million in the local economy. Given the company's commitment to Athlone, I am confident that Ericsson will remain a strong employer with a significant economic presence here.

The midlands region, including County Westmeath, has the linked gateway of Athlone, Tullamore and Mullingar and, as such, will continue to be a key location of focus for the winning of foreign direct investment. My Department and its agencies will continue to promote Athlone and the surrounding area for industrial projects and enterprise development. These activities will, in turn, help to protect existing jobs in the area.

Job creation is central to our economic recovery and the programme for Government has this at its core. It is obvious that the Government does not create jobs - entrepreneurs and successful businesses do. However, the Government has a key role to play in providing the environment where businesses can start-up, expand and create jobs. The action plan for jobs, which was launched earlier this year, aims to transform the operating environment for business in order to support enterprise growth and job creation. The Government will achieve this objective by systematically removing obstacles to competitiveness, putting downward pressure on business costs, promoting innovation and trade, supporting new and existing businesses to develop and expand, and deepening the impact of foreign direct investment in Ireland.

In the action plan, the Government has also identified a number of key sectors where Ireland can gain competitive advantage in global markets. The role of my Department is to ensure that we have the right policies in place that will support and grow our enterprise base in order to facilitate both job creation and job retention. The programmes supported by my Department and its agencies will be critical in achieving economic growth and I know that the agencies - Enterprise Ireland, IDA Ireland and the county enterprise boards - will continue to promote Athlone and the surrounding area for industrial projects and enterprise development.

I am convinced that the actions we are taking across Government through this process will result in improvements to the operating environment for business and bring about a reduction in the numbers on the live register, as was shown in the most recent data from the Central Statistics Office earlier this week.

James Bannon (Longford-Westmeath, Fine Gael)
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I thank the Minister of State for his contribution and the fact that Ericsson is fully committed to Athlone and to Ireland generally. This is most welcome. I ask the Minister of State to remember, however, that there are many people in my constituency who suffer from severe depression because they are unable to find jobs. The midlands has probably the highest rate of unemployment to be found in the country at present.

The Minister of State mentioned that the midlands region, including County Westmeath, has the linked gateway of Athlone, Tullamore and Mullingar, but there is no reference to Longford. There is a need to revisit the national spatial strategy that was announced some years ago because it is out of date. Longford and other midland towns are not getting a fair crack of the whip. The Minister of State should consider this matter.

A task force should be set up next year to examine all aspects of employment and the jobs profile of the midlands in order to realise the potential of this gateway, including Longford, to all parts of the country. It has the potential to be a vibrant economic centre. We must at all times be conscious that we have lost two Government Deputies in the midlands. This is indicative of the outrage and despair that the withdrawal of services is causing to the region. The heart is being ripped out of the midland counties. We must acknowledge that this is happening and take action to remedy it. This situation cannot continue. I want to see action with the establishment of a task force to co-ordinate all agencies in order to bring jobs to the midlands, and particularly to my constituency of Longford-Westmeath. I am sure the Minister of State will take note of that and bring my concerns for the midlands to the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton.

I have spoken to him on numerous occasions about this and the time for talking is long over. I want action and want to see it quickly.

John Perry (Sligo-North Leitrim, Fine Gael)
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Deputy Bannon is very passionate about his constituency, which I greatly appreciate and he may be assured that I will tell this to the Minister, Deputy Bruton. As well as marketing the midlands region for new greenfield investment through its gateway of Athlone, Tullamore and Mullingar, the IDA continues to engage regularly with the existing clients in the region to assist in driving transformation and expansion opportunities in these companies, which can contribute to ensuring long-term sustainability and investment. I refer to research and development, investment in capital, technology, energy-efficient equipment and people, that is, upskilling and retraining. The majority of foreign direct investment, FDI, projects secured for Ireland are won from the existing base of approximately 1,000 multinational companies in Ireland. At present, there are 44 IDA-backed companies in the midlands, employing 4,624 people across a range of activities and centres. In addition to Ericsson, these companies include Covidien, PPD, KCI, Harmac Medical Products Limited and the NPD Group. These investments bring spin-off benefits right across the region through indirect employment and expenditure in the supply chain and indigenous supply of logistics, security, catering companies and so on. The IDA will continue to compete vigorously - I assure Deputy Bannon that I appreciate fully the manner in which he raised this matter - for both Ireland and the midlands region.

He should be assured that Enterprise Ireland's activity in Athlone and the surrounding area is focused on the creation of new jobs. The Minister, Deputy Bruton, has personally seen to this through supporting entrepreneurs to set up new high potential start-up companies. It is from the small acorn a large oak tree can grow and these new companies can be the future. As for the retention and creation of jobs in existing companies, it acts through the support of company development plans and enhancing the innovation capability of business. It is about supporting the existing companies through supporting research in those companies. Enterprise Ireland engages actively with its client companies and has a number of supports and initiatives in place to assist. In 2011, there were 95 Enterprise Ireland client companies in County Westmeath employing more than 2,100 people in full-time jobs. In 2011, Enterprise Ireland paid more than €1.4 million in financial support to client companies in County Westmeath and has paid almost €1 million this year to date. Enterprise Ireland also has supported the development of a community enterprise centre in Athlone.

In conclusion, it is important to remember that Ireland continues to be competitive in attracting new investment. More than 1,000 multinational corporations have chosen Ireland as their strategic European base and multinationals currently employ 146,000 people directly and many more indirectly. The Department and its agencies will continue to work with companies to safeguard existing jobs and to create new jobs. Moreover, the Government will continue to deliver on its commitment in the action plan for jobs, which will be an annual process setting out clear targets to be delivered each year to support job creation. I assure Deputy Bannon that any support that can be given by the IDA and Enterprise Ireland will be delivered.