Tom Parlon (Laois-Offaly, Progressive Democrats)

I thank the Senator for raising this matter on the Adjournment. I have come to the House on behalf of the Minister. I was also present for the debate on Connacht rugby, during which everyone indicated their support for the province. No insensitivity was intended when the Minister made the comments to which the Senator referred. I hope my response will be devoid of the clichés and jargon which concern him.

The announcement by Square D on 15 January 2003 of plans to close its Ballinasloe plant by the end of June 2003 with the loss of all 387 jobs on its books cannot be described as anything other than a severe body blow for the members of the workforce, their families and the local community. It is a priority for the Minister to ensure that everything possible will be done to find new investment and new sources of employment for Ballinasloe, although I am aware this will not be an easy task.

Established in 1971, the Ballinasloe facility manufactures the Square D brand of electrical circuit breakers sold primarily in North American markets. The closure decision, according to the company, reflects significant change in market demand for circuit breakers, resulting in over-capacity in manufacturing operations at the group's North American division. A number of the group's North American manufacturing operations have already been moved to Mexico.

In an effort to lessen the impact of the closure, the North American division of the parent company, Schneider Electric, has stated it is committed to working with IDA Ireland and the Irish authorities to find manufacturing firms interested in the Ballinasloe plant, which may be in a position to offer suitable job opportunities to a well qualified workforce, assist Ballinasloe employees obtain new jobs, provide outplacement assistance and job search training, offer counselling and information to employees on company paid benefits and provide five weeks' severance pay per year of service in addition to statutory redundancy entitlement. The agencies under the remit of my Department are also working to lessen the impact of the closure.

IDA Ireland has been aware of the difficult market conditions being experienced by the company for some time and began to intensify discussions late in 2002 when it became apparent that the company was in difficulty. IDA Ireland has already brought one potential client to view the plant and will continue to explore other possibilities as well as seeking out other potential clients. FÁS, the national training authority, has already been in contact with the company and is to meet the company management with a view to offering its services to all staff.