Seanad debates

Wednesday, 2 February 2005

7:00 pm

Photo of Marc MacSharryMarc MacSharry (Fianna Fail)

I welcome the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Michael Ahern. Over the past two weeks in Sligo the consumer goods manufacturer, Saehan Media, a Korean company, announced the latest instalment in its wind-down of the production of video tapes, and redundancies for 70 employees.

That follows on from 80 redundancies the previous year, bringing the total to 150. The Minister of State will appreciate this is a matter of great concern to the people of Sligo and the families who find themselves facing the most desperate scenarios. The traditional manufacturing sector in Sligo has suffered particularly badly in recent years in that Hansons, an old manufacturer, closed two years ago with the loss of 150 jobs, bringing the total losses in recent years to 300.

I call on the Department of Enterprise, Trade and Employment to set up a task force or employment initiative similar to those set up in other parts of the country when redundancies or closures of factories occurred. Saehan Media Ireland Limited is a producer of video tapes and given the natural move in most households to the use of DVDs, the long-term outlook for such companies does not inspire confidence, although Saehan is confident it will secure the future of the company with the latest round of redundancies.

IDA Ireland and the other agencies are working extremely hard and have an exceptional staff in the north west. However, in the context of the significant losses in the traditional manufacturing sector in recent years, it is of the utmost importance that the Minister and his Cabinet colleagues engage with the agencies to inject a renewed impetus into the attraction of foreign direct investment and indigenous manufacturing and service industry to this region. The north west has been highlighted as neglected in terms of the creation of new employment or the attraction of foreign direct investment. However, while as a result of the prioritisation of the IDA, the area succeeded in attracting 50% of all new projects, most are located in the midlands, on the periphery of the BMW region and as close as possible to Dublin and its easy access to foreign markets.

I hope the Minister of State will look favourably on this request given the plight of the families who will be affected when these redundancies occur and those who lost their jobs in recent years. Traditionally, IDA Ireland and other agencies have had difficulty in attracting new foreign direct investment to the area in terms of value added manufacturing and service industry, given the infrastructure deficiencies of the region. While much still needs to be done in this regard, there has been significant improvement due to the Government's commitment under the national development plan. To enhance the great work being done by IDA Ireland, the Minister and his Cabinet colleagues should engage fully in the process to enhance the possibility of attracting the investment of foreign companies and Dublin or city-based indigenous industries which are considering relocation or decentralisation throughout the country.

I appeal to the Minister of State for direct Government intervention with IDA Ireland but the motion does not reflect on the great work being undertaken by IDA Ireland and other agencies in the north west. However, while many groups are looking for their areas to be prioritised, the north west has a particular case given the recent plight of Saehan Media, which announced 70 redundancies, bringing the total job losses in that area to 300 in recent years. I thank the Minister of State for coming to the House and call for the setting up of a task force or initiative for Sligo and the wider north-west area.

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