Michael Ahern (Cork East, Fianna Fail)

I thank the Senator for raising this matter on the Adjournment. It was disappointing to hear of the recent decision by Saehan Media Ireland Limited to make 70 workers redundant in Sligo. The company has decided to cease production of large reels of video tape and to concentrate on production of video cassette tapes. The decision to cut production lines, according to the company, was as a result of increased competition from cheaper Far East competition. Finding alternative employment for the workers affected is a priority for FÁS and the State development agencies. FÁS has already been in contact with the company to offer its full range of support services, which include skills analysis, job placements, guidance and counselling interviews, identification of training needs and suitable training courses.

The north west is a priority location for the State development agencies. In recent years, IDA Ireland has been able to attract new investment in emerging sectors such as international services, life sciences, including medical technologies, software and high-end engineering. Employment in the region has in the past been dependent on traditional sectors such as clothing, textiles and low-end manufacturing. The transition to a high skill, high technology regional economy will take time to achieve. However, for counties Sligo and Leitrim total employment in overseas firms has risen by almost 30% since 1999, from 2,003 to 3,641 persons.

In that context, IDA Ireland has radically changed its policy with a commitment to deliver new greenfield jobs into the Objective One status regions, including the north west. The agency continues to try to secure new investment for Sligo and Leitrim and is committed to playing its part in the development of the region by maintaining the maximum number of existing jobs in overseas industry and by attracting new foreign direct investment to the region. The north west continues to be marketed for new investment. IDA Ireland has relocated its key engineering and consumer products division and part of the international services division, including software, to the region. This work of marketing the region for new investment is ongoing and there have been a number of other developments in the region.

In July 2001 Abbott Laboratories announced that the company planned to establish a major new pharmaceuticals manufacturing facility in Sligo, which will employ 195 people. Construction of the project has been completed and production has commenced. A planned €45 million investment by the company in the expansion of its diagnostics facility at Finisklin and a further €55 million in the development of a new facility in Longford will create 350 jobs in Sligo and 600 jobs in Longford. Construction of both facilities is well under way and recruitment is ongoing. Eaton Corporation, a global $8 billion diversified industrial manufacturer has established a new operation in Manorhamilton and now employs approximately 200 staff. The company has plans to develop the business further in Manorhamilton and has been recruiting over the last 18 months. MBNA, the world's largest independent credit card lender and the leading issuer of endorsed credit cards, has established a new contact centre at Carrick-on-Shannon, County Leitrim. The company invested €32 million in an expansion project in 2002. This investment brought total employment to approximately 1,000 staff and recruitment is ongoing.

To encourage further investment, IDA Ireland has extended its Finisklin business park and the existing park has been upgraded to international standards. In conjunction with local private developers, IDA Ireland has provided three advance office buildings in the park which are being marketed to suitable services-based projects. Planning permission has been obtained for advance technology facilities at Finisklin and these buildings will be constructed by private developers when progress has been made on securing projects for the existing properties.

The agency has also invested significantly in the development of Keenaghan business park in Carrick-on-Shannon and, in conjunction with a property developer, has provided a new 2,400 sq. m. advance technology building on the park, which is being marketed for new investment. In June 2004, Enterprise Ireland approved €750,000 for the institute of technology in Sligo for the development of a design centre of excellence under its applied research enhancement programme. Utilising in-house expertise and recruited design expertise, the centre will carry out applied design research to support Irish industry.

Enterprise Ireland is proactive in increasing the overall level of innovation in the north west. In this regard, linkages to third level colleges are important. Under the enterprise platform programme, the agency partners the institutes of technology in Sligo and Letterkenny by providing funding for eligible participants to attend the programme and develop business ideas. Given the representation of State agencies and the county council on the Sligo County Development Board, it is considered that, should any further co-ordination be necessary, the county development board would be the most appropriate forum to fulfil this function. In the circumstances, the Minister does not propose to establish a task force for the area. I assure the Senator that the State development agencies, under the aegis of the Department, will continue to market County Sligo for investment and will make every effort to secure alternative employment for the staff who are being made redundant.