Seanad debates

Wednesday, 23 February 2005

5:00 pm

Michael Finucane (Fine Gael)

In seconding the amendment I recognise that there have been some positive features in employment over recent years, especially the construction boom. The boom, however, is creating certain difficulties as there are people from new EU member states such as Poland who are not being paid at proper rates. When contractors for these countries quote for contracts in Ireland, as they are perfectly entitled to do, is it pointed out to them in their cost estimates what type of labour rates prevail in this country in construction? It is important for them to know this before they enter the State and not to repeat the situation experienced by Polish subcontracting workers or Turkish road workers outside Ennis, although I do not know if the latter case has been proven. It has become a feature of working in this country that joint ventures and subcontractors from abroad must fuel their activities in the construction boom in this way.

My concern surrounds indigenous industry. This motion is personally timely because, for a long time, I have felt that west Limerick has done well on an economic level in terms of the degree of activity it has experienced. However, four industries have been lost within a radius of five miles in a rural location over a period of three weeks. One such industry was the Kerry Group plant in Kantoher, which operated as Kantoher Products for over 100 years before Kerry Group took over in the early 1990s and sustained the production of chickens. One would have anticipated that, under the Kerry Group banner, it would have been extremely successful, but the group said that the plant was not competitive. At the same time that it announced the closure in Kantoher, Kerry Group announced a €20 million investment in south-east Asia. I was saddened to read of this occurring in my area.

Drum Engineering in Drumcollogher closed with very little fanfare or publicity, amounting to a loss of 30 jobs. A very successful entrepreneur, Mr. John O'Reilly, closed his vegetable business with a loss of another 30 jobs. O'Kanes has reduced its workforce in Castlemahon Foods by 150. I equate this loss of 350 jobs overall within such a small rural area as a devastating loss on a par with 1,000 or 1,500 job losses in Dublin businesses such as Packard Bell. Whenever an industry closes, there is an immediate call to form a task force. If a question were asked in the other House on how many task forces there are around the country, one would be staggered by the answer.

I remember that Giro was the last overseas company attracted to west Limerick. That was in 1991. It vested itself of the assembly unit and currently has a marketing unit calling itself Bell Sports. There were advance factories and economic buoyancy in the area, but then the factories began to close. One does not ordain the headlines in newspapers such as in the Irish Examiner of 22 February 2005 which stated "Finucane attacks Shannon Development". I was critical of the organisation. If one decides to develop an industrial unit into a series of retail units, and one later decides to allow another unit offering repair and maintenance to the county council, in the case of Newcastle West, to move from one location to another, by definition one is saying that industry cannot be attracted into these areas. A factory that lies idle does not provide Shannon Development with a revenue base, while renting out development and retail units does so. With regard to the sort of gloom that exists in our area, what signal is being given regarding the possibility of attracting alternative industry? I would like to see the Minister for Enterprise, Trade and Employment, Deputy Martin, visit the area and say that an effort will be made to find alternative industries. We may be buoyant regarding developments in the chemical, pharmaceutical and health care sectors, but we are losing out on the indigenous side.

I know that global forces currently predominate and that with regard to chicken processing we have imports from France, Holland, Denmark, Brazil, Thailand and many other countries. I noticed recently that if one bought an Irish chicken the producer's name and address were on the front of the packaging. Some of the chickens coming into this country are being packaged here but originate from outside the EU and are being passed off as Irish produce. It all comes down to traceability. The sooner that is introduced the better, so the consumer knows if the product is Irish or not.

Regarding the Industrial Development Authority, I wonder if its vision is confined to the main urban areas. There was a commitment given in Government policy that it would try to move outside the greater Dublin area. I would like to see part of that office dispersed in the mid-west region. The IDA has an opportunity to at least make a statement. It regularly made statements in the past to the effect that it was committed to seeking alternative industries for areas. I no longer see such statements coming from State agencies because in many cases they themselves become part of the task force. I would like to see a more positive drive towards establishing industries, which is why the issue before us is timely.

In recent times we have had changes in the status of Shannon Airport, a pivotal tourism area which is also important in terms of the employment it creates around it. If one wants to attract more people to that airport, the major problem is a deplorable road from Ennis to Galway. Infrastructure must be there in order to open up the west. There is a very good road from Limerick to Shannon and a reasonably good one to Ennis. The Ennis bypass will be built but currently one has to continue on that road. I hope the bypass will be a priority over the next few years. It is fine for Ryanair and other airlines to go into Shannon and create the buoyancy required there but one needs the infrastructure in order to attract people to that area.

I make the following point constructively. If one were considering a business, would one know to go to local Leader groups or to the county enterprise board? When would one go to Shannon Development? Would one approach the IDA? Where does one go in this regard? It struck me a long time ago that a one-stop-shop is needed because so many bodies are involved, though as a member of the county enterprise board for many years, I have seen a lot of good work done by it with regard to small industry.

I extend an open invitation to the Minister, Deputy Martin, even in the context of this laudable motion, to visit my area and see what is happening on the ground. He might then realise that the Celtic tiger is beginning to pass some of us by.

Comments

No comments

Log in or join to post a public comment.