Paddy Burke (Fine Gael)

No one can dispute the fact that we have the lowest unemployment rate for many years. We accept that fact. However, there are pockets that have been identified as unemployment blackspots. For the first time in ten years, County Galway experienced a substantial rise in unemployment last month. That is regrettable, because areas in Galway were identified for development in the past ten years. The Minister visited Ballinasloe last month. Over the past seven years, 1,300 jobs were lost in that area. AT Cross was the first to go and it was the flagship of industry in County Galway. The engineering company Square D followed two years later. Now the Dubarry shoe company has closed. These three major employers in Ballinasloe went one after the other. That occurred in addition to the fact that we had lost jobs in other areas of the town. St. Bridget's Hospital lost a further 700 jobs which were displaced from Ballinasloe and scattered throughout the county.

As far back as seven years ago, a task force was formed under the Minister's predecessor and all the agencies were called in to encourage industries to come to Ballinasloe. While they have not failed completely, were it not for the fact that the county enterprise board stepped in under the leadership of its CEO, Mr. Charles Lynch, we would not have had any input in the area of job creation. That is unfortunate.

Enterprise Ireland has invested in the area as a result of the foresight and hard work of the local enterprise group, which the Minister met on his visit to Ballinasloe. An industrial park is now to be developed. The fact is that 12 people visited Ballinasloe as an area that was suitable for development, where the facilities were readily available and where the infrastructure was ideal. It is a sad situation when the IDA cannot convince those people that Ballinasloe is an ideal place for investment. There was very little industrial difficulty there over the years. There are good facilities, including schools, a hospital and a connection to the road and rail networks. However, we still cannot attract investment.

I am convinced that the only way that confidence will be restored to Ballinasloe is if the Government takes the lead by way of investment or incentives. I ask that the town of Ballinasloe and the middle Shannon area are designated for tax incentives. I know the Minister will claim that we cannot give tax incentives to certain areas as Europe will stop us. The important thing is that we are talking about a catchment area of 6,000 people who always depended on Ballinasloe as the focal point. It is probably the only town in the west of Ireland in which there is a declining population. The numbers on the register of voters declined between 2002 and the last local elections not because people were not included but because fewer of them live in Galway East. I call on the Minister to acknowledge that unless the Government leads by creating an incentive to restore confidence, those who currently live in the constituency will also leave. It is important to provide leadership.

We hear regularly about the various factors which lead to job losses, but there is no doubt that the west of Ireland is disadvantaged in many ways. Transport costs to move goods between Ballinasloe and Dublin Port, whether importing raw material or exporting goods, are high. We are at a disadvantage because of our location. While the IDA has done tremendous work in certain areas, a 1996 ministerial directive aimed to ensure the authority delivered an even distribution of industry through the regions has not been implemented. There has been a mindset within the IDA over the last number of years which leads it to consider Dublin, Cork, Waterford, Limerick, Galway and Athlone while Ballinasloe has been left isolated between the last two centres. It is a difficult scenario.

The proposal to decentralise represented an ideal opportunity to demonstrate confidence in the town and we should have indicated that a worthwhile Department would be moved there. The uptake for the proposed decentralised NRA office in Ballinasloe was poor. If a serious effort were made to decentralise a reasonably significant body, it would demonstrate the confidence of the Minister for Enterprise, Trade and Employment in the area. I acknowledge that the Minister is not responsible for decentralisation and has enough blame on his plate without being blamed for the many failures within that process.

It is not too late to take advantage of the opportunity presented by the identification of a development triangle among Athlone, Mullingar and Tullamore. I ask the Minister to consider this. Ballinasloe is only 14 miles west of Athlone and could easily be incorporated into the development area to bring it to the attention of the IDA. Despite protestations to the contrary, the IDA has failed miserably to support Ballinasloe as evidenced by its failure to convince 12 potential inward investors who presented with proposals for the area. What is wrong? The infrastructure in Ballinasloe is sufficient as is its tradition of industrial employment. A Minister of State from the area has served for seven years in various Departments, especially the Department of Enterprise, Trade and Employment, but he has failed to deliver for Ballinasloe. The Government has reneged on its commitment to the town.

We must bin the global figures for the country as a whole as they ignore the black spots which exist. I urge the Minister to recognise the need for the Government to take action to restore confidence to people in areas like Ballinasloe.