Tony Killeen (Clare, Fianna Fail)

I thank the Senators for raising this matter on the Adjournment, particularly for the positive and constructive manner in which they presented their case. I was disappointed to hear of the recent decision, announced on 4 April 2005, by Microsemi Corporation to cease production at its Ennis-based manufacturing facility. Microsemi employs 44 permanent and 87 temporary staff in manufacturing in Ennis. These positions will be phased out over a 12 to 18 month period. The European sales and marketing team of 15 staff, which is also based in Ennis, is not affected by this decision.

The job losses come as a result of the company's decision to consolidate production in its US facilities, as these have surplus capacity. The company will provide a redundancy package and outplacement services for the individuals affected by the closure. The company considers that the closure of the Irish manufacturing operation is necessary to consolidate manufacturing for the overall Microsemi group. It regards this step as necessary for the group's worldwide manufacturing strategy and its ongoing competitiveness. The decision to absorb Irish manufacturing output into the US operation, where there is surplus capacity, in no way reflects on the performance and commitment of the Ennis workforce. I have offered to travel to Scottsdale, Arizona, should reorganisation take place along the lines mentioned by Senator Daly.

Finding alternative employment for the workers affected is a priority for FÁS and the State development agencies. FÁS has been in contact with the company to offer its full range of support services. However, it has been advised by the company that it is too soon to consider availing of FÁS services and that it would be more appropriate later in the year.

A meeting of Industry Ennis took place earlier to discuss the employment situation in Ennis. Industry Ennis was formed to capitalise on the Ennis information age town investment and to act as a one-stop shop for Irish industry, foreign direct investment and Irish mobile investment. The group's primary function is to support and, where possible, augment the services of the development agencies, including Shannon Development, IDA Ireland and Clare County Enterprise Board. The outcome of the meeting was that the Industry Ennis group will develop a strategy to address the employment situation in Ennis. This will build on the group's current work with the State agencies in continuing to promote Ennis through initiatives such as the Clare consul programme, which targets successful business people, mainly in Dublin, with Clare connections, as well as working with foreign direct investment itineraries.

Shannon Development and IDA Ireland are committed to the development of the mid-west region, including County Clare and Ennis, and are promoting them for foreign investment. Their efforts are being hampered and undermined by comments such as those mentioned by Senator Daly and the description of Ennis as "a ghost town". It is the fastest growing town in the west but competitors under consideration of new foreign direct investment do not know that and when they read descriptions of Ennis in The Irish Times as "a ghost town", it seriously undermines the chances of attracting new industry.

Last year was successful for the mid-west with investment decisions by Cook Incorporated and Power-One Ireland Limited in Limerick and Organic Lens in Ennis, representing significant additions to their existing operations. In addition, Monster Cable announced a greenfield project for Ennis. Organic Lens will implement a €6.5 million investment for the development of its manufacturing operations in Ennis, which will create 100 jobs. Monster Cable has announced its intention to establish a shared services centre in Ennis, which will create 50 jobs.

A central goal of IDA Ireland is the achievement of balanced regional development. The national spatial strategy provides a framework for the achievement of this goal through the prioritisation of development and investment in the linked gateway of Limerick-Shannon and the hub location of Ennis to allow foreign direct investment needs to be met. The sectoral emphasis for IDA Ireland in the mid-west is on attracting new knowledge intensive projects in information communications and technology, international services, medical technologies and life sciences. Between 2001 and 2004, IDA Ireland companies in the mid-west committed to research and development projects worth €37 million.

The agency works closely with the local educational infrastructure in the University of Limerick and Limerick Institute of Technology to foster collaboration between industry and academia with a focus on research and development and emerging new business sectors, for example, digital media and e-learning. In the Shannon region overall, Shannon Development has invested more than €40 million in developing the Shannon Development knowledge network at five locations. Four of these are under way.

Shannon Development has recently completed construction of phase one of the fifth knowledge network location, the information age park in Ennis, with an overall investment of approximately €2.5 million in land, infrastructure and buildings. The park provides 46,000 sq. ft. of world class incubation, expansion and own door office accommodation in an urban park environment on the outskirts of Ennis. This investment marks the first phase of a significant development for Ennis. It is expected that the park will attract continued investment by both private and public sectors over the coming years. Shannon Development's regional office for Clare will relocate to the information age park Ennis as part of the development. The park will become one of the Shannon region's premier locations for working and living, combining state-of-the-art business services and connectivity with thriving local town facilities and access the finest leisure facilities. A total of €110 million will be invested between the public and private sectors in the new park over the next 15 years. The park will cater for office-based knowledge driven activity such as research, software development, back-office type activities and headquarter facilities.

This initiative is a visible demonstration that the Government is committed to delivering balanced regional development in Ireland and the launch of the information age park Ennis provides a good illustration of County Clare's participation in that process. The park will help to spread development in Clare from the traditionally strong focus points of the airport and the Shannon free zone. I acknowledge Senator Dooley's reference to the launch earlier of a new centre, which will be hugely successful and will be of enormous benefit to Ennis and Clare. I am satisfied that the State development agencies continue to market Ennis and County Clare for investment and will make every effort to secure alternative employment for the staff affected by the job losses at Microsemi.