Billy Kelleher (Cork North Central, Fianna Fail)

I thank the Acting Chairman for his kind words. I thank Senators Coffey and Cummins for raising this important matter. For some months past the Government has engaged with the management of Waterford Wedgwood plc following a request from the company for support to assist in the implementation of a restructuring plan. The support sought was to fund planned restructuring in Waterford Crystal which would entail approximately 500 redundancies.

As Waterford Crystal is a major Irish employer with an internationally recognised brand and a solid history of exporting achievement, especially in the US market, the Government was most anxious to ensure its request for assistance received the fullest consideration. Accordingly, detailed discussions were held with the company with a view to identifying possible interventions that would assist it to complete the planned restructuring in Waterford successfully, while not undermining the policy position that has underpinned our enterprise development strategies over recent decades. Unfortunately, it was not possible to accede to the company's request.

The thrust of enterprise strategy adhered to by all Governments over the past 20 years or so is to concentrate State support to firms on investments which will help them to compete successfully in an increasingly globalised economy. The Government sees its role as helping to create an economic environment where business can prosper, focusing on interventions that are related to developmental investment by companies, such as research and development grants, support for upskilling, etc. Such policy does not extend to providing the type of support sought by the company in this case.

The effects of globalisation are felt in even the smallest markets and global competition will intensify and extend its reach. The Government has recognised the inevitable changes taking place across world markets for both trade and investment. Enterprise policies aimed at equipping companies with the ability to compete better in world markets, capture the opportunities from globalisation and build competitive advantage in innovation and knowledge have been central to policy development. The best response to globalisation is to ensure Ireland remains attractive for investment and enterprise growth. Our attractions include a competitive tax and regulatory environment, a well-educated workforce, rapidly improving infrastructure and a commitment to world-class standards of research, development and innovation. Maintaining and improving these standards is vital to sustaining Ireland's competitiveness.

While it has not been possible to accede to the company's request for support in this case, the Government believes there is a solid future for a restructured Waterford Crystal operation in Ireland and asks that the board of Waterford Wedgwood, its management and its staff work together to agree such financial and other measures as are necessary for the successful implementation of the restructuring plan. Reference was made to the following point. Any request or proposal from the company for aid for new investment will be considered sympathetically by the enterprise development agencies as appropriate.

We fully understand the depth of feeling and the concerns expressed by the Senators, but we also have strategies in place and we are confident that what we are doing in the context of the south east will provide job opportunities and investment through the State agencies in the greater Waterford area. I thank the Senators.