Fidelma Healy Eames (Fine Gael)

I thank Senator O'Reilly for his kindness in sharing his time with me.

I wish to be helpful here today. All around us companies are falling and unemployment is increasing, I heard Senator Harris say this morning that he was fearful that the number unemployed could rise to 700,000 by the end of the year. I heard on the news last night that Celestica in Galway, a contract manufacturing company that makes inkjet cartridges, is seeking 80 voluntary redundancies. I wrote to that company this morning and it has responded to me to the effect that it can be helped. It is important to share this information with the House. I asked the company if there was any action or initiative the Government could take now that would enable it to retain the 80 jobs at risk? I asked if it would reconsider its position if a change was made, for example, in the rate of employer's PRSI, and if a subvention grant per person per year for less than the amount of his or her social welfare payment, for example, €5,000 per person, would enable the company to keep these people employed? The answer I got was "Yes". The costs that are killing the company are utility costs, including ESB costs. Since September 2008, the company's ESB bill has increased by €500,000, a 34% increase. Furthermore, it is tied into that contract for 12 months. It needs the Government to get it out of that contract immediately if it is to save those 80 jobs. This is good news. If we know that ESB costs is the cause of the potential loss of these jobs, we can do something today. We must reduce this cost base, as Senator O'Reilly said. The person in the company went on to say that we should ask all companies by how much their ESB bills increased since last autumn. We should ask Intel and Dell that question. This is something we can control because the regulator has not acted.

The second cost, about which we all know, is the cost of labour. The person in the company gave me some interesting information. He said he is out there bidding for work. Even though we are in a world recession, there is still work for which to bid. Anything that will help him with the bidding will make a difference. He said, if the company can say with clarity that the Government will keep costs down over the next five years, the company will be more competitive.