John Perry (Sligo-North Leitrim, Fine Gael)

I thank the Senator for raising this matter on the Adjournment.

The Minister, Deputy Bruton, understands the huge blow this is for Waterford, in particular for the workers concerned. The Minister was first informed of this decision on Wednesday, 7 September, the day it was to be announced. He was dismayed, as was the IDA, at the manner in which this was handled. In discussions with the CEO, local management and the representatives of head office in Waterford on Monday, 12 September the Minister continued to press for a longer period of operation to allow workers to adjust and also to give the IDA every chance to market the company effectively as a going concern. A plant with workers and skills is much more saleable while in operation than if closed.

The Minister had a series of meetings with public representatives and business. He met the workers, management and the city manager and business interests in Waterford. The clear message was that Waterford had not benefited from advances in the good times and has been of late badly affected in the more difficult times. On foot of that, the Minister instructed the relevant agencies to put together an action plan for Waterford and the south east region which will intensify how they are being supported and to identify the strengths and weaknesses of the region. This was reflected in the discussions the Minister had with local representatives. There was a sense that there needed to be a hard analysis of the reasons Waterford, given its strengths, has not been more successful. That is the task that the Minister has set the State development agencies to complete within one month.

When that analysis has been completed the Minister will look afresh at what action can be taken and whether there are further, deeper issues that need to be assessed in some other way. The Minister is determined to give Waterford the priority it rightly deserves. It is important to put on the record at this point that the Leader has since the date of the announcement by Talk Talk been raising this issue with the Minister. A casual view of unemployment numbers and the history of industrial performance in recent times indicates there are things that are wrong. The Minister is committed to having an effective action plan to address these. There are issues of a long-term and short-term nature which can be addressed in the near future. We need to take a hard look at how we can better support the enterprise sector in Waterford and to set out the actions we can take in the short and longer term.

The Minister has acknowledged the support of Cabinet colleagues. The Minister for Social Protection responded immediately and staff from her Department have spoken with staff of Talk Talk. The Minister for Education and Skills also responded immediately and the support of FÁS is in place. In addition, the Minister for Education and Skills indicated that work on the proposal for a technological university, which is to be explored as part of the programme for Government, is being accelerated. This issue has also been raised with Government on an ongoing basis by Senator Cummins. Clear criteria will be developed for that opportunity, which arose in discussions.

We need immediate action in the enterprise domain, but the Minister also recognises that this assessment of strengths and weaknesses will throw up issues that are relevant for other Departments. On foot of that, the Minister will bring to the attention of other Departments areas of action in respect of which they have the potential to assist. The Minister accepts that IDA Ireland has been meeting its target for 50% activity outside Dublin. However, for whatever reason, Waterford has not been doing as well as other regions outside the capital. The Minister acknowledges there is an issue as to why Waterford, despite its offerings and significant strengths, is not performing as well. That is why it is important to examine this matter to see what items we can correct in the short term to enhance that performance. It is our ambition to see Waterford doing better from overseas investment arid indigenous companies. We need to create an engine of indigenous growth in this country and it is disappointing to see that the indigenous sector's contribution to our exports has not grown very significantly. We must re-examine weaknesses in that regard.

In this context, the Minister has directed the relevant agencies under his remit to report back to him before the end of this month with an audit of their activity in the region and proposals on what additional efforts can be made to reverse the disproportionately negative trend in employment. This feedback will contribute to and allow the Minister to oversee the preparation and implementation of a south-east employment action plan to investigate the causes of the problems facing Waterford city and its hinterland and will outline a list of actions to be taken by Government over the short, medium and long term to seek to address these.