Seanad debates

Wednesday, 28 September 2011

Company Closures: Motion (Resumed)

 

4:00 pm

Photo of Colm BurkeColm Burke (Fine Gael)

I welcome the Minister of State to the House. I also welcome the debate on this motion. When job losses such as those in Waterford are suffered in any area, it hits the area hard. With the loss of these jobs following the major job losses at Waterford Crystal the blow is that much harder and it is more difficult for people in the area to cope with the loss. It is important that we prioritise job creation in that area and that a comprehensive programme is set up to encourage companies to come into the area.

I wish to refer to the European globalisation fund. I happened to be in the European Parliament when Dell announced the closure of its operation. I sought a meeting with the European Commissioner and got a meeting within three days of that announcement. The globalisation fund was only aimed at providing funding to an area where jobs were lost to countries outside Europe and there was a loss of more than 1,000 jobs. We sought to get the regulations changed. In the case of Dell, the jobs were being lost to Poland. We complain a good deal about Europe and the delay in it reacting to a situation but within six weeks the changes we sought were made. It was accepted that the jobs no longer had to be lost to countries outside Europe before an area would qualify for the training grants. When Waterford Crystal announced its closure the number of jobs lost did not amount to 1,000. In real terms there was such a loss but there were not 1,000 jobs lost in the company. We secured an amendment to the regulations such that the fund could be applied to an area which lost 500 or more jobs. That shows how the European Union was able to react to the changes that were required in order that an area would benefit.

The third change was getting the requirement whereby Europe contributed two thirds of the funding, with the Irish Government contributing one third. It is extremely important that an immediate application is made to the globalisation fund for Waterford, more so than for any other area due to the substantial job losses that have occurred there in the last few years. It is also important that we learn from the mistakes that were made in Limerick with the administration of the fund. Although I did not hear the particular programme I understand that Mr. Denis Ryan spoke about that issue on the radio during the week. He is a former employee of Dell and was very involved in the administration of that fund. There should be consultation with people such as Mr. Ryan to ensure we can use the fund effectively in Waterford so people can get real training, be encouraged to set up their own business if they wish to do so or, if another business is coming to the area, be given the training and assistance required. It is a great opportunity to use the fund and ensure there are benefits from it for the employees.

This type of blow causes huge disillusionment. One often finds in companies such as this that both partners in a household are working for the company, which means it is not just one household income that is lost but both. Alternatively, there might be two or three children from the same family working in the company and it has a devastating effect on the family in terms of the support they provide, and on the local area.

The other issue I wish to raise, which I raised in the House this morning, is the interconnection between the UK and the US which is being put in place at present. There is a need for it to connect to Cork, which would service the entire west coast. Savings could be made through that interconnection. I refer to the Hibernian Express cable and the importance of Internet access. The Minister has just given me a press statement which I had not seen.

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