John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank Senator Higgins for raising this very important issue. I apologise for the absence of the Minister, Deputy Bruton.

I share the Senator's concern about the loss of up to 30 jobs at ALS Minerals in Loughrea. In 2011, ALS Limited acquired the Stewart Group, a UK-based mineral testing services company which owned OMAC Laboratories in Loughrea. Following discussions with IDA Ireland, a grant package was approved in May 2012 to support the designation of OMAC as the hub laboratory for the Europe, Middle East and north Africa region, and for the creation of new jobs in Loughrea. OMAC has recently moved from its 8,000 sq. ft. facility in the town into the IDA-owned former Cigna building, following extensive updating and modification.

Over the past 12 to 18 months, the global mining exploration industry has experienced a sharp downturn and although this is not unusual given the cyclical nature of the industry, the downturn has resulted in a significant decline in samples available for testing at the recently completed geochemical laboratory in Loughrea. Against this backdrop, the local management has taken measures to reduce the cost base in an effort to preserve its core employment levels. As a result, it has entered into a 30-day consultation period with the work force and anticipates that this will result in the lay-off of up to 30 staff in Loughrea. Local ALS management has stressed to IDA Ireland that the company's strategy has not changed and that the Loughrea facility remains strongly positioned to take advantage of the next upturn in the global exploration industry, and that it remains committed to the region. IDA Ireland is continuing to engage with the company at local and corporate levels.

Notwithstanding the effects on the employees and their families of the job losses at ALS Minerals in Loughrea, I consider that it is neither practicable nor effective to establish jobs task forces or specific jobs plans around the country as a general mechanism to address such job losses, and to embark on such a course would involve diverting the various State agencies from their ongoing efforts to create jobs. A considerable administrative commitment is involved in servicing any additional committees and groups which may be set up and, given the constrained staff resources facing all public sector bodies at present, I am strongly of the opinion that establishing such additional groups, except in very exceptional circumstances, would not be in the best interests of using the State's resources effectively.

At local level, there is already an employment focus being taken by the enterprise agencies which continue to provide assistance and advice to start-up companies and entrepreneurs with business ideas that have a strong export and job creation potential. Examples include Galway County Enterprise Board, which to date this year approved funding for 17 new projects in the county to the value of €506,302 that will create 48 full-time jobs and sustain 56 jobs. Some 97 business people have already attended networking sessions run by Galway County Enterprise Board this year and in addition, the board will run a road show this month promoting local business start-ups in a number of towns, including Loughrea.

There are currently 59 IDA-supported companies in Galway city and county, employing 10,887 in permanent jobs and a further 2,009 in contract employment. The numbers employed in IDA-supported companies in Galway have increased every year since 2007 and the numbers currently employed are the highest in a decade. There has been development of IDA property solutions in the county, including business and technology parks in Galway city, Tuam, Ballinasloe and Loughrea. Galway is designated as a gateway city under the national spatial strategy and Loughrea is included in the Government's regional broadband programme. There is a clear focus on Galway city and its surrounding towns for investment and development.

Enterprise Ireland is working with the county development board, which comprises other State agencies in the enterprise sector such as Galway city and county enterprise board, Údaras na Gaeltachta and the Western Development Commission. There have been presentations to the board on a number of occasions with regard to the activities of Enterprise Ireland in the region. Enterprise Ireland is available to support anyone in Loughrea or Galway who wishes to establish a new business or, if they have a business idea, help take the idea to the next stage of development.

Employment in Enterprise Ireland client companies in County Galway over the past two years has shown solid growth, and there has been a 16.8% employment growth over the past two years when full and part-time jobs are considered. Many Enterprise Ireland client companies in Galway are continuing to recruit staff, particularly in the technology sector, and many have been growing their export markets in 2013. Enterprise Ireland is continuing to strongly support existing client companies in County Galway with €4 million in funding approved for Galway-based companies to date in 2013. I am confident there will continue to be ongoing co-operation between the enterprise agencies in the city of Galway and surrounding towns, and focusing on synergies between the agencies will lead to targeted growth and investment in the region.