Seanad debates

Tuesday, 9 November 2004

6:00 pm

Rory Kiely (Fianna Fail)
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I welcome the Minister of State at theDepartment of Enterprise, Trade and Employment, Deputy Killeen, and congratulate him on his promotion. I have not had the opportunity of doing so in this House since he was promoted. I wish him every success. I am delighted to see a neighbour, and Munster man being promoted, especially one from County Clare, the banner county.

Photo of Ulick BurkeUlick Burke (Fine Gael)
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I welcome the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen. I wish him well in his new appointment for however long it may last. In 1999, the closure of the AT Cross factory heralded the beginning of three major job losses in Ballinasloe, with the result that 900 jobs have been lost since 1999. The Tánaiste and then Minister for Enterprise, Trade and Employment, indicated that she prioritised the area because of her connections there, her commitment to the west of Ireland and the equal opportunity for investment throughout the country. These were the reasons given and she called on all the agencies such as the IDA, Enterprise Ireland, FÁS, the local county enterprise board and Galway Rural Development to commit themselves to prioritise Ballinasloe. We were supposed to get review after review, but the only review carried out was an announcement of a further closure. The closure of Square D followed in rapid succession to AT Cross. Last September, we had the final nail in the coffin when Dubarry shed 40 jobs. Nothing remains of the three except a skeleton workforce in Dubarry, which is now only a distribution centre for its products.

Despite all the commitment and determination shown by various groups, nothing has happened. Nobody has ever heard of the reviews carried out as there was nothing to review except failure. There is a belief in Ballinasloe that along with those 700 jobs, the 1,300 public service jobs decentralised from Saint Brigid's hospital to other areas of the community have also been lost to the town. When we speak about decentralisation, we must realise that only one individual has indicated that he or she is prepared to go to Ballinasloe with the agency that is supposed to move there. This Government has turned its back on the people of east Galway and Ballinasloe in particular. If it was serious, it could surely have recognised that Ballinasloe might have become a hub centre or a gateway under the national spatial strategy. I ask the Minister to immediately meet with the relevant bodies and have a review on what can be done. If prioritisation means anything, then surely it means action sooner than five years down the road. I ask the Minister to indicate to me that he will call together all of the relevant bodies.

I must single out the Galway City and County Enterprise Board as the one body which has taken action and which has responded through the creation of some jobs. I must give credit to the CEO of that body, Mr. Charles Lynch.

Rory Kiely (Fianna Fail)
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I do not like the use of names.

Photo of Ulick BurkeUlick Burke (Fine Gael)
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The CEO of that body has come forward and wholeheartedly supported every opportunity in job creation and in the provision of finance. It is important that the Minister indicate he will meet with those bodies with a view to taking some belated steps to move forward and show that the Government is doing something, rather than turning its back as it has done over the past five years.

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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I thank the Senator for raising this matter on the Adjournment. I am conscious of the adverse effects on workers in the Ballinasloe area of job losses over the past year, including the recent announcement by Dubarry Shoes Limited of its decision to cease manufacturing at its Ballinasloe plant during November 2004 and transfer this production element to the company's manufacturing partners overseas, with the loss of up to 40 jobs.

The relevant development agencies are making every effort to promote industrial development in the town. Ballinasloe remains a location of high focus for the IDA for new foreign direct investment. Since the Square D closure announcement in January 2003, IDA has brought 12 potential clients on site visits to Ballinasloe. The construction of a second advanced technology building is also under way at the IDA business and technology park in Ballinasloe and completion is expected before mid-2005. In addition, a site has been provided by the IDA to the ESB for the construction of a 38 KV station to satisfy the electricity needs of new projects locating on the park. The ESB is currently out to tender for the construction of this station.

The IDA and Enterprise Ireland are actively working with the existing base of companies in the county and the Ballinasloe area to encourage them to grow and expand. The State development agencies continue to actively participate in locally generated marketing initiatives. Enterprise Ireland is providing support for the appointment of a manager for Ballinasloe Enterprise Centre. The agency has also supported a one year training programme for entrepreneurs in the Athlone and Galway Institutes of Technology under the enterprise platform programme, as part of encouraging high potential start-up companies in the region. Further examples of progress being made in the town can be seen in the opening of the leisure centre and an increase in the range of training opportunities. The courses include the NUI diploma in community development and the LIONRA course providing access to third level education.

FÁS, the national training authority, continues to participate with other State agencies in helping people to find suitable employment in the Ballinasloe area. In reaction to the closure announcement at Dubarry Shoes Limited, FÁS immediately contacted the company and met with the personnel manager on 13 October 2004 to outline its full range of services, to ascertain details of the lay-offs and make arrangements for meeting with the staff. FÁS began one-to-one guidance interviews with the workforce on 20 October 2004. To date, the agency has interviewed most of the 40 staff who are due to be made redundant.

Galway County and City Enterprise Board is actively involved in the economic and social development of the Ballinasloe area, particularly through the implementation of the Ballinasloe area community development section plan, a local group dedicated to the establishment and development of enterprise units. The board also co-operates closely with the Leader group, Galway Rural Development and with Galway County Council.

Since January 1999, 55 grant applications have been approved for assistance by Galway County Enterprise Board in the Ballinasloe region at a cost of €591,225, of which €453,152 has already been paid. The board has also provided targeted start your own business training courses for former employees of Square D, some of whom have successfully implemented their ideas and are currently providing employment in the Balinasloe region. The board will continue to be proactive in ensuring that available funds are targeted to maximise entrepreneurial development throughout the locality. In the area of telecommunications, Galway County Council and the State development agencies have recently submitted a proposal to the Department of Communications, Marine and Natural Resources for the development of broadband infrastructure.

The major decentralisation package announced in the budget includes 110 jobs to be relocated to Ballinasloe. This move demonstrates the Government's commitment to balanced regional development and will provide a further boost to enterprise development in this area. The State development agencies are fully committed to ensuring an equal distribution of job creation opportunities and to encouraging the establishment of industry in the regions, in particular the Border, midlands and west region, of which Ballinasloe is an integral part. The State development agencies, under the auspices of my Department, will continue to work closely together and with local interests in promoting Ballinasloe for additional investment and job creation.