Written answers

Tuesday, 23 November 2004

Department of Enterprise, Trade and Employment

Unemployment Levels

10:00 pm

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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Question 276: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the serious unemployment crisis in County Donegal; the reason the unemployment rate in the county is four times the national unemployment average; the measures he proposes to adopt to replace the thousands of jobs that have been lost there during the past number of years; and if he will make a statement on the matter. [29830/04]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am conscious of the unemployment situation in County Donegal, particularly following the closure announcements by Unifi Ireland and Fruit of the Loom of their manufacturing plants there. Finding alternative employment for the workers affected is a priority for me and the State development agencies under the auspices of my Department.

IDA Ireland is committed to the development of the north-west region and continues to strive to secure new investment for Donegal. Both IDA Ireland and Enterprise Ireland work closely with their existing base of companies in the region. In its efforts to secure investment, IDA Ireland is working with Invest Northern Ireland, on a virtual cross-Border park which will involve joint marketing efforts and planned improved telecommunications infrastructure on a cross-Border basis. Construction of the Letterkenny business park has been completed and construction by Donegal County Council to extend Letterkenny ring road to this park is well advanced. Work has now been completed on the provision of a second 25,000 sq.ft. advance factory at the park and planning permission has been granted for a third advance facility. Planning permission has been obtained for a new facility at Ballyshannon and IDA has undertaken a significant amount of development work recently on the site. In addition to this, further land has been purchased in Buncrana and planning permission has been obtained for a 20,000 sq.ft. factory. IDA is working with a local private developer in the provision of advance space within this development.

Enterprise Ireland works with companies in County Donegal and in the north west to assist them grow their sales and exports and improve innovation in order that they can compete on world markets. Enterprise Ireland is encouraging these companies to adopt new technologies and to move up the value chain. Its range of supports includes strategy development, production and operations, marketing, human resources development, finance and research and development. In conjunction with the ongoing work of these agencies, other issues need also to be addressed to promote employment creation in the north west. These include the development of infrastructure in the area, in particular roads, water, electricity and gas supply, air access and broadband communications. Recent developments include the provision of funding for the Letterkenny water supply scheme, the approval of a feasibility study grant for the extension of the natural gas pipeline from Derry to Letterkenny and a number of major road improvements. The Government, along with the State development agencies, is committed to balanced regional development, particularly through the implementation of the national spatial strategy and the Government's decentralisation programme. The State development agencies will continue to work together to promote County Donegal, to attract investment and to foster job creation there.

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