Dinny McGinley (Donegal South West, Fine Gael)
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Question 235: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the high level of unemployment in Glenties town and the surrounding area of County Donegal; and if there are plans to establish an industry in the Glenties to provide employment in the area. [7048/05]

Micheál Martin (Cork South Central, Fianna Fail)
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In recent years, Irish manufacturing firms, particularly in the more traditional sectors, have operated against a backdrop of significantly declining external demand, downward price pressure and an increasingly competitive international environment from China and central and eastern Europe, together with upward pressure on costs and the strengthening of the euro against our key trading partner currencies. In an increasingly globalised economy, lower skilled manufacturing type operations are migrating to lower wage economies. The replacement of the inevitable job losses is a tough challenge. My Department is working closely with the development agencies to address this issue.

Donegal County Enterprise Board, CEB, was established in October 1993 to provide a source of support in the Donegal area for small businesses with ten employees or fewer. The board's function is to develop indigenous enterprise potential and to stimulate economic activity throughout the county. Donegal CEB has also assisted financially in the construction of the community enterprise centre in the Glenties area. For 2005, one of the main priorities of Donegal CEB will be on continuing to meet with existing and potential entrepreneurs who are starting or growing their business in the Glenties area. The board is organising an enterprise afternoon in Killybegs in conjunction with the South West Donegal Chamber of Commerce which extends to Glenties in its catchment area. Donegal CEB will make every effort to ensure that available funds are targeted to maximise entrepreneurial development throughout the Glenties region in 2005, thereby continuing to deliver on its record of employment development in the area.

Enterprise Ireland, which is the agency charged with supporting indigenous industry, has partnered with the local community in Glenties to develop new, high quality enterprise space. Enterprise Ireland is providing over €120,000 in support of this new centre which will become available for new enterprises in the next number of months and it is hoped that new enterprises will emerge in the Glenties area as a result of this development. Both Údarás na Gaeltachta and Enterprise Ireland are available to provide a range of supports to such start ups. Including the wider area south of Glenties — Killybegs and Ardara — Enterprise Ireland has 27 client companies which in total employ more than 600 people.

IDA Ireland, which is the agency charged with attracting foreign direct investment, FDI, to Ireland, has indicated that 2,778 jobs were created by IDA client companies in the north-west region in the last five years. IDA is working closely with its existing base of companies in the north west. However, one of the challenges facing companies in the north west is in the area of competitiveness and this has resulted in job losses in sectors such as textiles and clothing and low-end manufacturing. Where a company has plans to introduce new functions or new technologies or products, IDA Ireland will assist the company where possible to make new investments that lead to new jobs.