Written answers

Tuesday, 31 May 2005

Department of Enterprise, Trade and Employment

Job Losses

9:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 101: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the recent decision of the long established Bray based company (details supplied) to close with the loss of 140 jobs; if, in view of the number of job losses in the Bray area, he will ask the industrial development agencies to give the area priority; and if he will make a statement on the matter. [18005/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I am aware of the decision by the company in question to close its plant in Bray, County Wicklow. I understand that the reason for the closure is that the company believes that the Bray plant is no longer viable due to changed customer demands, rising costs, increased competition and trading losses which could no longer be sustained. Finding alternative employment for the workers affected is a priority for the industrial development agencies. Already, FÁS has contacted the company and outlined the full range of support services, including skills analysis and training that it can provide to the staff.

The development agencies continue to market and promote Bray and the surrounding area for employment creation and investment. IDA Ireland continues to work with its existing base of companies with a view to supporting such companies with potential expansions and the agency also targets potential new investment projects. Nabi, a new greenfield Biopharma project from the United States, was officially opened on 26 April 2005 at the IDA business park in Bray and is expected to employ in the region of 30 to 40 people by the end of 2006.

Enterprise Ireland continues to work with its client companies in Bray in order to assist them to become more competitive in order to increase export sales, resulting in further job creation in the area. Between 2002 and 2004, 35 EI client companies based in Bray were approved €2.8 million in financial support from the agency to help these firms to grow sales, exports and employment and also to fund their plans for innovation and new product development. There are a number of Enterprise Ireland supported companies in the Bray region that are actively growing their businesses.

The State development agencies, under the aegis of my Department, will continue to promote the Bray area for enterprise development and investment. According to the most recent Central Statistics Office live register analysis figures, there were 1,855 people on the live register in Bray in April 2005 down from 1,927 in April 2004, a decrease of 72. For County Wicklow, the corresponding figures were 4,432 people in April 2005, down from 4,540 in April 2004, a decrease of 108. While the live register is not designed to measure unemployment, I am encouraged by these figures as they reflect a falling trend in our standardised unemployment rate, which fell to 4.2% in April 2005.

Seán Ryan (Dublin North, Labour)
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Question 102: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the decision by a company (details supplied) to relocate part of its operation to Northern Ireland with the potential loss of up to 290 jobs; if he has had discussions with the company on this matter; if he has satisfied himself that sufficient supports and incentives are in place to continue attracting industry; and if he will make a statement on the matter. [18004/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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On 4 October 2004, the company in question announced that it intended to close its three existing manufacturing plants, one north of the Border and two south of the Border, and concentrate all of its manufacturing in one new plant. None of the three existing sites were deemed to be large enough, nor did any of them have access to sufficient water to accommodate the project. The company expected to announce its decision on the new location by the end of March 2005.

Enterprise Ireland worked very closely with the company to secure the new project but the company decided that the best location for the operation was in west Lisburn in Northern Ireland. The company has made it clear that the most important factor in the decision was the water issue. During the course of the negotiations on the project, I met Enterprise Ireland and union and worker representatives on 9 February 2005 to review progress at that stage.

On 4 May 2005, the industrial development agencies met a local group from Greenore which has been affected by the company's decision. The workers were keen to facilitate the development of alternative industry on the site. Development options are to be pursued with the company and, when the scale of commitment which might be forthcoming from the company going forward has been ascertained, the position will be reviewed to establish the next course of action.

I am satisfied that the supports and incentives offered by the Irish development agencies to companies are competitive and attractive compared with international comparisons. However, it is important to note that when considering whether or not to establish a new business in Ireland there are many factors which companies evaluate and it is the complete package that ultimately impacts on these decisions. Ireland as a member of the European Union is also bound by the EU regulations governing state aid in the form of financial supports to companies both Irish and foreign which decide to set up operations in Ireland. These regulations are designed to ensure competition exists between member states and balanced regional development is achieved.

Ireland continues to be an attractive location for enterprise, both Irish and foreign owned for a variety of reasons including: a highly skilled, English speaking workforce; a commitment to a low rate of corporation tax; investment in education; the flexibility, agility and creativity of the Irish labour force; our position within the EU single market; and the country is already home to a number of the world's leading ICT, pharmaceutical, medical devices and financial services companies and offers strong business networking-interaction opportunities.

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