Pat Breen (Clare, Fine Gael)
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Question 133: To ask the Minister for Enterprise, Trade and Employment the action he proposes to take to fulfil the national spatial strategy requirements of bringing foreign direct investment to the hub location of Ennis; if he will establish a task force to stem and reverse the factory closures and downsizing occurring in the mid-west, such as companies (details supplied) in Shannon and the fact that 24 companies were lost to the region in the past three years while only five new projects were attracted to the region; and if he will make a statement on the matter. [9650/06]

Micheál Martin (Cork South Central, Fianna Fail)
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My Department and the development agencies under its remit, Enterprise Ireland, IDA Ireland, Shannon Development and the city and county enterprise boards, are committed to the economic and industrial development of Clare, including Ennis, in line with national enterprise policy goals, and the achievement of balanced regional development, within the framework of the national spatial strategy.

IDA Ireland is actively promoting County Clare for foreign direct investment, as part of an integrated mid-west region and recognises the need to provide high value employment opportunities that provide sustainable long-term jobs. IDA Ireland's strategies have proved successful to date despite the competitive and ever changing global economy.

Clare has a strong base of foreign direct investment jobs. Total State supported FDI employment represents approximately 15% of total persons in the labour force, based on 2002 CSO figures, in County Clare as compared to about 7% nationally. This includes Shannon free zone FDI employment of approximately 6,000 jobs and about 1,000 jobs in IDA Ireland backed employment.

IDA Ireland has nine supported companies in Clare, employing 1,024, a provisional figure, in December 2005, 67% of which are in Ennis. Employment in IDA supported companies demonstrated strong growth during 2005, growing by about 11 % in County Clare. In moving Clare to a more knowledge based economy, IDA Ireland is partnering with the educational institutions in the region, in developing the skill sets necessary to attract high value added employment in activities, such as research and development corporate services, shared services, supply chain management and treasury management.

IDA Ireland is working closely with Shannon Development in the provision of suitable property solutions for potential investors to the county. The development of Ennis information age park has become an integral part of IDA Ireland's international marketing programme and will be pivotal to attracting new investors.

Employment in Shannon Development's portfolio of companies was 19,868 at the end of 2005, with 1,795 new jobs created — 450 at Shannon free zone and 1,345 by Irish owned companies. When job losses are factored in, the net increase in employment was 50, continuing the positive outcome of 2004. The indigenous sector in the Shannon region performed particularly well despite difficult trading conditions in some sectors. Overall employment levels increased for the first time since 2000, a net increase of 339; exports increased by 8% with a similar increase in spend on research and development. There is an emerging picture of a vibrant and innovative indigenous industry sector in the region; it is clearly evident that increased export activity is converting into job gains.

Tyco Electronics' Shannon-based energy division operation recently announced that it is actively moving from manufacturing low technology, commodity products to higher technology, engineered products. This transition forms part of a multi-year strategy begun several years ago, driven by research and development activity in Shannon. In recent years the company has committed very significant capital investment in the higher technology engineered products sector.

In order to progress this transition to higher technology products, the company needs to continue to refocus operations in Shannon. As a result the company announced a limited voluntary redundancy programme, which will result in the loss of up to 40 jobs. The company will enter a period of assessment and consultation over the next 30 days and assistance will be made available to all affected employees in their search for alternative employment. The 40 jobs to go over the next couple of months in Tyco reflect a necessary change of product mix away from older, poor margin, high labour content product to new, higher technology better margin product using automated cellular manufacturing process technologies.

John Crane Sealol's decision to shed jobs comes as part of a restructuring programme due to the transfer of the production of one product line to Mexico. The product line had not been doing well for some time. A maximum of 14 people will be affected on a once-off basis. The company are actively looking at other higher value added product lines at Shannon free zone.

I do not propose to establish a task force as I am confident that the strategies and policies being pursued by the development agencies, together with the ongoing commitment of Government to regional development will bear fruit in terms of additional sustainable investment and jobs for the people of Clare, including those living in Ennis.