Written answers

Wednesday, 8 March 2006

Department of Enterprise, Trade and Employment

Job Losses

9:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 136: To ask the Minister for Enterprise, Trade and Employment his views at the job losses announced by a company (details supplied) in County Mayo; his further views on whether these 40 jobs have been lost as a consequence of too high operating costs; if he proposes to visit the location; his proposals to provide alternative employment; and if he will make a statement on the matter. [9720/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The company in question has announced that a further rationalisation of its operation in Ballina has been sought by its parent company and this will lead to a reduction in the number of staff over the next two months. This reduction will, in effect, end all manufacturing activities at the plant and the remaining staff will be engaged mainly in customer support and marketing activities. FÁS has made contact with the company and the full range of its services will be made available to the employees who wish to avail of these services.

The company has experienced increasing competition in the market, particularly from Chinese manufacturers, and employment has steadily declined over the past number of years. The company has a manufacturing site in Poland and the remaining production in Ballina will transfer to Poland. The company is also experiencing similar difficulties in the US market where major rationalisation is expected at their plant in Ohio.

While maintaining Ireland's attractiveness as a competitive location from which to do business is a key priority of the Government, we must acknowledge that our country is currently undergoing a fundamental transition to a higher value-added, knowledge economy. It is inevitable that the investment decisions of some companies will be influenced by the low cost competitive attractions of some alternative geographical locations. The focus of my Department and its agencies is concentrated on managing this transition of our economy through the use of the best blend of policies designed to strengthen competitiveness both at national and firm level. While the National Competitiveness Council has expressed concern about increasing labour costs, individual companies can counteract these costs by putting a new emphasis on driving productivity.

Since January 2003, there have been five first-time site visits to Ballina. IDA Ireland is actively promoting Ballina for new foreign investment as well as working with the existing local base of overseas companies to encourage them to expand. The agency's emphasis is on attracting projects in the medical technologies, life sciences, information communications and technology and international services sectors.

Enterprise Ireland is following a twin-pronged approach to the creation of new jobs by supporting entrepreneurs setting up new high potential start-up companies and the creation of new jobs in existing companies. A new Enterprise Ireland supported high potential start-up company, Heatsolve Limited, commenced operations in Ballina last year. Enterprise Ireland provides preferential funding for companies with detailed export plans who are expanding or establishing a business in County Mayo. Enterprise Ireland supports community enterprise centres and has committed funding of over €0.7 million to IRD North Mayo-West Sligo Limited for the development of enterprise space in Ballina. I officially opened this centre during my visit to Ballina, in January 2006.

Following my earlier visit this year I have no immediate plans to visit Ballina. However, the State development agencies will continue to promote Ballina and the surrounding area for investment and job creation.

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