Written answers

Tuesday, 10 October 2006

Department of Enterprise, Trade and Employment

Job Losses

9:00 pm

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Question 396: To ask the Minister for Enterprise, Trade and Employment the efforts made by his Department and agencies under his control to find a replacement industry for Ballivor and the surrounding areas following the closure of the NEC factory; if in this context, their efforts are bearing fruit; and if he will make a statement on the matter. [31959/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Finding alternative employment for the workers in question is a priority for the State Development agencies and, last week, myself and the Minister for Communications, Marine and Natural Resources met with a representative group from Ballivor, including some former workers, and outlined ongoing developments and stressed the priority efforts being made in Ballivor.

The Industrial Training agency FÁS has briefed all staff on the range of services available to them and many of them continue to participate in the various programmes run by the agency. Since the announcement of the job losses, Enterprise Ireland has participated at a number of meetings with the company concerned, outlining the various types of assistance that are available. In conjunction with Meath County Enterprise Board, Enterprise Ireland is participating in a series of workshops, which started in July 2006. These workshops concern Ideas Generation and how to Start Your Own Business. These courses are on going.

A major financial services project which will provide 700 jobs over 5 years was recently announced for Navan and this will be of significant benefit to County Meath and the adjacent Counties. Notwithstanding this, IDA Ireland continues to promote Ballivor as a priority location within the County and is actively promoting the facility in question for new investment. To date, three potential investors have been introduced to the management of the existing facility. I am aware that the State Development agencies have strengthened their marketing efforts in County Meath, in partnership with local interests, in order to increase job opportunities for Ballivor and the surrounding areas.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 397: To ask the Minister for Enterprise, Trade and Employment the amount of State funding, including grants from Enterprise Ireland that were given to a company (details supplied); the provisions being made to recoup this money in view of the sale of the premises at Buncrana; and if he will make a statement on the failure of this company to comply with a Labour Court recommendation on redundancy for the workers. [31978/06]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Grant agreements between Enterprise Ireland and companies are a matter for those parties and for which the Minister for Enterprise, Trade and Employment does not have a direct function.

I am advised that the company in question has been paid a total of €1.368m in supports by Enterprise Ireland since 1986. All funding provided by Enterprise Ireland is subject to a legal grant agreement between the company and Enterprise Ireland. Enterprise Ireland grant aided companies must meet the obligations to creditors and employees in the event of closure or liquidation.

When Enterprise Ireland funded companies cease manufacturing, close or liquidate and there are still contingent liabilities outstanding on the grants paid to the companies, the liabilities crystalise. In these circumstances, it is Enterprise Ireland's policy to seek revocation of grant monies paid. If there are sufficient assets available to repay secured and unsecured creditors, Enterprise Ireland expects to be treated in the same way as the latter. In terms of preference share investment, this is recovered after named creditors and before ordinary shareholders.

Statutory Redundancy has been paid to the workers in the factory named by the Deputy. Ex gratia payments are a matter of negotiation between the company concerned and the workers, represented in this case by SIPTU. The Labour Court operates as an industrial relations tribunal, hearing both sides in a trade dispute. It then issues recommendations setting out its opinion on the dispute and the terms on which it considers the dispute should be settled. Responsibility for the settlement of a dispute ultimately rests with the parties themselves.

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