Written answers

Thursday, 19 June 2008

Department of Enterprise, Trade and Employment

Job Losses

5:00 pm

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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Question 66: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if, in view of the high quality research and development jobs involved in the closure of an industry (details supplied) in County Cork and the fact that the jobs are relocating to the US rather than to low wage economies, she will engage directly with the company in an attempt to secure the employment of those involved in Cork and prevent the proposed closure and loss of expertise involved; and if she will make a statement on the matter. [22567/08]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I would like to express my disappointment at the decision of the company to close its Cork operations and I have asked the State development agencies under the aegis of my Department to make every effort to assist the workers being made redundant in securing alternative employment.

Freescale is a large global company that regularly makes adjustments to resources as a normal course of operations to meet changing business requirements in a very dynamic industry. The company has decided to streamline its cellular design centres and as part of this decision, is proposing that all programmes in its Cork design facility be transferred to other locations and the facility be closed. The closure of the facility expected in September 2008, will result in 47 employees losing their jobs.

IDA Ireland is providing ongoing assistance to local management in Freescale Cork and is using its network of overseas offices to find alternative employment in the Radio Frequency and Wireless technology area, for impacted employees in the company. FÁS has been in contact with the management of Freescale and will make arrangements to register the employees. The full range of FÁS services will be made available to the employees as will the services and supports of Enterprise Ireland and the County Enterprise Board for any worker considering establishing her or his own business.

There are a variety of differing and complex factors and not just cost related, which might influence a decision to relocate all or part of a firm's functions. In addition to cost factors, these may include business takeovers, consolidations and changes in product or market focus. The result is flows of investment and employment across borders.

Ireland successfully manages this process, through our policies on growing indigenous enterprise and attracting and embedding foreign direct investment. These policies have enabled us to win many prestigious and value added investments, and have enabled us to replace lost jobs with others of equal or higher value in the economy.

The pipeline of new business for which the IDA is competing is as strong as at any time in recent years. We measure success now in terms of the number, quality and spread of investments, not just in job numbers alone. I am please to say that Ireland is now a global competitor for Research and Innovation investment from multinational companies and leading research institutions.

We are moving ahead on a number of fronts to meet the targets of the Strategy for Science, Technology and Innovation and the development of a knowledge economy. I believe we will continue to achieve and sustain our excellence in research from which our economy will reap rewards. The key to our success will be seeing the outputs of current research in terms of new innovations and discoveries that will directly impact on peoples lives, that is, that they will lead to jobs, improvements in health care, new products and services.

We will continue to have an educated and skilled work force which will be the cornerstone of the next phase of our economic development. We are investing in infrastructure. We are investing in people. And we are investing in innovation and enterprise. We are confidently investing for our future.

I am confident that the strategies and policies being pursued by the State development agencies will continue to support enterprise development and job creation. I want to reaffirm that the State agencies will continue to work closely with each other and with local interests, to assist an integrated approach to investment and enterprise development, not just in County Cork, but throughout the State.

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