Jack Wall (Kildare South, Labour)
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Question 88: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to warnings from the Construction Industry Federation that some 55,000 construction jobs could be lost by the end of 2010; her views on the accuracy of this forecast; the steps she will take to try to prevent such job losses; and if she will make a statement on the matter. [7256/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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The current global economic situation continues to change rapidly adding a considerable degree of uncertainty to the accuracy of forecasts, nationally and internationally. There has however been a significant downturn in construction related activity since the beginning of 2008. The most recent provisional data available from the Central Statistics Office indicates numbers employed in private firms in the construction industry decreased by 21.9% in December 2008 from December 2007.

A lower level of residential investment was a key factor depressing activity in 2008 with completions of new homes amounting to c. 50,000, around one-third lower than in the previous year. The Department of Finance is projecting a further decline of around 60% in new house completions to a level of 20,000 units this year. Other parts of construction — especially commercial — look set to decline also. For the year as a whole, employment is forecast to decrease by 85,000 (-4.0%) with unemployment forecast to average 9.2%. During 2009, the ESRI expect industrial (including building) output to fall by 5.8 per cent. Within this figure, it is forecast that building output will decline by 25 per cent, as the house-building decline is compounded by a fall in commercial building.

The availability of a pool of skilled contractors available to support major national and international companies and construction projects is an essential component for major investing companies. The lack of availability of finance could restrict our ability to maintain current levels of activity or to attract investment from such companies in the future. As part of the recapitalisation package announced by the Minister for Finance on 11 February 2009 the recapitalised banks have agreed to work closely with the IDA Ireland, Enterprise Ireland and with State agencies to ensure the supply of appropriate finance to contractors engaged on major projects sponsored by them.

The National Insulation Programme for Economic Recovery was launched by my colleagues the Minister for Communications, Energy and Natural Resources and the Minister for the Environment, Heritage and Local Government Mr. John Gormley on 8 February, 2009. This Government announcement of €100 million for this year will unlock the huge potential of energy efficiency for our economy. The three-strand insulation programme will cut heating bills for householders, reduce carbon emissions and create thousands of jobs both directly and indirectly over the course of 2009. Energy efficiency/insulation programmes help provide for economic competitiveness, security of energy supply and tackle climate change. This energy efficiency stimulus programme will be divided into three packages, with the Department of Communications, Energy and Natural Resources taking a co-ordinating role.

FÁS is currently developing a number of responses to the current slowdown in the economy as a whole including the construction sector. Current initiatives include the creation of an additional 51,000 new training places under the FÁS Training Initiatives Strategy, the establishment of a training fund to enable timely identification of training and re-training needs for low skilled and redundant craft workers and the continued provision of retraining opportunities for redundant construction workers. FÁS will also continue to work in close collaboration with the Construction Industry Federation and other key stakeholders to encourage redundant construction workers to seek re-training in skills which are in short supply in the economy.

Tommy Broughan (Dublin North East, Labour)
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Question 89: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the contacts she has had with the industrial development agencies with a view to securing alternative employment for the 300 workers who are due to lose their jobs at a company (details supplied) in County Dublin; and if she will make a statement on the matter. [7252/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am keenly aware of the impact on Ericsson's employees and their families following the company's decision to reduce its workforce in Ireland by 300. IDA Ireland is working with the company on a continuous basis in an effort to secure further investments from other business units. I understand that Ericsson plans to reduce the level of R&D carried out in Western Europe to between 40% and 50% by migrating some of its R&D activities to lower cost locations.

The recent announcement of a reduction of 300 jobs is proposed to take place over the next 18 months. FÁS Management met with Ericsson Management on two occasions. The IDA, Enterprise Ireland and the County Enterprise Board were present at the second meeting held on 18th February 2009. An integrated plan was agreed which includes relevant interventions from all of the agencies present. At the meeting FÁS discussed the services they provide with Ericsson Management, and the potential needs of the employees. Each response will be tailored on a case-by-case basis.