Monday, January 12, 2009

Mid West Region Will Overcome Dell Setback, Says Minister Killeen

Minister of State Tony Killeen today expressed confidence that the Mid-West region would meet the economic challenges arising out of the recent jobs announcement by Dell.

The Clare T.D. said that new direct foreign investments, the announcement by the IDA of recent projects, ongoing Government and regional agency supports, and the prevalence of a strong entrepreneurial spirit of a highly skilled workforce will assist the Region in consolidating its position as an attractive location for direct inward investment. “It must be pointed out that Dell’s decision to relocate its manufacturing operation from Limerick to Poland is not a reflection on the quality of the quality of the workforce in the Mid-West or indeed the operating environment in Ireland. We must now focus our attention on sourcing new opportunities for this highly productive and trained workforce. I believe that this can and will be achieved,” stated Minister Killeen.

The Minister noted that manufacturing employees at Dell, with the support of regional agencies and Government, have time to source new employment and up skill themselves where necessary. He added, “It should be pointed out that 1000 jobs have been retained at Dell and that the doors will not be closing on the remaining 1900 jobs for a number of months. In this context, the Dell situation is very different to Wang Ireland or the Ferenka steelcord plant where jobs losses and a plant closure were implemented with immediate effect. The availability of a skilled workforce is a considerable attraction for perspective foreign direct investors. Furthermore, the significant pipe line of new projects in the IDA books will further assist the region in overcoming the void created by the Dell announcement.”

Minister Killeen said that the IT sector in the Mid-West would continue to experience growth, as typified by recent jobs announcements at Microsemi, Cook Medical, Vistakon, Zimmer and Avvio. The Minister commented that the presence of a strong entrepreneurial spirit among the Irish workforce would result in new employment opportunities for many of the Dell employees.

He continued, “Coupled with the significant supports that exist for start up companies, I believe entrepreneurial activity in the Mid-West region, particularly in the IT sector, will experience growth in the coming months. We saw a similar outcome during the 2002-2004 period when there were 10,000 job losses in the IT sector, most notably at DEC (Digital) in Galway. Within three years there was a marked increase in the number of business start ups in the IT sector with 10 percent of those previously laid off becoming owner operators. This situation has been replicated time and time again across the country, for example in the aftermath of the closure of Fruit of the Loom in Donegal.”