THE LOSS of 1,900 jobs at Dell’s manufacturing base in Limerick is “a wake-up call” for the Government to recognise the ongoing economic decline of the west of Ireland, the chairman of a new jobs taskforce for the midwest said.
Denis Brosnan made his comments in Limerick yesterday following the first meeting of the taskforce, established by Tánaiste Mary Coughlan in the wake of substantial job losses at Dell and the continued fallout for the region.
“Dell may be the catalyst that will change this region forever because the midwest and all of the west of Ireland has been in decline long before Dell,” he said.
“It has been in decline in good times so maybe Dell happening, and it’s awful for those who have lost their jobs, but in a way it may be the wake-up call for Government and for others that there are almost two Irelands. There is the east coast and all the developments taking place and there is the west coast of Ireland, which has been in decline for quite a long time . . . Dell in a way may be just that spark that will bring life back into the west of Ireland,” he added.
The former chief executive of Kerry Group said the new taskforce will meet twice a month over the coming months and an interim report will be presented to the Government in three months, with a full list of recommendations expected to be completed by March 2010.
“The view I have in taking on this task, and I gave it a lot of thought, is that the region would be far worse if the taskforce wasn’t set up. We will give it our all, we will give it our best effort and then it’s a matter for Government to implement our recommendations.”
He said one of the terms of reference handed down to the taskforce was to cost whatever recommendations are made, and insisted he is confident they will result in Government action.
“At the end of the day Government has to decide if it’s more cost effective to have people at work or to have people unemployed.
“When there is a real emergency, Government and taxpayers have to find money for the banking system and I think with what’s happening in the west of Ireland, with high unemployment beginning to appear again, I would be surprised if there isn’t Government action,” he said.
Mr Brosnan said Ireland was no longer a competitive base for manufacturing companies and that the “new Ireland” will see technology-related companies investing here.
Meanwhile, Vincent Cunnane, taskforce chief executive, and chief executive Shannon Development admitted yesterday that there are genuine fears for the future of 500 jobs at RR Donnelly, one of Dell’s main suppliers.
“There’s no doubt that there’s going to be associated job losses. How those companies respond to the loss of Dell, if they generate new markets for their work or actually take that work abroad remains to be seen, but we are going to see the outcome of the loss of Dell in other companies there’s no doubt about it,” he said.
The other members of the taskforce who met for the first time yesterday at Shannon Development’s office in Plassey Technological Park, are Brian O’Connell, chairman of Atlantic Way; John Fitzgerald, chairman of Limerick Generation; John Hurlihy, chief executive Google Ireland; Martin Cronin, chief executive of Forfás; Anita Higgins, general manager of the Adare Hotel and Golf Resort; Ken O’Sullivan, chief executive of Element Six; and Kay McGuinness, chairwoman of the Shannon Foynes Port Authority.