THE DRAMATIC slump in the mortgage market and the consumer-lending business in the UK has led to the closure of three centres in Donegal, Mayo and Kerry, with the loss of more than 100 jobs.
Workers were informed about the shock decision as they left Contact 4 premises in Gaoth Dobhair, Co Donegal; Acaill, Co Mayo, and An Daingean, Co Kerry.
The principal of the Glasgow-based company informed Údarás na Gaeltachta that it will be closing its three Gaeltacht-based customer call centres with immediate effect.
The total number of employees involved is 108 (79 full-time and 29 part-time). The regional spread of the job losses is Gaoth Dobhair 34 (26 full- and eight part-time), Acaill 36 (26 full- and 10 part-time) and An Daingean 38 (27 full-time and 11 part-time).
The company has informed the Údarás that the dramatic slump in the mortgage market and the consumer-lending business in the UK had left it with no option but to close all three centres. The company had hoped since the beginning of the year that there might be a recovery or a stabilisation in the UK financial services industry, but the situation had worsened and its business as an operator in the UK credit market had virtually disappeared.
Total grants paid to all three companies by Údarás na Gaeltachta amount to approximately €3 million and the liability relating to these will be addressed during the coming months.
An tÚdarás holds a charge on the companies' assets together with a parent-company guarantee.
A spokesman for An tÚdarás said it was confident that alternative employment opportunities can be generated in the Gaoth Dobhair area in the short to medium term, arising from new and expanding projects in the investment pipeline.
"During the coming months the focus will be on sourcing new investment and alternative job opportunities for those losing their jobs in the Acaill island and An Daingean areas.
"Every effort will also be made to source new employment investment for the Kilcar area in south-west Donegal, where Contact 4 had intended opening an additional facility later this year," he said.
He admitted that the closures were a "serious setback" for employment in the Gaeltacht.