Government must invest in food industry in the light of potential Dell job losses, says Naughten

PLANS by the computer giant Dell to axe jobs in Ireland as part of a worldwide reduction in its workforce highlights the need for the Government to support the food industry.

That’s the view of Fine Gael agriculture and food spokesperson Denis Naughten, TD, who has urged the Government to take immediate steps to do so.

“The announcement by Dell, which is a high value employer at the premium end of the employment spectrum, highlights the vulnerability of the Irish economy to foreign direct investment and a down turn in the construction industry,” he said.

Mr Naughten said the Economic Social Research Institute (ESRI) stated that the US economy is buying 6% more than it is selling to the rest of the world and that this will lead to a readjustment as no one can live beyond their means.

The ESRI has predicted that, should this readjustment take place, the domestically owned side of the Irish economy would contract by 7%, wiping out a full year’s growth and result in the loss of 90,000 jobs.

“The best way to protect against this is firstly to build up our domestic companies and to move more of our exports to Europe rather than the US.

“One way of achieving this is to focus on our valuable food industry which is intrinsic to this country,” he said.

Mr Naughten said the Government must seek to invest in developing Irish agriculture and food production to focus on the premium end of the massive EU food market.

Jobs created in this sector are secure and will also support the retention of the country’s rural fabric. Policies to reduce out high cost base and eliminate unnecessary red tape must be advanced.

“While foreign direct investment is important, as is the development of links with the US economy, it is vital that we don’t put all our eggs in one basket.

“The support of our agri-food sector will ensure we have an each way bet,” he said.