Head of IDA downplays O’Dea claims of new jobs
IDA chief executive Barry O’Leary said it was “wrong to speculate about numbers”.
Speaking on the radio programme Lunchtime on Newstalk 106fm, Mr O’Leary said: “I think one would want to be very, very specific about that and we wouldn’t be in a position to confirm that at this point.
“Clearly in the same way as we have done with previous companies, we’re trying to get them to do more higher valued activities but I think it would be wrong to speculate about numbers. ”
Asked if there was a concrete deal, Mr O’Leary replied: “No, it would be too early to say that.”
Mr O’Leary also revealed a special government task force for the area. “We’re in discussions with Dell about the facility, about the future of it. The Government is appointing a task force. Every effort will be made to get new industry into the Limerick region.”
Mer O’Dea had suggested the IDA had been involved in talks with Dell chiefs and was lining up a bold bid to move the plant in a new direction. The plan would see the plant focusing more on high end research and support roles and possibly bringing in the new jobs, he suggested.
Dell’s move east deepens fears over the extent of the recession, with the banks in crisis, 800 jobs under threat at Waterford Crystal and uncertainty over the future of 700 workers at Europe’s largest zinc mine in Tara, Co Meath.
Last year 40,600 people lost their jobs in the Republic, taking the unemployment rate to almost 8%.
Government officials cautioned, however, that several other countries in Eastern Europe and Asia were competing for the contract for 750 jobs in the research end of IT and that it could be 12 months before any decision is taken.
The IDA refused to comment on the proposal but insisted a number of potential investments were in the pipeline for the Limerick region.
“We are pursuing these potential investments and will do everything possible to speed up the investment decisions in Limerick’s favour,” said the IDA’s Barry O’Leary.
Three other big employers in Limerick — Banta, Flextronics and Sercom, which rely on Dell contracts — will be hit hardest.
Sean Corkery, vice-president of Dell operations in Europe, the Middle East and Africa who broke the news to dismayed workers at the Raheen factory, said the multinational was proud of its Irish business.
“This is a difficult decision, but the right one for Dell to become even more competitive, and deliver greater value to customers in the region,” he said.
President of the University of Limerick (UL), Professor Don Barry said college staff have been assessing how the mid-west region can respond to the expected massive job losses.
“UL has a well-established track record of collaboration with industry and I want to reaffirm our commitment to the role of this institution as an economic driver for the region and the country,” said Prof Barry.
“We in UL will do all in our power to enable those affected acquire the skills to rejoin the workforce as quickly as possible.”
The layoffs will begin in April, with management hoping the 1,900 redundancies will be finalised by this time next year.
Dell will continue operating in Ireland with the remaining 1,100 workers at the Raheen facility involved in product development, engineering and logistics. The 1,300 marketing and sales staff at Dell’s Cherrywood plant in south Dublin will not be affected.
The task force for the region will be made up of senior government officials backed by experts from the University of Limerick, local institutes of technology, Enterprise Ireland, Fás and other state agencies.
Dell, Ireland’s second biggest foreign-owned employer after Intel, warned more than a year ago it was reviewing its global operations to save money and compete against other manufacturers.
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