The Tánaiste, Ms Harney, has said she would support decentralisation of a Government department to Ballinasloe, Co Galway, following this week's announcement that the Square D electrical manufacturing plant is to close with the loss of 385 jobs.
Any decision on decentralisation would have to be a Cabinet one, she stressed, but she would be "an enthusiastic fan of Government activity" in the east Galway town. Ms Harney, who is from Ahascragh outside Ballinasloe, also reiterated that she was committed to finding new industry for the town while warning that it would not be easy.
The Tánaiste is expected to meet business representatives from the area within days, but yesterday her Department said she had no immediate plans to travel to the town. IDA Ireland has also said it is determined to secure new opportunities and has denied that it was aware in September of the company's imminent closure.
Mr Frank Conlon, IDA Ireland's area director for the west and midlands, said the authority had been concerned about the level of business being generated by the company late last year and had made every effort to encourage the US-owned firm to stay in east Galway.
"The parent company carried out a number of closures in the US last year," Mr Conlon said. It was unique for a European or Irish company to be so dependent on the US market, as Square D had been latterly, and the whole ICT/telecoms area had taken a dip in the middle of 2001. Square D had no grant liabilities, having been in Ballinasloe for 31 years.
IDA Ireland has a 30-acre business park in the town, which has already attracted the French company Valois. Currently, some 20 of a promised 80 jobs have been created at this plant.
Planning permission has also been sought for a 27,000 sq ft technology unit, one of a series of initiatives taken following the A.T. Cross closure in the town over two years ago.
The Mayor of Co Galway, Cllr Pat O'Sullivan, reacted angrily to a suggestion on RTÉ radio's Morning Ireland by the head of FÁS, Mr Roddy Molloy, that employees should consider looking to Galway for employment. "It would make your blood boil," Mr O'Sullivan said, emphasising that the east Galway town was an hour from the city.
Ms Mary Clark, a shop steward in the company, also described the suggestion as "very annoying". Many of the 385 staff lived in towns surrounding Ballinasloe, and the journey would be ½ hours into Galway. The town had much to offer in terms of quality of life.
The trade union SIPTU was meeting with management from Schneider Electric, Square D's parent company, in the plant yesterday. Ms Tish Gibbons, SIPTU representative, said while there had been a downturn in orders, there was enough business for the company to remain open with at least half of the present staff.
The company said the decision on Wednesday to close reflected "significant change in market demand for circuit-breakers, resulting in overcapacity in the group's north American division manufacturing operations".
