THE NUMBER of people on the Live Register in the midwest could buck the national average and rise to 20 per cent by next year, according to the interim report of a Government taskforce established to tackle unemployment in the region.
The Midwest Taskforce, chaired by former Kerry Group chief executive Denis Brosnan, was established by Tánaiste Mary Coughlan last February to consider the serious economic fallout in the midwest following Dell’s decision to cease manufacturing in Limerick.
The closure of Dell’s manufacturing facility in the Raheen Industrial Estate resulted in the direct loss of 1,900 jobs at Limerick’s largest employer while thousands more jobs in the midwest will be affected by the closure.
Since Dell’s announcement last January, hundreds of jobs have been lost at some of its subsidiary companies including RR Donnelly formerly Banta Global Turnkey and Flextronics.
According to the interim report published yesterday, the number of people on the Live Register for the midwest in December 2008 was 25,915.
Unless action is taken, this figure is likely to peak at close to 55,000 in 2010, warns the report.
This would result in an unemployment rate of close to 20 per cent, which is three percentage points higher than the projected national average.
The report states that Ireland lost 32 per cent in international price competitiveness from January 2000 to September 2008. While this is a national issue, it has a significant impact on the mid- west region which relies heavily on manufacturing, construction and tourism, says the report.
It recommends that significant funds be allocated to community enterprise schemes, which can provide much needed employment and services in local communities.
According to the report, local authorities in the midwest region have outlined a range of schemes, which have the capacity to provide up to 800 jobs.
The report also recommends the acceleration of Limerick’s regeneration plans and the establishment “as a matter of urgency” of a commission to examine the governance of the greater Limerick area and says this should be done in no later than six months.
Key issues to be addressed in the final report by the Midwest Taskforce include a masterplan for the greater Limerick area, the potential of the midwest as an energy hub, and the potential of a major cargo hub at Shannon airport.
Nationally, the report also recommends that a national cost competitiveness strategy be developed and implemented as a priority. “Without this foundation, unemployment will continue to rise and remain at unacceptable levels for years to come. A target of 20 per cent for cost reduction would be desirable,” it concludes.