Job losses highlight multinational dependency

     
Sinn Féin's position, though not articulated often enough, is clear - local communities must play a central role in any form of planned economic development
Hundreds of jobs are on the line at Fruit of the Loom this week. The 3,500 workers, the Dublin Government and IDA Ireland all await detailed news from the group's chairperson Bill Farley on the future of the company's Irish plants in Donegal and Derry.

Already 48 jobs are to be lost at the Dungloe sewing plant. For the last two years Fruit of the Loom has faced difficult global trading conditions with company sales falling. Decreasing demand for its t-shirt and sweat shirt products has led to Fruit of the Loom's lower costs plants in Morocco and the Far East having a competitive advantage over their Irish compatriots.

Jobs Limbo


Donegal and Derry's economic policy is formulated in Dublin and Belfast and now hangs on the input of an American company
 
Now the workforce are in a limbo fearing the worst and being made to wait for clarification from their US employers. The success or failure of Fruit of the Loom cuts to the heart of economic development in Ireland. It highlights important issues about industrial development policies of successive Dublin Governments and their dependency on foreign multinationals as the engine of economic growth.

It also cuts to the core of a debate that has been brewing in the letter pages of An Phoblacht in recent weeks. What is the republican stance on multinationals? More importantly though what is the Sinn Féin alternative to multinational dependency?

The impact of Fruit of the Loom over the past 12 years on the local economy in the North West and particularly in the Inishowen peninsula has been enormous. An area of perennially high emigration was given effectively a 12 year respite. The wages of the workers brought millions of punts into the economy and tangibly boosted the local economy.

Downside


Now however we must contemplate the other side of the coin - the loss of such a big employer to the local economy of North West Ireland. The position of IDA Ireland is clear. A spokesperson told An Phoblacht that the IDA has found it difficult to attract foreign industry to Donegal. He imagined that ``the IDB have the same problems''.

The IDA does have a plan to encourage new industrial development in Donegal both in terms of encouraging infrastructural development and pitching Donegal in terms of its links with Derry, Belfast and Larne Port.

The IDA's approach is relatively straightforward. They want to seek alternative high technology based companies to the North West. It seems to be accepted that there will be job losses at Fruit of the Loom and that the local economy got 12 years of good return from the company. This was preferable to the McCarter family plant closing down and leaving Inishowen without the benefits given over the last 12 years.

The Alternatives?


Now the process begins again. So what is the alternative? Sinn Féin's position, though not articulated often enough, is clear - local communities must play a central role in any form of planned economic development. The current structure of the IDA, Forbairt and Enterprise Ireland does not offer an adequate role for local communities to have an impact on the development of their local economies.

For years we have witnessed the efforts made and funding allocated for attracting multinationals to Ireland. It is fundamentally wrong that such funding and such efforts are not made for indigenous projects, whether they be led by the private sector or local communities.

Fundamental Rethink


It is well documented that most multinationals are only here to take advantage of low tax rates and that the concentrated nature of foreign companies - the IDA are now targeting only services, electronics and medical companies - means that they are highly vulnerable to global economic changes such as the consequences of the current turmoil in Asia and Russia.

There must be a fundamental rethink of the role transnational companies play in Ireland. Fruit of the Loom has brought benefits to Donegal but it is wrong that the local economy should be held hostage to the company.

The orthodox approach that only multinational companies can be the engine of economic growth in Ireland needs to be challenged. There are alternatives. Below we outline the summary of the Sinn Féin position outlined in its policy document Putting People First. More importantly we offer an interpretation of its relevance for the local economy in the North West. As it says in Putting People First ``Economic activity and policy must start with the community, not bypass it''.

Four themes for a people's economy


Sinn Féin believes there are four key themes that must underpin any economic programme. First the community must be the starting point of any economic policy. This is the basic building block of the economy. Donegal and Derry's economic policy is formulated in Dublin and Belfast and now hangs on the input of an American company. The people of the North West have been clearly left out of the equation.

Secondly there must be decentralised political and economic structures. If Donegal and Derry people were in control of their local economy the current scenario of underdevelopment and lack of proper structures would not the stifling problem it is today. Donegal and Derry would probably have adequate road networks, with proper telecommunications facilities and other infrastructure.

Thirdly, there needs to be a vibrant public sector. The state has a key role to play in an efficient equitable economy. In the North West the public sector is not part of the economic development equation except in the provision of basic services. In Ireland the state has successfully started and run businesses which the private sector spurned. There is plenty of scope in the North West for vibrant public enterprise.

Fourthly, there is the social economy, the recognition of the role local communities can play in economic development. This is a vital part of any economic development programme. Yet in the Fruit of the Loom issue their focus is entirely on the relationship between the foreign multinational and the Dublin Government. The local community is relegated out of the process which will determine its own future.