We need jobs not platitudes - Arthur Morgan

BY ROBBIE MacGABHANN


So what is the Dublin government doing in the face of the mounting job losses and a clear recession ripping through the economy? The Economic and Social Research Institute (ESRI) predicted this week that there is up to another 12 months of recession still coming. That means 12 more months of job losses and households left facing mortgage arrears and many other costs.

It is also, in the case of the North East, leaving a gaping chasm in the local economy, from which it might take years to recover. The Navan and AFL jobs are only the latest in a series of blows to the region. The effects of Foot and Mouth on the Cooley Peninsula also had a huge negative effect on agriculture and tourism in the area.

Sinn Féin's Arthur Morgan highlighted even further the problems of the region. He said: "In recent years Dundalk has been hit by setback after setback. This year alone we have seen the closure of the Macardle Moore Brewery, cutbacks at Xerox have resulted in the redundancy of over 350 workers, while other large employers have also significantly reduced staff levels.

"The people of Dundalk don't want to hear any more platitudes. They don't want to hear announcements of more task forces being set up. Task force after task force has been established but we have seen no results. Further talking shops are not the answer. People know what the problems are and what is now needed is action. What Dundalk and this region needs are jobs and we need them desperately. There are plenty of local small businesses that, with assistance, could develop and employ more staff. This must happen now."

So what is being done? One predictable response came from Enterprise Trade and Employment minister Mary Harney, who said the problem was one of competitiveness, which in plain English means let's make workers suffer, by demanding low wage rises and yet more productivity deals. Harney also denied that the economy was in recession, citing the fact that there are more people at work now than a year ago. Interestingly, her colleague, Charlie McCreevy, has admitted that the economy is in recession but that he doesn't know when it is going to end. Maybe he should tell Mary of the huge fall in tax revenue announced last week, or maybe those issues don't get discussed at cabinet level.

Other issues that are not being discussed at Cabinet level are why are so many companies going to the wall and what should be done about it.

It is clear that there is an international downturn in the economy and that this is hitting technology companies badly. It is clear also in the case of the Irish Times, RTE and Aer Lingus that questionable management strategies may have led to these companies' problems.

Also clear and perhaps a cliché is that this economy has a huge dependence on international companies who, like AFL and Teradyne, can make or break local economies with simple open and closure decisions.

We need to look closely at the relationship between host communities and the firms that are sited in them. Local firms obviously have much better and less breakable links with the communities that created them.

It was made clear to the Dublin Government in the 1960s and 1970s that they as economic mangers of the economy were taking a dangerous path by substituting international companies for a lack of domestic ones.

This message is as unheeded today as it was then, and again as in the 1970s, 80s and early 90s, we are once again on the treadmill of closures shutdowns and misery.

Once again we must ask the question as why are small businesses not given the same amount of funding and aid as international businesses who site in Ireland. Yes we have county enterprise boards, some good work done by Enterprise Ireland but all of this is overshadowed by the bulk of funds pumped into the IDA.

The last Comptroller and Auditor General's report shows that the IDA spent over £117 million in grants to international firms while Enterprise Ireland spent £42 million. This imbalance shows there is a need to put a much greater emphasis on indigenous industry that can create employment. Enterprise Ireland will only fund companies that are able to export out of Ireland. There needs, through, to be a much more inclusive approach to developing businesses on the island.


We need to consider some of the following options

(1) Funding micro-businesses. Many people have small business ideas that are in the embryonic stage and need funding as well as expert guidance. These businesses can often generate small profits but a lot of local employment. They are often overlooked by the industrial development agencies

(2) Develop new local brands. Many small businesses are not in themselves large enough to enter export markets. With the right guidance and support from Enterprise Ireland they could begin joint ventures to develop, produce and market products outside of Ireland. Tourism is marketed outside of Ireland as one common brand. Surely this idea can apply to other goods.

(3) Matching funds for local business. When international firms pack up and go, it is usually after absorbing a substantial amount of IDA funds. At the very least the same amount of resources should be offered back to the host community dealing with the economic consequences of plant closures.

(4) Funding for women in business. More and more small businesses are being set up and run by women, yet for this group there are more obstacles in terms of funding and investment to be overcome. There needs to be special funds made available to take full advantage of this resource and get more women running and managing their own companies.

(5) Take the long-term view. The IDA currently considers ten years to be the shelf life of companies it brings to Ireland. New local Irish companies should be given at least the same level of time to develop themselves. We need to take the view that long-term stability is more desirable than short-term erratic boom and bust episodes.

(6) Recognise the importance of the social economy. Many communities have ideas and plans for socially valuable local businesses that will never lead to export opportunities and will only generate small profits, but will generate vital jobs. These ideas and plans need funding whether it is after-school-care centres, adult education courses, small tourism and agribusiness ventures.