Mayor Describes Job Losses At Shannon As “Hammer Blow” To West Of Ireland Economy

(SANEPR.com) December 3, 2008 -- Cllr. Madeleine Taylor Quinn said that the announcement of job losses by one of the first companies to locate to the Shannon Free Zone would lead to great uncertainty among other multinationals operating in the region.

Element Six, which has manufactured and distributed industrial diamonds and super-hard materials from its Mid West base since 1963, currently employs 620 people.

“While I recognise that the company has confirmed the redundancies are part of a group-wide cost-saving programme in the organisation, it must be pointed out that the company’s General Manager last year indicated its operations were under ‘active review’. The fact that the company turned pre-tax profits of just over USD2m last year, well ahead of 2005's USD9m loss, shows that rising operating costs coupled with the global economic downturn is having a real impact on major multinationals,” stated Mayor Taylor Quinn.

She said she believed the 50% fall in sales experienced by the firm had been further compounded by the loss of the Shannon to Heathrow service. The Mayor also indicated that the ending of the service had resulted in the region becoming a less competitive and attractive location for existing and potential investors.

The Mayor continued, “The achievements to date in providing a highly skilled workforce through the presence of the University of Limerick, which adds value to the multinational sector, have been greatly undermined by the axing of direct access to the main transport hub in Western Europe. The loss of the service has also seriously undermined the effectiveness of major infrastructure projects such as the Southern Ring Road in Limerick City, the Ennis Bypass, Shannon Tunnel and N-7 Nenagh to Limerick high-quality dual carriageway."

"Furthermore, the removal of this link has been contrary to the National Spatial Strategy and other regional policies, which aim to achieve to a better balance of social, economic and physical development across Ireland and a strong competitive economy. I am aware from speaking to the various multinationals within the region that the loss of this vitally important service is having and will continue to have a detrimental impact on their operations in the West of Ireland,” she added.

Mayor Taylor Quinn commented that confidence among the indigenous and international business community in Shannon and the wider region was at an all time low.

“The Mid West region is renowned throughout the world for its pioneering spirit and ability to attract multinationals. The Government and other agencies have for a long time been aware of the impending economic downturn but, in my opinion, have not done enough to protect industry. While the immediate concern is for the Welfare of those who will lose their jobs, I would call on Minister for Enterprise, Trade and Employment, the IDA, Shannon Development and all other relevant agencies to develop a more proactive and collaborative approach to consolidating existing business in the region, as well as developing a more coherent strategy for attracting new companies,” Mayor Taylor Quinn concluded.

-ENDS-

Notes to Editor:
- Mayor of Clare Councillor Madeleine Taylor Quinn (087-2402341) is available for interview
- For further information please contact Mark Dunphy of Dunphy Public Relations on 086-8534900 or media@dunphypr.com

Mark Dunphy
Dunphy Public Relations
www.dunphypr.com
media@dunphypr.com
00353-868534900