The closure of the Lapple factory in Carlow underlines the ongoing challenge facing the Government and the State as a whole, Minster for Enterprise, Trade and Employment Micheál Martin said yesterday.

The Government was committed and determined to pursue policies that would maintain Ireland's competitiveness in the face of strong global competition, the Minister added.

He said the closure of the Carlow plant would represent "a devastating blow to the employees and their families".

"Our thoughts today are first and foremost with those who have lost their jobs. I have asked that the State agencies provide all assistance necessary to upskill those with a view to finding alternative employment," Mr Martin stated.

Speaking in connection with the expected job losses at the Molex plant in Millstreet in Cork, the Minister said: "At this time, we must await the outcome of the consultation process and we cannot pre-empt what that will be. However, IDA Ireland will keep in close contact with the situation".

Fine Gael enterprise spokesman Phil Hogan TD challenged Mr Martin to reveal whether he knew about the threat to the jobs at Lapple and Molex before the election.

A spokesman for Mr Martin said the Minster had no control over the timing of company announcements and decisions.

Mr Hogan said the job losses confirmed that Ireland's competitiveness continued to decline.

"Lapple has blamed rising costs . . . for the closure of its plant, as well as increased competition. This is further evidence that Ireland's competitiveness is being eroded by rising costs and greater competition from overseas," he said.

"Businesses are finding it increasingly difficult to maintain a competitive edge as the cost of doing business continues to grow."

Labour Party TD Jack Wall said that Irish jobs continued to be lost abroad to cheaper labour markets.

"In response to this the Government must immediately establish a more targeted approach to job creation."