Opposition urges Government to review the overall stability of technology sector

The Government was urged by the Opposition parties to review the overall stability of the technology sector following the announcement…

The Government was urged by the Opposition parties to review the overall stability of the technology sector following the announcement of the Gateway closure yesterday. Fine Gael Dublin northside TDs Ms Nora Owen and Mr Richard Bruton described the announcement as "a devastating blow to the northside".

"We now have reason to be seriously concerned about the stability of the whole technology sector in Ireland.

"The Government needs to do an urgent and careful assessment of the threats to this sector," the two TDs said.

They urged the Tanaiste, Ms Harney, immediately to appoint a task-force to look at ways to address the knock-on effects of this closure on the 900 families affected.

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Labour Party TD Mr Sean Ryan said that since the beginning of the year it had been clear that many multinational companies based in Ireland were undergoing considerable change.

"Yet, despite repeated calls it appears that the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, has failed to devise a strategy to retain jobs in the high-tech sector. Complacency has been the hallmark of her policy for the past eight months. "

In a statement, Ms Harney said she had instructed IDA Ireland and FAS to work closely, both together and with the company, "with a view to ensuring that everything possible is done to find alternative employment for all those who might be affected by the proposed move.

"There remains a strong labour market despite the recent downturn in the US technology sector and I would be hopeful that, with the help of the relevant State agencies, alternative employment opportunities can be made available to all those involved," she said.

As the Minister for Trade, Enterprise and Employment, she had been aware that Gateway was reviewing its operations worldwide.

However, the news that the company was consulting its workforce on a planned closure would come as a "major blow" to the employees and their families, she said.

"I understand that no final decision will be made until the consultation process is complete," she said.

Mr Ryan said the workforce had been expecting another announcement but the decision to close the plant was a disaster for the workers and their families.

It came on the same day that 29 people lost their jobs at Datalex in Malahide, he said.

"The Minister must move quickly to address the immediate concerns of the 900 people who look likely to lose their jobs at Gateway.

"She must then face the wider issues this closure raises for Ireland's reputation as a leader in the high-tech sector internationally.

"Confidence is a critical element in job creation and investment.

"The Gateway closure cannot be allowed to tarnish Ireland's image as the high-tech hub of the European Union."