Donegal expects positive reaction on jobs

The Tanaiste is expected in Letterkenny in two weeks to give the Government's response to the report of the Donegal Employment…

The Tanaiste is expected in Letterkenny in two weeks to give the Government's response to the report of the Donegal Employment Initiative Task Force, set up in response to 1,000 job losses in the textile industry.

The chairman of the task force and county manager, Mr Michael McLoone, told The Irish Times he was hoping Donegal could get "a head start" on other areas in spending money allocated in the National Development Plan because of the seven-year economic strategy drawn up by the task force.

"We are hoping the focus from now on will be on doing things rather than talking and planning," Mr McLoone said.

The seven-year plan calls for spending of £732 million for the county, or 4 per cent of the Public Capital Programme. Mr McLoone said an indication of funding available would give him the confidence to open up more industrial land, and to start looking for consultants and contractors. He said he was encouraged by Ms Harney's "very positive" response to the work of the task force to date.

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Meanwhile, there are mixed feelings about the future of the Fruit of the Loom plant in Raphoe, sold late last year to Hawkesbay which closed a plant in Ardee, Co Louth, and laid off 460 staff north and south of the Border last month.

Mr Sean Reilly, branch secretary of SIPTU, said that while he was glad to see any new jobs coming to Donegal, there would "have to be reservations about a company with a track record of staying in a town for only two years".

The IDA has confirmed it introduced Hawkesbay to the Raphoe plant and that discussions were continuing before the closure of Ardee. Hawkesbay would receive no grant aid for the Raphoe operation.

A spokesman for Hawkesbay said that when the company bought the Raphoe plant from Fruit of the Loom it intended to keep the Ardee factory open. The loss of a contract with VF Corporation forced the closure, but it still intended making its own range of clothing in Raphoe.

Hopes of a jobs announcement for the county are now focused on the former Fruit of the Loom plant in Milford.