62 job losses at Irish-owned Gweedore business is devastating news - McGinley

Fine Gael National Press Office Press Release
Leinster House Contact: Dinny McGinley
TD
Dublin 2 Nick Miller Donegal South West
Ireland 01 6183358 / 086 6992080

Monday 2nd March 2009

62 job losses at Irish-owned Gweedore business is devastating news -
McGinley

The closure of Irish-owned bus manufacturer Euro Iompu Teo in Gweedore
is devastating news for the 62 skilled staff and for the entire region,
local Fine Gael TD Dinny McGinley said today (Monday).

Deputy McGinley said it was particularly regrettable that an Irish-owned
company which was started and built up in Donegal had now been forced to
close due to the recession.

"Bus manufacturer Euro Iompu Teo has announced that it is ceasing
production at Gweedore Business Park with the loss of 62 jobs. This is
the latest in a long litany of closures at the park and is a very severe
blow to the employees who have built up considerable skill in
manufacturing buses. Donegal already has the highest unemployment rate
in the country, with the live register soaring by 74% in the last 12
months.

"This is devastating news for the highly skilled workforce and their
families, who have helped to build the company up over the last 20
years. Euro Iompu Teo had been regarded as an Irish success story,
assembling high-end products for sale in Ireland and across Europe. The
company had successfully secured the Mercedes franchise for coach
manufacturing.

"However, in spite of being grant-aided by Údarás na Gaeltachta the
company has fallen casualty to the Government's botched handling of the
economy. Last year it was restructured by a local businessman, but the
economic downturn has proved too much. Its closure will have a knock-on
effect across the local economy.

"With job losses at Irish-based multi-national companies rising all the
time, it is particularly worrying when an Irish-owned company like this
is forced to close. Small & medium enterprises will have a key role in
rebuilding the economy, but only if the Government provides the right
conditions for them to survive.

"I am calling on all relevant State agencies and the Department of the
Gaeltacht to open immediate talks with the company to see if a recovery
plan is possible. These agencies must also immediately seek further
investment in the Gweedore Business Park.

"Fine Gael has put forward key measures to assist employers, including a
PRSI waiver for additional staff recruited over the next two years, a
Government-backed loan guarantee for viable enterprise, a new initiative
to cut red tape by 25%, a freeze on Government-controlled charges, and a
review of energy prices."

Ends

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