A tale of two towns

ON his first official visit to the county since he assumed the ministerial enterprise, jobs and innovation portfolio, Richard Bruton wheeled into Shannon last Friday, the bearer of good news.

It was all smiles and handshakes as Minister Bruton put his seal of approval on two very significant employment projects with the potential to create over 300 posts in the next four years.
Unfortunately, his announcement was one of the worst kept secrets, as news of the projects had already entered the public domain after being leaked to the press. Still, the official seal of approval had to be applied and an opportunity couldn’t go a begging for the Government to milk public popularity.
One hundred and seventy jobs are to be created in a joint partnership between US multinational Zagg and long established local company Cregg Logistics. Zagg, which manufactures mobile phone accessories, has set up a European Services Centre in the Free Zone, generating 40 new positions in sales and marketing of their products. As part of this investment, Cregg Logistics, which has been based in Shannon since 1993, will create 130 new jobs in the manufacture, assembly and distribution of the products to markets in Europe and beyond.
Also on the day, another Shannon firm announced a significant investment. Bustec Limited, also based in the Free Zone, is to enter into a €15 million contract with US technology firm Lockheed Martin to supply equipment to be used by the US Navy. Bustec is a leading supplier of high-performance data-acquisition and test products, and lists NASA and Boeing among its clients. A handful of new positions will be created as a result of the deal.
Back in the Celtic Tiger era, the delivery of 300 jobs by Shannon Development, the regional development company charged with job creation in the Free Zone, wouldn’t have made headline news. But in the times that are in it, with the roar of the Tiger a distant echo, it is a significant success.
Contracting markets and the global recession, which has left companies gripped in a serious financial squeeze, has raised the bar for the Government-owned body. Therefore, the jobs announcement on the Free Zone, in the face of a difficult business environment, is praiseworthy.
The Free Zone is Ireland’s largest multi-sectoral business park outside of Dublin and plays a crucial role in acting as a west of Ireland counterpole to east coast enterprise. Its continued prosperity is key to the well-being of the region and its big selling point to international investors and new companies is the 12.5% corporate rate tax.
In fact, against a background of a 4% decline in the overall level of employment in the Free Zone in 2010, Shannon Development’s chief executive Dr Vincent Cunnane described Friday’s double job announcement as a turning point for the Free Zone that is home to over 100 companies with annual sales of €3bn.
With just over 6,000 people employed there, the Free Zone has not recorded a net jobs increase since 2008 but Dr Cunnane is optimistic the trend can be bucked this year.
Dr Cunnane said, “We have done very well in the Free Zone in the sense that while we have lost jobs, we haven’t lost companies. Downsizing is what has dominated activities here, rather than companies closing, enabling Shannon Development to continue working with these companies to identify new market opportunities.
“I think we are really turning a corner and I think there is a straight road ahead. This year, we would be very disappointed if there are not more job announcements for the Free Zone.”
However, 10 miles up the road, the business community of Ennis is struggling to keep doors open. In the past year, upwards of 80 businesses have turned the key and locked up shop for good and glory, a sign of the difficult times.
Such business closures and the inherent threat to others was the stimulus for representatives of Ennis Development Forum and Ennis Chamber to engage Minister Bruton in some straight talking on Friday, a dialogue facilitated by Clare’s two Fine Gael TDs, Pat Breen and Joe Carey.
Top of the agenda was a discussion on issues affecting enterprise in the county, as well as highlighting initiatives and ideas from businesses to stimulate the economy, so that County Clare is the first county out of recession.
Aspirational as it may sound, it wasn’t just all rhetoric. Members of the forum had their homework done and presented a myriad of ideas and suggestions to act as a catalyst and point the business community to the road of economic recovery.
Concerns were raised in relation to the cost of doing business and the retention and creation of jobs and, in particular, the struggle facing businesses to remain open with many owners not taking a wage.
Once they had the ear of the minister, forum members didn’t withhold. A lowering, at least, of commercial rates and the need for a rates review were concerns floated, while the need to reduce bureaucracy for businesses and to support new developments were broached very positively.
Minister Bruton proved himself a good listener. The talking is done; Ennis now waits to see if he is a man of action.
Shannon on Friday was a good news story. Who knows how the Ennis story will finally unfold?