Difficulty in replacing call centre

Difficulty in replacing call centre

Anton McNulty

ÚDARÁS na Gaeltachta have confirmed that up to eight companies have expressed an interest in moving into the vacant call centre in Achill, but admitted the difficult economic circumstances are making it difficult for companies to commit.

Last week, the High Court ordered Scottish-based businessman, Pearse Flynn, to repay €1.2 million to Údarás na Gaeltachta arising from grants given to two of his companies, Teagmháil an Daingin Teo and Teagmháil Acla Teo, which operated call centres in An Daingean and Achill, respectively.

Last February, three Contact 4 call centres operated by Mr Flynn in Achill, An Daingean and Gaoth Dobhair closed down suddenly with the loss of a total of 108 jobs, 40 of them in Achill. At the time, staff were read a four-paragraph e-mail informing them of the job losses, which were announced less than two years previously by Mr Flynn who had travelled to Achill.

Staff were told that no stone would be left unturned to attract alternative employment but ten months down the road, Údaras na Gaeltachta admitted they have been unable to attract a company to re-occupy the Achill centre. Seán Ó Coisdealbha, the Development Manager with Údaras na Gaeltachta based in Belmullet, told The Mayo News they are negotiating with some companies but the economic climate is making it difficult to attract employment.

“We continue to seek companies for the centre in Achill but these are not the best of times at the moment for attracting companies,” admitted Mr Ó Coisdealbha. “We have had about seven or eight companies express an interest in the centre and we are negotiating with one or two at the moment. We were on site with a company four weeks ago showing them around the premises, but it will take time. It is an on-going process – companies will have to provide business plans and they won’t just move in in the morning. However, we are actively selling Achill to companies and hope to get a replacement,” he said.

During the High Court case against Mr Flynn, Údarás had claimed it paid €905,165 in employment and training grants to Teagmháil an Daingin Teo under an agreement with Mr Flynn in July 2005 with further grants totalling €330,578 paid to Teagmháil Acla Teo under an agreement in November 2005.

Údarás took proceedings for the €1.2m paid out when the two companies ceased trading in February without the prior consent of Údarás. They claimed that €650,000 had not been lodged into court and they were seeking judgement for the full €1.2 million sum, plus their legal costs. That application was not contested by Mr Flynn’s legal representative.

Last month, Mr Justice Peter Kelly said he would allow Mr Flynn to enter a defence in the proceedings on condition he lodged €650,000 within 14 days and a full defence within 21 days. As Mr Flynn had not lodged the money with the court, judgement for the full amount of €1.2 million must be entered against him, the judge directed. He said Údarás were entitled to full costs.