Dáil Éireann debate -
Thursday, 25 Mar 1999

Vol. 502 No. 5

Adjournment Debate. - Job Losses.

Mrs. B. Moynihan-Cronin

The announcement that 50 jobs will be lost in the Transmould plant in Killarney this week went unnoticed in the national media and by the Government. This is very worrying. A response is required from Government to ensure that replacement jobs are created as soon as possible. These job losses in addition to the 30 temporary lay offs at Alps Electrical in the town will further depress Killarney, which has been neglected in terms of industrial development. The people are sick and tired of empty promises during the past two years. Since taking office the Government has insisted it is actively seeking a replacement industry for the Pretty Polly plant in Killarney, but there is nothing on the horizon. I understand that 30 visits by potential industrialists have been made to the Pretty Polly plant since its closure, however no one has expressed genuine interest in setting up in the plant. Are there problems with the plant or with the location of Killarney that detract investors? Training and alternative employment opportunities should also be put in place as a matter of urgency. Since there is not a full-time IDA presence in Kerry the Government should consider opening an IDA office in the county to assist with developments.

Following the failure to obtain Objective One status for Kerry it is essential that the Government sets out its plans for the county. In including Kerry in its application for Objective One status, I presume the Government is aware of the pockets of acute disadvantage, particularly in south Kerry. As the application for south Kerry has failed is the Government prepared to address the problem the county suffered due to its peripheral location?

Given the job losses in Killarney this week, attention must be drawn to the jobs being lost through competition to low paid economies in the Far East. It is high time we revised our job creation policy and focused on bringing a good mix of indigenous and multinational employment to towns. Ireland should no longer rely on low wages as a method of remaining competitive. I ask the Tánaiste to meet the various agencies, Kerry County Council and the IDA with a view to putting a task force in place.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

Transmould Limited was established in Killarney in 1989 and manufactures a range of transformers, smoke and heat detectors and also a range of emergency lighting and plastic mouldings. It currently employs around 155 people between temporary and permanent staff.

Transmould is a direct subsidiary of Menvier-Swain Group plc. This company is a large manufacturer of emergency lighting systems for industrial and commercial applications and has its headquarters in Banbury in the United Kingdom. The Menvier-Swain Group employs more than 1,500 people in facilities in Europe, Australia and the Far East. Menvier was acquired in December 1997 by Cooper Industries, Houston, Texas. Cooper Industries is a diversified worldwide manufacturer of electrical products, tools, hardware and automotive products. The company employs about 30,000 people in 100 manufacturing facilities worldwide.

Recent announcements by the chief executive officer, Mr. H.J. Reilly, indicated that the company intends to implement a cost reduction programme which will involve the elimination of 12 facilities worldwide with, in some cases, the transfer of production to lower cost countries such as Mexico.

This week, Transmould announced it is to downsize its operation in Killarney by about 50 jobs over the next six months. These jobs are mainly related to the production of transformers and coils. This has occurred as a result of principal customers being forced, through market competitiveness, to source products from lower cost suppliers in the Far East.

In light of the downsizing of the Transmould operation in Killarney, we have asked the agencies to intensify their efforts to facilitate additional investment, job creation and job maintenance in Killarney. Developing the full potential of the south Kerry area, and in particular Killarney, to attract more industry to the area and to expand the existing industrial base in the region is a priority for all agencies.

IDA Ireland continues to promote the vacant Pretty Polly facility to potential overseas investors. In recent years there have been 39 site visits to Killarney, 34 of which have visited the Pretty Polly facility. IDA Ireland is confident that a positive outcome will emerge from the intensive promotional work being undertaken.

As a result of IDA Ireland promotion of Killarney as a suitable location for call centres, Rosenbluth International, the second largest travel management company in the world, recently established a call centre in the town. The company chose Killarney as a centre to co-ordinate all its support services for Europe and will employ 250 people at full development. IDA Ireland also continues to work with the existing overseas companies located in Killarney and hopes this development work will result in expansions by these companies.

In addition, Enterprise Ireland is working with indigenous industry in the south Kerry area. The agency aims to build on the success achieved in the area in 1998 when a net gain of 110 jobs was achieved by companies in its client base. Enterprise Ireland's business development activities will focus on helping companies in the area exploit their growth potential through capability and capacity enhancement measures. These will include the development of a response to the training and resource requirements of the key services sector. There will be a special emphasis on software and telemarketing.

At community level Enterprise Ireland will continue its involvement in a range of activities including supporting the Killarney working group and participation on the Kerry County Enterprise Board which has been a major success.

I am confident the strenuous efforts made by the development agencies will yield positive results on the industrial front for Killarney and neither I nor the Government propose to establish a task force at this time.