Thank you, a Cheann Comhairle, for allowing me to raise this matter of immense local significance. The announcement of the closure of Radlink in Listowel comes as a major blow to the workforce, management and business community in north Kerry. Radlink, which was known as Stelrad until a management buy-out in 1995, employs 51 people. Stelrad was established in 1970 as a light engineering company manufacturing central heating radiator components, and at one stage it employed more than 80 people. It was taken over by Metal Box Limited, which in turn was acquired by Caradon in 1987.
The various companies have served the people of north Kerry well over the years. They provided well paid jobs for many local people, with excellent working conditions. The workforce would readily acknowledge the quality of the jobs and the availability of overtime. Many family units were supported by the salaries generated in the plant over the years. The workers were able to take out mortgages, send their children to third level education and live comfortably. The finance generated by the plant was a major driving force in the local economy, boosting the income of local retail outlets, supermarkets, hotels and other businesses.
In 1995 Caradon decided to cease activities in Listowel. This led to a management buy-out which included investment by SFADCo and Ash hurst Limited. The new company was renamed Radlink and performed well until six months ago.
Following the acquisition of Stelrad by Radlink, Caradon entered into an arrangement with the company and committed itself to taking products from Radlink for three years. This agreement ended recently. More than 60 per cent of goods produced at the plant were purchased by Caradon. As a result, Radlink became over-dependent on Caradon's custom and left itself somewhat exposed. Caradon has apparently decided to become self-sufficient and manufacture its own components. It also appears there is a 50 per cent excess capacity in the radiator manufacturing industry in Europe at present, which means there is not a demand for the product. The workforce at Radlink is highly skilled, with 15 employees working as fitters, electricians or toolmakers. The remainder of the workforce are skilful machine operators.
The established industrial base in Listowel has been eroded considerably during the past two years. For example, Neodata closed in 1997 with the loss of 105 jobs and Munster Electronics closed in the same year with the loss of 70 jobs. Due to my efforts, assisted by the strong support of SFADCo, I succeeded in encouraging a small company, International Data Processing, to establish an operation in the Neodata plant which employs approximately 22 people. Following six months of intensive work, I succeeded in putting together a consortium to purchase and re-open the former Munster Electronics building and 25 people are now employed there.
I accept that 45 people are employed at both plants but this falls far short of the 170 who were formerly employed by Neodata and Munster Electronics. The latest closure means that 220 jobs have now been lost. Job losses of this nature cannot be endured by a town such as Listowel, which has a population of fewer than 4,000 people. These job losses represent the equivalent of anything up to 50,000 job losses in Dublin. One can only imagine the outrage in Dáil Éireann if such an event occurred.
I remind the Minister of State that there are 1,280 people out of work in the greater Listowel area, which is probably one of the worst unemployment black spots in the country. The employment rate within a six mile radius of the town is approximately 400. As the local Oireachtas representative, I am depressed by these figures.
I also remind the Minister of State that the recent decline in agricultural incomes in north Kerry has added further to the economic woes of the area. Farmers in north Kerry are leaving the land on a daily basis because they are frustrated by poor prices and disastrous weather conditions which have obtained in the past two years. To sustain the economic base of our community we need to compensate for this flight from the land by providing industrial jobs. I call on the Minister of State to immediately put a task force in place comprising representatives of the IDA, Shannon Development, the Kerry County Enterprise Board, FÁS, the chairman of Listowel Urban District Council and local Oireachtas Members. A full-time officer, either an employee of Shannon Development or IDA Ireland, should be appointed to co-ordinate the work of the task force, to make contact with various companies at home and abroad and to work closely with officials of IDA Ireland in the USA and Europe to identify potential investors for Listowel.
