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Dáil Éireann debate -
Wednesday, 26 May 1965

Vol. 215 No. 15

Ceisteanna—Questions. Oral Answers. - Closing of Walkinstown (Dublin) Factory.

25.

asked the Minister for Industry and Commerce if, having regard to the closing of the Walkinstown plant of Holdens (Ireland) Limited, he will state what steps he proposes to take to ensure that there are adequate wool scouring facilities in Dublin to enable firms to fill their wool export trade commitments.

26.

asked the Minister for Industry and Commerce if he will hold an immediate enquiry into the effect which the recent take-over by Sunbeam Wolsey of Salts (Ireland) Limited had on the position of the Walkinstown plant of Holdens (Ireland) Limited; whether he is satisfied that assurances given by the purchasers have been fully implemented; and if he will make a statement on the matter.

27.

asked the Minister for Industry and Commerce if, having regard to the serious pending unemployment in and disorganisation of the wool industry caused by the proposed closing of the factory of Holdens (Ireland) Limited at Walkinstown, Dublin, he will have immediate consultations with people in the industry with a view to keeping the Walkinstown works open.

28.

andDr. O'Connell asked the Minister for Industry and Commerce if he is aware of the recent announcement that Holdens (Ireland) Limited will close on 4th June with consequent loss of work for 170 workers; and that this will be a serious blow to the Irish wool export trade; and if there are any steps he can take to avoid this closure.

29.

asked the Minister for Industry and Commerce if he will make a statement on the closing down of Holdens (Ireland) Limited with the consequent loss of employment for 170 people.

I propose with your permission, a Cheann Comhairle, to take Questions Nos. 25, 26, 27, 28 and 29 together.

I am aware of the decision of Holdens (Ireland) Ltd. to close down. As the company has indicated in a published statement that the decision was taken after considering the present and future trading position and in the light of the demand here for the company's services, I cannot see that I could usefully intervene in the matter.

In so far as the decision to close may have been influenced by the earlier take-over of a spinning mill, the prospect is that the overall effects of that development will be to facilitate adaptation to conditions of freer trade.

I understand that the question of alternative wool scouring facilities is being examined by the wool trade. Any proposals which may be submitted to me in that regard will be fully considered.

Is the Minister aware of any alternative proposal which might relieve the unemployment created by the close-down of Holdens?

It is my constant concern, and it is Government policy, to help to provide new industries because there will have to be alternative employment opportunities provided, especially in the context of freer trade.

Would the Minister concern himself about this with the same urgency as if it had occurred at Kilrush or Kilkee?

Oh, surely.

Must the workers emigrate in the meantime or will the same thing happen in the case of Holdens (Ireland) Ltd. as happened in the case of the factory of Salts (Ireland) Ltd. with Sunbeam Wolsey? Will the same situation arise-that there will be a transfer to Cork, with consequent unemployment at Walkinstown? Will the Minister allow that situation to develop? Will he allow monopoly acquisitions to cause unemployment with consequent emigration?

The Deputy realises that demand for the type of product manufactured had dropped, due to the increased use of other types of fibre and there was a resulting over-capacity in the industry as a whole. The transfer to Cork made the Cork firm viable and economic. It did just that. There was over-capacity in the industry.

It is a question of a monopoly undertaking taking over Salts (Ireland) Ltd. and Holdens (Ireland) Ltd. which was owned by Salts (Ireland) Ltd. Both provided employment in the area. It is a question of work being there.

It is a question of a concentration of demand in one unit which makes such a unit viable.

The Minister said all this is being done in order to help this firm meet the demands of freer trade. He said the Government were preoccupied with the problem of providing new jobs. What plans has he for the re-employment of the 170 workers laid off in this case?

The Government's policy is the establishment of new industries. We cannot have one standing by immediately, but each day new proposals are being examined and developed and in the future we must face the matter of providing new types of employment.

If there is to be unemployment——

This is the result, basically, of a new development in the market.

Will the Minister call these people back from England when his plans are ready?

No, we shall send them up to the ESB.

30.

asked the Minister for Industry and Commerce whether his recently announced redundancy pay and retraining facilities will be made available to employees of Holdens (Ireland) Limited who became unemployed by the closing down of that firm; and what opportunities he visua-lises for their re-employment.

A national scheme for redundancy compensation does not yet exist. When introducing the Estimate for my Department recently, I explained that it is the aim of the Government to create a situation in which workers who become redundant will be eligible for redundancy compensation and for retraining, if found to have the necessary aptitude. As a compulsory scheme of redundancy compensation and retraining facilities is not yet in operation, I have no power to order that redundancy compensation or retraining facilities be made available to the workers mentioned by the Deputy. The fact that a national scheme is not yet in operation does not, of course, rule out the operation of schemes on a voluntary basis by any individual firm or group of firms in an industry, as is, indeed, already done in some industries.

I regret very much the position in which the workers in question have found themselves. As the Deputy is aware, the creation of employment opportunities is an integral part of the Government's policy of industrialisation and is being vigorously pressed forward.

Would the Parliamentary Secretary consider, in view of the remarks made about the problem of redundancy in conditions of freer trade and its magnitude in the future, taking steps, pending the introduction of a comprehensive scheme, to provide a modified scheme?

This is a complicated matter and there are points in the Deputy's supplementary question which may or may not be valid. This is not a matter for Government action but mainly for employer action. In regard to this particular firm, there is some hope from the announcement made by the Board that the firm will effect some form of compensation because they said arrangements are being made for consideration to be given to employees in recognition of their service. It is of course a matter for the firm but there appeared to be some hope. On the broad question, the position here and indeed in several other countries, is that the nature of the compensation payable has not yet been determined. The situation in this country is rather different from that in other countries so that it would not be possible at this stage to take ad hoc measures with regard to this situation, unfortunate though it may be.

The problem is connected with the anticipation of freer trade and many of these take-over arrangements and redundancies occur as a result of the employers' policy in relation to freer trade. We must prepare ad hoc arrangements at present because there are people suffering as a result of the anticipation of freer trade. Is it the position that we must wait for a full compensation scheme, although workers may be suffering in the meantime?

It will not be all that long before we are able to announce the general heads of our redundancy scheme. I should hope in fact that we would be able to make an announcement in regard to the general aims inside the next few weeks. In the meantime, I would draw the Deputy's attention to the Minister's statement in regard to this matter, that it is not routine redundancy, that it is due to a change in the market rather than anything to do with freer trade. I should like to add that we have very much in mind the fact that this is happening and are treating proposals for the scheme as a matter of urgency.

Can the Parliamentary Secretary say when this scheme is likely to come into operation?

It would be better to wait until it has been formulated and then see what the public reaction to it is.

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