asked the Minister for Industry and Commerce if he is aware that the Limerick shoe factory which has been operating for the past 40 years will close down next March thus depriving approximately 250 employees, some of whom had many years' service with the factory; and, if so, if he has brought this very serious position for the workers concerned and the city of Limerick in general before An Chomhairle Oiliúna and the Industrial Development Authority so that those bodies may be enabled to pursue the possibility of retraining the workers affected by the closure of the factory and of promoting a new industry in Limerick to provide other employment opportunities.
Ceisteanna—Questions. Oral Answers. - Limerick Shoe Factory.
38.
My information is that a decision in regard to the future of the Limerick shoe factory is to be taken at the end of March. As soon as I learned of the possibility of the factory's closing, I asked the Industrial Development Authority, in conjunction with my Department, to examine the possibilities of keeping the factory open or failing that, to endeavour to provide alternative employment opportunities for the workers who may become disemployed. The Deputy will, of course, be aware that some new project for Limerick have recently been announced.
An Comhairle Oiliúna, as I am sure the Deputy realises, comes under the aegis of the Minister for Labour. I have been assured, however, by the Minister for Labour that An Comhairle Oiliúna are aware of the situation in Limerick and that their training facilities will be made available to the workers in the footwear factory if and when they are needed.
Can the Minister make a general statement with regard to the closing down of two factories in recent months?
Not at this stage.
They are just closing down?
No. It is not correct to say lightly that they are just closing down. There is a question of closure in the factory referred to towards the end of March.
I am talking about other ones also.
Factories are closing down in Monaghan, Dundalk and Castleblayney.
Has the Minister a general statement to make in regard to the people who are becoming disemployed in the shoe factories? Did the Minister not hear that?
I did hear it, and I read many alarming stories about the impending doom of the footwear trade. This annoys me because, in fact, the people who are talking about impending doom in this regard make the suppliers of the trade frightened and they start pressing. The creditors of any shoe factory, on reading statements of such a nature, must feel compelled to take positive action.
Who is making the statements of impending doom?
The Deputy asked me whether I had any comments to make on what appeared in the paper. My comment is made arising from statements in the Press. I would hope that the message would get back to the people who made those statements that they should not be making pessimistic statements.
Does the Minister not agree that it is indicative of a dangerous trend in the history of Irish industry. When a firm which has been operating successfully and profitably for 50 years is compelled to close down in March next? Does the Minister agree that these pending closures, redundancies and short-time working in the boot and shoe industry come about as a direct result of the implementation of the Anglo-Irish Free Trade Area Agreement?
We cannot have a discussion on the footwear industry on this question which relates to the closing of one factory in Limerick.
The Anglo-Irish Free Trade Area Agreement is pertinent to all these questions about the shoe trade because the abolition of the quotas on the importation of foreign footwear last July meant that one-third of the Irish market has been taken up by foreign products.
The Deputy may not pursue this line or make speeches on this. The question relates to the Limerick shoe factory. It does not open a debate on the footwear industry.
Must we wait for the industry to be seriously damaged before the Minister will consult with his English colleagues to make arrangements to stem the flow of foreign footwear into our country?
Is the Minister satisfied that the industry has sufficient capital to invest in new machinery for the production of the new styles in footwear? The new styles are necessary if shoe exports are to expand. Does the Minister not agree that the new styles need new machinery? Is capital available for such machinery?
I do not think it is necessary to have new machinery for every new fashion.
I did not get a reply to my supplementary. May I ask the Minister if, even at this late hour, he will intercede directly with the company concerned and try to assure them that in the kind of economic climate which it is desirable to create it is necessary for them to continue in operation? Will he intercede directly with them?
I have already indicated what I have done in this regard, and that the full agency of the Industrial Development Authority is being used. I do not think that my direct intercession with the principals of this firm is called for at this stage.
It is vitally necessary. It involves 250 jobs.