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Dáil Éireann debate -
Wednesday, 10 Mar 1971

Vol. 252 No. 5

Ceisteanna—Questions. Oral Answer. - Closure of Textile Firm.

22.

asked the Minister for Industry and Commerce if his attention has been drawn to a report (details supplied) that a firm which engaged in the textile business in Shannon was closing down with consequent unemployment of workers from various counties; and what steps he proposes to take with a view to finding a solution to the problem.

23.

asked the Minister for Industry and Commerce if he is aware of the sudden closure of a factory in the Shannon Industrial Estate; if so, if he has investigated it; and if he will make a statement on the matter.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 22 and 23 together. I am aware that 50 workers employed by this company were laid off on 5th March, 1971, and that the remaining 62 workers are under a week's notice since March 4th.

I have made inquiries and am informed that the decision to close arose from the necessity to re-equip the factory to produce the type of yarn now in demand in the company's export markets. I am also informed that although the new machinery to be installed cannot be provided until towards the end of this year it would not be possible, in the meantime, to continue operations at the factory in the existing circumstances because it would not be economic. There is no prospect of reopening the factory until such time as the new machinery has been proved commercially. Indeed, I understand that the decision to purchase the new equipment depends on the outcome of current tests to prove its commercial viability.

Is the Minister aware that workers from various counties throughout the Republic have come to work in the Shannon region in recent years? Does the Minister realise how serious this matter is for people who must use motor cars to travel 50 or 60 miles to their place of employment? Many of these people have their cars on hire purchase and have to pay off loans on their houses. What steps is the Minister prepared to take to help these people over their present serious difficulties?

The bulk of those who were rendered redundant by the difficulties encountered by this company are from Limerick and Clare. The Minister for Industry and Commerce will be announcing at the weekend details of two further major firms which will be established very shortly —one in Limerick and one at Shannon. These will more than compensate for any loss of employment in the factory now being discussed. I realise that this is a disappointment to Deputies opposite but it is a fact that Limerick and the Shannon Industrial Estate are immensely successful. There are more than 40 factories at Shannon Airport which are in a thriving condition and they are employing 6,000 people at the airport.

Will the Minister agree that some areas have the right to fix their own grants and do not have to go to the IDA as do other regions in the country?

That is not so.

I am calling Question No. 24.

Is the Minister not aware that the employees of the industry concerned received one week's notice which terminates tomorrow night? Is the Minister aware that this firm has been receiving a substantial amount of the taxpayers' money? Is the Minister not aware that it is common practice where a factory closes down that they should notify the employees and the unions concerned and give at least a month's notice in order that alternative employment could be secured? In this case one week's notice was given. Yesterday I sent three prepaid telegrams to three Ministers concerned and I only got the courtesy of a confused reply late last night from one Minister. Some 129 people will be thrown out of work and the Minister has done nothing.

The fact is that new factories are opening practically every month in the Limerick region and the situation there has never been better.

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