asked the Minister for Industry and Commerce the steps, if any, he intends to take to prevent the redundancy of over 20 people at a factory (name supplied) in County Galway where the total labour force in the factory is 71.
Ceisteanna—Questions. Oral Answers. - County Galway Factory Redundancy.
14.
I understand that the redundancies referred to result from the termination by the firm of certain operations which are no longer economic and from other internal re-organisation designed to reduce costs and increase efficiency. Whilst I regret that the firm should have found it necessary to reduce the level of its employment, there is no action that I can usefully take in the matter.
Is the Minister aware that, while the amount of redundancy necessary is about nine, 22 will be declared redundant? Is he further aware that the company have indicated that they do not intend spending more money on developing their factory or modernising their plant, and that if they continue in Loughrea they do not intend to carry on in the spinning business? Has the Minister consulted the management to know what type of business they intend to pursue or are the whole 71 employees in danger of being declared redundant?
I must refer the Deputy to the question he asked me. He asked me the steps I intend to take to prevent redundancy. In this country we have the most extensive battery of aids to industry of any country in Europe, ranging from grants of every sort to management consultancy, export advice, and the availability of money from Fóir and other State agencies. As well as being the most extensive battery of aids in Europe it is at the limit that is permitted in Europe. In the light of the availability of that range, there is no useful intervention I can make in that instance. I understand there have been contacts, and if there are specific proposals put to me about useful measures I can take, then I will certainly consider them. In a market economy such as we live in it is neither the duty nor within the power of the Minister for Industry and Commerce to intervene in the internal affairs of given firms beyond the normal range of aids and the general support that is already made available and made freely available by agencies of my Department.
Would the Minister not agree that it is his duty, if this industry closes down, to see that a new industry is put into this very elaborate building which is there. It is on the cards that this industry will go, and would the Minister not see that something is done before 71 people become redundant in a town which will become a ghost town if a new industry is not established there?
That is a vague phrase that covers everything and nothing, "to see that something is done". The Deputy knows that in regard to the nurturing of new industry in Ireland we have made much greater progress in investment and money made available this year than we have ever done in the history of the State. Of course it is a Minister's duty, but it is also the duty of the other social partners, including employers and trade unions, to look to the economic health of any given neighbourhood or firm.
In the light of the information which the Minister has received and the information I have from the trade unions, would he make further inquiries to see if a new industry could be established there? I agree the question refers to redundancies, but the information I have got since would seem to indicate that the factory will close down. Will the Minister ascertain whether it is possible to have a new industry established in the area?
Was any help sought by the company?
To answer Deputy Callanan first, Loughrea has a real case for special aid at this time for the reason that due to world economic circumstances two new projects which were secured two years ago for the area and which were an indication of its needs, were lost by reason of the decision of the principals of those firms not to go ahead. Therefore, I consider it right that Loughrea which was deprived of that needed help is entitled to some special consideration and I will raise the matter again. The IDA are well aware of the situation in Loughrea and are giving the question continuous attention.
Regarding the question asked by Deputy Gibbons, there was continuous contact between this firm in Loughrea, the IDA and other State agencies. The matter is not one that has sprung up suddenly.
I wish, with the permission of the Chair, to raise on the adjournment the subject matter of Question No. 71 of 24th February, 1976.
The Chair will communicate with the Deputy.