asked the Minister for Industry and Commerce if the IDA have any plans for the reemployment of workers rendered unemployed by the closing down of an industry (name supplied) in Carndonagh, County Donegal.
16.
Ceisteanna—Questions. Oral Answers. - County Donegal Factory.
15.
asked the Minister for Industry and Commerce if he is aware of the imminent closure of a factory (details supplied) in County Donegal with the loss of 180 jobs; and if he will take steps to prevent the closure which will have a serious effect on an area where there is very little industrial employment.
With the permission of the Ceann Comhairle I propose to take Questions Nos. 15 and 16 together. The factory in question has been in Receivership, along with the United Kingdom group to which it belongs, since 18th March, 1976. It is continuing to operate and I understand that the Receiver is endeavouring to sell it as a going concern.
I am concerned at the adverse effects which a permanent closedown of this factory would have for the area. The Industrial Development Authority and Fóir Teoranta are maintaining close touch with the situation with a view to providing all possible assistance that would facilitate the takeover of the factory and its continuance as a significant source of employment in clothing manufacture.
Apart from the problem of this particular factory, I fully recognise the need for further new industry in Carndonagh and in the Inishowen Peninsula generally and the IDA have been making and will continue to make strenuous efforts to establish new industry in the area.
Would the Parliamentary Secretary not agree that he has had a long time to look into this before a by-election became due in Donegal? Could he not give some indication as to what efforts have been made, first, to keep this factory going and second, to find an industry for the advance factory which has been lying idle for years?
The advance factory is the subject matter of the next question.
I thought both questions were being taken together.
In relation to the lapse of time referred to by the Deputy, I would point out that this group went into Receivership on the 18th March, 1976. I can tell him, however, that——
Is the Parliamentary Secretary aware——
At the beginning of——
——that many contracts——
Order. The Parliamentary Secretary is replying.
At the beginning of February last this firm sought and were offered a substantial loan by Fóir Teoranta but within weeks the directors of the company had indicated that because of the extent of the operating losses being incurred at Carndonagh they intended to close the factory. On 6th or 7th April representatives of Fóir visited the factory to assess the situation and were in contact subsequent to that with enterprises in the United Kingdom and elsewhere who might be interested in taking over the enterprise as a going concern. Therefore I think there has been no lack of action on the part of Fóir Teoranta in this matter.
Do I take it the Minister was dealing with Questions Nos. 19 and 20 only?
Nos. 15 and 16.
Nos. 15 and 16?
Yes:
Could I ask the Parliamentary Secretary to say whether a special effort is being made by the IDA in view of the seriousness of the situation created by the prospect of the closure of this factory, to try and salvage it not just by seeking to sell it as a going concern but to make it viable, considering that in the same peninsula only very recently——
A brief question, Deputy.
——with the assistance of IDA grants a new factory of a similar nature producing similar goods has been established and has flourished?
I am aware that an extension has taken place in Buncrana which is flourishing and is projected to create substantial employment by 1979. I think the reply I gave to Deputy Brennan's supplementary indicates that Fóir Teoranta and the Minister are treating this matter as one of urgency. Indeed, I may say that the IDA are giving very special priority to the Inishowen peninsula in particular in view of the——
Forthcoming by-election.
——problem that exists.
I want the Parliamentary Secretary to make it clear that this type of industry is not a washout as would appear to be——
That is not the question.
The problems of this industry arise largely from the fact that it is linked with eight other factories in a group which spans the whole of the British Isles and two-thirds of its production is exported. The problem has largely risen on the export market with its principal supplier which is a large retail multiple.