On a point of order. I want to ask the Ceann Comhairle to confirm that a Private Notice Question is not any different from an ordinary question as far as the asking of supplementaries is concerned.
Private Notice Question: - Ferenka Closure.
The allowing of supplementaries is always at the discretion of the Chair. I have notice that Deputies Barry Desmond, Garret FitzGerald, Jim Mitchell, John Kelly and Tom O'Donnell wish to raise a particular matter by way of Private Notice Question.
asked the Taoiseach if he will make a statement concerning the decision of the boards of directors of AKZO and ENKA to close the Ferenka plant in Limerick.
Dr. FitzGerald, Mr. Mitchell, Mr. Kelly
andMr. O'Donnell asked the Taoiseach what action the Government proposes to take to persuade Ferenka to reconsider its decision to close down, in view of the grave consequences for the economy and for Limerick in particular.
With the permission of the Ceann Comhairle, I propose to take these questions together.
The Minister for Industry, Commerce and Energy has made every effort to avert the closure of the Ferenka factory and, as the House will be aware, he was also in contact with the parent company yesterday after the decision to close became known asking them to reconsider their decision but to no avail.
The Minister for Industry, Commerce and Energy has also issued a directive to the Industrial Development Authority to explore every possibility of restoring employment in the Ferenka factory.
I have listened carefully to the Taoiseach's reply, from which it would appear that he believes AKZO will not continue with Ferenka in its present form. I wonder if the Taoiseach is aware of the statement made last Sunday by Mr. Joseph Huyter, vice-president of the parent company, that the company's other factories cannot supply the growing demand for the product in question and that therefore the production of this plant is in demand and is needed. Given that the problem derives in large measure from labour relations, I wonder whether the Taoiseach would consider proposing to AKZO a solution that would involve a continuation of production at the plant, possibly as a workers' co-operative selling its output to AKZO at an economical price. Would he be prepared to consider investing in such a project the IDA's stake in the form of fixed assets and such other finance as might be needed as working capital for such an enterprise?
This was a carefully prepared statement rather than a supplementary question. I doubt if it is in order to answer it at all, but I will. I will take it on since the Deputy has put it in such a carefully prepared way.
My first reaction would be that since Mr. Huyter indicated that his other factories cannot supply the demand he foresees for wire cord, I wonder that he did not continue in production when the workers reported back for work yesterday. On the other hand, the proposition just put by the Deputy has never been put to anybody else. The proposition put to the Government by AKZO was to take over the plant lock, stock and barrel, together with the debts that have accrued since closure, in circumstances when it was agreed between the IDA and the parent company that about £11 million extra input would be required to make the factory viable. The offer was made at the time when the factory was closed because of an industrial dispute and when it was known that the parent company were losing money heavily in many of their other factories throughout Europe and had closed down some of these factories with the loss of several thousand jobs. It was in these circumstances and against that background that Mr. Huyter made any kind of an offer to the Government and within the offer there were certain unacceptable terms. That is my immediate reply to the Deputy, although he has since imported matters that Mr. Huyter himself had not put forward.
In view of the information now disclosed, and particularly in view of the fact that the workers all reported for work yesterday, I would ask the Taoiseach if as an interim measure he would contact the board of directors of this company and offer an interim State short-term loss subsidy to the company to enable work to be recommenced immediately in the plant and even to bear the cost of such losses by the State for a month or two to enable the proposition which he has now outlined to the House to be considered by the IDA, the Government, the trade unions, the ICTU and the transport unions in order to get production going again?
In so far as Deputy Desmond referred to a disclosure, it was his own party leader who disclosed the fact that an offer had been made. I thought I might elaborate on it and put it in its proper perspective. There is no indication whatever that an offer, if such were made, would be acceptable to AKZO. In expansion of what I have already said, I might say that the Ferenka factory is an isolated factory producing a very specialised product with very limited market outlets. It would be difficult to see Ferenka of Limerick working in isolation without the vast marketing network that AKZO and ENKA already have, when these two parent companies were unable to market the product profitably up to this point.
I have listened carefully to what the Taoiseach said. He referred to an offer, the details of which I was not aware of. In view of the particular circumstances that there is a demand for this product, as we know from the vice-president of the parent company, but that the production of it at this factory involved losses unacceptable to the parent company, would the Taoiseach consider looking at the kind of solution I have proposed which would on the one hand provide the parent company with the additional production and on the other hand ensure them against losses because the production would be by a workers' co-operative here using the assets of the plant? Would the Taoiseach reflect on this and consider whether such a proposal is worth putting forward?
I certainly would and I would include that broad proposal in the directive issued to the Industrial Development Authority to look at it in detail to see whether it would be an attractive proposition and to see if, as a result of the proposition being accepted, the project would be a viable one. I should like to emphasise that there is no indication as of now that the AKZO or ENKA companies would be attracted to such a proposal.
A last supplementary from Deputy O'Leary.
Would the Taoiseach agree that it is an advantage in dealing with difficult problems of this kind that a member of the Government would act on behalf of the Government and be answerable to the Government? Would the Taoiseach enlighten the House as to who was acting on behalf of the Government throughout this difficult situation? Was it the Minister for Labour or the Minister for Industry, Commerce and Energy and in any future context who will be acting on behalf of the Government?
Both Ministers acted at different times. When the dispute first arose the Deputy will be aware that the Minister for Labour put forward proposals that he thought might be acceptable to the trade unions involved to settle their differences and ensure an early return to work. On each occasion these were rejected by one or other or both of the unions. Subsequently when there was a serious suggestion of closure the Minister for Industry, Commerce and Energy came into the picture and on several occasions was in touch with the parent company and their directors and the directors of the local company in Limerick.
I might say that lessons have been learned as a result of this dispute and the Minister for Labour will certainly be looking into the position which resulted in the dispute between the two unions in the first instance and will be looking into the question of personnel relations in factories like this to see how these can be improved. He is doing this as a matter of urgency and I hope he will be bringing proposals before the Government in this respect. In the meantime the Minister for Industry, Commerce and Energy will now pursue in conjunction with the Industrial Development Authority whatever other proposals there are to see if employment can be sustained in the Ferenka factory. The Industrial Development Authority is the specialised agency of the Government under the direction of the Minister for Industry, Commerce and Energy to conduct such negotiations and these will be conducted by them.
A Cheann Comhairle——
That was the last supplementary question, Deputy.
In the light of the Taoiseach's reply and his willingness to consider putting forward a proposal to the company on the lines I have suggested, we would not propose to press for an emergency debate tonight lest anything said in that debate could prejudice the outcome of such discussions, but on the basis that should such an initiative fail the House would have an opportunity to debate and probe into the reasons that lay behind this disaster?
This would be a matter for the Ceann Comhairle when the time comes.
I have had private notice but since it is now withdrawn I take it that we proceed with the Order of Business.
A Cheann Comhairle, as I gave the notice in relation to the emergency debate, which I now agree to withdraw, can I have an assurance that if the efforts by all concerned are not successful the House will have an opportunity to debate the matter?
I will deal with the matter when it arises. I have taken as final the Leader of the Opposition's statement that the matter has now been withdrawn.