asked the Minister for Industry, Commerce and Energy the plans, if any, to utilise the vacant Ferenka buildings at Annacotty, County Limerick, for industrial purposes; and if he will make a statement on the matter.
6.
Ceisteanna—Questions. Oral Answers. - Ferenka Buildings Plans.
5.
asked the Minister for Industry, Commerce and Energy if a suitable alternative industrial use for the former Ferenka factory has been found to recommence work at the factory; and, if so, when and how many jobs will become available.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 5 and 6 together.
Efforts to obtain a replacement industry for the former Ferenka factory at Annacotty, County Limerick, have been unsuccessful so far. I understand that the Industrial Development Authority are now drawing up proposals for adapting the factory at Annacotty so as to facilitate the promotion of the premises for general industrial use, and this may help to bring a solution nearer.
Is it a fact that the plant and equipment formerly used by Ferenka has been removed from the factory?
In a well-publicised news release in July the details of the arrangements between AKZO, the liquidator and the IDA were set forth. The IDA agreed to accept the land and buildings in settlement of all their claims as creditors and shareholders; AKZO agreed to accept the plant and machinery in settlement of all their claims as creditors and shareholders and AKZO agreed to pay all their creditors in full. This information has already been well publicised.
Is the Minister now telling the House that the IDA and the Minister have given up all hope of finding another company who will take over the existing buildings and run them as one industrial unit?
After the closure of Ferenka the IDA made approaches to ten major international steel tyre cord organisations and six of them carried out detailed feasibility studies. The results of these studies showed that there were two main reasons for not continuing production of steel tyre cord. The major market opportunities for the product are in the US and companies are more interested in servicing this opportunity from the US. Secondly, there have been technological changes recently in both customer requirements and methods of production which would involve a heavy capital investment at the Annacotty plant if it were to suit present market requirements. With that in mind the IDA proceeded to employ an architect who is reviewing the whole building with a view to producing a report on the further industrial use of the building. This could include breaking up the existing building into separate units.
When can we expect some employment?
This report should be ready in February.
In the light of the disastrous results of the Ferenka fiasco, would the Minister not agree that it constitutes a major misjudgment on the part of the IDA? Could the Minister give us any idea of the net loss to the State involved in the settlement made? What is the position in relation to the people disemployed? What percentage of these people have found alternative employment or will find alternative employment in the proposed new factory?
The answer to the first part of the question is no. I would not accept that it is a reflection on the IDA. Regarding the second part of the question, I have already said in reply to Deputy O'Donnell that the IDA agreed to accept the land and buildings in settlement of all their claims as creditors and shareholders. In answer to the third part of the Deputy's question, the IDA, together with SFADCo and other agencies in the area, are making every possible effort to attract new industry.
How many disemployed people have been employed or will be employed and when have they the prospect of being employed?
I have not that information.
Is it a fact that the Minister for Industry, Commerce and Energy made a speech in Limerick some months ago promising a replacement factory within ten days? What happened to that factory?
That is not a relevant question. I am calling Question No. 7.