Dáil Éireann debate -
Wednesday, 2 May 1979

Vol. 313 No. 12

Ceisteanna—Questions. Oral Answers. - Offaly Firm Dismissals.

26.

Mr. Enright

asked the Minister for Industry, Commerce and Energy (a) if he is aware that an industry (details supplied) in Offaly is dismissing approximately 170 employees; if his Department have recently made any efforts to try and help this firm and if so, the nature and type of such help; if he can help in any way so that these people can continue to be employed by the firm; (b) if his Department or any body under his supervision or control were approached for help or financial assistance by this firm in the past 12 or 18 months, and if so, what help or finance was given; (c) if his Department are aware that a number of industries in Offaly are letting go members of their staff and the help he is giving to these firms.

27.

Mr. Cowan

asked the Minister for Industry, Commerce and Energy if he is aware of the threatened redundancy of 170 workers and staff at a firm (details supplied) in County Offaly and the action, if any, it is proposed to take in the matter.

Mr. O'Malley

I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 26 and 27 together.

A number of redundancies have been announced by the company but these are very substantially below the figure of 170 mentioned in the press report early in March. I am advised that the problems that have given rise to the present situation are essentially marketing ones.

My Department, on application from the company, approved technical assistance grants totalling approximately £5,000 to the company recently to help them to undertake consultancy projects designed to improve efficiency. The relevant State agencies coming within my sphere of responsibilities, are the IDA and Córas Tráchtála. The company received help in various forms, including financial, from Córas Tráchtála to help it to develop export sales and other requests for assistance of a similar purpose are at present under consideration. No approach for grant assistance was made to the IDA in the past 12 to 18 months but large grants were made to the company at earlier dates. The authority have been in constant touch with the company in recent years and have been monitoring the position through a nominee director on the board. While the company were in touch with Fóir Teoranta some considerable time ago no application for financial assistance was in fact made. The company have received about £61,000 under the employment maintenance scheme administered by the Department of Labour.

As regards other industries in Offaly which may be threatened with redundancies the position is that State assistance or advice for firms in difficulties is channelled mainly through the appropriate State agencies, notably Fóir Teoranta and the IDA, and any appeal to these agencies for assistance will, I am sure, be considered as sympathetically as possible by the agencies within the limits of their statutory powers.

Mr. Enright

Were all the grants that were due to this firm by the IDA paid?

Mr. O'Malley

So far as I can see from the information here it is very complicated, and there is a great deal of it, but very large sums of money were paid to this company. The only grant that I can see which was not paid in full was a technical assistance grant where £73,569 was approved but £68,691 was paid. From the way it is set out here it is not clear whether the approvals were any higher at any stage. I would imagine that they were not in fact. So far as I can see the full amounts were paid. Certainly in the last 18 months the payments are higher than the approvals because they were carried forward from the previous approvals which took place outside of that time. There are some applications on hands for grants from CTT which are not yet paid but they are small amounts.

Mr. Cowan

The Minister has stated that the number of redundancies that have taken place in the company was a lot smaller than originally was thought. On the basis that ten years ago 900 people were employed in Clara and that figure is now down to around 500 notwithstanding the fact that the Minister by letter recently informed me that the IDA were actively involved in procuring a further site for an advance factory in Clara, I would request the Minister to ensure that this is done as quickly as possible.

Mr. O'Malley

That will be done because I recognise and the IDA recognise that Clara has particular problems.