asked the Minister for Labour if he is aware of the imminent closure or partial closure of a factory (details supplied) and if he is satisfied with the conditions of the termination of the employment of any employees who are likely to be redundant there.
Ceisteanna—Questions. Oral Answers. - Factory Closure.
6.
I became aware in the autumn of last year that the company in question was experiencing difficulties. The IDA and Fóir Teo tried to interest other concerns in a take-over, and when these efforts failed a receiver was appointed to take over the property of the company in October. The receiver deemed it necessary to close down one of the company's two divisions in November, and since then he has been trying with the help of the IDA and Fóir Teo to dispose of the other division of the company as a going concern. All their efforts have been unsuccessful, and the receiver decided to cease trading with effect from 11 May.
I insisted that everything possible should be done to protect the jobs of the workers and I arranged that those entitled to redundancy payments should receive them. Statutory lump sums under the Redundancy Payments Acts amounting to £87,000 have so far been paid out of the Redundancy Fund to 143 former employees and a further 60 payments are anticipated.
Apart from compliance with the requirements of these and other Acts applicable to the situation, matters relating to the terms would be for negotiation between the employer and the workers concerned or their trade unions.
The Employment Appeals Tribunal is available to deal with disputes under the Redundancy Payments Acts, the Minimum Notice and Terms of Employment Act and the Unfair Dismissals Act.
Am I right in assuming, that despite the efforts the Minister undertook, nevertheless it means that the total employment content of that particular factory are now out of jobs unless they have got jobs since? Is it correct that all the people in this factory lost their jobs?
That is the position as far as I know.
Is the Minister aware that the particular part of this city in which this company were located has been very badly hit by this closure and is an area which has been ravaged with unemployment for a variety of social and economic reasons? Is there any way in which emphasis could be placed on companies in that type of socioeconomic area, where they are clearly under stress in relation to jobs, or are they judged on the same criteria which apply nationally? Is there any particular regional emphasis?
I share the Deputy's concern at the loss of employment in any area and especially when he refers to an area like this. As the Deputy well knows, when efforts are made by State agencies to try to continue a business in operation or to find an alternative obviously criteria have to be applied as to whether or not the possibility of continuing the business is viable and the advantages and otherwise of the premises for setting up a new industry. I hope the agencies I have referred to will continue their efforts to try to enable alternative employment to be provided in this area.
Were Fóir Teoranta involved in trying to bail out this company?
Yes.
This may be largely rhetorical, but would the Minister consider the possibility of a specific regional approach to this type of job loss in an area of high unemployment?
The Deputy is aware that he is widening the scope of this question.
Could the Minister take the particular local and global circumstances into account in a situation like this, or do the criteria have to apply nationally?
As I said to the Deputy there are not laid down criteria in a case like this but he will be aware, in view of a previous discussion we had in the House, of my concern and the Government's concern for the north Dublin area.
Question No. 7 postponed.