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Dáil Éireann debate -
Tuesday, 12 Jun 1979

Vol. 315 No. 1

Ceisteanna—Questions. Oral Answers. - Factory Closure.

26.

andMr. Clinton asked the Minister for Industry, Commerce and Energy the steps he intends to take to avert the imminent closure of the Irish Board Mills Ltd. factory at Athy, County Kildare, with the consequent loss of over 200 jobs.

The Deputies will, no doubt, recall that a receiver was appointed for this company in September 1978; the company ceased production in December 1978. Most of the workers were made redundant at that time except for a small number who were retained by the receiver for essential maintenance and for the disposal of stocks. Despite the efforts of the receiver and the IDA, it has not been possible to find a suitable purchaser willing to take over the company as a going concern. I understand that the receiver recently advertised for the sale by public auction of the company's assets.

The entire plant is being sold up.

As far as I know the machinery is being sold beforehand but the plant, as a going concern, in its totality is still available for sale up to the time of the auction.

Has the Minister any longer-term plans in regard to rescuing the Irish timber processing industry?

Yes. Unfortunately I cannot give details but I hope that certain companies will be in a position to make an announcement shortly in regard to aspects of the Irish timber industry. I cannot make the announcement here in advance of their doing so. They have in fact asked me not to.

Has the Minister been able to take any steps at European Commission level to put some control on the cheap imports which are the root of those companies' troubles?

Yes. On 21 May my Department advertised the proposed holding of an anti-dumping anti-subsidy investigation by the Commission concerning fibre building board imported from Sweden, Norway, Finland and Spain. If, as a result of this inquiry, a duty is imposed it would be helpful to the industry here, which is subject to very severe competition from those sources.

27.

asked the Minister for Industry, Commerce and Energy the action he intends to take to avert the imminent closure of the Lemons Sweet Factory, Dublin with the consequent loss of 130 jobs.

28.

asked the Minister for Industry, Commerce and Energy the proposals, if any, to avert the imminent closure of the Lemons Sweet Factory in Dublin with the loss of 130 jobs, and if he will make a statement on the matter.

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 27 and 28 together.

My Department and the Industrial Development Authority have had discussions with the Irish company and their parent UK company but I regret to say that the parent company are not prepared to alter their decision to close this factory.

Is it the Minister's intention to come to the rescue of this firm with a view to keeping the factory open?

That is the original question.

I did not ask the Minister about the IDA in the original question. I am asking the Minister about the IDA now. This is an entirely different question.

Within the past year the IDA have made re-equipment grants available to this company but, unhappily, the British parent company are determined to close the factory in spite of strenuous efforts made by my Department and the IDA to get them to reconsider that decision.

Would the Minister agree that the firm's intention to close is because of the importation of cheap sweets from other countries? Is he satisfied that all necessary steps are being taken to provide alternative employment for the staff of this factory, many of whom have been there for a long time?

There was a slight growth in the imports last year but 92 per cent of the imports of sugar confectionery come from the UK and there is no possible way whereby we can restrict those imports.

Has the Minister taken any steps to guarantee alternative employment?

I understand that 25 of the employees will be retained. The parent company were invited to consider alternative manufacturing in this country but I regret to say they have declined to engage in that. At the moment the IDA will continue to press them about this.

Can I take it that, as of now, as far as he knows steps are being taken for the re-employment of only 25 out of a staff of 130 to 150?

The company will retain 25 employees.

Is there any hope of alternative employment for the other workers?

I would hope that most if not all of the people who will be disemployed as a result of this closure will be able to get suitable industrial work in one of the many new industrial projects which are under construction in Dublin at the present time.

Would the Minister agree that there are no industrial projects under construction in this vicinity?

Not in the immediate vicinity but within a few miles.

How many of those people have been working there for a number of years, are at an advanced age and will find it hard to travel elsewhere?

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