I have sought permission to raise on the Adjournment this matter which is of serious concern for the people of Birr and the surrounding area. The first factory concerned is operated by the firm Birr Fabrics who have been in existence for about 35 years and who had exports totalling about £1.25 million and an employment content of 84 people. On December 21 last I was informed that notices were being sent out in the post that evening to the effect that employment was being terminated because of the closure of the factory. I arranged for deputations to meet the Minister for Finance and his officials to talk about the situation. Immediately we were able to meet officials of the Department and at the same time a deputation from Birr Chamber of Commerce met the Minister at his office in Nenagh. In addition, a deputation from the town met the Minister of State, Deputy Burke.
We did everything possible in regard to approaching Government Departments and Ministers. In addition, we approached the IDA, Fóir Teoranta and the other State agencies concerned as well as approaching the Minister of State, Deputy Connolly, but all our efforts proved futile and the factory closed. We are told that discussions are still taking place but the fact remains that the people who had been employed at the factory remain unemployed.
The situation in the town has been aggravated further in that the other main employer in the town, Erin Peat Products Ltd., a factory situated about three miles from the town and which employed 55 people, declared 19 employees redundant on 11 April and I understand that the majority, if not all of the remaining employees, have been served with protective notices. In other words, it appears that the closure of that factory is imminent. While the permanent staff at the factory was 55, 100 people and sometimes more were employed there on a seasonal basis. In the case of this factory about 90 per cent of production is for export. That, in itself, is of great benefit to the country as a whole.
The situation in Birr is that there are 260 people in receipt of unemployment benefit. Therefore, in a population of 3,361, 260 are in receipt of unemployment benefit but if we include those in receipt of disability benefit and unemployment assistance, we find that more than 10 per cent of the population of the town and the surrounding area are unemployed. This is a frightening statistic. Perhaps it is the most alarming statistic for the entire country in this regard.
I am anxious to make the Minister aware of the anxiety of all those concerned in regard to the closure of the first factory I have mentioned and of the imminent closure of the other one. One IDA advance factory has been completed in the town and another has been announced. I urge the Minister to ensure that industries are provided without delay for these two advance factories. He must ensure that every effort possible is made by his Department in conjunction with the IDA and with Fóir Teoranta to ensure that Erin Peat Products are maintained as a going and as a viable concern. It is of the utmost importance that the factory be taken over as a going concern. I call on the Minister to ensure also that a major effort is made to facilitate those at present negotiating, to ensure that all possible meetings take place and that every effort will be made by the Government to have this factory taken over as a going concern. This is of tremendous importance because this factory was exporting its products and was of benefit to the economy. It is also of great importance to the people in Birr. I hope some of the interested parties will take over Erin Peat Products as a going concern. I am not fully satisfied with the efforts made to date. I have been in touch with a number of Government Departments and State agencies and I am concerned that some more positive results are not evident by now. There has been plenty of time to secure some positive result. We must try to ensure the positive result of getting the factory taken over as a going concern.
The IDA in their plan for 1978-82, as set out in their programme for the midland region, have a target of creating 550 new jobs in the west Offaly area. This includes Birr, Banagher, Ferbane and Kilcormack. There is one empty advance factory in Birr and one being built or in planning process; there is an empty one in Banagher but none in Ferbane or Kilcormack. I suggest to the Minister that 550 new jobs for this area will not even leave us standing still because there is a total projected job loss between Birr Fabrics and Erin Peat Products of 139 people in Birr town alone. Already 84 have been let go in Birr Fabrics and 19 more in Erin Peat Products. The remainder will be under notice from this evening that they will be let go. Irrespective of the IDA plan we shall not even be at a standstill with that position; we shall be losing ground. Therefore it is important that the Minister ensure that the projections for this area are enlarged because 550 jobs are not sufficient——
