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Dáil Éireann debate -
Wednesday, 21 Oct 1981

Vol. 330 No. 2

Ceisteanna—Questions. Oral Answers. - County Donegal Shirt Factory Closure.

6.

asked the Minister for Industry and Energy if he is aware that the Clubman shirt factory at St. Johnston, County Donegal has been forced to close with the loss of 45 jobs; and whether he has any proposals to reopen the factory to be used as formerly or to use it for new industry.

The position regarding the premises in question cannot be considered in isolation from that of the company's larger shirt factory in Buncrana.

As the Deputy is no doubt aware the present company were formed in 1980 to take over a long established business which was then in receivership and in danger of closing down with substantial job losses.

I understand that in the reorganisation of the business following the take-over, it was considered necessary thenceforth to concentrate the manufacturing operations in the Buncrana factory. As a result, manufacturing at the St. Johnston premises was discontinued in September 1980, and the premises have since been used by the company as a warehouse.

I am not aware at this stage, of any proposals for the resumption of manufacturing operations at the St. Johnston premises. The formulation of any such proposals would be a matter for the company.

In addition to the problems being faced by the Clubman company the whole clothing and shirt manufacturing industries have been facing considerable difficulties. Could I ask the Minister of State what are the Government's proposals to protect the jobs of Irish workers involved in the shirt manufacturing industry?

That is a separate question. If the Deputy wishes to put down a question on that matter I will answer him.

Surely it is relevant to the job losses in Clubman. I have no doubt the Minister of State has in his brief and is anxious to inform the House, the Government's views with regard to the protection of jobs in this industry, particularly when one considers the Minister's comments with regard to the "Buy Irish" campaign and the fact that it is to be done away with.

I have been asked a specific question in relation to the Clubman shirt factory in St. Johnston, County Donegal and I have answered it. In relation to the question of redundancies there has not been a notification of any redundancy in the Clubman factory at Buncrana since rationalisation in 1980.

As far as I could hear the reply of the Minister of State, he stated that any question of a reopening of the St. Johnston factory is a matter for the company. Is that what the Minister of State said?

That is correct. It is a matter for the company.

Does the Minister of State not consider that the IDA might have some function in the matter? Is any effort being made by them to have this factory restarted or have something put in its place?

As I explained in my reply to the original question, the St. Johnston premises are being used by the company as a warehouse so the IDA are not in a position to promote that particular premises for any other industrial undertaking.

Have they any function at all in regard to St. Johnson?

Not at this point in time because the factory is currently being used by the company.

Normally in a case like this where a factory closes down and jobs are lost the IDA take an interest and sometimes endeavour to see that other industries are provided to take up the employment lost. Is there anything of that nature contemplated in the case of St. Johnston?

The IDA are not in a position to promote the premises for an alternative industry at this point in time because they are currently being used by the company. However, the IDA are keeping in close touch with the company about any possible developments in that area.

With regard to the use of the Clubman premises by the company surely the services of the IDA and the other agencies of the State can be offered to the company involved so that manufacturing can start up at St. Johnston rather than merely using the premises as a warehouse? Has this been done?

We would obviously like to see the St. Johnston factory being opened up for manufacturing purposes. As the Deputy is aware, there has been a rationalisation of the undertaking within the particular company. That is their business. In the situation which now prevails where the premises at St. Johnston are being used by the company the IDA have no particular function in relation to those premises.

Is the Minister aware that there are shirt manufacturing industries in Northern Ireland seeking premises in the immediate area of St. Johnston, Bridgend and Buncrana? Would the Government get in touch with the IDA and promote this particular area in view of the fact that 45 jobs are being lost here?

I am quite sure that any proposition put forward by any shirt manufacturing concern would be considered by the IDA. I have every confidence in the IDA and I am sure that if they consider any proposals that are put forward to be sound they will provide the necessary grant aid and premises.

Will the Minister of State get in touch immediately with the IDA to ensure the re-employment of these people in the area?

It is an ongoing function of the IDA to promote Donegal as an area for general industrial development.

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