asked the Minister for Industry and Energy the plans, if any, he has to ensure the continued employment of workers at GTP, Galway.
Ceisteanna—Questions. Oral Answers. - Galway Industry.
18.
This company are in receivership. They are therefore legally under the direct control of the receiver and the matter of the continued employment of the workers at the factory is one for the receiver.
The IDA, in co-operation with the receiver, are making every effort to find an alternative promoter to take over the enterprise. I can assure the Deputy, whose concern in this matter I share, that I am keeping the company's situation under close review. In this connection, I received a deputation of the company's workers yesterday. Following a full discussion, I have directed that every possibility of ensuring that the enterprise be re-established on an operational basis as soon as possible should be pursued. In this connection, my Department are in touch with the receiver and the State agencies immediately concerned.
In these days when Government inquiries seem to be the order of the day, what is the Minister's attitude to the call for a public inquiry by the workers in GTP?
I am more interested in trying to get the enterprise operational again. I am all for calls for inquiry after we have settled these outstanding matters, particularly the employment problem.
Is the Minister keeping an open mind on it?
Yes. I am mainly concerned about restoring employment in that firm.
What personal efforts has the Minister made to ensure that a promoter can be found?
I have had consultation with the IDA and Fóir Teoranta, as well as the meeting yesterday to which I referred.
Is the Minister aware that this is probably the most modern textile plant of its kind in the country? If he cannot keep this plant open, what hope is there for the less efficient and less modern plants around the country? Will he make particular efforts to ensure that this plant is kept open?
Our efforts are not related to geographic area. I agree that the machinery in this plant is very modern but problems within this firm go back some time. I am sure the Deputy would join with me in saying that we should resist the temptation to personalise these problems which have to do with markets, management expertise and other such matters.
There may have been certain difficulties with previous owners of this plant. Is the Minister aware that the present owners and the State have between them made very substantial investments in very modern plant? The Minister is now standing aside and allowing the place to close.
The Minister is doing no such thing.
Is the plant not closed at present?
It is in receivership.
Is it in production?
It is on a care and maintenance basis at present. That is what receivership means.
Not necessarily.
In a legal sense it is in receivership and it is on a care and maintenance basis at present. We are trying to get the place operational again.
Has the Minister asked the receiver to trade there and to remain in production? This was done frequently when I was attached to the Department.
Yes.
What was the receiver's response?
The receiver is attempting to operate it on that basis.
Does that mean he will re-employ the work force and go into production?
We are not sure as yet about the exact numbers which would be involved. We are attempting to keep the place operational.
Has the Minister offered the receiver the necessary subsidy to keep it open?
We are working through the IDA and Fóir Teoranta to keep the place open.
Under the auspices of the receiver?
We have had quite a few supplementaries on this question.
I am very grateful to the Chair.
19.
asked the Minister for Industry and Energy the efforts being made to ensure the continued employment of workers at a factory (details supplied) in Galway city.
In the circumstances now obtaining the IDA are continuing their efforts to find a satisfactory basis on which the business can be taken over as a matter of urgency. I can assure the Deputy that I am most anxious to have a take-over concluded and employment resumed by the workers as soon as possible.
When did the Minister first become aware of the recent difficulties in this firm?
Practically from the inception of the present series of difficulties. This company have had a series of difficulties over the years. We had an open meeting with the company in November. I do not know if the Deputy was present but her colleague, Deputy Molloy, was there, together with Fine Gael Deputies from that area and Deputy Michael D. Higgins. With a newcomer to the scene, we had hoped that we would get a new arrangement to keep the company open but that fell through because of financial difficulties in the firm. Efforts are still continuing to get a new financial package together to keep the place going.
Is it the position that the workers have been locked out since the Christmas holiday?
That is the position, but I would not use the phrase "locked out".
Is the Minister making any effort to resolve the problem?
We are trying to put together a financial package to keep the firm going.
Is the Minister aware that under various ownerships this company have been constantly in difficulties, perhaps as often as every 18 months or two years, that its previous problems were no greater than the present problems and that the Government of the day always seemed to find it possible on previous occasions to ensure it did not close for any significant length of time? In these circumstances, can the Minister ensure that it reopens without any further delay?
The difference is that at the moment we are in the midst of a very serious world recession. This differentiates this period and its difficulties from other periods.
The Minister was talking about recessions, as far as I can recall, as far back as 1974 and we have been having different degrees of them on and off ever since. Happily, the product of this particular factory is not particularly seriously hit by a recession. It is a luxury type product that people buy anyway. Waterford Glass, for example, Cavan Crystal, Dublin Crystal and all the others are doing very nicely at the moment. I do not think the recession has any influence whatsoever on this particular product. In these circumstances, could the Minister not busy himself a little more to ensure that it is reopened.
I was contesting the Deputy's general thesis that this period is the same as any other period. There is a difference. The Deputy is correct that the product of this firm is a luxury one. We are attempting to ensure that people in this trade will come in to assist in the running of this operation and that they will continue energetically in those efforts.