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Dáil Éireann debate -
Thursday, 20 May 1982

Vol. 334 No. 9

Ceisteanna—Questions. Oral Answers. - Navan Carpets Limited.

1.

asked the Minister for Industry and Energy the arrangements he is making to provide alternative employment for 250 workers who will be made redundant at Navan Carpets Limited, Celbridge, County Kildare.

The IDA, in co-operation with the owners, are investigating the possibility of a takeover of the Celbridge plant by other interests. I have also asked the IDA to pursue the question of attracting a replacement industry to Celbridge in the event of a takeover of the plant becoming unlikely.

Is the Minister aware that this mill is part of a group? This spinning mill is being closed down completely while another one is being kept on. Does the Minister realise that the traditional market for this mill was Navan Carpets which has been taken from them by the company which is closing them down?

The Youghal Carpet group have been experiencing difficulty with contracting markets recently. The decision to close the Celbridge plant was regarded as necessary in terms of the overall viability of the group. It was taken against a background of a marketing report which they commissioned on their spinning activities in which they have serious over-capacity. The same group closed a mill in Holland which got its yarn supplies from Ireland. It is understood that a weaving mill in Southampton is on a single shift. I am not aware that Navan was the market. My information does not indicate that. Numerous meetings have taken place between the IDA and the company in relation to the plant and every aspect of trying to keep it open was investigated but in view of the overall viability of the group it was found necessary to look for an alternative takeover of the plant.

Do I understand the Minister correctly? Is he saying that he does not know the traditional market was Navan Carpets when they were in a group together before they were taken over by Youghal Carpets? Is he not aware that that was the traditional market for the Celbridge plant?

I accept what the Deputy says. The reasons for taking the decision were difficulties in the market and over-capacity in the group. The decision was taken against a background of trying to ensure the overall viability of the group. The IDA have taken steps to get in touch with all major textile concerns with a possible interest in the Celbridge operation and have given everyone in the business a full brief of the facilities available at Celbridge to try to obtain a suitable takeover company.

Is the Minister trying to sell a plant whose market has been taken away?

The Deputy's assertion is not the assertion of the company.

It is a fact and the Minister knows it well.

Deputy Bermingham is aware of the meetings which have taken place. The Deputy is throwing in a red herring.

It is not a red herring. Will the Minister and the IDA ensure that the machinery in the Celbridge plant, which is modern, will be left there and not sold by the parent company so that there may be some possibility of selling it as a viable concern?

My information is that the company will and are co-operating with the IDA in an effort to try to get a suitable takeover of the plant.

Will they leave the machinery there?

That is a matter for the company.

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