Deputy Kenny was given permission to raise on the Adjournment the question of the closure of Dubarry Shoes. The Deputy has 20 minutes.
Adjournment Debate. - Westport Shoe Factory Closure.
I thank the Chair for giving me the opportunity to raise this very serious matter on the Adjournment——
Could I ask Deputies to have private meetings outside while Deputy Kenny is making his contribution?
I express my thanks to you for allowing me to raise this very serious matter on the Adjournment. After the events of today I suppose I can consider myself lucky to have that opportunity. The reason for raising the matter is the pending closure of the Dubarry Shoe Company factory in Westport, County Mayo. The company have two factories, in Ballinasloe and in Westport, the smaller being the one in Westport which in now due for closure.
As the Minister is well aware, it is situated in the west and the pending closure in indicative of the effects of the recession which have begun to creep into the west and are having a very serious impact on the social fabric of life there. It calls for drastic Government action and more than genuine concern by the IDA. I call upon the Minister to declare the area one of his priorities for bringing in industry and ask for a very genuine effort with the IDA to ensure that a suitable industry is established as an alternative, if the Minister finds himself unable to save the factory. It is necessary that Government support be channelled in there.
Westport is a small town of approximately 2,000 people. The area for generations has been ravaged by emigration. It has a vast hinterland but has a poor physical output in terms of agriculture and people from the western end of Westport, from Louisburg or from Leenane, from Newport, Achill and Ballycroy regard Westport as their town and centre of commercial and industrial lives. Many other small factories in Westport transport workers from the surrounding areas into the town. Any pending closure of any factory therefore has serious effects on the lifestyle and social fabric of the people.
What hope can one offer them? Is there nothing but neglect of the area? Will the Minister be able to save the industry or provide a suitable alternative? The fact that the area has been ravaged by emigration for years has led to a sense of frustration or an attitude of mind that successive governments have been neglecting the west. In my constituency the Taoiseach was good enough to give us a Cabinet Minister and a Minister of State and I am sure that both of them have at heart the interest of the workers in this factory and are working genuinely within the Cabinet to see that the Minister for Industry and Energy does his best to ensure that the trained work force and this factory are not lost to the area.
What have the Government put into Westport since taking office? Nothing really. There has been a deal of talk and promises but nothing concrete has yet come to light. If the closure goes ahead I assure the Minister that it is another nail in the coffin of the west and certainly will not be taken lightly. The only viable industry in Westport at present is Allergan Pharmaceuticals. As the Minister, beside the Minister for Industry and Energy knows, if that factory were to close or indeed some others it would result in a ghost town in the west.
The Allergan plant was brought there mostly through the efforts of the former Deputy Staunton through his negotiations with the IDA and the Minister at the time. I know that the present Minister for Industry and Energy is working on the introduction of another industry through Westport, Rincon from the US. This matter has been long delayed and there have been many announcements about it with questions raised here and so on, but there is no definite evidence of the plant being established there yet. In replying, the Minister might indicate if there is any further development, as that might alleviate the problem of pending unemployment in the area. There is a suitable advance factory empty in Westport and a small cluster unit also unoccupied.
There is the spirit of self-help and interest in the people of the town and surrounding areas and if they get encouragement and some incentive from the Minister for Industry and Energy I can assure him that he will get every co-operation from them in order to safeguard their livelihoods and their families. The closure of Westport Textiles some years ago dealt a severe blow to the industrial and commercial life of the town and put many people in the dole queues. It caused further unemployment and was a severe blow to the morale and confidence of the people of the district. The IDA at the time made genuine and strenuous efforts to get an adequate replacement and the Northern Feather Industry brought in as a replacement, although not employing as many as the Western Textiles plant did generate some much-needed income in the vicinity. At that time the co-operation of all businesses and people in the town was quite evident from the fact that a day-long march was held around the town. Many speakers were invited there including trade union officials, industrialists and so on. Businesses co-operated by closing for one hour to show their solidarity with the workers who were then being disemployed. The same spirit and motivation are still there. I am sure that if the Minister were to go there and meet the workers or the people concerned he would find that there is a willingness to co-operate and do whatever has to be done to ensure that the factory be saved.
The present Dubarry plant has been there for approximately five years. The Dubarry company took it over from a consortium of local businessmen who had been running it for up to 30 years previously. The plant mostly manufacturers moccassin shoes which are made of leather. Sixty people were employed and these are trained and skilled people. Approximately 80 people who might be described as out-workers work on a subcontracting basis, mostly hand-stitching various parts that go into the shoes.
The effect of the withdrawal of wages from these workers and the out-workers would be very serious on the living standards of the people in the area. Regular wages coming into a household in any area, but particularly in rural areas, mean that families can enjoy a reasonable standard of living to which they are entitled. They can enjoy the benefits of employment, build and furnish houses, repay SDA loans and all the other things that working families are entitled to do. The fact that redundancy and unemployment are staring them in the face at present does not increase confidence or boost the morale of anybody there. The Minister for the Gaeltacht knows the labour exchange in Westport is situated on a hill known as Hill 16. I am sure the Minister for Industry does not want to add to the queue of unemployed on Hill 16 next week.
The reason given for the closure of the plant is a decline in sales of shoes. The capacity of the two plants would be around 10,000 pairs per week. The company say that due to lack of sales and the decline in business the Westport plant is not viable and that they intend just to continue with the plant in Ballinasloe. The plant in Westport has valuable, sophisticated machinery, trained personnel, skilled workers and, as I stressed in the beginning, there is great co-operation and genuine willingness among all of the workers to do what is necessary to save this plant. If the Minister would negotiate with the IDA to purchase this plant, the workers themselves will form a co-operative, and with their skills and experience and the machinery available to them, do whatever is necessary to continue on in a different line of shoe-making or perhaps continue on the same line in the hope of sustaining the plant and the employment. I urge the Minister to consider this very seriously with the IDA. As the Minister for the Gaeltacht knows, the plant is there, it will be in the possession of the IDA, and if the co-operative idea could be forwarded it would save a good deal of embarrassment and keep the confidence of the people alive.
On 14 June this year the Federation of Irish Footwear Manufacturers produced their figures for imports and exports of shoes for this country. The chapter head 62.04 deals with leather and canvas shoes which affect directly the Dubarry company and their output. The Dubarry people's work is practically all in leather. The total imports from January to March 1981 under all headings was 3,069,332 pairs of shoes at a cost of £19.378 million. Total imports for January to March 1982 were 3,787,682 at a cost of £22.417 million. That shows an increase in the amount of shoes imported and in the value. I am sure that the Minister is only too well aware of the broader impact and consequences of that. Under that heading 62.04 which deals with leather imports from January to March 1981 we imported 2,454,944 pairs of shoes at a cost of £16.375 million. From January to March 1982 under that heading relevant to leather output 2,671,437 pairs of shoes were imported at a cost of £17.322 million. That is a very substantial number of pairs of shoes imported here and again it is an increase on leather over last year. The bulk of those imports come from Britain followed by Italy and down the line from various other countries and the figures show a significant increase in imports from third countries. I am sure the Minister is only too well aware of the consequences of that.
The fact that something like 12.3 million pairs of shoes were imported last years means that many of the shoe industries and manufacturers in this country are operating under great stress and in a very competitive market. With the effects of the recession that means that people tend to buy cheaper shoes if they can get them instead of the higher priced Irish shoes which in quality might be up to standard and in some cases are not. The Moccassin shoe manufactured in Westport, made of leather and hand-stitched, certainly is a quality shoe in itself. Competition from other countries and particularly the growing number of imports of shoes from outside EEC countries, which might be of only simulated leather, means that the output of Irish manufacturers tends to drop.
I say to the Minister and his colleague, the Minister for the Gaeltacht, that I expect that both of them will be working as hard as possible for the retention of this industry or, if that is not possible, for a suitable alternative by the declaration that Westport be a priority area as soon as possible. IDA concern is not enough. We send people to school for experience and employment, but that is not enough because they get school education, experience and then unemployment. In this plant steel workers, trained personnel, have worked for many years. The machinery is there, the plant is there, the know-how is there. I urge the Minister to pursue the idea of a co-operative venture which is put forward by the workers themselves and to consult with the IDA and let them buy the plant if possible. I understand that the Dubarry company would sell it at a reasonable price in order to ensure that the industry would be kept viable and that the workers would be retained in the plant with a consequent improvement and a continuation of the social life of the area. The IDA are very concerned about this. I spoke to their personnel in Galway yesterday. They visited the plant with an interested party from abroad. I am not aware of the results of that meeting but I am sure the Minister has some information on it. I know also that the local urban council with some of the workers from the plant and others are due to bring a deputation under the leadership of the chairman of the UDC to Dublin next week to meet personnel in the IDA headquarters. If the concern of the IDA were such and as strong as they say it is perhaps they could have gone to Westport and met the deputation down there on the plant site.
I am greatful to the Leas-Cheann Comhairle for giving me the opportunity to raise this matter. The pending closure of this factory, small though it is and small though the numbers of workers is relative to other plants throughout the country, is of vital concern for the social life of this whole district. If the Government are sincere about their efforts in putting employment into our towns, keeping our people at work, providing jobs for our young people and maintaining the standards of living we are all entitled to, if we are not to have again the spectre of emigration stalking across the west of Ireland and consequent claims from all sides that successive Governments have never lived up to their promises or reputations in trying to keep people at work, I expect the Minister for Industry and Energy, advised as he is by the Minister for the Gaeltacht, to make a statement that will be suitably acceptable to the people of Westport and that will make his loyal supporters there, and the supporters of the Minister for the Gaeltacht, realise that the man has the potential which they expect him to live up to. If the plant is not saved I assure the Minister that we will all be in trouble and the Government will suffer serious embarrassment as a result of the closure and loss of jobs to the town and surrounding areas.
At the outset, I should like to say that I very much regret the proposed closure of the factory of Dubarry Shoemakers Ltd. at Westport and that concern and regret are shared not alone by Deputy Kenny but by my colleagues, Deputy Flynn and Deputy Gallagher. The company commenced production in Westport in 1977 having taken over the factory from another company. In recent times they have employed 61 workers and I am very conscious of the adverse impact which the closure of the factory will have on these workers and on the Westport area generally.
As I pointed out yesterday in the course of a reply to a question by Deputy Michael D. Higgins, the company had decided to close the Westport factory mainly because of a serious downturn in the market for their products. The company had been producing Moccassin shoes at Westport and also at Ballinasloe where they employ about 170 workers. They had been selling about 65 per cent of their output on the home market and about 35 per cent on the export market, mainly in the UK. However, the situation now is that the company have demand for only the output of the Ballinasloe plant. To ensure their future viability, the company have had to rationalise their operations and, unfortunately, this rationalisation has culminated in the company's decision to close the Westport plant and to keep the Ballinasloe plant in full production.
In the context of the company's decision it is not in Ireland alone that the footwear industry is experiencing difficulties. Redundancy, short-time working and a build up of stocks are features of the industry in most, if not all, member states of the European community including the UK where consumer spending has been seriously depressed in the past two to three years and whose market, as I have already indicated, has been accounting for a significant portion of the Dubarry output. In fact, the EEC Commission reported some time ago that the total Community production of footwear for 1980 was almost 8 per cent below the level of production in 1979. This fall in production, which is continuing as far as can be ascertained, is attributable to the recession which has depressed demand for footwear and also to increased imports from third world countries, as Deputy Kenny remarked.
Regrettably imports of footwear into Ireland are accounting for an increasing proportion of the Irish market. Most of the imports originate within the EEC and no action to prevent these imports can be taken, as I am sure the Deputy will understand. As regards imports from third world countries, these come mainly from far eastern countries and I am glad to say we have been successful in securing restrictions on imports from some of the more significant of these countries. The possibility of obtaining restrictions on imports from some other of these countries is being actively pursued by us with the EEC Commission at present.
Returning to the Dubarry situation, the IDA have been making efforts for over six months, when the indications were that this factory would close, to secure a takeover of the Westport factory with a view to averting its closure. In fact, about six months ago the company agreed not to close the plant then in order that the possibility of finding a purchaser for the plant could be explored. Despite intensive efforts, the IDA have not been successful as yet in locating a buyer but, as I said in course of my reply to Deputy Higgins's question yesterday the IDA's efforts in this regard are being sustained. I am aware of a visit there by a potential buyer but it is too early to make a specific comment at this time.
For the information of the House and the Deputy, the IDA approved 25 projects with a job potential of more than 600 in the period 1978 to 1981. This figure includes the takeover of Westport Textiles by Northern Feather with 100 jobs and the other project referred to by Deputy Kenny, Rincon, which has been approved for the IDA 24,000 sq. ft. advance factory which was announced prematurely by a colleague of his. I assure the Deputy that the project has not been lost and efforts are continuing to get them to move in there as soon as possible.
Last week on a visit to the US the very weak climate for investment not only in the US but also in Europe was brought home to me very forcibly. In the US, from which we get a very substantial amount of international investment, because of the very high interest rates, the dear cost of money, the real cost of money and their own internal economic situation, they have the worst unemployment situation since 1938. One shudders to think what happened in 1939 in an effort to produce some solutions to their major problems.
The situation is particularly difficult at this time, but there can be no doubt about the sincerity of Fianna Fáil not only in relation to Westport but the entire Mayo area. Swift action was taken to get Northern Feather established, and the same swift action is being maintained by Fianna Fáil and will be intensified in the Dubarry situation and in an effort to bring the Rincon project to fruition as soon as possible. We have always maintained a very sincere approach to the West of Ireland realising the difficulties they have suffered over the years. Our commitment to them has been recognised by the people in that area and they can be assured that we will maintain our efforts to look after the west, sometimes at cost and at risk to some of the projects we announced down there and which met with a certain amount of opposition. We will pursue our efforts and my two colleagues on this side of the House will ensure that I will deliver in Westport.
The Dáil adjourned at 10.30 p.m. until 10.30 a.m. on Friday, 25 June 1982.