Dáil Éireann debate -
Wednesday, 26 Jan 1983

Vol. 339 No. 4

Adjournment Debate. - Kerry Factory Closure.

Mr. McEllistrim

The purpose of raising this matter on the Adjournment is to ask the Minister for Industry and Energy the steps taken by his Department to prevent the closure of Kingdom Tubes in Tralee with a loss of 295 jobs. The Kingdom Tubes industry closed down last Friday and caused consternation and gloom in Tralee town where 295 jobs were lost involving an income loss to 295 families. The Kingdom Tubes industry was set up in Tralee about 22 years ago and gave much-needed employment. It was set up by a German firm and there is a sister factory in Germany manufacturing tubes.

This is an appalling situation in a town where there is a very serious unemployment problem. This is no time to let an industry close down. What steps were taken by the Minister for Industry and Energy and his Department to get the Government agencies to rescue this industry which had many orders? I believe those orders were transferred to the factory in Germany. The Tánaiste represents the North Kerry constituency and Tralee town. One would imagine that he would take steps to ensure that a vital factory would not close down in his own town where the unemployment problem is so serious. There is wholesale unrest in the town over the closure.

The men will not get redundancy payments and this is a very important factor to be taken into consideration. The unemployment problem in County Kerry is very serious. Kerry should be declared a disaster area by the IDA. In the county we have 8,411 unemployed, that is, 19.5 per cent of the working people, an increase of 800 unemployed since December.

An Ceann Comhairle

Lest there may be any misunderstanding on the part of Deputy Foley the Minister must get in at four minutes to 9 o'clock.

Mr. McEllistrim

There are 3,295 people unemployed in Tralee, that is, about 25 per cent of the working population. Given those figures the Tánaiste and the Minister for Industry and Energy should do something to keep that factory open. I am demanding that the Tánaiste should do something to keep that factory open for the workers of his own town. He represents the Labour Party and it is his duty to introduce a rescue package to save this industry. In the past, Fianna Fáil rescued many industries by using the Government agencies and by providing finance where necessary.

There should be a rescue plan for the Kingdom Tubes industry. The Tánaiste should initiate a rescue plan. Fianna Fáil provided £500,000 by way of grant for this industry in Tralee. The factory was closed down a week ago. The IDA, the bank, the management and the workers got together to try to keep it open for another week. The management and the IDA gave an assurance that, if it were kept open for another week, the workers would be paid. The workers were paid on Monday last and when they presented their cheques they were not honoured. Their cheques are bouncing like rubber balls around Tralee this week. One trader in Tralee who cashed some of the cheques was caught for £9,000. It is the duty of the Government and the Tánaiste who represents this constituency to save that factory and ensure that those cheques are cashed.

An Ceann Comhairle

I will call on the Minister in one minute.

Minister for the Environment (Mr. Spring)

I will make sure that those cheques are cashed.

Mr. McEllistrim

The Minister for Industry and Energy should direct the IDA to concentrate on providing industry for Tralee town and for the county in general. They put a lot of energy into County Cork and provided industry for that county in the past. Now we need them to concentrate on Tralee. I call on the Minister for Industry and Energy and the Tánaiste to save the Kingdom Tubes industry for Tralee. The families of the 295 people who are unemployed will have very little income from now on.

An Ceann Comhairle

Deputy Foley has one minute.

Mr. Foley

This factory has been in operation for almost 22 years. The redundant workers spent most of their lifetime in that industry. Many of them will never be re-employed because they have reached the 55 years age bracket. As Deputy McEllistrim said, many of these cheques have been in circulation since the weekend. I believe a figure of £20,000 is involved. I appreciate the commitment given by the Tánaiste and I have no doubt that he will arrange to have them honoured. Tomorrow a further week's wages are due, plus redundancy payment. I trust that the Minister will arrange to have them honoured.

Minister of State at the Department of Industry and Energy (Mr. E. Collins)

I am grateful for the opportunity to discuss this matter in the House. I share fully the concern expressed by the Deputies regarding the closure of this long-established company, particularly having regard to the effect which this will have on the employment situation in Tralee and its surrounding areas.

The final decision on the closure of a firm remains with the employer, the proprietor and the management of that company. Within this constraint the Industrial Development Authority, together with the other State agencies, endeavour to assist in so far as they can to maintain employment at the highest possible level.

In the case of Kingdom Tubes since it became clear in December 1982 that some cuts in employment or, indeed, closure of the factory was contemplated, the IDA have endeavoured, in close consultation with the Irish management and the German promoting company, to see if such drastic steps could be averted or at least minimised. Throughout this period the IDA have been in constant touch with the parent company and with the Bank of Ireland in an effort to prevent a closure.

At that stage it appeared that a restructured operation with a reduced workforce could be achieved, and I am still hopeful that such an arrangement can be brought to a successful conclusion. Negotiations towards this end are at a very delicate stage at present and I should not like to jeopardise those negotiations by making any precipitate comment. However, I can assure the House that all the relevant State agencies are prepared to co-operate positively to the fullest extent possible with any feasible proposal which may be put forward. Naturally I would prefer if the restructuring operation held out the prospect of the vast majority of the workers being re-employed, but I understand this would be difficult to achieve.

With regard to the pay cheques issued to the workers which have not been honoured, I understand from the receiver that this problem has now been resolved and that cheques will be issued as soon as possible not only to cover the cheques which have not been honoured but also to meet the further week's wages still due to the workforce. It is most unfortunate that this problem arose, but it is only proper that I should put on record my appreciation of the expeditious manner in which the receiver acted to ensure that there will not be serious hardship for the workers and their families.

I am aware of the unemployment situation in Tralee and the surrounding areas. This did not appear overnight. As in other areas throughout the country it arose over a period. This Government are as committed to keeping factories open with the assistance of the State agencies as any Government in the past. I should not like Deputy McEllistrim to be under any illusion about that. The Tánaiste shares my concern and has been very involved in this matter at Government level.

The Dáil adjourned at 9 p.m. until 10.30 a.m. on Thursday, 27 January 1983.