asked the Minister for Industry and Energy if he is aware of the recent closure of a company (details supplied) in County Clare; and the efforts, if any, made by him to find alternative employment for those made redundant.
Ceisteanna—Questions. Oral Answers. - County Clare Company Closure.
11.
I am aware of, and regret, the recent closure of this long-established company. This, I understand, was due mainly to the severe competition being encountered by the company for its products over the past few years.
I can assure the Deputy that every effort is being made and will continue to be made by SFADCo to secure a replacement industry that would provide alternative employment for the workers made redundant by the closure.
Will the Minister tell the House if any effort was made to find alternative markets for the products manufactured by the company concerned? Is the Minister aware that there is a highly-skilled and experienced work force in that industry? It should be possible as a result to find alternative outlets to enable the company stay in operation.
I am aware that there is a highly-skilled work force in the area. Unfortunately, SFADCo did not know of the liquidation until two days before it took place, although they were aware of the general marketing difficulties being encountered by the firm. As the Deputy is aware, the problem is that Japanese technology in this area has enabled them to under-cut not just this project but other European manufacturers of the product. It appears to be a Europeanwide problem that has to be faced. SFADCo's view now is that it would not be sensible to try to attract a similar industry to take over this location in view of the fact that the technology is not competitive. They are therefore trying to find some other type of industry to take it over which would use the skilled labour force to which Deputy Daly referred but which would not have the same problems as were associated with the present project.
Is the Minister concerned that an increasing number of small companies, similar to the one in question which employed about 40 people, are experiencing difficulties? What steps, if any, is the Minister taking to alleviate that situation for small companies, firms that do not hit the headlines like the Ranks closure or the Kingdom Tubes closure? The closure of small firms is equally important and as distressing for the work force.
Generally speaking, the survival rate of small firms has been slightly better than large firms. It would be unwise to generalise in this case because, as I have indicated, there were special technological considerations which related not to the size of the industry but to the type of product they were engaged in.