: Deputies Mary Harney, Gene Fitzgerald, Seán Walsh and Tomás Mac Giolla, in that order, have been given permission to ask Private Notice Questions. The three questions have been passed to the Minister for Industry and Energy and will be taken by him.
Private Notice Questions . - Closure of Tallaght (Dublin) Company .
: My question was to the Minister for Posts and Telegraphs but I understand it has been transferred to another Minister. My question asked the Minister for Posts and Telegraphs whether his Department have placed any contracts with Telectron (Ireland) Ltd.; the value of these contracts; and if in view of the imminent closure of this company with the subsequent loss of 500 jobs and the fact that any fulfilling of contracts may now result in the provision of employment in another country, the urgent steps he proposes to take in the matter.
asked the Minister for Industry and Energy if as a result of the announcement by Telectron (Ireland) Ltd. that 500 jobs are to be lost he will immediately undertake an investigation into the reasons and with particular reference to what Government orders have been placed with the company and in what country the work will be carried out.
asked the Minister for Industry and Energy if he is aware of plans by ATT International to close the Telectron factory at Tallaght, County Dublin, with the loss of 500 jobs and to reduce the workforce in its Gweedore, County Donegal, factory by 34 workers; if he is aware that the company is in breach of its legal obligation in relation to statutory notices regarding collective redundancies; the steps he intends to take to protect the jobs involved and the legal entitlements of the workers and if he will make a statement on the matter.
: I propose to take the three questions together. I will deal at first with the question addressed to myself. I should like to say that Deputy Mac Giolla's question is only in part my direct responsibility, part of it is the responsibility of the Minister for Labour. However, I will be giving a reply on the basis of information supplied by him to all the questions. I fully share, like the Government, the concern over the company's announcement which is implicit in the questions. I have already initiated inquiries on the lines suggested by the Deputies and I will be meeting my colleagues, the Ministers for Labour and Posts and Telegraphs, shortly after I have answered these questions to review the matter further.
I should like to point out that the Industrial Development Authority have already made very strong representations to the United States parent company at the highest possible level requesting urgent discussions and a suspension in the meantime of the threat to close the Tallaght operation. In regard to the question addressed to the Minister for Posts and Telegraphs by Deputy Harney, the position is that the firm has orders from the Department for pulse code modulation equipment and digital radio links, as well as for some minor items of equipment. The value of the pulse code modulation equipment remaining to be delivered is about £2.5 million, and the value of the order for digital radio equipment is about £14 million. Over half of the order for digital radio links is in respect of civil works such as the erection of towers and buildings, and the balance is for equipment. The Minister for Posts and Telegraphs is, naturally, greatly concerned over the recent development and his Department are in contact urgently with Telectron about the matter.
The Gweedore operation was referred to by Deputy Mac Giolla and I should like to tell the House that the decision to make redundancies in that plant was made by the company with a view to ensuring the viability of that plant and safeguarding the remainder of the employment there. I will give the sequence of events as far as the notifications of redundancies are concerned. Under the Protection of Employment Act a notice was received in the Department of Labour on 6 April 1983 that 37 workers would be made redundant in Gweedore as from 30 May 1983. Secondly, a letter dated 31 March notified the Department of Labour that 197 workers would be made redundant in Tallaght. Thirdly, on 25 April, yesterday, the Minister for Labour was notified that the Tallaght factory would be closed with a loss of 500 jobs. Superficially the latter part would seem to be a breach of the Act but it is understood that the company is arranging to pay the workers for a period of 30 days. Those formal replies were prepared in the short time available by the various Departments. The Government discussed this matter this morning and are gravely concerned at the developments. It has been agreed by the Government that the Ministers for Labour and Posts and Telegraphs and myself should meet immediately to discuss the matter further. I should also like to tell the House that the managing director of the IDA is in contact with the American parent company. In fact, he may be speaking to the company now. I had hoped to have an initial result from that communication for the House but, unfortunately, due to various difficulties it was not possible for the managing director to make contact before these questions fell to be answered. I can assure the House that the Government of course take this matter very seriously and will do everything they can at the highest possible level to ensure a reversal of the decision, which seems to have been taken very precipitately indeed.
: In view of the substantial amount of public money involved in these contracts will the Minister give the House a commitment that this work will be carried out by Irish employees?
: The Deputy is aware of our obligations in regard to State purchasing under the Treaty of Rome. I will be discussing the matter with the Ministers for Posts and Telegraphs and Labour in the next few minutes and at this stage, and given the very short time since we received this alarming information, it has not been possible for a final view to be formed on the matter. Discussions are taking place at a high place about this.
: In view of the fact that this announcement was made yesterday and that the questions by my colleagues have at least warned the Minister of the need for urgent action, I should like to ask the Minister if he, or any of his colleagues met the management of the company. Has the Minister made the company aware of the facts of life regarding what they appear to be trying to do? If the Minister has not met the management of the company yet I should like to know why he has not done so? If the Minister has not met management will he summon them immediately to meet him in the House so that the matter could be raised later this evening or at worst tomorrow morning? Will the Minister arrange with his colleague, the Minister for Posts and Telegraphs; that payments on foot of these contracts be stopped immediately until such time as undertakings are given to the work force in Telectron?
: The Deputy may not be aware that the decision was not taken in Ireland. It was taken by the parent board.
: It was announced yesterday.
: There have been constant contacts since this announcement yesterday between, on the one hand, my Department, the Department of Posts and Telegraphs and the IDA and, on the other hand, the company's representatives here. This matter is being pursued with the utmost force by the Government and, as I indicated already, the matter was discussed this morning by the Government and certain arrangements were made. The decision was taken by the international board of this company and it is at that level that the decision must be reversed. I am not certain that a meeting here with the local management would necessarily bring the matter to a conclusion. I am not saying that it would not be useful and it is one of the matters we will consider. The important thing is that we dissuade the international arm of this company from the decision they have taken. I have just been given a note to the effect that the international president of the company, ATT, has agreed to meet the IDA to discuss the request from the Government and the IDA to suspend the decision to close.
: The Minister's approach indicates that the Government are approaching this matter as if it were the case of another small factory closure. It is due to an accumulation of factors over several months. Does the Minister realise what a disaster this is to the south-west area of Dublin? The growing new city of Tallaght, which was planned by the Department of the Environment, now has almost two-thirds of its projected population. Is the Minister aware that this area has little, if any, industry left following this closure? Many people living in Tallaght are already unemployed and this is the worst disaster area in the country. The closure of this industry should mean an emergency disaster plan by the Government. Deputy Gene Fitzgerald's query is very relevant.
: A question, please.
: Does the Minister agree that much more urgent action must be taken? Will he indicate that such action is being taken by adopting the steps proposed by Deputy Fitzgerald and bringing the representatives of the company into his office? It is stated in today's newspapers that the company were losing £3 million a year and that they would lose more than that this year. Does the Minister agree with that statement? Will he ask the company to produce the books in order to prove whether they were making a great profit or losing money? This information must be brought before the House rather than our being brought to the understanding by the company——
: We cannot have a debate on this matter.
: I would ask the Minister to produce the correct information in regard to the finances of this company so that the workers will not be blamed for the closure.
: I am sorry if I gave Deputy Mac Giolla the impression that this matter was not being treated seriously by the Government. I assure him that it is being treated very seriously. We realise how important this undertaking is for the area of south-west Dublin which he has the honour to represent. It is an area where there have been a number of employment problems already and the Government fully recognise that this is a severe blow to that part of County Dublin. I have said already that the Government discussed this matter this morning. We have now succeeded in making contact with the international management in North America. This was delayed until this afternoon due in part to problems of time difference. Discussions are to take place immediately these questions are concluded directly between the Ministers concerned. I would also indicate to Deputy Mac Giolla that the information he requested in regard to profit levels or lack of them is highly relevant and is a matter which will be pursued most strenuously with the company to establish their position exactly. As Deputies have pointed out, this company, quite apart from the orders they have received, have been in receipt of substantial grant moneys.
: Would the Minister not agree that this matter is too urgent to have meetings left to anybody but Minister? Would be explain to the House why he does not think it necessary for him or another of his colleagues to meet the president? The methods being used by this company must surely be a new departure and I share Deputy Mac Giolla's concern. I fail to understand the delaying tactics of the Government and the Minister in responding to yesterday's announcement. But for the questions tabled today, little or no action would have been taken. We are told that the Ministers will be meeting shortly but why did they not meet yesterday? This is a matter of extreme urgency which is being treated in a very casual manner by the Minister. I demand that he should explain to the House why he, rather than some official, should not meet the president of this company.
: I categorically reject the inference in Deputy Fitzgerald's statement that there is any lack of urgency in dealing with this matter. I certainly do not rule out the possibility — and this may well be decided by the Ministers this afternoon — that I or one of my colleagues will meet the international management now that contact has been made with them. This is a matter of sufficient seriousness to warrant an intervention at that level, if such intervention can yield results.
: Why not do it now?
: Notwithstanding the provocative way in which Deputy Fitzgerald put his question, the point he made was valid. There is a case for a top-level ministerial meeting with the company.
: It is the opinion of the workers that the reason for the threatened closure of this factory is to switch production to the US. Will the Minister take the necessary steps to ensure that production will continue at the Tallaght factory?
: That is the whole purpose of the exercise.
: Will the Minister clarify the position regarding the continued employment of those working in the Telectron factory on Inishmore, Aran Islands, County Galway?
: And Arranmore.
: And the Donegal area.
: The question of Gweedore was raised but the position in regard to Inishmore is not in any of the questions. I will endeavour to obtain information.
: Is the Minister not aware of the position?
: I received notice of questions in regard to Tallaght and Gweedore. I have information available to me on the matters about which I have been asked. As far as Inishmore is concerned, I will obtain such information for the Deputy as quickly as possible but I do not have it to hand at the moment.
: I am passing to the Order of Business.
: One more brief question.
: I have been more than generous.
: Because of the seriousness of this matter, will the Minister report back to the House either this evening or tomorrow morning on the meeting with his colleagues? Is the answer no?
: The Chair has made a ruling.
: The Chair is prepared to listen to the Minister's answer.
: If the Minister wants to answer I will not stop him.
: I am in the hands of the Chair.
: I have been very generous. We will now move right around the country.
: The answer to Deputy Gene Fitzgerald's question is yes.
: Tomorrow morning?
: We will arrange that through the Whips.