: Deputy H. Byrne has been given permission to raise on the Adjournment the appointment of a receiver in Springs of Wexford with a consequent loss of about 60 jobs. He has 20 minutes.
Adjournment Debate . - Appointment of Receiver in Wexford Firm .
: I thank you, a Cheann Comhairle, for your kind permission to raise the issue of the appointment of a receiver to Springs Wexford and the prospect of a loss of 65 jobs. You may note that I said "prospect of a loss" rather than a loss because I believe these jobs can be saved and I say to the Minister that with his co-operation that this can be so.
Unemployment levels in County Wexford have now reached an all-time high of 6,063 or 17.8 per cent of the work force in County Wexford. Wexford town itself has 22 per cent of its work force idle and this is far in excess of the national average of 13 per cent. Springs of Wexford are the latest casualty. However, this industry can be saved with commitments and with careful handling. "Springs Wexford" were founded in 1935. They manufacture springs for lorries and agricultural trailers and steel components for ESB pylons. Comhlucht Siúicre Éireann Teoranta manufacture the much-celebrated Armer beet-harvester for export, but Springs Wexford supply the components for conveyor chains. CIE are another customer of theirs, as is the Department of Posts and Telegraphs.
The present difficulties did not arise overnight and one must be critical of the parent body, Harcourt Holdings, for just pulling the plug, with little or no advance notice to the workers and the company, which has been in existence since 1935, with some men employed for as long as 40 years. The local TDs, myself included, met the unions and the receiver yesterday on the factory floor, and it was pathetic to see men, whose service to the company ranged from 15-40 years, many of whom have mortgages and are married with families, just told that the company was closing shop. It was pathetic because this old-established firm is solid, with outstanding staff-management relations, and has been making profits during all its history. Last week they were carrying on with their business in the usual confident, responsible, workmanlike way only to be told that Harcourt Holdings had collapsed and a receiver had been appointed to Springs Wexford. As I said, that work force have always behaved responsibly. During a rationalisation programme of 1974, 40 workers lost their jobs with a minimum of fuss. During the recession the workers at Springs acted responsibly, putting their jobs before other considerations. There is a sincere and genuine effort now being made to keep Springs open and on talking to the workers yesterday this is their primary aim.
Mr. Charles Russell Murphy has been appointed receiver and is at present seeking a buyer. I understand there are three interested companies and it is here the Minister can show his commitment to the terrible unemployment problem of Wexford. I ask him, if he considers it judicious to name these companies. The IDA have been approached, as have Fóir Teoranta. While the delay of the parent company's disclosure of problems was poor form, the IDA were aware of the situation for some time. If this is the case the IDA are partially responsible for the position Springs now find themselves in. The IDA and Fóir Teoranta should have been able to keep the ship afloat. The IDA have had their fingers burned before now, and burned badly in Wexford, with Lifesavers who were to create 600 jobs. The company went broke and pulled out after a year. The IDA now are not prepared to gamble further. I ask them to come out from behind that failure, carry out investigations and get back to the role they are supposed to play. I will come back to the problem in hand. I call on the Minister to demand from the IDA and Fóir Teoranta, that the interested bodies in the company will be given every help, within reason, in order to retain these 65 jobs in Wexford. The receiver and workers are working together as a team with a good understanding and their common aim is to keep the door open. The Minister must ensure that the full weight of his office is behind this teamwork. Half measures are no good, half commitment is not enough.
We can remember in Ross Company, New Ross, two years ago, when 170 people were made redundant and a receiver was appointed. The receiver is still there and Ross Company is a graveyard with plant and machinery rusting and the yard becoming more unattractive every day that passes. That type of policy in Springs Wexford is not good enough. Wexford county and Wexford town particularly have been ignored by the IDA in recent years. If they put their backs into this project I have no doubt but that this firm can continue in operation, and if this effort fails, much of the responsibility will be with the Minister and the IDA.
The present plight of this Wexford company brings to light a difficulty that we in Ireland have been experiencing for some time now, that is the problem of our semi-State bodies importing commodities that are being manufactured here. How can the Minister justify on the one hand, allowing semi-State bodies under his jurisdiction and guidance, to import goods manufactured in other countries by firms which are in direct competition with companies in this country and, on the other hand, because of this stupid activity, having to support our companies because of self-inflicted troubles? Would it not be wiser to instruct our semi-State bodies to use Irish-made materials, to retain and create Irish jobs? When we are promoting a "Buy Irish" Campaign, let the Minister set the good example by insisting that all Departments and semi-State bodies use Irish-made materials. It is disgraceful that we should create jobs abroad at our own expense and at the expense of Irish workers.
If he were to do this, Springs Wexford would have no difficulties, because instead of CIE importing springs for their buses, Comhlucht Siúicre Éireann importing beet harvester components, and the ESB and the Department of Posts and Telegraphs importing their steel requirements, they would all purchase their requirements from this Wexford firm which is the only manufacturer of this type of product in Ireland.
I noted with interest in last week's issue of The People that the Minister for Labour has appointed a special adviser to examine the viability of Springs Wexford Limited. I suggest that it is not enough to appoint an adviser. This matter must have the intervention of the Minister or his colleague, the Minister for Labour. Advisers are not enough at this stage because the situation is too serious, and the unemployment problem in Wexford is too great. I ask the Minister to put his weight behind this project.
To recap: a receiver has been appointed to Springs Wexford and a sincere and genuine effort is being made by workers, management and the receiver to locate a buyer for this firm in a responsible fashion. We call on the Minister to ensure that his office, the IDA and Fóir Teoranta match their efforts, and immediately, and we call on the Minister to ensure that Irish-made materials are used by all State and semi-State bodies. It would be disastrous if we were to allow this excellent work force and this excellent product to be put on the scrap heap.
: I support the sentiments so ably expressed by my colleague, Deputy Byrne, in relation to the presence of the receiver at Springs Limited, Wexford, and the threat of closure hanging over the factory, and consequent loss of 65 jobs. In County Wexford at present we have more than 6,000 people unemployed. Of that number, 2,300, or 22 per cent of the work force, are unemployed in Wexford town, and if Springs were to be closed it would be disastrous for the workers and the economy of the town.
Unemployment levels are now above the national average in all areas throughout the county, which has not succeeded in attracting any major new foreign project since 1979 and is badly in need of a major promotional drive by the IDA and the Department. Wexford County Council have developed the required infrastructure for industries, but the IDA, for reasons known only to themselves, completely and consistently have ignored the plight of the unemployed in Wexford.
My home town of Enniscorthy has 16 per cent of the total workforce unemployed, more than 1,600 people, and I have no doubt that the town has been forgotten, as well as the south east region, as far as Ministers and the IDA are concerned. Gorey has a 17 per cent unemployment rate and New Ross 15½ per cent.
Getting back to Springs, the work force is 65, many of whom are in middle age with years of service ranging from 20 to 40. To dump them on the lengthening dole queue will have serious consequences for their future. Many of them joined the firm at 15 years of age and have given loyal and dedicated service throughout the years. The relationship between the workers, the unions and the management has been top class always and every effort must be made to save the jobs.
I am led to believe that Springs, part of the troubled Harcourt Holdings, are a viable and profitable company, all the more reason why it should be saved. News of the calling in of the receiver came as a major shock to the workers and the people of Wexford town and has cast an air of gloom and depression on the town. Having attended a meeting of the firm yesterday and talking to the workforce, I am aware of how concerned they are and how important it is to them that the factory be kept open. The workers know that if this factory is closed, with the high unemployment rate already in Wexford they will be consigned to the dole queue for the remainder of their lives. That fear is uppermost in their minds at present.
There are a number of options open to the Minister for saving the company. Coming from a county bordering Wexford, I know the Minister is aware of and concerned about the high unemployment figures in the south east region. I respectfully ask him to put pressure on our State and semi-State bodies to purchase their requirements from Springs Limited and to refrain from purchasing abroad. This applies particularly to CIE who, I am led to believe, are importing most if not all of their bus springs from British Steel despite the fact that they can be produced in Wexford at very competitive prices and of much better quality.
The Minister should also look for orders from the Sugar Company, Bord na Móna, the ESB and possibly from Fords of Cork. Failing that, pressure must be brought on the receiver and the IDA to market the firm and to ensure that a buyer will be sought immediately to keep the workers in employment. They are skilled workers whose expertise, and the products produced, would be a tremendous loss to the economy. Of course closure of the factory would also mean that more imports would come in which in turn would mean exporting our jobs.
Therefore I ask the Minister to ensure that a solution be found immediately to keep Springs open. I feel that the parent company, Harcourt Holdings, have treated the workers of Springs with contempt, very unfairly. Now Springs must be taken out of this group and put on a sound footing. I believe that with the political will and the help of the IDA and Fóir Teoranta, the firm and the jobs of the workers can be saved.
: I am delighted to have the opportunity to lend support to my colleagues' words on behalf of Springs Limited. I would underline their appeals to the Minister of State who has particular responsibility in this case to ensure that everything will be done to see that Springs Limited will be kept going as a viable concern. I will not repeat all they have said but I concur with it.
The key to the success of Springs and its future lies in encouragement by the Government of the semi-State bodies to place orders with the company. I do not think we need look further than CIE, who alone could give the company enough work to keep them going for the foreseeable future, Bord na Móna, the Sugar Company, and others which have been referred to, and I underline what my colleagues have said.
I am quite sure the Minister will have much to say to us on this matter and therefore I will not take up his valuable time. He is far more learned than I on this subject. All Wexford Deputies and Senator Howlin are extremely concerned about the future of Wexford, particularly Wexford town where the unemployment rate is now 25 per cent, well above the national average. Wexford was one of the first industrialised rural towns in Ireland which had many older type industries which needed a lot of investment and updating of management structures. We were hurt extremely badly in the recession during the last ten years, particularly in the industrial sector. Many jobs were found in manufacturing by the IDA but we have not been able to compensate for job losses in the older industries.
Since 1935, Springs Limited have been solid employers in County Wexford and I appeal to the Minister to look to the semi-state bodies to ensure there will be a future for Springs. The appeal from all of us here is on behalf of the 65 employees.
As has been said, Springs are the only company manufacturing laminated springs in Ireland. Indeed the manufacture of springs is only 50 per cent of their output. They are in the light engineering sector for which there is a tremendous necessity for growth here. I therefore repeat my appeal to the Minister to indicate to us what the Government plans are for saving Springs and to tell us how the semi-State sector could be encouraged to direct more work, more orders, to this company.
: I am grateful to Deputy Byrne for having given me the opportunity to discuss this situation in the House and to share the concern expressed by the Wexford Deputies at this unfortunate position which has arisen in this long-established company, part of the industrial fabric of Wexford town for nearly 50 years. The company give employment to 65 people, mostly men. That number was about 100 some years ago.
I understand that the receiver is very pleased with the responsible attitude of the workers, something in itself which will be of benefit to the company in their efforts to secure a takeover. I am saddened to see that in recent times a number of companies, having got into trouble, were put into further difficulties by employees sitting in. I want to say clearly that the tactic of the sit-in is most detrimental to the workers and the prospect of those workers being employed in a new ownership situation. Such sit-ins have been detrimental to the IDA in their efforts to promote factories which get into difficulties. Therefore I am very pleased to note the responsible attitude of the workers in Springs. I am satisfied that it will have beneficial results.
The problems which led to the recent appointment of a receiver arise largely from the difficulties besetting the group of which Springs Ltd. are a member, rather than problems relating to Springs Ltd. themselves. In 1982 the relevant State organisations — the IDA and Fóir Teoranta — approved a financial restructuring package for the group which the group, for their own reasons, did not take up. That was most unfortunate.
In this regard I must take Deputy Byrne to task. He said the IDA are partially to blame for the present position in Springs Ltd. That is not the case. I want to point that out quite clearly.
: I did not say that. I said if that were the case they would be partially to blame.
: It is not the case. I do not want to cross swords with Deputy Byrne because we both have the same objective. I have a responsibility to state that the IDA and Fóir Teoranta approved of a restructuring package of which the group, unfortunately, did not avail. It would not be correct to say that the Wexford company have not got difficulties. They have. Hopefully they will be resolved.
Like many other companies they are experiencing strong competition in all areas of their activities, in the manufacture of springs and chains as well as general engineering work. I am aware also that they have to face particularly strong competition from imports in the market for springs and chains, but my understanding of the matter is that most of this competition is from companies within the European Economic Community.
We are a member of the EEC and we must abide by its treaties. We are in a free market. We are benefiting from being within that free market because we can export all our produce freely within that market. We too must open our borders to goods from other countries. As the House is aware, this taking of protectionist measures, even if that were desirable, is not feasible. If proof can be provided that any company or companies are exploiting a dominant position in the market place, I will ensure that the matter is investigated immediately.
As I mentioned earlier, the problems which resulted in the appointment of a receiver at Springs Ltd. arise mainly from difficulties within the holding group. I am hopeful that the efforts of the receiver and the State organisations who are already co-operating closely in the matter will be successful in securing an early take-over which will result in continued employment for the work force in Wexford and, in this regard, I understand that already three interested parties have made what must be considered to be serious inquiries.
I understand that the receiver has guaranteed continued employment for all of the work force for the next two weeks while the possibility of a take-over is being explored. I am hopeful that, even if a take-over is not secured within that timescale, employment could continue to be maintined well beyond that date under the receiver's management. I am optimistic about a take-over in the near future.
Deputies made reference to State bodies and their purchasing policies. State bodies are obliged to adhere to normal procedures in relation to tenders. In that context they are also bound, in relation to contracts over a certain value, to advertise internationally. I should like to see State bodies in a position to purchase more Irish goods, but they must conform to the competition rules of the EEC.
Deputy Byrne referred to the Ross Company who are also in receivership in New Ross. I am familiar with that company. The IDA have a primary responsibility to ensure that when a company take over another company in receivership, the take-over is financially backed and secure in the long term. There is no point in the IDA or any State agency approving a take-over by a company who, in their opinion, are not capable of sustaining the revived company. That is a proper and responsible approach. Hopefully the right company will appear on the scene.
I was somewhat taken aback by Deputy Burke's suggestion that I have been taking half measures or that I was only half committed to companies in difficulties. That is not so. The IDA, Fóir Teoranta and other State agencies are fully committed to preserving existing employment as well as promoting new employment and new industries. I reject any allegations of half measures or half commitment——
: About 22 per cent of Wexford town are unemployed.
: ——on the part of my Department or the State agencies. I do not wish to enter into a political discussion but, if the Deputy suggests there is 22 per cent unemployment in any area, he will have to look elsewhere than to this Government for the responsibility for that. In particular he must look to his own party's performance in Government from 1977 to 1981.
: The Minister has a job to do and he should get on with it.
: The Deputy's Government beggared this nation with flagrant incompetence and silly budgetary policies.
: Hear, hear.
: They were the ruination of this country at a time when they had a decent majority and could have taken the necessary steps to correct the budget deficit and reduce inflation——
: This has nothing to do with Springs Ltd.
: ——and to re-establish an environment for industry. As a result of their incompetence the Deputy's party put the country in a very difficult economic situation.
: The Minister should get back to Springs Ltd. We are interested in that.
: I am sure the Deputy is as interested in Springs Ltd. as I am. I did not raise the general question of unemployment. The Deputy did and he is entitled to an answer. My Department in consultation with the other State agencies, and with the Minister for Labour who I know has taken a special interest in this case, will make every effort to solve this problem. Hopefully the receiver will be in a position to accept a bid for the company. I reject the allegation of half measures or half commitments. The half measures and half commitments were those of Fianna Fáil and not this Government.
The Dáil adjourned at 9 p.m. until 10.30 a.m. on Wednesday, 27 April 1983.