Deputy Denis Gallagher has been given permission to ask a Private Notice Question of the Minister for Industry and Energy.
Private Notice Questions. - Closure of Westport Company.
I wish to ask the Minister for Industry and Energy if he is aware of the threatened closure of a company, details supplied, in Westport, County Mayo, if he will take steps to ensure that the jobs of the 52 workers there are maintained and if he will make a statement on the matter.
I am aware of the threatened closure of the company in question. At my request the Industrial Development Authority have had discussions with the key shareholders and have made suggestion to them aimed at maintaining the existing employment in the company. However, the shareholders have not reacted positively to these suggestions with the result that the future of the company remains in doubt.
Is the Minister aware that if this threatened closure takes place it will simply mean the transfer of jobs from Westport to England? Further, is he aware that the parent company will then have the full benefit of Irish markets for the sale of thread as this is the only factory in the country that manufactures this type of material? Furthermore will he accept that this is another case of the multinationals putting in the boot in the case of small Irish companies where they have taken a shareholding?
Due principally to depressed market conditions and the high manufacturing costs of the Westport plant the company have incurred substantial trading loses. The UK group, who have only a 50 per cent shareholding in the company, have considerable overcapacity in their own operations in the UK. Proposals were made by the IDA to the UK shareholders and discussions have taken place with local shareholders. Regrettably, to date these have not proved successful because of commercial realities in this market segment, which, I think the Deputy will appreciate, are particularly difficult.
There is the prospect of the loss of 52 jobs in Westport and also the threatened loss of further jobs in the textile factory in Westport. This factory received grants up to £1,500,000 about two years ago but it now appears they are likely to close. Will the Minister not accept that this is a very serious situation for Westport? Will he ensure that something positive is done to have Westport regarded as an area where it is necessary to have employment provided as quickly as possible?
I am personally aware of the employment in Westport. I realise that the closure of this firm would have serious consequences for the town. As I am sure the Deputy is aware, the IDA are, within their limitations, vigorously promoting County Mayo as a location for industry. There is a 21,800 sq. foot advance factory in Westport and two cluster units of 3,300 sq. ft. also, each of which is being promoted for suitable projects. In addition, there are 36 acres of industrial land. Every measure is being taken to take account of the serious employment problems already existing in Westport.
Sixty jobs for males will be lost and when that is added to the other number it is obvious that we need to take serious steps to remedy the situation. It means we have one industry in Westport functioning after the end of the holiday period.