The Minister for Industry, Trade, Commerce and Tourism and each of the Deputies have 15 minutes.
Death of Mr. Seán MacEntee. - Closure of Ford Plant in Cork: Statements.
I am availing of this, my first opportunity of expressing the grave concern and disappointment which the Government feel at the development in Cork yesterday. We have all recognised that there are special problems in the assembly industry here as a result of the protective regime which existed in regard to motor assembly, as agreed at the time when we entered the European Community, being due to terminate at the end of this year. Regrettably, this is accompanied by the fact that, as a result of the very long recession — the longest that we have experienced in Europe since the last war — the demand for the motor industry products has declined rather dramatically in Europe and, in particular, European based manufacturers have lost a share of a diminished market to imports from new sources of motor cars manufacture which were almost unheard of in the European market 15 years ago. We have, indeed, a combination of three factors causing problems in the motor industry in Cork. The first is the end of the special regime in regard to assembly; second, the general decline in the motor industry market in Europe as a result of the general recession; and, third, the increased share of that market being won by imports from outside the Community. This has resulted throughout Europe in numbers of redundancies. Indeed, I should mention a fourth factor which is increased automation and robotisation of the motor manufacturing industry. It is one industry that, because of its assembly line, standard and uniform nature, has been particularly prone to the adoption of cost reducing and employment reducing robotic methods.
As the House is aware, the scale of production in Cork — about 15,000 units per annum — is very small by comparison with that of more modern plants in the Ford network where 40 million units per annum is the production level. This smallness adds to the cost factors and puts the Cork plant at a disadvantage. Further, while it is important that these overall factors affecting the motor industry should be fully understood by everyone involved in this debate, there is no point in starting from a standpoint which ignores the fundamental realities of the market place, which is where all industrial decisions ultimately are made.
We must also realise that there is a real possibility that we can adapt to face the situation. This has been the intention of all recent Governments in their dealings with the motor industry here and, in particular, with the motor assembly industry. In return for concessions with regard to the importation of fully built-up vehicles negotiations were entered into with various motor importers and manufacturers whereby they shifted their manufacturing from motor vehicle assembly, which had apparently a limited life, into component manufacture. One particularly good example of this is that of General Motors who have established a very successful enterprise employing in Tallaght as many, 800, as have been told that they will lose their jobs in Fords. That is an example of what we would be hoping would be possible for Fords to do. Indeed, there are few firms of whom we would have in the normal course of events as high hopes as we would of Fords, because of their very long association with this country and, in particular, with the city of Cork.
It is with a view to persuading Fords to make such a long-term, viable and — for them — profitable commitment to an alternative manufacturing facility in Cork that we have been bending all our efforts in recent times. There have been two meetings between my Minister of State, Deputy Collins, and the Ford Company in recent months. There have been numerous contacts between the IDA and Fords, including approaches to Fords even since Christmas by the IDA, with a view to getting them to bring forward proposals. Ultimately, we must recognise that a proposal for an alternative industry is best devised by Fords themselves, because they are the people who have the necessary expertise in the market place. They know what components are saleable and it is with a view to getting them to bring forward such a proposal that all these meetings and discussions have taken place. Indeed, the negotiations which took place with Fords with regard to the importation of the Telstar motor vehicle were specifically guided by the Government's anxiety to get the company to make a commitment to an alternative manufacturing facility in Cork which, regrettably, they have not yet been in a position to make.
As I have already indicated, the Government and I have been seeking since last month discussions with Fords at the highest level with a view to promoting this case. I am very hopeful that this debate, which is very timely and has been arranged quickly, will afford an opportunity to demonstrate the extent of the commitment of all sides of this House and to convey the message to the Ford Motor Company that we believe that we can provide them with a profitable opportunity in Ireland. Clearly, we must also convey to them the grave social concern which is felt as a result of the consequence of the decision. However, that in itself is clearly not enough. We must also be able to convey to them the view that, if they make the necessary commitment to Cork, they will be able to do so in such a way as will be profitable for them. We can convey to them the fact that we offer in this country unrivalled facilities for foreign investment.
This has been recognised by the fact that more US investment in Europe comes to Ireland than to any other location on the Continent of Europe. All of those American firms that have invested in Ireland, giving very large numbers of jobs, cannot be wrong. It is clear that the company which was almost the first American one to lead the way, in 1917, in United States investment in Ireland should continue to do, as so many other American companies are doing to their profit and should invest in a suitable modern, profitable project in Cork. I should add also that the Industrial Development Authority, who have had contacts with Ford at European management level as well as here in Ireland, have done a considerable amount of work in recent months in identifying precisely the type of project in which Ford can profitably engage in Ireland. I believe that the information and facts that have been put before Ford, and can be put before them in even greater detail by the IDA, will represent a profitable opportunity for Ford and a prospect for the people of Cork, so that this important firm can continue to be active in that part of Ireland.
I recognise, as has been pointed out by a number of Deputies in private discussions I have had with them, that this closure has implications for many other firms as well who supply components of one sort or another to Ford. At the suggestion of some of the people with whom I have had discussions, I am asking the IDA to undertake an immediate study, not just of the Ford situation, but also of the position of all of those companies, some of them not even in Cork, who will be very directly affected as to their viability by the decision of the Ford company. Probably this is something that has to be done anyway. Even if Ford succeed in identifying another project, it may not be one that would require exactly the same mix of Irish components as is at present used by that company.
I have indicated also, and Members will have heard the Taoiseach describe, the emergency action that the Government have taken in regard to the overall employment situation in Cork. I do not propose to dwell on that at this time. But we do recognise that the two blows that Cork have suffered, in the form of this announcement and the closure of Dunlops, present a very serious employment situation in that city and one which we must do all in our power to recognise. However, I say that the message we must give the people of Cork must be one of confidence, that they must have confidence in themselves, in their ability to overcome their problems. There is a clear realisation that in the final analysis the industrial success of this country depends on the enterprise, risk-taking and initiative of Irish people rather than on anyone else in any other part of the world. If there is anything needed in this country it is to continually build people's confidence in their ability to overcome their problems. That is the reason so much emphasis is being placed on industrial development programmes by the IDA on enterprise development, on enterprise centres, on programmes to encourage people to set up new Irish industry on their own initiative, using their skills in a risk-taking entrepreneurial way rather than in seeking safe and not necessarily quite so creative employment.
While I hope we shall continue to seek solutions for our problem and continue to seek industry from abroad, we shall not neglect the great possibilities existing in our people, in particular in the city of Cork, for the solution of our own employment problems.
We may all have different approaches to the problems now obtaining in Cork. I shall not use this sad event as a political occasion. The people of Cork and the country generally, I have no doubt, were saddened by the announcement of the closure of the Ford factory in Cork. Cork has already suffered many disappointments in the closure of many of its traditional industries. A package in terms of attractive redundancy payments to the workers involved is of little consolation to them. I would ask: what about the future of their families and that of the many thousands of young people seeking employment? Each industry that closes lessens the opportunity of employment for the thousands of young people in both the city and county of Cork.
The Minister has told us of a number of options open to him, that efforts have been made to try to save this plant. The Minister knows as well as anybody else in this House that the trouble in Fords had been there for quite some time. We were all aware of the problems confronting that great, viable industry of ours. But because of this recession they find themselves in trouble. It is only natural for any Government, knowing of this, to move in at the very early stages of the problem. The Minister mentioned the Ford company a number of times this evening. In this respect we must seek clarification. Cork has maintained the only name associated with the company known throughout the world — Fords and Son of Cork; every other Ford plant throughout Europe bears the country name after the name of the company, such as Ford (Belgium) and so on. The company here was founded in memory of a Cork man. Surely we are entitled to make our plea not just to the Ford company. Here I must assume the Minister is talking about the Ford management in Cork. The Ford management in Cork represents working management dictated to from America. Let us get this very straight — and the Minister of State now present knows this also — there is no point in the Cork management appealing to America that we go into mass production of another component without the support and backing of both the Government and the IDA. We should be honest about this. When the warning bells were sounded the Taoiseach, and the Minister responsible, should have gone to the United States where policy in regard to Ford plants is dictated. I would have gone to the United States to meet influential people like the Speaker of the House of Representatives, Tip O'Neill, Senator Edward Kennedy and others and urged them to use their influence to save Cork's great industry.
The fight is on to save Fords of Cork. I understand that the trade unions decided today against a closure. We have heard too much talk about attractive redundancy payments. We must keep in mind the future of the people of that city and the prospects for the many young people. Many of the workers have families and they are concerned about their prospects of getting alternative employment. Corkmen can be forgiven if they become emotional about this issue. I was disappointed to hear the Taoiseach say today in the course of his statement that he was establishing a small high level expert working group to advise the Government urgently on the impact of the measures already taken to provide jobs in the Cork area. Unfortunately, I did not get an opportunity to question the Taoiseach on that statement. The only experts needed are sitting in this House, the Members who represent Cork. We could with 30 minutes' notice inform the Government, and the House, of the needs of Cork and where employment can be got. We heard a similar statement when the Dunlop factory folded up. What has happened since? We have lost other traditional industries. In Fords, and throughout the county, people are wondering what industry will suffer next. Surely there is an early warning system? When the warning bells are sounded the Government should step in to help an industry over a lean period. The Government should help industries that over the years have proved viable and given good employment.
I have no doubt that while the experts sent by the Government are running around the city and county investigating the employment position other traditional industries will be folding up. The public representatives are the experts, irrespective of the party they represent. They know what is happening because they have to deal with problems in that area on a daily basis. The Government should not confine their thoughts to Fords of Cork because, as they are aware, all decisions in regard to that factory are made in America. There is little point in saying that we should try to find a way to produce components. The Minister, and the Minister of State, must be aware that any decision to mass produce a component at a plant in Europe is taken in America. I appeal to the Government to direct all their efforts at the United States parent company. The Cork factory was founded by Henry Ford, a Corkman, and it has well established links with the United States. Any reference to Ford meant the Ford factory in Cork. We will not lose this industry without a fight.
I suggest to the other Cork public representatives that we consider going to the United States to meet the influential people there in an effort to have this decision changed. We must face up to our responsibilities and highlight the fact that the decision to close the Cork factory was taken in America. All Ford plants throughout Europe are subject to directives from America. The Minister should have elaborated on his suggestion about production. There is no doubt that the work force in Cork is excellent. They are dedicated, like all Cork people, and have supported Ford products down the years. We are not talking about the loss of 800 jobs only. We must bear in mind that the industries manufacturing the car components will suffer also and the ESB will lose a tremendous amount of revenue if the factory is closed. There is no question of the workers being satisfied with redundancy payments. We will not wait for the final curtain to fall on Cork.
I should like to know what efforts are being made to reopen the tyre making industry in Cork. What efforts are being made to utilise the machinery that is rotting in Dunlops? I am sure the Minister is aware that many of the Dunlop workers are prepared to establish small industries if they are given the machinery in the Dunlop factory. I asked the Minister for Labour to investigate this. I am aware that one group in Cork city approached the IDA, after carrying out extensive research, with a view to setting up an industry. That group have made an appeal for the release of some of the machinery in the Dunlop factory. If I was a member of the Government I would purchase that machinery and hand it over to those people who have the incentive and ambition to establish a small industry.
Deputies Coveney, Allen, Desmond, O'Sullivan, and the other Cork representatives are the experts as far as Cork is concerned. If we were given 30 minutes we could outline the problems of Cork and save the Government a lot of money. There is little point in sending outsiders to the city to carry out a survey while industries are closing down rapidly. I should like to sound a warning that we will not allow the Ford factory to close without a fight. That fight must be centred in the United States.
The decision taken to cease production at Fords of Cork was one of the saddest and most devastating ever announced. The Ford motor company for 70 years was the flagship of Cork industry and the principal private sector employer for longer than most of us can remember. It has an exceptional place in the industrial life of Cork.
On behalf of the people who are looking desperately to this House this evening I ask for an all-party approach, that we will not indulge in recrimination about what one Government or another might or might not have done in the past. We are all very wise in hindsight. One could argue forever that one Government or another throughout the years might have done this or that. That will not do anything for Fords or for Cork, particularly for the workers who depend on Fords. Therefore, I hope we will address ourselves this evening to the kind of proposals we can initiate. In this debate there is no use holding out the prospect that we will automatically turn this thing around. We are up against it. Fords would not have made such a devastating decisive statement if they had not made up their minds, and we now have the job of trying to change the minds of people who do not lightly take decisions and then reverse them.
Though I accept what Deputy Wyse said, that we must fight, and we will, it will be a tough fight and we should not tonight raise expectations that it will be a matter of the Government twisting the arm of Fords. If that has to be done this Government will do it, but the outcome cannot be guaranteed and we should not pretend that it can be.
First of all, I take issue with Opposition Deputies who spoke about the statement of the Taoiseach. Bearing in mind that that statement was issued less than 24 hours after the announcement, it contains a number of positive suggestions, the first being that the Ministers for Industry and Foreign Affairs are seeking a meeting with Fords in Detroit and are prepared to travel out there as soon as possible to meet the company at the highest level. That is where the ultimate decision lies. I hope they will be on their way in the next few days and that they will bring back the bacon. In the Taoiseach's statement there is a clear invitation to Fords to sit down to discuss the options open to try to keep those jobs in Cork. I hope Fords will respond positively to that invitation.
The Taoiseach also spoke of the creation of two special task forces and a high level special working group to advise the Government not only on the question of Fords but on the wider issue of job creation in Cork. I welcome that. I agree to a certain extent with Deputy Wyse that Cork Deputies can supply the answers, and I hope and believe that the Taoiseach and the Government will listen to what Deputies from both sides from Cork have been saying. Of course we are experts to a certain extent, but certainly we are expert in regard to knowing what the people of Cork want, and we will all be lobbying for any assistance the Government can give in difficult financial circumstances.
Deputy Bruton said we are not asking Fords to do anything more than to create a viable profitable business for themselves, and if General Motors can substitute for their car manufacturing business a major component manufacturing operation in Ireland with 100 jobs, I do not think it is beyond the ability of their greatest competitor, Fords, to do likewise. That is what we are seeking and that is what the IDA and the Government should be trying to work out as quickly as possible. I hope Fords will co-operate in every way. Indeed in the statement which Mr. Paddy Hayes made there is a small glimmer of hope. He said there is always the possibility that a reasonable proposal could come from some other source.
That is a ray of hope which we must pursue, and I ask the Taoiseach to consider raising the issue at another level. The main level must be discussion between the Minister for Industry, Fords and the IDA, preferably Fords in America. However, there is another dimension to this. It is the relationship between this country and the US. We are not just two any old countries: we are two countries that have ties which are unparalleled and unequalled. In the US there are 40 million ethnic Irish, ten times the population of the mother country. If we do not have in them a strong lobbying force for Ireland there is something wrong with us.
I ask the Taoiseach, through our various diplomatic channels, particularly through the Washington administration, to get across the message that 800 jobs in Cork are not the same as 800 jobs in Detroit. During the recession the American car industry has shed thousands and thousands of jobs. It is easy, if one is sitting in Detroit on top of a major international company, to think of 800 jobs as a relatively minor affair. It is important that we get across to them that this is not a minor affair for us, that this is a catastrophe for the city of Cork and for the country. It is up to us, and the Taoiseach in particular, to get that message across through all the agencies at our disposal.
There are other fora as well. There has been a recent development, not much spoken of in Ireland, the setting up of a group called Friends of Ireland, composed of Congressmen and Senators in Washington, drawn from every State in the US. They are people who have a particular interest in Irish affairs and who are only too anxious to do something for Ireland. To some extent they were set up to counterbalance some of the US organisations who are trying to help Ireland in different ways with which we disagree strongly. I refer to organisations like Noraid. Friends of Ireland are a moderate political group. They are there to help and it is up to us to lobby them. There is now in this House a parallel organisation, The Irish-US Parliamentary Group. That all-party group should make contact quickly and speak to that group in Washington who could bring pressure to bear, because those Senators and Congressmen bear household names in the US. This is an election year; the US President bears a noble Irish name, and I do not believe that the American political system will be unresponsive to the prospects of 40 million ethnic Irish votes. I believe there would be a positive response to a united call from this House, from all parties, to do something in regard to Fords for the benefit of the people of Cork and Ireland.
This debate enables us to refer to other problems in Cork. I and other Deputies would invite the Taoiseach, the Tánaiste and the Minister for Industry to Cork during the coming weeks to meet the trade unions, the employers and a variety of other groups to listen and to find out at first hand the feelings of the people there and the opportunities which exist there. Cork, despite our high unemployment, is still a great area of opportunity with great natural resources and great people. They should acquaint themselves with the situation at first hand, not just from advisers but on a personal basis, to get a feeling for the problems of this region which is so devastated and well above the national average in relation to unemployment.
There are a number of things which could be done which even in these difficult financial times would not cost an unacceptable amount. I am aware of a live proposal to provide a ferry link to the UK by a combination of Irish Continental Lines, Cork Harbour Commissioners and the Swansea Port and Docks Board. I understand that all three are prepared to participate in a financial way in a joint venture to run a summer service as a minimum between Cork and Swansea. The Government must give approval to that proposal. I hope the Minister will look sympathetically at that and that the announcement will be made early rather than late. Last year the announcement was made so late that it was very difficult to get bookings. There is widespread agreement among the Cork Deputies about the question of the deep water berth. This is essential not only for the attraction of industry but also for the maintenance of Cork Harbour as the most important port in the country.
The Minister has remained silent.
I am giving him all the encouragement I can. If ever Cork needed a shot in the arm it needs it now and I hope the Cabinet will decide to support that venture this year. Deputy Gene Fitzgerald referred to the low river crossing today. Obviously the money is not available for that at the moment but a step could be taken in relation to a bridge order. I ask the Minister to give an undertaking that the bridge order is made as quickly as possible.
Those are a number of positive things which I hope the Government will be able to do within their limited resources in the coming weeks, because we need all the assistance we can get in Cork. It is often said that the greatest problems often present us with the greatest opportunities. If this disastrous day brings us all together for the good of the Cork region, then so much the better. I hope we can get over this disastrous decision together.
In 1980 the managing director of Henry Ford stated:
We plan to continue car assembly after 1984 irrespective of what our competitors do. We are now here for 63 years and we intend to be here after 1983.
The managing director in his statement yesterday said:
You are all aware that there has been a great deal of speculation over recent months concerning the future of the Cork assembly plant because virtually all our automotive competitors have ceased car assembly in Ireland.
I welcome the Taoiseach's address today when he expressed his profound regret and surprise at the closure announcement because of the hardship this decision will create for so many families in Cork and the damage which the loss of so much employment will cause to the economy of Cork. I worked for Henry Ford for 13 years and was very close to the workers who are now affected by yesterday's decision, so I assure the House that I am very conscious of their feelings on this sad occasion. What has happened between 1980 and yesterday's announcement? Deputy Coveney made some points and one should not be political. I certainly will not be political but I will make points regarding a lack of communication which has been very evident throughout the last year regarding Henry Ford.
The company sought a meeting on tripartite talks regarding the whole future of the company and it appears, because of lack of communication, that there was not any contact between the Government or the Minister and Henry Ford in relation to that meeting. This is the Minister's admission today. The Government never communicated with Henry Ford on this issue. I am making this point because we are here tonight in regard to the future of Henry Ford but in doing that we must at least look at the overall aspects of it and what has happened since 1980 when the managing director made that statement and yesterday when he made a further statement. The Taoiseach said today:
I also wish to announce that I am establishing a small high level expert working group to advise the Government urgently on the impact of the measures already being taken to provide jobs in the Cork area, on the action necessary to provide additional new jobs and on all action possible to safeguard existing viable jobs in Cork. This group will, of course, liaise closely with both the IDA and the task forces.
Where will the people on this working group come from? What has happened to our contributions in the House during the past 12 months, particularly in relation to the Dunlop situation when every Deputy from Cork made his contribution and brought home to the Minister and the Taoiseach the serious situation in Cork? Nothing was done. How am I expected to stand here tonight on behalf of the people of Cork and say that what is in the Taoiseach's document is anything new?
We have a very serious situation in Cork. Unemployment there is 4 per cent higher than the national average. We do not need experts going to Cork to bring this message home to the Government. I am very concerned about the sincerity of the Government. We have come into the House far too often talking about situations like Dunlop and tonight about Henry Ford. Where do we go? It is gone then until the next occasion. The Government are not sincere about this situation in Cork. I do not mean the Deputies here tonight in relation to their contributions. I am saying this because of the Government's performance during the past year. Since I came into the house everything I have seen going on here shows that the Government have not any interest in Cork and this is borne out by two statements in the space of three years when Henry Ford said they intended continuing in Cork and now they make another statement.
We were told today, 24 hours later, that all the measures we had been asking for over the last year can be done. The Deputies from Cork, including the Deputies from the other side, have been calling for those things for a long time. Deputy Albert Reynolds sought this on the radio today. I am asking what have the Government and the Minister been doing over the last 12 months? Why were they not in Cork last week for a debate which discussed the whole situation in Cork? I am very concerned about the sincerity of the Government or anything said here tonight regarding the future of Cork.
(Interruptions.)
Surely the Deputy is not suggesting that it is the Government who are closing Henry Fords?
I am suggesting that there is a lot of hypocrisy going on here tonight regarding Cork and the problems Cork have had for a long time. When the Deputy, his colleagues and the Cork Deputies on this side were expressing their concern nobody listened to us. The Deputy knows that as well as I do. The greatest example is the deep water berth. As far as I remember the Deputy said he would put his seat on the line if money was not provided for it.
Will the Deputy give me another week?
I do not want to get into a hassle with the Deputy. We are all here tonight in the interests of Cork. I am entitled to express my concern about the sincerity of the Government regarding the situation in Cork.
This is getting us nowhere.
Where do we go from here? In his statement Mr. Hayes said:
Although we believe our studies have been exhaustive as far as Ford is concerned there is always the possibility that a reasonable proposal could come from some other source. If so, of course, we will examine it carefully. It would, however, be dishonest of me to give you false hope since conclusions have so far indicated no realistic alternatives.
I worked in Fords and knew that things were very serious because free trade would be at an end this year. Nevertheless I was confident that there would be diversification in Fords. I met Mr. Hayes recently with other Fianna Fáil Deputies and he said they had looked at many options open to them. He said they could do the job cheaper elsewhere. I was surprised and shocked at the announcement as I have relatives in Fords and many friends. The only glimmer of hope I have regarding Fords is contained in that paragraph.
The Taoiseach, the Minister and the Government can play a role in this. I can only express the concern and opinions of the people. I do not make the decisions. The Taoiseach, the Minister and the IDA can do something and I appeal to them at this late stage to do so. I know I expressed concern about their sincerity as regards Cork. In the last 12 months no matter what happened in Cork it fell on deaf ears. We heard the same comments made about Dunlops and other areas in Cork. We got nowhere. Many small industries have closed in the Cork region and there was not a word about them. Fords is the biggest in the city. I appeal to the Taoiseach to take this very seriously.
I have been critical of the Government because up to now there was no proper consultation with Ford. There was a lack of concern about the whole approach to the car industry and the effect on the 800 workers involved, their families and relatives. In all 5,000 people will be affected by this closure.
This is horrific for us in Cork. We had a traumatic experience in Dunlops. The future of other industries in Cork is in the balance. Young people have no confidence in their future. We have a regional college and a university but the young people see nothing in Cork for them. This is our responsibility. We have tremendous power. We make decisions. The Government can show their real concern for Cork for the first time this year. We in Cork seem to be the forgotten people.
There is no need for new studies to be carried out. We have travelled with deputations from one group or another and outlined exactly what was happening in Cork. There is no need to send experts down to Cork to assess the situation. We have enough experts in the IDA and so on who are fully aware of the difficulties. That information has been given to the various Ministers. There is no need to say that further groups will be set up to investigate the matter. The people in Cork want action from the Government.
I am not over-optimistic regarding Fords but there is a glimmer of hope. We will endeavour to give the Government every assistance in keeping any avenues open. I make no apologies for being critical earlier. My association with Fords gave me to understand that there was a lack of communication and goodwill on the part of the Government regarding Fords difficulties. That I say with conviction and sincerity.
I thank the Chair for bearing with me. It is a difficult time for Cork and a very sad time for me having worked in Fords for such a long period. I have many close friends and relatives there and know what they are going through just as I know what those involved in Dunlops went through. We have an opportunity to do something about it and I hope it will be taken.
I welcome this opportunity to re-group if nothing else, because for the past 24 hours most of the people who represent Cork city and county have been reeling from the shock announcement that Fords will shed a major portion of their staff and just continue with their marketing activities in the Cork area. It is of some significance that Cork city which next year will celebrate its 800th birthday now seems to be in decline.
I was encouraged by the Opposition spokesman for Labour, Deputy Fitzgerald, when he said they would not make a political issue out of this. For that reason I was saddened by Deputy Wallace's attack on the Government. He seemed to lay a lot of blame on the Government for their inactivity in this area. I do not accept that. It poses many questions regarding our industrial policy and our dependence on multinationals. What we have to do is see how many jobs we can salvage.
The company have said that it is not profitable for them to continue to assemble in Cork. Quite a reasonable argument can be put forward in this regard because the cost of conveying a fully built-up car to the continent is sizeable. However, there are alternatives. I was saddened by the statement made by Mr. Hayes stating that a survey was carried out regarding alternatives in the manufacture of components. The argument is that the cost of getting the car produced in Cork to the market is excessive. Coupled with that there was a fear that the car produced in Cork, the Sierra, did not meet the projections set for it. The car was not readily acceptable to a large sector of the motoring public. People tended to go for the traditional type of saloon from which the Sierra was a departure. Without much fanfare they introduced another car, namely, the Orion, which has taken a slice of the market.
We will have to campaign in Detroit if that is necessary. The Minister has already told us he is prepared to go there but to what extent he will be successful is difficult to say. There seems to be an element of doubt as to who took the decision regarding the closure in Cork, whether it was taken in the US, in Cork or in Europe. It seems incredible that any management would take a decision that would make them redundant. There is a contradiction here that I cannot understand.
There is a need to lobby the people who have befriended this country in the past. There is a large Irish-American population in the United States: Deputy Coveney mentioned a figure of 40 million. The message will have to be brought home that they will have to be Irish for a little longer than on St. Patrick's Day. Never before in the history of the State has there been such a need to be befriended by our American friends and now they have an opportunity to demonstrate this to us. The trade unions can play an important role, having regard to their contacts with their counterparts in the US. In America there is a large automotive workers union and it is very powerful politically. The ICTU have a role to play and I have no doubt they will put a little pressure in that direction.
The most fundamental point is with regard to the direction of this country from the industrial point of view. We have been dependent to a large degree on multinationals to employ many people and recent events have proved we are fairly vulnerable when we place too much emphasis on this sector. I wish to stress that I welcome the jobs they provide but it is wrong for a government to be totally dependent on some organisation that is subject to outside control. We had the cases of Ferenka, Telectron, Dunlops and now we have Fords. The Government will have to ensure that our industrial base is native-controlled, as applies on the continent. Denmark is a country somewhat like Ireland. Is has an agricultural base but its agricultural base is 90 per cent native-owned. They do not provide the same kind of incentives to foreign investors as we do. This is something that we should take account of and I think we could copy their example to good effect.
There was an interesting discussion on television before the discussion from Cork last week regarding the Irish entrepreneur. Does he really exist or is he a mythical figure? I think he is scarce as a leprechaun because I have yet to see a person who could be rightly described as an Irish entrepreneur. I accept that we invest but where there is a risk involved I do not see Irish capital rushing headlong into it.
There is also the question of the kind of technical education we provide. It is my view that we downgrade it and I speak as a member of a vocational education committee. We have tried to provide a system that will cater for all but we have failed dismally. At the moment there is controversy regarding curriculum development. Greater emphasis must be placed on technical education. Most of the successful men in manufacturing industry — the real creators of wealth — are people who have gone through the technical school system. They are the people with the skill in their hands. There is a greater need for technical education.
In the Cork area there is a feeling that we are under siege as regards jobs. We feel everything is against us. It is essential that the Government ensure that the jobs under native control are safeguarded. I refer specifically to Irish Steel, to the Verolme Dockyard, to NET and to the Whitegate refinery. There is a need for the Government to give a commitment on this and as a backbencher on the Government side I will ask for that commitment. There is a vast area as yet unexplored in the spin-off of natural gas. The job potential has not been realised. When natural gas was being piped to Dublin and to Cork there was an argument about whether this was the best use that could be made of it and that discussion will have to continue. There are many sectors in the petro-chemical industry that can be explored to provide the jobs we need. We have the means to develop our natural resources. Further investment in the Whitegate refinery is essential.
I am sure every speaker will refer to Ringaskiddy. It is very important and it has become the phoenix symbol of Cork. Many people have put their faith in the future development of the area. The IDA have invested massively and Cork County Council and the Department of the Environment have provided the services and the infrastructure. It is all there except for the final link which is absolutely necessary. The argument can be made that if an industrialist needs the facility it will be provided in advance. There have been taunts from the other side about promises from this side of the House. At this late stage, prior to the budget, I say it is absolutely essential for the Cork region that this facility be provided.
The effect of the Ford closure cannot be exaggerated. Many small industries have served Fords and Dunlops for many years. Harringtons and Goodlass Wall have been the suppliers of paint to Fords who were their greatest customer and they will be affected by the closure. Many small firms, extending to the constituency of the Leas-Cheann Comhairle — the glass for the cars was produced in County Tipperary — will be affected very severely. The IDA should investigate the position and see how it can assist those firms who will be threatened by the closure. The State agencies can use their influence and be of assistance to what now appears to be a crumbling industrial base in Cork. I have met my party leader and if any commitment or co-operation is called for it will be forthcoming.
Tá brón orainn go léir de bharr an ráitis inné ó bhainisteoir oifig feidhmiúcháin Fords go bhfuil siad chun deireadh a chur le cuid den obair atá ar siúl i gCorcaigh.
We all regret the announcement made by the chief executive of Fords yesterday, and the workers have described it as devastating news. In the light of the happenings and the loss of jobs in the Cork area this decision by the Ford motor company to discontinue production of the Sierra car will have endless repercussions in spin-off work as well as direct jobs loss. It rings very hollow when a statement alleged to have been made by Mr. Hayes, the chief executive, in 1980 quotes him as saying, when talking about the future of Fords: "We plan to continue car assembly after 1984 irrespective of what our competitors do". That is the sort of spirit we know and have known in Cork. That is the sort of statement we would expect from people in Cork in 1980. The determination to succeed was there. It begs the question: what has happened since? Three years on why should that commitment so expressed in all sincerity — we are only at the beginning of the fourth year — suddenly be in doubt? What has happened in the meantime that that commitment and that indication of what Ford planned to do in Cork regardless of what competitors would do suddenly comes amiss? It is grand for all of us from Cork to be united and encouraging the Government in doing whatever we can to arrest the situation, but in the past 12 months this is the third or fourth occasion on which we have come in here on matters relating to Cork in particular and the country as a whole showing a united front. There is some laudable political comment here and there but I am getting a bit tired of it because in the programme nothing has been given to the Cork area and the Cork people. I am not now talking about financial hand-outs. I am talking about incentives and encouragement. I know well that given encouragement and incentives Cork could be restored to what it formerly was up to the year 1980 when Mr. Hayes made that comment. I do not profess to look into any crystal ball to see the future but in Vol. 345 of the Official Report of 9 February 1983 at column 1616 I am on record as saying:
Representatives of the motor industry told us in recent weeks that in 1982 there was a drop of 34,000 in new car sales compared to the previous year resulting in a loss to the Exchequer of at least £50 million from excise duty and VAT. It should have been obvious to the Government that there was no scope for imposing a further increase in the tax on new cars. The recent massive hike in the price of petrol has also affected the industry. I should like to know what Fords of Cork will do now.
This was 12 months ago.
How will the Government backbenchers from that county explain to the workers of Fords the effect of Financial Resolution No. 7 on that thriving industry? That industry gives tremendous employment, direct and indirect, in Cork city and county but undoubtedly it will be under tremendous pressure. We should be considering ways of expanding such an industry to take up the slack in other areas. The increase in VAT in this area will have disastrous effects on the motor industry.
That may be only a small aside but nevertheless I do not at all believe that we come in here now palsy-walsy, all united, as we have done before, without a response from this Government. As I have said earlier, I am getting a bit cheesed off. The Minister for Industry, Trade, Commerce and Tourism said he had a message for the people of Cork. He said: "Have confidence." Confidence in whom? Is it the Minister for Industry, Trade, Commerce and Tourism? Is it the Government? We have always had confidence in Cork, that is always until such time as Coalition Governments are elected. Then the confidence disappears very quickly. Government Ministers and other Government spokesmen have talked about the suddeness of this decision. Do they forget that in April 1983 the Irish Congress of Trade Unions wrote to the Minister seeking a meeting? Subsequently they requested in numerous letters a tripartite meeting of the workers, management and the Government. Public representatives in Cork met the workers. We had to make two attempts to meet them because the night the Government Deputies were meeting them they were making some promises of a meeting, a meeting that never took place.
On 15 November we tabled two questions to the Minister for Industry and Energy. The questions were in the names of Deputy Gene Fitzgerald, Deputy Lyons, Deputy Wallace and Deputy Wyse. The questions were as follows:
To ask the Minister for Industry and Energy if and when he will meet the Cork Ford trade union group to discuss the future of the plant there; and the steps being taken by him and the Government to guarantee the future of the workforce; and if he will make a statement on the matter to allay public concern on the future of the plant.
Mr. Gene Fitzgerald, Mr. Lyons, Mr. Wallace and Mr. Wyse asked the Minister for Industry and Energy if and when he will meet the Ford management in Cork to Discuss the future of the plant there and the question of any Government assistance necessary to guarantee future employment there.
Minister for Industry and Energy (Mr. J. Bruton): I propose to take Questions Nos. 309 and 310 together.
The Minister of State, Mr. Eddie Collins, within whose area of responsibility this matter lies, has had several contacts with Fords management over the past months concerning the future of the Ford plant in Cork. The Minister of State again met Mr. Hayes, the chairman and managing director of the company, on 14 October last to discuss the situation. The Minister of State has also indicated that he is prepared to agree to the trade unions' request that he participate in a tripartite meeting with representatives of Ford management, unions and ICTU. A date for such a meeting is being arranged and I have asked Mr. Collins to report back to me on the outcome of this meeting.
The Deputy has five minutes.
I had better hurry then. I have a great deal to say but I will do the best I can. I do not accept for one minute that we cannot continue the production of Ford cars but, if the non-viability of the plant is established, there will be a massive loss to the economy as a result of Fords discontinuing the production of cars. Tyres, batteries, glass and many other fittings produced in Ireland and supplied to Ford will mean a loss of £4 million; services, power, heating, telephone, rates to the local authority, charges for water etc. amount to £12 million. There will be £11 million annually out of the commercial life of the city in wages and salaries and loss of exports of the Sierra car will mean a loss of £80 million. I do not know the outcome when we have that measure of loss in addition to the loss of 800 direct jobs, all that cost and what has happened on the Cork scene already.
I should like to refresh the memories of some people and go back to November 1982 when the present Taoiseach put himself before the country and stated, presumably through all the media: "We will provide more secure jobs particularly for the young." He has failed without question and miserably. Unemployment is now a national problem; it is growing daily and recent figures show that 23,000 people are idle in Cork city and county without counting the recent closures.
I have a further quotation from propaganda that the electors of Cork were given in that November. A Fine Gael candidate in Cork north-central said: "Without doubt the single most important issue in this election is unemployment." Where is the action from Fine Gael now 12 months after that statement was made to our electorate in Cork? My Labour Party colleagues have gone. I remind them of a slogan they had in Cork for the Labour Party: "Vote for Labour, a voice that will be heard." The Government are not listening to that voice which must be out in the wilderness.
We must ensure collectively in whatever way we can that job opportunities will be created in the Cork area. The drift cannot be allowed to go on any longer. I shall end with a quotation from the Deputy Leader of Fine Gael. One of the most responsible statements to surface when the problems of Cork were being discussed recently was that of Deputy Peter Barry, Minister for Foreign Affairs. When interviewed on what the Government were doing for Cork he replied that he would take bets that Fine Gael would hold their six seats in Cork at the next election. They have only four seats; he must expect to win two more. I make one more suggestion, that the Government encourage the Ford plant, who were planning to have their new engine for the Sierra built not in England but in Cologne, to have it built instead in Cork if car production has to cease there.
Yesterday's news from Cork was another major blow to the city which has already experienced several such blows. We had heard rumours recently that some major news was about to break but what came yesterday was a shock to all of us. It was sickening particularly for workers and their families now facing unemployment. Ford's managing director, Mr. Paddy Hayes, speaking in October, said difficult choices would have to be made sooner rather than later. He gave that warning but since then the Ford company have been most unforthcoming in their response to any Government overtures.
We sympathise, on this side of the House, with the workers and their families in the Cork area but the workers there deserve more than sympathy. They deserve a united, positive response from all sectors in Cork, political or business people. Deputy Lyons spoke of the loss to the Cork region and to say it is another body blow is an understatement. When one looks at the figure for salaries of £12 million and for goods bought from other Irish firms of £12 million in one year one can see that hundreds of other jobs are depending on the continuation of the Ford operation. I am encouraged by the Minister's opening remarks where he said he has already been in contact with the IDA requesting them to assess the effect of the possible closure on other industries in the Munster region.
The impact, if the closure goes ahead, will be devastating for Cork's economy. When the idea of this debate was raised my first reaction was to oppose it because I felt that we all require time to recover from the shock announcement yesterday. We need time to assess our own positions, the position in Cork and to come to some conclusions on what our future action should be. One could be accused of being indecisive but one should weigh opinions and views before one speaks and there is great danger of statements being made without much thought being put into them. Eventually, I felt we should go ahead with the debate. Otherwise, our party would be accused of running away from an issue but I have grave reservations about this debate. Even though it started in a constructive way it has degenerated into a political mudslinging match, especially with the views of the previous speaker who was totally negative.
I should like to put a few points that I hope will be positive. Opposition speakers can indulge in the luxury of their position but we all have a responsibility to make a united effort to save the Cork operation. We should commit ourselves to working together in that regard. Some recent statements give me the impression that the Opposition party intend to make political capital out of people's misfortunes in the Cork region and I do not like that.
Could I correct that statement?
I did not open my mouth all night.
We have said from this side of the House that we will give the Government every co-operation. We are entitled to put on record our views on this matter.
I did not interrupt anybody.
The Deputy interrupted me.
We were subjected to a lot of interruption in the last few moments. There is an obligation on the Ford company at the highest level to spell out their position. They have so far failed to do so. Secondly, they must inform the Irish Government of what is required from that Government for them to continue in operation in the Cork area. A face to face meeting must take place with the decision makers in Detroit, not those at local level — although consultation must take place at local level. Contrary to media statements, I do not believe the decision to close the Cork plant was taken at local level. From my dealings with them, the management in Cork were committed to the Ford plant, to Cork and to this country. I could not see local management making a decision of this nature. I believe that those who talk of the decision having been made at local level spoke in a European context.
I am presuming that the decision was made at the European Ford headquarters and rubber stamped by the Ford company in Detroit, without taking into consideration the major social effects of that closure on a city such as Cork. Deputy Coveney said earlier that a group of people in Detroit who have wiped out thousands of jobs in the United States in recent years because of the recession there looked upon the elimination of 800 jobs in Cork as just a paper exercise, without considering the catastrophe which that would bring about in Cork in economic terms. It is imperative that we lobby Ford management in Detroit to reverse their decision because of the consequences in the Cork region. This decision was made in a most inhumane way, not taking account of the economic situation.
We have prided ourselves on being a neutral country. That neutrality must be used in the world theatre. Deputy Coveney said that there are 40 million people of Irish extraction in the United States. That is a fairly big political lobby which must be utilised. I visited the United States in July with a party who made contact with the most senior of American politicians.
The Deputy has five minutes remaining.
The social importance to Cork of the Ford plant must be impressed upon these people. Because of unemployment, our social fabric has been undermined. If this fact is driven home to the United States authorities, some pressure will be brought to bear on Ford's. I have not time to elaborate on this, but cannot stress too forcibly the importance of the Irish population in the United States. To our shame, the Irish-American businessman and Irish-American labour official have been ignored by successive Irish Governments. At our July meeting, these people pointed out that they resented the attitude of people from this country preaching to them rather than speaking to them. If we speak to them, we can harness a great amount of goodwill in that area which has not been tapped. There is a large number of influential people in US labour circles and I have evidence of that from proposals made to them in recent months on another matter which have been fruitful. We will not win our case in the United States on sentiment alone. It is important that the Government present a package which will sell over there, so we need the co-operation of all sectors in the Cork region, including the trade unions. From previous contact with senior union officials, I know that this will be forthcoming.
I shall ignore the two last speakers on the Fianna Fáil side as I do not want to become involved in exchanging abuse across the floor. The Government attitude to Cork region has not been negative, as has been portrayed by some. For that reason, I shall point out the positive initiatives taken. We are only 12 months in office and cannot be blamed for all the ills of Cork, which did not occur overnight. I agree with Deputy Mac Giolla that planning should have been done for today with regard to our motor assembly industry because of the European factors. Recently the small industries division of the IDA have been moved to Cork, where the decisions are made. If we are to prosper it is in this area that we must succeed. We must encourage our own people to develop their industries. If encouraged, the small industries will grow into larger concerns. We need only look at the American experience to see how true that is. The enterprise centre has been located in Cork. Planning is progressing and construction will commence shortly. Factories on the Model Farm Road and at Kilbarry have opened in the last 12 months. We must not forget the continuous injection of large capital into the harbour industries. These industries are under threat, but the Government's continued commitment has ensured that they continue to operate.
In the justified comments on the Ford problem, we have lost sight of the fact that only this week a decision has been made to allocate a further £89 million to Irish Steel.
The Deputy's time is up.
Even though the tenor of the debate has deteriorated some what we should all still take a very positive attitude to the problem. In saying that I am not endeavouring to guard myself against any political flak; we will take the flak, if justified.
Like other speakers I must say this is a tragic development for Cork city, the Cork area and indeed for the country generally.
The Ford Motor Company has been very good to Cork for the past almost 70 years. Likewise Cork and Ireland have been very good to Ford. The Ford Motor Company have enjoyed a major share of the Irish market for the past 70 years. Indeed, the original Henry Ford was born in Ballinascarty, the town from which I come myself. Different generations of Fords have come back to Ballinascarty since he left which inculcated a lot of goodwill among the 40 million-odd Irish people in the US. There has been a tremendous spin-off effect for the Ford Motor Company not alone in Ireland but throughout the world. The Ford company, after 70 good years of profit-making in Cork, have a responsibility to maintain production there and remain manufacturing cars in Cork. It is just not good enough to suddenly pull out of production, terminating their business there and to say: we are very sorry, we cannot continue because of a change in EEC regulations.
At this stage there are a number of things that can be done to influence the directors of the Ford Motor Company in Detroit to reverse their decision. It is just not acceptable for the Government to say that they cannot make an appointment with these people, that they cannot contact them. I do not think communications are that bad yet, that a sovereign Irish Government cannot make an appointment with the directors of the Ford Motor Company. If necessary I would suggest that the Taoiseach and the relevant Minister should get on a trans-Atlantic flight, meet the Ford directors, putting before them the problem in Cork, a major one for us, but no doubt constituting only a very small irritant for the international Ford Motor Company.
I was discussing the problem with one of the Ford company personnel recently when I was told that the Ford operation in Cork — whether it went well or badly — would not change a decimal point one place in their international turnover. That is how small and insignificant is the Cork plant to Ford International. That may be so but in Cork and in Ireland it is a major industry and will have serious repercussions if something is not done to have that decision reversed. As others have said, not alone are there the jobs directly involved but there are the various service industries as well; there are people supplying the various parts and components going into cars. They will find themselves in dire trouble if Ford do not continue in Cork. Not alone should the maximum amount of pressure be exerted on the Ford Motor Company in the States but also through the very influential contacts this country has, for many reasons and many generations, built up with the business people and the Administration in the US. Each and every one of those avenues should now be tapped; no stone should be left unturned in ensuring that this matter is resolved satisfactorily.
In addition to going to the US we should go to Brussels and insist that the degree of protection we have up to the end of this year be extended. I know that does not constitute an ideal solution, that we should be able to be competitive and should not have to depend on protection barriers. At the same time we have a particular difficulty. In our Accession Treaty, in the Protocol, our people, when they voted for entry into the EEC, believed that if there was anything which directly affected in a major way any sector of our economy, then we could renegotiate that matter. I would urge the Government to pursue that avenue as well. It must be remembered that week in week out, year in year out, other members of the Community receive special concessions for particular sectors of their economies. There are even non-members of the EEC, third countries, renegotiating import arrangements they have had, who have succeeded in doing so for historical or other reasons.
I appeal to the Minister for Industry to go to Brussels and say: Look, we have a major problem here, we need an extension of protection for our car assembly industry, and not come home empty-handed. If he does come home empty-handed it will mean the death knell, not alone for the 800 workers in Fords of Cork but for the service and supply industries of which it has been estimated there would be at least five to one for each worker employed in Ford's. In the negotiations — assuming the Government will eventually establish contact with the Ford directors — it is essential that the negotiating team be made up of the Government, the management of Ford in Cork and the unions, that the package should be endorsed by that tripartite negotiating team, and that there would be no fear of any industrial problems, having succeeded in arranging such a package. It is most important that the trade union movement, the management and the Government be involved. This latest announcement may shock people into the realisation that nobody really owes them a living, that we must be competitive, we must be as good as those in other countries who produce the same product, not only in throughput, in the numbers of units completed per day or per hour, but in quality of product as well. I have no doubt that this can be arranged. Indeed the onus and responsibility rests with the Government to do so. Since last October for the Government to give as an excuse that it was not possible to make an appointment does not lead to a great lot of confidence amongst the people of Cork. An effort should be renewed to get these talks going, to resolve this matter not alone for Cork but for the country generally.
It is most appropriate that this debate be held in this House this evening. It underlines the urgency which the Government attach to this very serious problem for Cork, news of which we all heard yesterday. It is a measure of the Government's concern for the workers of the Ford factory and the need for more employment in the Cork area. I support the other representatives from the Cork area who have contributed to this debate. It is important that all Members from this region are united in their efforts to have the decision in regard to Ford's reversed. Solidarity on the part of all Members from that area is important at this juncture.
There is little point in apportioning blame. It is lamentable that some Members resorted to accusations that the Government did not have any interest in Cork. Those statements were unjustified and inappropriate. Solidarity was displayed by all Members from the Cork region in recent years when we were facing industrial decline. Cork's industrial structure consists of large harbour-based multinational heavy industries such as textiles, motor assembly, ship building, fertiliser manufacturing and steel production. Those industries suffered in the recent recession. There is little point in blaming the Government, or any Cork representatives, for the decline in those industries in recent years.
In the debate before we joined the EEC some of us, particularly members of the Labour Party, warned that we would face many problems as a result of membership. We do not take any pride in referring to that and we do not shout about the fact that we issued such warnings.
One Member complained that there was little effort to prepare for the difficulties foreseen for the car assembly industry when we joined the EEC. The derogation expires in 1984 and there is no doubt that many industries will suffer, including the motor assembly industry. We must remember that in the last 12 years the EEC has fund-aided many projects in the Cork region. We are not happy about the effectiveness of the regional policy but it has helped. There has been a lot of progress in regard to infrastructure in that region. The Cork city and harbour water supply scheme was aided to the extent of £5,250,000 by the EEC. EEC funds were provided for roads also. I appeal to the Government to ensure that the millions of pounds that have been poured into the industrial estate, the IDA's land bank and industrial preparations at Ringaskiddy, are not wasted for the want of a few more million pounds. The Government should make a favourable decision for Cork on that issue. There is no doubt that there is a great need for proper deep water berth facilities there. The prospects for the Ringaskiddy area should not be hampered by the lack of such facilities. The problem in regard to unemployment in Cork is of such magnitude that that investment must be made immediately.
The Government cannot be blamed for the closure of Ford's. I hope the Opposition will not be tempted to adopt the attitude of some people and accuse the Government of being responsible for the decision to cease car assembly in Cork. This problem would have arisen irrespective of the party in power. However, it is the responsibility of the Government to seek to reverse the decision. I am aware that some Members have expressed doubts about that but the Government at least must seek to minimise the impact of the closing of the factory by other options such as the replacement of car assembly by the manufacturing of components.
The Taoiseach told us that the IDA had two task forces working in the area, one on the Ford problem and the other on the unemployment situation in Cork. He also informed us that the Government have established a high level expert working group to advise them on the problem. As a local representative I must express my appreciation to the Government but it is important that the Government task force visit the area to hear the views of the local people. Local representatives are made aware of those views daily when they interview the unemployed or the parents of school leavers who cannot secure a job. A visit to Cork by the Government task force would give them an indication of the full measure of the industrial crisis there. There is no doubt that contact with local people helps create a lasting and effective impression. We would like to share our concern for the future of the area with members of the Cabinet. There is great concern in Cork about the future of industry there. That is not surprising when one considers the many setbacks Cork has had in recent years.
I should like to refer to comments made by Opposition Members in the course of the debate. There has been a sharing of concern and an acceptance of the fact that we must all work together on this. We are not on a campaign of point scoring: we are dealing with people's lives. A worker was reported in one of today's newspapers as saying that he was reluctant to go home to share the news with his wife and family.
Situations like this have become all too numerous in the recent past. Allegations were made today in regard to the arrangement of a meeting between Ford management, the Minister and the workers. We tried to arrange that meeting and when I hear statements that imply that the Government are responsible for that meeting not taking place I must contradict them. I can state categorically that the Ford management did not seek such a meeting. As late as last December the Department of Energy issued an invitation to the Ford management which was never taken up. These points must be put on the record. The suggestion has been made that the Government are to blame. The Government, as any government would do, did all in their power to remedy the situation. They did all in their power to ensure that this would not happen, but now that it has happened I hope they will do all in their power, short of saving the continuance of the Cork operation, to ensure the establishment of a substitute labour-intensive industry, associated with the motor industry, in the Cork area.
It occurs to me that if this factory was in Dublin the Visitors' Gallery would be packed tonight. Therefore, it is important that we stick together and fight for our common cause. I make the plea that we will all work together to ensure by all means that contact will be confirmed with Detroit. I hope that when that meeting takes place the impact of this crisis in Cork will be stressed with a view to bringing an alternative industry to the city.
I am glad to have the opportunity to contribute. In the last 70 years Ford have had a good innings in Ireland. Since they came here they have been manufacturing tractors and cars. I presume that the fact that Henry Ford came from Cork had a bearing on getting and holding the largest market for cars here. They played on that. For years they played on the Irish connection not only here but in the US where they named one of their cars after a street in Cork. They played out the Irish game to the bitter end. Now they see they have played out the game, that there is no more profit in the Irish connection, that there are areas elsewhere where they can set up a factory at lower cost and produce the same goods — the costs would be less and consequently the profits greater.
We should not forget that people in that business are in it for one reason, profit. In any organisation there must be a profit because otherwise they could not compete. Productivity is most important not only in the car business but in ship repairing, farming or any other business. It is not often said in public that the productivity necessary to maintain a business is not being delivered. In Ireland we must face up to this as the economy becomes more open.
In the Cork region we have had not only the announcement of the closure of Fords but we had Blackwater Limited in Youghal losing 90 jobs, and only half the work force were taken back after the holidays in Youghal Carpets. They are all examples of how Cork has been hit by the recession. I ask the Minister to take careful note of the Cork situation. I suggest that the IDA increase their grants from 45 per cent to 60 per cent because we will not have any more big employers in the near future. Therefore, people with the ability to set up small industries but who have not got the money should be financed properly. In that way the level of unemployment could be reduced. This important issue should be tackled immediately. With the budget coming up we have a suitable occasion to spell this out.
The closure of Fords means that many other industries in the area will be hit seriously. Paint and window suppliers depend for their success on what is being purchased by Fords. The repercussions of this closure will spread down the line. Now we are talking about the loss of 800 jobs in Fords, but there will be probably 3,500 indirect job losses. We must therefore try to ensure that car manufacturing will be carried on or that something will be put in its place.
The Taoiseach said that since last October the Government have been attempting to arrange a meeting with Ford management in Detroit. It is a hopeless situation if a sovereign government cannot contact and arrange a meeting with a company in any part of the world. It is a flimsy excuse to say that a meeting could not have been arranged.
That is not the case. A meeting will be arranged.
A meeting will be arranged. This impending closure has been on the cards for 12 years.
(Interruptions.)
These statements have been marked by an absence of interruptions and let the debate conclude in that manner.
There are gross inaccuracies.
The Chair regards that as an interruption.
It was clear over the last 12 years that at the end of 1984 the embargo on the importation of cars would go. During that time it was remiss of anybody who was responsible that some plans were not made to replace the jobs which were to be lost. At this stage the Government, as well as going to the management of Henry Ford, should also approach the EEC and ask them to renegotiate the regulations regarding the importation regulations for the end of 1984. No matter what Deputies say it is up to the Government in the final analysis to put the pressure on to ensure that Henry Ford will either exist as they are today or be replaced by some other type of employment in the Cork factory.
It is with regret that we are here tonight discussing the closure of a major industry in Cork. Protocol 7 says that there is no further protection for the motor industry after 1984 but the fact remains that the bureaucrats of Europe cannot be allowed to remove the bread from the tables of 800 families in Cork to whom my heart goes out tonight. It is regrettable that since the late seventies successive Governments have turned their backs on the people. What right had they to do that? The responsibility lies with us to be seen to be doing the opposite. A general impression was given throughout Cork that there was no hope after 1984. This is utter nonsense to me as a local Cork politician. I say to our newspapers, radio, television and, above all, our politicians, who are making a hue and cry about what has happened in Henry Ford, is it not a little late in the day? We all know that since the late seventies it was inevitable as day follows night that Henry Ford had to go.
The editor of The Cork Examiner highlighted this today when he rightly asked what have Henry Ford done to provide other options? Why was this not done? We also understand from the leading article in today's Cork Examiner that Henry Ford indicated that they tried for alternative uses without success for the Cork plant. I do not accept that they have done that. Have the Government or any semi-State body any indication that Henry Ford were serious about facing the reality? Where is the evidence that they have sought alternatives? I suggest that Henry Ford are taking the easy way out. They cannot turn their backs on Cork. They have got their pound of flesh out of the sweat and blood of the Cork workers. We must not accept this greediness of the multinationals, which is now becoming a characteristic of these companies. I say to Henry Ford management: “Contribute part of what you have got from the city back to Cork. There is a moral and social duty on you to do this and you owe it to Cork”.
With regard to the question of suitable replacements, the competitors of Henry Ford, General Motors, who also got their pound of flesh from the workers of Dublin, did not walk away from their problem. They faced reality and they did their duty. Not alone did they provide alternative employment but they created extra employment which is a clear indication of the resourcefulness and ingenuity of our work force which we can be proud of. Henry Ford say that the Cork operation is uncompetitive. I suggest to the management of that company that if they spent the same money in the Cork operation as they did in Belgium on the provision of facilities for making the Sierra I have no doubt that Cork would compete with anything in the world. I have every confidence in the Taoiseach and the Minister to leave no stone unturned in making sure that Henry Ford provide alternative employment for their work force in Cork.
I understand that Deputy Reynolds and Deputy E. O'Keeffe are sharing their 15 minutes.
I would like to speak in support of the debate tonight. This is a sad occasion and is breaking with the great tradition of Cork and its county. We have seen a lot of industrial development being eroded in County Cork during the last few months. Henry Ford are one of our finest industries of which we have all been proud over the last 70 years. We have learned a rather difficult lesson from our over-reliance on multinational industries to provide us with jobs and wealth. In the future we must have a rethink on where our industry comes from. I was here when the Taoiseach read his statement today, and we had statements from the leader of my party, Deputy Haughey, and Deputy Gene Fitzgerald, in reply to it. We had Deputy Mac Giolla speaking on it also. He had all the answers, but tonight there are two blank spaces where the smallest party sit in the House. He was telling us all he knew but he did not make one solid constructive proposal in his best Leninist-Trotskyist-Marxist-type tradition. That is the kind of policy he pursues to wreck industrial development here. He has never made a solid constructive contribution in the House. I am sorry he is not here to hear what I am saying. There is no use in his attitude. We will never develop by always knocking. We cannot all be wrong. He has nothing to contribute.
I remember as a young lad when my father bought his first car and I am proud to say it was a Ford Prefect, coloured green. There were many of those cars in the parish at that time. The Ford Prefect was a popular farmer's car in rural Ireland. I come from a fairly rural background and at the church there would be five or six Prefects. We expanded further and the Ford car became the famous farmers' car. That is synonymous with Henry Ford of Cork. It gave something to the rural community of which we could be proud. As technology improved and other people took the market share here that changed. The Ford Prefect was a famous car for many years. Ford held the market share in Cork for 70 years. They did that by having a good backup and service.
We must ask why all our traditional industry has ceased to be productive since we entered the EEC. The Minister has an obligation to investigate this. Other countries have developed in spite of the recession. In the Cork area paint manufacturers, those who supplied the glass, nuts, bolts, springs and other fittings will be in trouble. There will be many more closures as a result of this decision. The families of the workers who will not have bread on their tables will suffer most. As Deputy Walsh said, we must go back and renegotiate our car assembly terms with in the EEC. We have a duty to do so. This is one of our best industries and we cannot afford to stand idly by and let it close in six months.
It is very hard to pin down a multinational. We must have a united front. We must have trade union involvement in any negotiations which take place. The Ford company have made a major contribution to agricultural development. The first Ford tractor was manufactured in Cork many years ago. Deputy Hegarty probably knows more about the Ford tractor and its impact on agricultural development. Look at the Ford range. They have a predominant share of the tractor market. Irish farmers stood by them through thick and thin and bought their tractors. The company cannot walk away from the Irish scene. There is an obligation on them to look at the position in Cork.
They have a very extensive car range. Cork happens to be a victim of new technology. The development of the Sierra must not have been a success. If Ford had spent the same amount of money on the Cork plant as they spent in Belgium they might not now have these problems. The Sierra is a popular car. It has taken on in a big way. It was a change from the traditional type car. For a company of this size and with its turnover——
Deputies have seven minutes left between them.
They should continue and further explore the possibility of developing the Cork plant. Deputy Reynolds agreed to share his time, so with those words I will conclude.
I was happy to share my time with a Cork Deputy because the Minister and I are probably the only non-Corkonians to speak tonight. It is only right and proper that the people from the area should have an opportunity to speak. It is a dismal day for Cork and for the country when we consider the size of the disaster that has struck. We must think seriously about what we will do. The total loss to the economy will be in the region of £100 million. We will lose £80 million in exports because Ford exported 80 per cent of their output and if they close we will have to import 4,000 more cars. Fords pay out £4 million to small service industries and about £12 million for electricity, telephone and other services. Approximately £11 million in salaries and wages will be taken out of the Cork area. This is the size of the problem we are talking about. It is only right that it should get a full airing in this House.
We need immediate action. We cannot rely on writing letters to Detroit. We will support the Government in any action they take trying to solve the problem. The boss man in Detroit or in Europe must be contacted quickly and the calamity that has been inflicted on Cork and on our economy must be put before them. As a company which has been in the Cork area for over 60 years we expect some sensible contribution from them in relation to what will happen if they decide to close. We are entitled to see replacements. The average age of the work force is in the region of 41 years. There were 200 people with over 25 years service. It is a calamity for the workers, their wives and families.
Somebody asked: where do we stand? Somebody else asked if it was good enough to ask for meetings. To illustrate the kind of action that is needed I will quote briefly from The Economist of January 14, 1984:
Ford announced this week that it would spend $500 m. on a new plant in Hermosillo in northern Mexico, to build 100,000 small cars a year from 1986 ...
Ford's decision came after months of arm-twisting by the Mexican government, which is trying to force its heavily-protected foreign car companies to make better and cheaper cars and earn more foreign exchange.
That is the kind of action required. It is the only kind of action the people in Detroit and Europe will respond to. If it takes the Taoiseach or the Minister, so be it; but that is the only kind of action that will bring a solid response from Fords. It is the least they can do for Cork and the economy.
Starting tomorrow morning the IDA should list every single small supplier to the company and make sure that they have the whole picture and see the problem before it arrives on their doorstep. We will not hear about the loss of three jobs or seven jobs. I welcome any action taken by the Government. I hope the task force which is being talked about will be more active than those we have heard about from the Government. I will back the call of every Deputy from both sides of the House in saying that Cork needs an injection of confidence now. It needs a deep water berth and anything else that can be put in straight away to raise the hopes of the people there. A glorious opportunity was lost this year when a £30 million construction investment in the centre of Cork city was allowed to go by the wayside because An Foras Forbartha decided they would not go there. Go back to the early seventies and look at the economy in Cork. What carried them through that recession? It was the construction industry that carried them through and they did not feel the effects of the recession during that period.
The first action the Government can take is to inject money into the construction industry. Whatever projects are ready in Cork should be proceeded with, starting with the deep water berth. Throughout the country one in every two persons in the construction industry is out of work and I am sure the proportion is higher in Cork. This is due to the complete depression in the industry. That industry does not affect our imports. It uses Irish materials and employs Irish people. Help should be given to this sector in the Cork region to give some hope to the people.
The Government should also consider the other industries in Cork. We do not want to find during next summer or winter that the Verolme dockyard is going to close. We know they have no work other than the project they are finishing. They did not get any orders. The Government may decide to close the dockyard but we will not accept it. There is an order outstanding for a vessel that could keep the company going.
I understand Irish Steel are improving their position and I am glad about this. However, the people of Cork are still awaiting a decision regarding the future of Irish Steel. Last August the Commissioner in Brussels commented that by the end of the year or shortly afterwards Irish Steel would close but I did not hear any comment from the Government or anyone else to contradict that statement. It is time we had a decision on the matter and the same applies to NET and the Verolme dockyard. However, the Government should start with the construction industry and get the show back on the road.
The Minister said the Government cannot solve the problems for everybody and I agree with him. He said there was a need for an entrepreneurial spirit and for everyone to do what they could. The people who are getting a large amount of money from Fords may have an opportunity to consider the matter. However, despite all that talk from the Minister, the Government have the major responsibility to have an environment in which investment can flourish and get a return on that investment. If the Minister thinks industries will spring up overnight in Cork or elsewhere without a proper capital venture market to sustain them he is living in cloud cuckoo land. I ask the Government to ensure that there is the right environment for investment so that profit can be made. The word "profit" has become a dirty word in Ireland. It is time the Government took the part of the people who are investing their money and who are taking risks. Today's profit will be tomorrow's capital.
I should like to express my appreciation to my colleague, Deputy Collins, who has allowed me a few minutes to make a short intervention. I should like to speak at some length on this important issue but because of the time constraint I shall be very brief.
I should like to stress that the closure of Fords is not just something that will affect Cork city but it will affect the entire region. This is because the work force is not exclusively drawn from the city and because many of the suppliers are from out side the city. From that point of view it is regarded as a disaster not just for Cork but for the entire southern region.
My second reason for intervening is the historical association of Fords with Cork. The roots of the Fords company go back to my own constituency in west Cork, to a small farm not far from Ballinascarthy near the town of Clonakilty. We have all been proud of that association with the Ford company and I am hopeful that in the negotiations ahead and in the pressures that will be applied that historical association will not be forgotten by Fords. A reminder of their roots may create some additional pressure in facing up to the situation.
The Ford company has a lot to lose as a result of this decision. There is a substantial allegiance in Ireland to the products of the Ford company and this applies not only in relation to their cars. Although many Irish people may have thought their tractors were produced in Cork that was not so but the allegiance of the agricultural population to the Ford tractors obviously related to the fact that the Ford company was situated in Cork. That same argument probably applies also to their cars. I believe that the position of the company as far as sales are concerned will be affected substantially by this decision. If they are making their decision on commercial criteria that is a factor the company must bear in mind.
I am delighted to see all-party support behind the efforts of the Government to salvage something from what is proposed now. In general all Members have united in support of the Government in their efforts to deal with this disastrous situation. It is clear that the Government are making and will continue to make every effort possible to retrieve the situation with Fords or to get the best deal possible in the interests of Cork, the surrounding region and the country.
The other factors raised by Members will be borne in mind by the Government and I will not hesitate to remind the Government that the Cork area is a special case. The Ford decision, combined with what happened in Dunlops and other companies, has created a disaster area in Cork. I can only say that I will continue with my colleagues to press this point with the Government and ensure that steps will be taken not just in relation to Fords but in relation to a rescue operation for Cork. I have every confidence we will be successful in getting a good response from the Government. In that context, even in this disastrous situation there is a message of hope and confidence for our people in Cork.
I am deeply saddened by the decision of Fords to close the Cork plant. I am very conscious of the position of that company in the economy of Cork. In discussions and in contacts which I have had with the Ford management during the past year I have stressed the importance that I and the Government attach to the continuation of the Ford manufacturing presence in Cork. My concern was made known to the management in that period.
I realise that, given the massive structural changes in the motor industry in the past few years such as the consolidation of production in larger units, robotics and general modernisation there must have been some question about the continuation of what is a relatively small-scale assembly in Cork. In these circumstances I have stressed repeatedly to Fords the importance of looking at the problem to see what was on offer from them if assembly work were to cease. In that period I offered Fords every assistance from the Government and the State agencies to deal with this problem and in every move of diversification that they would consider viable. This assistance is still on the table as the Taoiseach and my Minister, Deputy Bruton, have already said, in the form of two task forces under the IDA.
One aspect of Ford's statement on which I must take issue is the inference that Ireland is not a very profitable location for investment. According to the United States Department of Commerce it is the most profitable overseas location for American investment. I must take exception to the following statement yesterday by Fords:
Even assuming maximum possible Government grant assistance, we have found in every case that somebody else could do the job more cheaply.
They were referring there to alternatives such as specialised low volume vehicles and components. It is important to note that the growth in employment in the automotive components industry here has been staggering. This refutes positively the assertion made by Mr. Hayes yesterday. The growth in that industry which employed 2,500 in 1972 has resulted in 5,600, almost 6,000 now being employed. We have been successful in becoming a supplier to the motor industry, with many companies in the length and breadth of the country supplying components to that industry. It is this negative aspect of Fords statement which causes me concern and which I refute.
This problem will be taken up immediately by the Minister, Deputy Bruton, during a trip to America to meet senior management. It is hoped that he may be accompanied by the Minister for Foreign Affairs. It is anticipated that the contacts made by the IDA with the Ford Motor Company will clarify matters in large measure. The assistance offered by the Government and Government agencies, such as the Industrial Development Authority, must be seen to be the best efforts of the Government, as indeed they will be and have been. I hope that Fords presence here will continue, whether in the form of motor assembly, which is now doubtful, or in the form of a diversified manufacturing unit, which is more probable. We can offer them an excellent package in an industrial environment which is becoming increasingly more competitive and is seen to be so. I am confident that the Industrial Development Authority, who support the Government and our Ministers, will succeed in offering them a package which they cannot refuse. I ask Ford, on behalf of the people of Cork, to realise the importance to Cork of the presence of Fords and I hope that they will be in a position to take up a decent offer from the sincerely concerned Government.
I would like to thank Members for a constructive debate. Unfortunately, as the House will be aware, I had not the opportunity of being present throughout the debate, due to the necessity of attending a Government meeting.
I would like, firstly, to respond to the point made by Deputy Wyse, who led the debate for Fianna Fáil, that he regarded it as of considerable importance that approaches should be made to the United States side of the Ford organisation. As pointed out to the Deputy by Deputy Coveney, that is precisely what I have been doing and was doing before this news became known. Indeed, I have been following up that initial contact throughout today, with a view to pursuing the matter to a successful conclusion.
A number of Deputies have suggested that the provisions of the Protocol with regard to the ending of the requirement of motor assembly in Ireland should be revised or renegotiated but I regret that that is simply not relevant or feasible at this stage. The position on the negotiations concluded by the President, while Minister for Foreign Affairs, in regard to this matter has been accepted by every Government who have held office since then and it is not sensible to suggest that because of this particular decision we should seek to renegotiate the matter. Indeed, in my view it would tend to divert attention from the true issue.
There are many other firms here who had been assembling for quite some time under the protection of the previous arrangement and who have successfully diversified into other lines of manufacture — I have already mentioned one such case. The key question is: "Can we get Fords to put in an alternative manufacturing project?" To divert our attention into any other area of activities would be to waste our efforts. We should concentrate on presenting the best possible case to Fords, both in terms of their profit and motivation and of their social responsibilities. There are many on both sides of the House who see many merits flowing from having free enterprise, but in a free enterprise system the only sure guarantee is that those involved realise the social responsibilities that business has. If people fail to take account of these, the system does not work. This must be realised by Fords management decision-makers. That will be one part, but only a part, of the case that we must put to the Ford people in the United States and indeed in Ireland and Europe.
I concur entirely with the Minister of State's view that we do not accept Fords statement that in every case somebody else could do the job of manufacturing components more cheaply. I agree entirely with Deputy E. Collins, the Minister of State in saying that we do not accept the statement by Fords that in every case somebody else could do the job of manufacturing components more cheaply in regard to those cases they have examined. I do not believe that is actually the case. I am confident that the example set by other people in this business and the many opportunities that exist in an economy — I am speaking now of the European economy which is beginning to recover — must indicate that there are such projects. The challenge is to get Ford management on both sides of the Atlantic to give enough time, to devote enough intellectual effort to finding a suitable project. It is easy to say "no". It is much more difficult to say "yes" in a situation such as this because to say "yes" requires a commitment of time and effort to working out a suitable project. Our objective must be to get them to devote the time and effort, not just to going through a list with a view to ticking off the difficulties — because undoubtedly there will be difficulties with every project they will consider — but to look at it in the light of trying to find a solution and keep at it until they find a solution in terms of a manufacturing project they can locate in Cork.
I believe that the Irish industrial scene has suffered from a lot of bad press. There have been many people who, for one reason or another — and I am not here speaking about anybody in this House — have tended to highlight the things that have been detrimental about the Irish industrial scene, situations in regard to industrial relations and so on. The fact of the matter is that we have just come through a year wherein there were less man-days lost through strikes than was the case for many years in the past. We have come through a year wherein our exports met with outstanding success.
We have already established an industrial base which is in many senses the most modern in Europe. We have a young population who are much more flexible in their work practices than many of the generations of industrial workers who are older than they are, who are now coming towards the end of their industrial careers. We are moving very much more into the area of flexible work practices. It is much easier to persuade younger workers coming into the labour force for the first time to do away with restrictive practices and to work flexibly than it is to persuade people who have been working under a particular regime for many years to do so. Ireland, with a young age structure, is a much more flexible industrial location than any other country in Europe, all of which have a more aged structure.
We must in this House—and I suppose it is not appropriate in this debate to talk too much in terms of general industrial policy — remind people listening to us overseas that this is a good country in which to develop industry. It is a country which has a proven record in providing profit for those foreign companies who have located here. We welcome foreign industry. Already we have had the Ford Motor Company for many years. I believe that if they can come in with a new project, new ideas, applying effort and thinking to what they are doing — and already all of our endeavours at the political level of Government and State agencies are to get them to give that effort — I have not the slightest doubt that Ford can find a project that will make money for them and provide jobs for Cork.
I am very glad this debate has provided so many speakers. The tone of the debate has been extremely positive. It has afforded an opportunity to give a message which I hope to be able to convey directly to the management of Ford, from all sides of this House, of our will to ensure that an industry can be established by Ford in Cork that is entirely viable, modern, in tune with the new needs of the motor market, and one that will provide a secure future for all.