asked the Minister for Industry, Trade, Commerce and Tourism if he will give details of his proposals to ensure that there is a resumption of substantial employment on the Mostek location at Blanchardstown, County Dublin.
44.
Written Answers. - Blanchardstown (Dublin) Company.
43.
asked the Minister for Industry, Trade, Commerce and Tourism the total grants, loans or other financial assistance provided from public funds to Mostek Limited, Blanchardstown, County Dublin; when he was first advised by the company that the Blanchardstown plant was in danger of closing; the action, if any, he took to avert the closure of the plant; the measures he intends to take to have the plant reopened or to provide alternative employment in the area; and if he will make a statement on the matter.
I propose to take Questions Nos. 43 and 44 together.
Over the past year I have been closely monitoring developments in the semi-conductor sector which, as Deputies will be aware, has been experiencing a severe downturn particularly in the area of commodity memory chips, the product which Mostek produced in Blanchardstown. This severe downturn in demand led to Mostek laying-off 140 of its workers here in May of this year and to substantial lay-offs and plant closures in Mostek's operations world-wide. This deteriorating international situation obviously posed a threat to Mostek's operations here and the Industrial Development Authority, at my request, became involved in continuing contacts with the company and with its parent corporation, Mostek of Carrolton, Texas, to attempt to ensure the maintenance of employment at the Blanchardstown facility. These efforts continued following Mostek's announcement of the temporary closure of its plant on 4 October 1985.
Regrettably, after detailed consideration the company did not consider it feasible to maintain employment in the Irish facility against the background of the decision by Mostek's parent company, United Technologies Corporation, to discontinue its semi-conductor business world-wide and announced permanent closure of the Blanchardstown plant on 18 October 1985.
The decision to cease the production of semi-conductors by Mostek Corporation, including Mostek Ireland, was taken by United Technologies on commercial grounds i.e.
— the current recession in the semi-conductor sector and in particular the severe downturn in the prices of commodity memory chips, Mostek's semi-conductor product, since 1984
— substantial losses incurred by Mostek Corporation.
Capital and training grants totalling £5.4 million have been paid by the IDA to Mostek but United Technologies have agreed to meet all outstanding liabilities to the IDA and the authority expects repayment of a substantial proportion of its outlay on the project.
Obviously I am very concerned over the loss of over 400 jobs in Blanchardstown. Immediately following the closure announcement IDA commenced active promotion of the Blanchardstown facility, through its overseas offices, to procure an alternative suitable project and while no proposals are to hand at present the facility is being vigorously marketed. Last month I announced that a leading American high technology corporation EG&G is to establish a plant at Blanchardstown with a job potential of 240.