asked the Minister for Industry and Commerce the number of industries which have failed in the last five years which have been salvaged by co-operatives formed by the former workers; and the number of jobs which have thus been saved.
Ceisteanna—Questions Oral Answers. - Industry Failures.
7.
I am informed by the IDA that they have assisted five co-operatives formed by workers in the last five years to take over businesses in which they were formerly employed. These co-operatives are now employing approximately 190 people. It is possible, but unlikely, that other cases exist where an approach has not been made to the IDA.
Will the Minister agree that this system has been used to good effect in other countries? Will he accept that more attention could be given to this method of solving the problems of many of the smaller failed industries? When a industry fails and there is a possibility that it could carry on as a co-operative, what guidance or assistance will be available from the Minister's Department?
Guidance and assistance would be available principally from the IDA or SFADCo if it was in the mid-western region. Workers' co-operatives have been effective in partially rescuing companies, for example, the Westport Shoe Company, the King'swear Co-Operative, New-bridge, Carrigaline Pottery, Dundalk Footwear Co-Operative and the Belco Sports Unit, Ballina, who have quite a number of people employed. Before the companies got into trouble and were reconstructed by the co-operatives they employed 990 people and, as I said, that figure is now down to 190.
Does the Minister agree that there is scope for development and that if his Department consulted bodies engaged in that field it might be beneficial in setting up small industries?
(Limerick East): Certainly one method of rescuing companies has worked with a certain amount of success in the past and the IDA are available to assist workers who form co-operatives to rescue companies in difficulty. However, a strategy like this is more likely to succeed if the initiative comes from the workforce rather than attempting to impose this kind of structure on companies by an outside agency or Government Department.
Does the Minister agree that in many cases — this applies to my area at present — guidance is needed in setting up a co-operative? If the ICOS and a section of the Minister's Department devoted their energies to that effect, they might salvage many jobs which would be lost otherwise.
(Limerick East): Yes, but we are dealing with two concepts. The co-operative movement is very strong in certain areas and enormously successful businesses are run by co-operative societies, with advice available from the ICOS. The question referred to the rescue of companies by workers forming co-operatives when there seems to be no other viable way of keeping a company afloat. That has worked to a limited extent and the five companies to which I referred are grant aided by the IDA. I am not aware of any others.