Deputy Brendan Griffin gave me notice of his intention to raise on the Adjournment the subject matter of the sudden closure of Kiely's bottling plant and the implications for employment in Tipperary town.
Adjournment Debate. - Tipperary Bottling Plant Closure.
I sought and was given permission to raise on the Adjournment the impact the sudden closure of Kiely's bottling plant had on the economic life of Tipperary town and the urgent necessity of finding a replacement industry. I am grateful to you, a Cheann Comhairle, for allowing me to raise this issue. I regret the Minister for Industry and Commerce is not in the House to hear at first hand about the plight of the people in Tipperary town in the aftermath of the sudden closure of this plant.
From a meteorological point of view, the January of 1989 has been the mildest in living memory. Unfortunately, the industrial climate of Tipperary county and town has been anything but mild. The full rigours of the recession have swooped suddenly on county and town alike as a tornado levelling and sweeping aside what was heretofore regarded as safe and stable employment. Whenever Tipperary is mentioned a picture of the Golden Vale is conjured up, a vision of luxuriousness with luscious rich pastures, dairy herds, racing stables and a wealthy and contented people. This is partly so for a small sector of the community but for others the reality is different. Side by side with all this are poor, disadvantaged areas, smallholdings, unemployment and a number of towns dependent on agriculture and ancillary industries for their survival. Tipperary is one such town and its economic life has been shattered by this latest body blow to its industrial lifeline. Less than a year and a half ago it was dealt another blow when the local 42 bed district hospital, St. Vincent's, was closed, again sacrificed on the altar of economic rectitude by the South-Eastern Health Board who in turn blamed the present Fianna Fáil Government for not providing adequate funding to keep it in operation. Since then no alternative industry has been found to replace the 24 jobs lost by that closure.
In passing, I would like to mention that Tipperary town is not alone in this regard. Carrick-on-Suir has not yet fully recovered from the closure a few years ago of their major local industry, the tannery. However, the people of Carrick-on-Suir are striving bravely to overcome this loss and, like Tipperary town, have sought in vain an alternative industry.
In the past couple of days the people of Clonmel were shocked to learn of the decision by Avonmore Creameries not to proceed with the promised plant on the outskirts of Clonmel to replace Burke's bacon factory which they had acquired. It is poor consolation to the 100 or so people who have lost their jobs that this plant is now being diverted to Roscrea. It is sad to see an old, established industry of 150 years standing, an industry that was synonymous with the industrial life of Clonmel closing down.
I can also mention the closure of Ballingarry anthracite mines and the desolation the loss of 150 jobs in that disadvantaged area has caused. The scandal is that men with the skill, expertise and above all the will to work had to idle their days away while the richest seam of anthracite in these islands remained unmined and untapped.
Last night we discussed in the House the threat that now hangs over the Thurles sugar factory, putting the jobs of a further 164 full-time employees and an equal number of part-time employees in jeopardy and devastating the economic life of Thurles as a consequence.
This newborn 1989 has not been too kind to Tipperary and I hope that by bringing these factors to the attention of the Minister remedial action will be taken to rectify the scandalous situation before this year's demise. Our first sympathy must go to the 40 families most affected by the closure of Kiely's bottling plant last Friday, 27 January. As a family man I can appreciate the traumatic effect this closure must have on these families, wives and children alike. Mortgages have to be paid, normal day to day financial commitments have to be met, future plans for the eduction of their children have to be shelved, and the hopes and aspirations of many young couples are dashed and shattered. Speaking to some of them, I could not but be moved by their helplessness and the doom and gloom with which they view their future. Emigration is staring them in the face. It is a step they are loath to take. However, sympathy is not enough. Sympathy will not pay the bills to meet their commitments. That is why on their behalf I am demanding tonight concrete and positive action from the Minister and from the IDA, that semi-State body under his aegis who are mandated to attract industry. I am demanding they make Tipperary town a first priority so that an alternative replacement industry will be found immediately.
In passing I would like to place on record that no blame can be attached to the Kiely family who down the years have given and are still giving, in another successful enterprise in Tipperary town, good permanent employment to the townspeople. The bottling plant was a wholly owned subsidiary of John Daly and Company and for corporate reasons the company decided to transfer their operations to their Dublin plant where, apparently, there is spare capacity. Again rural Ireland loses out to Dublin, but Tipperary town has a great deal yet to offer to any potential industrialists. First and above all else it has a loyal workforce where excellent relations exist between employer and employee. I understand that in this industry in virtually 40 years not one day was lost through industrial disputes due to that happy understanding between management and staff. I am glad to note that this happy relationship permeates all other industries and services in Tipperary town. Secondly, we have a young, intelligent workforce, capable and adaptable young men and women who are anxious to contribute to the economic life in Tipperary and who deem it their right to eke out a livelihood in their town. They would prefer to settle down in Tipperary rather than emigrate and build up the economies of Great Britain, Australia, Germany or the USA. This closure has obviously dampened their aspirations.
Another plus for Tipperary is that we have a 10,000 sq. ft. vacant advance factory awaiting a tenant. I condemn out-right the inactivity of the IDA in not providing an industry for that vacant factory. Apparently, Tipperary has been shunned and neglected by the IDA. I want a commitment from the Minister that that will no longer be tolerated. We also have a green field, 38 statute acres in size, zoned for industrial purposes and we are anxiously awaiting an industry for that. That land was acquired by the farseeing urban district council some years ago in anticipation of industrial development but, again, we have not had any action from the IDA. In passing I should mention that the cost of development of that land bank was and is being carried by the ratepayers of Tipperary town with no cost to the Exchequer.
The vacant plant at Kiely's could, by arrangement and negotiations, be made available for a replacement industry and there are other buildings and sites available for any industrial purpose. From an infrastructural point of view there is more than an adequate supply of water, sewerage and power facilities with a suitable road structure in the area. There is also an effluent treatment plant capable of dealing with industrial discharges from a town five or six times greater than Tipperary. There are also excellent educational, social and other facilities that must make Tipperary most attractive to any potential industrialist and his family. The Canon Hayes Recreation Centre is rightly regarded as being one of the most outstanding of such complexes in Ireland.
With all of those advantages surely it cannot be too difficult to sell Tipperary to any future employer, but the will must be there both on the part of the Minister and on the part of the IDA. Like many others I have been bitterly disappointed by the efforts of the IDA todate in trying to attract an industry to our town. Could it be that, as Tipperary is on the periphery of the south eastern region, in the extreme north west of it and within three miles of the SFADCo boundary, it has been neglected by the IDA, lost sight of, discarded and marginalised? I want that situation rectified as from tonight and I want a firm commitment from the Minister that Tipperary town will be put on the itinerary of all potential industrialists entering the south eastern region.
Would the Minister consider transferring Tipperary town, and district, into the SFADCo region where the incentives are more attractive and where the officials have been eminently more successful in attracting industries? There is a strong feeling in Tipperary that its industrial chances would be greatly enhanced if that was done but, perhaps, I should take the issue up on another occasion.
In the meantime I appeal to the Minister to persuade the Government to consider Tipperary as a suitable location for participation in the decentralisation programme. I have no doubt but that there would be a great welcome for the personnel of any Department transferred to Tipperary. They, in turn, could enjoy the peace, tranquility and quality of life that is Tipperary. I stress to the Minister that the time for talking has long passed; action is what is needed and demanded. I call on him, on behalf of the people of Tipperary, to end the era of neglect and give Tipperary its rightful share of the national cake.
It is always with regret that one learns of the closures of any company with its consequential loss of employment and the trauma it creates in an area particularly when it is an old established company like Kiely's Bottling Plant in Tipperary town. The closure has been brought about by the rationalisation programme of the John Daly Group. I appreciate the excellent case put so eloquently by Deputy Griffin tonight. The company had for long provided a valuable source of employment in Tipperary town. It is one of the oldest soft drink companies in the country. I understand that the decision to close has been pending for a number of years but was delayed because of the excellence of the workforce in Tipperary town. However, at the end of the day the Daly Group, because they had surplus capacity at another plant, took a decision in the light of commercial considerations to close Kiely's.
The Tipperary plant has a capacity of one million cases per annum but I understand that such capacity is out of line with the current trends in the soft drinks industry. Similar plants throughout Europe are being built to produce 60 million cases per annum. That is the type of competition the group faced. In addition the group believed that the Tipperary production could be absorbed in its modern facility in Dublin. It was considered by the group that replacement of the Tipperary plant with a modern one could not be justified. The loss of these jobs in Kiely's is of concern to Tipperary town and to the IDA, the authority charged with developing industries here. When I received notice of Deputy Griffin's intention to raise this matter on the Adjournment I communicated with the IDA and impressed upon them the importance of obtaining an alternative industry for the town, particularly when there is an advance factory of 10,000 square feet and a land bank there. The IDA are promoting the town for international services-type projects and I understand that discussions have been held with companies like New York Life. It is because of the town's proximity to Shannon that it is considered a suitable location for such projects.
The IDA would welcome any initiatives by local bodies who might be interested in providing suitable office space which could be rented to the latter type of company. The IDA also have details of the Kiely Bottling Plant building which will be included in a kit given to visiting industrialists and I am sure that Tipperary will be on their itinerary. In this regard I will bring the comments of Deputy Griffin to the attention of the IDA.
In addition the IDA intend to have a small industry promotion in Tipperary town in March-April to ensure that the community are aware of the incentives available and to generate further activity in small businesses in the area. On a more positive note I should like to mention some current developments in Tipperary town and its hinterland. Tipperary Co-op, for example, is one of the foremost co-ops in the country in cheese making and they have developed a number of cheeses over the last few years. They are in the process of developing and launching an additional cheese. The co-op employs 130 people and it is hoped that there will be additional employment there.
Then there is O'Dwyer steel of Dundrum which is continually developing new products and has been assisted by the IDA to develop a hydraulic refuse compactor for the home, but mostly export markets. This work has just recently been completed. Hopefully there will be additional jobs there as well.
This company were originally in the structural steel business which was severely affected by the recession. With IDA's encouragement and assistance the company are developing into new higher technology areas which have good export potential. These are quality products which are being sold on international markets leaving the company well placed to compete after 1992.
The US owned company Tambrands AG have been operating successfully in Tipperary town where they produce sanitary products. This company employ over 200 people with possibilities for further growth. The IDA are having discussions with them on that matter.
I know that the Chair has been interested in this area for some considerable time as is Deputy Griffin. I appreciate that Deputy Griffin is deeply concerned about the effect of this and I assure the Deputy that I will keep in contact with the IDA to ensure that they will do everything possible to replace the jobs that have been lost in Kiely's with alternative jobs in Tipperary. Tipperary town will be on the itinerary of visiting industrialists and IDA personnel abroad will be made aware that there are factory premises and a land bank in Tipperary. There is a number of positive assets in Tipperary including the Canon Hayes sports complex. That complex is a credit to Tipperary town and to the community who raised substantial finance for that facility.
The SFADCo arrangement is outside of my brief but I will certainly bring the Deputy's point to the attention of the Minister for Industry and Commerce. I assure the Deputy and the House that I will leave no stone unturned in ensuring that the IDA are fully cognisant of the difficulty in Tipperary town and that they will do everything in their power to ensure that alternative jobs and industry are provided there.
The Dáil adjourned at 11 p.m. until 10.30 a.m. on Thursday, 2 February 1989.