Deputy Farrelly gave me notice of his intention to raise on the Adjournment the subject matter of the future of Zenith Electronics Limited, Kells. Deputy Farrelly has some ten minutes to make his case and the Minister has five minutes to reply.
Adjournment Debate. - Kells (Meath) Electronics Factory.
Do we have a Minister?
The Minister will be along shortly.
I would rather he would hear what I have to say if that is all right with you, Sir.
I think it is appropriate that we should await the presence of the Minister concerned.
I will forgive him in these trying times.
Tá an tAire ag teacht.
Trying for whom?
History will tell. I would like to take this opportunity to thank the Ceann Comhairle for allowing me to raise on the Adjournment the very serious concern being expressed by the people of north Meath about the future of the 260 jobs at the Zenith Electronics factory in Kells. Zenith came to Kells in the wake of the Westinghouse Corporation closure in 1983 and at that time promised many well paid and secure jobs for the years ahead for the people of Meath. Zenith were regarded in Kells then as a very important step in the development of securing a major European market.
The most recent cause for concern arises from three factors. First, the sale of part of the production line to Groupe Bull, the American multinational, whereas the official line from the plant states that they have only one production line at present. The information available to me suggests that the factory for quite some time only has had one production line. Naturally this has led to rumour and counter rumour within the plant itself and generally in the county. Secondly, it is my information that no raw material has entered the factory for a considerable period. Thirdly, the annual stocktaking which would normally take place at the end of the year is to take place very shortly. I would like to ask the Minister if he will give assurances that he has briefed himself on the current situation, that all possible steps are being taken to protect and secure the 260 jobs in the factory and that the taxpayers' investment in the plant is also being protected. I would welcome assurances from the Minister to the House that such is the case.
I would also inform the Minister that it is only four months since the official opening took place at this plant. With my colleague and, I am sure, the other Deputies from the constitutency, I would be very concerned that something might happen in regard to this plant in so far as employment there is concerned. We are not wishing that it would happen; we are only hoping that the jobs that I have mentioned are secure because we are in an area where jobs are hard to come by and have been very hard to come by for the past number of years.
I know the Minister is aware of the overall plant. He had occasion at one time to visit it himself when it was under different management. I hope he can give the assurances I seek from him tonight. The people of Kells and the surrounding areas who are depending on this plant for a living will welcome such assurances.
I would like to be associated with the concern expressed by Deputy Farrelly in regard to this matter of an industry in his native town. I am advised that this is a profitable plant, that the Irish plant continues to be profitable for its owners. I hope that any concerns there at this time will be allayed in the light of the fact that it is, to my knowledge, a profitable enterprise and should continue as such.
The position is that the micro-computer business of the Zenith Corporation of the United States is the subject of a proposed buy-out by Groupe Bull of France. This purchase, however, will not include Zenith's Irish operation at Kells. Zenith have a second operation in Ireland in the form of a distribution centre in Santry with associated facilities and which employs 14 people. This facility will be included in the sale to Groupe Bull. Under the proposed sale arrangements it is intended that the product produced at Kells will be the subject of a separate agreement between Bull and Zenith US under which Bull will purchase the Kells product for a minimum of 18 months from the date of the sale. It would, of course, be my hope that they would continue to do so afterwards as well, that they would not confine the purchases simply to a period of 18 months. Of course the Zenith plant at Kells has many customers apart from Bull. These include IBM, Wang, Siemens and others of that calibre. I know of no reason that would not continue.
Zenith Ireland is a very fine company with a strong technological base and a management that has always been firmly committed to the development of its Irish operation. The company were established in Kells in 1983. In spite of the fact that there was an official opening, as Deputy Farrelly said, only a few months ago — that may have been for electoral purposes or some other extraneous reason——
We were happy so long as the jobs were there.
——it has had some considerable success. During that time it has achieved commendable results in all its key target areas such as employment, productivity, marketing and R and D. It produces top quality products and has a high reputation with a variety of customers who are world class companies of the kind I mentioned. Naturally, I am concerned that the long term viability of the factory at Kells should be preserved and for this reason I have asked the IDA to maintain the closest of contact with all parties concerned in the proposed buy-out deal and to take every practicable step to ensure the continued viability of the Kells operation. I have also asked them to report all significant developments to me as they occur so as to enable me to decide the most appropriate course of action to take.
The proposed purchase by Groupe Bull will be put to a meeting of the stockholders of Zenith in the United States on 14 December next. I understand that Deputy Farrelly submitted a Private Notice Question today in this regard. While I can appreciate his concern and the concern of the people employed at this factory, I would ask that the concern not be exaggerated lest it create greater difficulties for the company than those which may exist now or in the future.
I did not exaggerate anything.
I have no reason to believe that it would be the end of the Zenith operation and I do not think we should destabilise the company by suggesting that there is any imminent danger of that. They employ 272 people which is well above the target they originally set themselves. They have been a very successful company and, because of the ability of their management and workforce, I hope they will get through this situation where a different part of the Zenith company is being taken over.
I wish to again emphasise that the plant at Kells is not part of the proposed takeover by Bull. The matter has only come to notice within relatively recent times; an announcement was made in October of Bull's intention to buy part of Zenith and the IDA have been closely monitoring the matter since. Obviously we will know better after the stockholders' meeting on 14 December but, in the meantime, I urge people not to be unduly concerned because I hope and expect that the close monitoring by the IDA of the matter will avoid any undesirable result from the point of view of the company in Kells.
Deputy Farrelly rose.
I am sorry, the Minister's reply concludes the debate on this matter.