Deputies Owen and Ryan gave me notice of their intention to raise on the Adjournment the subject matter of the closure of the Skerries shirt factory and the future of the factory at Blackrock.
Adjournment Debate. - Skerries (Dublin) Shirt Factory.
May I seek clarification? I propose to share my time with Deputies Barrett and Barnes and, I hope, with Deputy Ryan. What is the position as we both sought to raise this matter?
The Deputies should utilise the time to best advantage.
I thank you, for allowing me to raise this issue. The Skerries Shirt Company, based in Skerries and Blackrock, opened in 1949 in Skerries, and currently employs approximately 66 people. Last week the staff were served with protective notice starting from 7 February until March. I raise this issue tonight to appeal to the Minister and the IDA to do all in their power to ensure that this factory does not close. The factory produces high quality shirts known as German Street Style Shirts which are the equivalent of Saville Row suits. This is a very specialised market. These shirts are very much sought after. That market still exists. The imminent closure of this plant does not arise directly from a falling market. I believe it is possible to save this factory and I hope every effort will be made to do so. All the staff employed in Skerries come from the Balbriggan-Lusk-Rush-Loughshinny-Skerries region, and the demise of this factory would be a devastating blow to all these towns. There is very little industry in any of them; in fact, this factory is the last of its kind employing people in any numbers in Skerries.
There has been a steady demise of the clothing industry in Ireland and it would be shameful if we allowed this high quality, specialised industry to die. I believe it will be possible through IDA intervention to ensure its future. If we do not secure its future we will be giving in to all the outside competition in the clothing industry. The Minister, Deputy O'Malley, is not here but I trust the Minister of State, Deputy Michael Smith, will take the message to him and tell him that this company require assistance now so that the protective notices can be withdrawn and the company can continue in operation and upgrade there premises to ensure their competitiveness in the market. Almost all the production from the Skerries plant is exported to the High Streets of London where it has a ready market.
I hope the news the Minister brings me tonight will be good and I can go back to the people of Skerries, Rush and Lusk and tell them their jobs are safe, that we will have a factory that continues to produce these specialty shirts and boxer shorts. There may even be Members of this House who wear their products.
I thank Deputy Owen and Deputy Ryan for sharing their time with me. As I understand it, the factory in Blackrock employs 90 staff, mostly female workers, producing mainly for the home market — indeed, 100 per cent for the home market. Unfortunately, they depended on one outlet for 95 per cent of the goods produced. Perhaps it is not very wise to put all your eggs in the one basket.
The factory was opened in the early fifties and the staff come from the Dún Laoghaire Borough and south county area. Given the chronic state of unemployment it is always pleasant to read and hear of new jobs being created, but over the last ten days we have all been shaken by the announcement of approximately 2,500 jobs about to be lost. Nixdorf, Sunbeam, Coca Cola, and I understand another computer company, are about to go but that has not been announced yet. Now we hear about the Skerries shirt factory.
Various agencies are available to us. I wonder if NADCORP could be used in this instance. I ask the Minister to consider it. From the latest statistics available to me through the CII, I notice £450 million worth of clothing is imported into this country and the CII estimate that we could have import substitution rather easily to the tune of £66.5 million which would mean a substantial number of jobs. If we get people who have the skills in this area losing out and perhaps going off to other types of work it will be a serious setback to achievement of our targets.
Rather than take up all the time available, let me thank again the Deputies who allowed me to say a few words. I ask the Minister to use his good offices to make every possible assistance available to the factory in Blackrock so that the 90 jobs can be saved and, I hope, expanded.
I thank Deputies Owen and Ryan for this opportunity to speak. I will not take up Deputy Ryan's time, considering he and Deputy Owen asked for this debate. Members of the House will agree that the numerous job losses in these times are outside our control. Some of them have been as a result of a decision made outside these shores, sometimes even to shore up the base company, even though the Irish company has been productive. Therefore, it is all the more pressing that we give support and urgent funding to indigenous industries, particularly one that has a reputation for standard and quality. This matter is of particular interest to us because it concerns jobs, and particularly female jobs, because we all know the level of female unemployment in Ireland is even higher than male unemployment. I am not making any great deal about that——
For boxer shorts anyway.
——because male unemployment is tragic as well. I hope that by the provision of the necessary funding at this stage the male Members of this House will continue to wear their boxer shorts for many years and occupy their seat in a very well-trousered and well-rounded way.
Thank you, Sir, for giving us the opportunity of raising this important issue, as far as our constituency is concerned. The Skerries shirt factory has been in existence for 40 years and some of the staff have been employed there for 27 or even in one instance 35 years. The factory is located in what has been classified as an industrial employment black-spot in north County Dublin in the catchment area of Balbriggan and Skerries. In Skerries there is a lack of industry; this is one of the few industries that exists in the town. Employment in Balbriggan is 28 per cent. To the young girls being bussed in there every morning the thought of having to go on unemployment assistance must be unbearable.
The factory is a viable proposition. The expertise and commitment of the staff is obvious and I have no doubt there is a willingness there to make a go of this firm. There is a proven demand for the product and there are export possibilities. I ask the Minister this evening in responding to give us a commitment to do everything in his power with the IDA to get other people who will work with the workforce to ensure that this factory will continue to exist for many years to come and perhaps we will all be wearing boxer shorts made in County Dublin.
I thank the Deputies for their constructive approach to this problem. I share their concern about the proposed closure of the Skerries Shirt Company's manufacturing operations at Skerries and Blackrock and the consequences for the workforce involved, many of whom have had long years of service and may not be well prepared for the new opportunities that may come. The House will realise, of course, that in the case of any enterprise a closure decision is a matter essentially for the owners and management of that enterprise.
Deputy Owen was a little optimistic in relation to her statistics and her knowledge of the trading position of the company. They are far from being healthy, to say the least.
The market for these shirts still exists. They may not be getting all of it.
There may even be questions there. However, the trading difficulties have been there for a while, due to tough and increased competition. Overall, adverse factors such as cheaper imports and changes in the marketplace with the growth in market share of the multiples have contributed to the company's difficulties. The company's problems have now been exacerbated by the downturn in retail sales in the UK an important market for their products.
I am conscious of the adverse impact both economically and socially of the loss of a total of approximately 150 jobs as a result of the proposed closure of the Skerries and Blackrock factories. I understand, however, that the company will continue to trade while orders on hands are serviced. In the meantime I have asked the IDA to do everything in their power to find an alternative company to take over these operations. I can assure the House that the IDA are actively pursuing this matter. In the context of Deputy Barrett's proposal we will see to what extent a contribution can be made from that source. Rationalisation and restructuring have taken place on a wide scale in the clothing industry since 1973 when we joined the EC. This was part of an ongoing requirement to adapt to changing market opportunities and to restructure to meet competition at home and abroad. Nevertheless, the process has been a painful one with significant job losses.
Considerable resources have been employed in the past decade by the State to help clothing companies in this restructuring process and to increase their competitiveness. A wide range of measures are in place and are being implemented on an ongoing basis to address the weaknesses identified in the sector, which include lack of scale, lack of attention to marketing and lack of finance. The measures in place include financial packages with increased emphasis on State support for marketing and technology; marketing initiatives, home and export; company development planning; training programmes etc., and involve the State agencies working very closely with the sector.
The major challenges facing the Irish clothing industry in the future are the completion of the internal market in 1992 and the longer-term phasing out of the Multifibre Arrangement which permits developed countries to maintain quota restrictions against low-cost imports from developing countries.
The clothing industry must prepare itself to meet these challenges and the increased competition from low-cost sources which they will bring by increasing its competitiveness and developing its export markets. It will be necessary for the sector to place increased emphasis on management and marketing functions and to exploit the advantages of quality and quick response to the needs of the consumer in order to remain competitive in the face of the inevitable increase in imports from low-cost sources. While the support agencies play an important role in helping the industry to develop and expand, much of the initiative rests with the industry itself to exploit new markets and to be competitive on the home market. I assure the Deputies that every effort that can be made through the State agencies will be made to see if the retention of these jobs is possible.
The Dáil adjourned at 9 p.m. until 10.30 a.m. on Wednesday, 31 January 1990.