Deputy Farrelly gave notice of his intention to raise on the Adjournment the present position regarding Zenith Corporation, Kells, County Meath and the saving of jobs there.
Adjournment Debate. - County Meath Plant Jobs Threat.
I thank you for allowing me to raise the question of the future of Zenith Electronics Limited and Groupe Bull Limited. Since 1 November last when I raised this matter in the House the Minister informed me that part of the Zenith operation had been sold to Groupe Bull of France. Under the proposed sale the Minister said it was intended that the product produced at Kells would be the subject of a separate agreement between Groupe Bull and Zenith under which Bull would purchase the produce produced at Kells for a minimum of 18 months from the date of the sale. This has not happened and jobs are now seriously at risk. Four months later 40 members of the staff have been told they are to be laid off and 18 of them have received their notice. Thirty hourly workers, members of the union, have been informed that from mid-April they will have no employment there. Thirty other members of the staff are also informed that they will suffer the same fate in mid-May. That is the present position for people living with this problem on a daily basis.
What happened to the promise made here by the Minister for Industry and Commerce on 1 November that 18 months work would be available between the two organisations on the takeover by Groupe Bull of a certain amount of the work at the plant in Kells? All of the raw material owned by Groupe Bull has either been exported or is in the process of being exported to other factories in Europe, probably France. This is a far cry from what I was informed in November. Eighteen months work was to be available on the basis of the raw material which was in the plant at the time of the sale. Why have the store manager and the production controller been told that they are being given their notice? If this company were in earnest about development in the plant at Kells these people, with the experience they have, would not be the first to be told they are no longer required. They are the best in their field.
What are the consequences of the loss of all these jobs to the local economy? What will the real effect be on the local shopkeeper, the post office and the schools? There is the possibility that people may not be able to make repayments on their mortgages. It will be a very trying situation.
The Minister urged people not to be unduly concerned because he hoped and expected that close monitoring of the matter by the IDA would avoid any undesirable results from the point of view of the company in Kells. No one on this side of the House can be blamed for interfering. I am extremely interested in ensuring that all the jobs are saved through the IDA and whatever other agency is working in this area.
There is consternation among the workforce and fear of the loss of their jobs. I should like to think that the Minister and the IDA will be able to give me and the people of Kells some hope that these jobs can be secured in the long term.
What did the close monitoring by the IDA turn out to be during the past four months? Has the Minister a plan to deal with this grave problem? I and the employees require action. The "ifs" and "buts" in the Minister's reply on the last occasion are no good to the people unless this excellent plant in Kells can be kept working.
I would make a cry from the heart that certain decisions be taken and that negotiations take place immediately with management in the two companies involved. It seems that the commitments have not been lived up to in connection with work for the people in the plant over an 18 month period. It is very disappointing that I have to raise the same matter within four months. It is so serious that the northern part of County Meath will be devastated if this plant has to close.
Since my colleague, the Minister for Industry and Commerce, addressed this House on the matter last November, the proposed takeover of the Zenith Corporation (US) by Groupe Bull of France which he alluded to at the time has taken place. As the Kells plant was not included in the takeover deal, he was naturally concerned about the long term viability of the plant. For this reason he asked the IDA to maintain the closest contact with all the parties concerned and to take every practical step to ensure the continued viability of the Kells operation.
The Deputy will appreciate that the electronics industry is global in nature, highly competitive, cyclical and characterised by short product life-cycles. Against this background it is not unexpected that any electronics plant will go through a number of transitions, sometimes difficult, during its operational life. The Kells plant is no exception and has already done this effectively since its establishment in 1983. It now finds itself again having to shift its product and marketing strategy to adjust to the realities of the market place. I understand that the plant will phase out its PC production operation over the next few months and turn to power supply unit manufacture instead. The Kells plant will serve as the European base for the manufacture and supply of this product. I understand that this transition may involve a number of redundancies but I am optimistic that a significant portion of these will be temporary.
In conjunction with Zenith management, the IDA are actively seeking to secure subcontract work for the Kells plant, thereby helping to underpin its long-term viability. The Deputy will, of course, appreciate that particulars of the IDA's operations in so far as they relate to contacts with companies, etc., are a day to day matter of that body's business. They are not matters on which I can comment directly and, in any event, the confidentiality of those contacts is important for their success.
I should also point out that during Minister O'Malley's recent visit to the US he spoke to the chief executive of the parent company and was encouraged by his positive response. I am confident, therefore, that current efforts to find alternative work will result in work for the Kells plant. It requires time for companies who may place work with Kells to examine the quality of the products. I assure Deputy Farrelly that this is receiving special treatment in the IDA. As I said, Minister O'Malley is personally aware of the situation in Kells and is taking it on himself to meet the chief executive of the company in the United States with a view to securing the long-term viability of this plant.
Is there any word about the 18 months' work that was promised?
I can only say that the Minister is personally interested in this plant and any statement he will make in the House will be as a result of the best advice available. We must appreciate the difficulties in the market-place but the Minister's goodwill is there in relation to this industry and, as I said, he met the chief executive in the United States to try to secure the best possible arrangement for the Kells plant and the workers.