Deputy O'Shea gave me notice of his intention to raise the matter of the action the Minister for Industry and Commerce proposes to take to protect existing employment — or to provide alternative employment — for the employees of JA/Mont in Waterford.
Adjournment Debate. - Waterford Company Closure.
With your permission, I would like to share my time with Deputy Kenneally.
Is that agreed? Agreed.
Last Friday there was an announcement that the JA/Mont plant in Waterford was to close and that operations in Waterford are to be phased out between January and March 1992. This will result in the loss of 58 jobs in Waterford; it is a devastating blow to the employees and their families and a further blow to the local economy. Allied to this, there are persistent rumours that Waterford Crystal could be seeking as many as 800 redundancies in Waterford. There is a live register figure in the city of 6,500; the situation is fast approaching crisis proportions and it is imperative that the Government do everything possible to protect existing employment and create new employment in Waterford.
Early in October the Taoiseach officially opened a £4 million extension to the JA/Mont plant in Finglas. The managing director, Mr. Des Scott, stated on that occasion the company will be investing a further £1 million which, it is hoped, will secure the future of the company's 240 employees in Finglas. I state this in no spirit of begrudgery and want to make it clear that I wish the employees in Finglas well.
My concern is for Waterford. Will the Minister say whether a way can be found to continue JA/Mont production in Waterford? This particular operation has been in the city — it was initially in Tramore — for 26 years during which time there were changes of name and ownership but their workforce always produced first-class products. Some employees have been there for 25 years and in the present climate they will find it very difficult to obtain alternative employment.
I have been in contact with the regional office of the IDA who assure me that the company are co-operating fully in finding an alternative use for the plant and, consequently, alternative employment for the workers. I am seeking the Minister's assurance that all the resources of his Department will be made available to assist in achieving this objective. I have asked the Minister, Deputy O'Malley, on more than one occasion to grant disadvantaged status to Waterford in terms of IDA grants. I reiterate that request now because the situation in Waterford continues to deteriorate. It must be given help to solve its problems. The Government have cynically and dishonestly dealt with Waterford in terms of decentralisation of a Government Department; 150 to 200 jobs in Telecom are supposed to be decentralised to Waterford. However, Telecom Éireann are on record as saying they have no intention of decentralising to Waterford and indeed the Government do not have any powers to compel them to do so. The Government must come clean on this issue and designate a Department for decentralisation to Waterford. This will help the economy but the immediate problem is JA/Mont and I look forward to positive and helpful remarks from the Minister.
I thank Deputy O'Shea for sharing his time with me to express my concern about the deteriorating employment in Waterford city. The imminent closure of the JA/Mont factory is just the latest episode, which will throw another 58 people on the dole queue over the next three or four months, despite the fact that the factory has been successful and operating profitably in Waterford. It is a victim of a corporate decision by the parent body.
Too often remedial action is not taken quickly enough by the IDA in such instances. How will the Minister for Industry and Commerce ensure that action will be taken fairly quickly? The latest figures I have for unemployment in Waterford city are to the end of October and stand at 6,792, which is well above the national average. That includes a large slice of the workers from Waterford Crystal, and who is to say that more workers will not end up on the dole queue? I realise that the Minister may refer to the success story at Bausch and Lomb where he recently opened a new extension. However, this is not enough as there are nearly 7,000 people registered as unemployed. I remember that when this situation arose in Cork a few years ago a task force was put into place by the Government. The present position in Waterford is just as serious and I should like the Minister to establish a forum like that to give hope for the future, not just to the workers in JA/Mont but to all workers in Waterford.
I should like to thank Deputies O'Shea and Kenneally for raising this important matter for Waterford. It is good to see the level of co-operation in the House in relation to that matter.
Raytex Limited, the original company, were established some 30 years ago. Throughout the years they have been engaged in the manufacture of paper products and wrapping. The company who were taken over by JA/Mont (formerly Nokia Limited) in 1979 have their Irish headquarters in Finglas, County Dublin. The company have informed me that the recent decision taken with regard to the Waterford plant was taken as part of a total restructuring plan for the Europe-wide JA/Mont Group.
JA/Mont are Ireland's largest manufacturer and distributor of disposable paper products sold through major supermarkets, grocery and distributor outlets nationwide. The company recently made a substantial new investment in order to improve efficiency and overall performance at their headquarters in Finglas and to ensure the survival of their Irish operations in a tough international business environment. I understand that the firm's decision in regard to rationalisation and centralising production at Finglas is necessary in order to protect their future overall viability in this country.
While the provision of alternative sources of employment is a matter for the day-to-day responsibility of the Industrial Development Authority, and is not something in which the Minister for Industry and Commerce has a direct function, nevertheless he is very concerned at the expected loss of jobs and is keen to ensure that all possible steps are taken to minimise the impact of the closure on the workforce and on the surrounding area.
The IDA have assured me that Waterford will continue to be actively promoted by them for industrial development and the provision of additional employment. They have also informed me that JA/Mont have expressed their willingness to co-operate closely with the IDA to seek alternative industry for the site.
I am heartened to note that even in the current very difficult investment climate internationally, Waterford city and county have seen a net increase in manufacturing employment in each of the last three years. Forthcoming expansions and new start-ups are set to provide a further 300 jobs over the next three years:
Among these are Bausch and Lomb, the worldwide healthcare and optics company, who only a few weeks ago provided Waterford with another chapter of an auspicious success story with the official opening of their new £17 million Ray Ban sunglass facility at the IDA's industrial park, situated at Old Kilmeaden Road. The 120,000 sq ft. factory, which is the world's second largest sunglass manufacturing operation will be the sole production facility for the European and Middle Eastern markets. The sunglass operation now employes over 330 permanent staff. With the new expansion it is expected that fulltime employment will rise to 450 by the end of 1993.
In addition the company's contact lens plant currently employs 350 permanent staff and produces over eight million lenses a year, 50 per cent of which will be exported back to the US. The two operations combined will employ 1,200 people by 1994, which will make Bausch and Lomb one of Waterford's largest employers and a key player in the development of the local economy. They will become the third company in Waterford to employ over 1,000 people. A further indication of the contribution made by Bausch and Lomb to the Waterford region is the fact that since establishing here in 1980 they have invested £35 million in Ireland.
Fifty jobs will be created in a new IDA backed company, House of Redmond, which is setting up in Waterford city to manufacture upholstered three piece suites mainly for export. Recruitment and training have already begun. Twenty six jobs will be filled during the first year, and the remaining 24 within three years.
The Dutch plastics manufacturer, United Industries Nederland BV — trading as Flair Plastics — are to set up a manufacturing plant in Tallow, with the support of the IDA. The company have purchased the site and factory buildings for this purpose. The company expect to create 40 jobs within three years rising to 60 over five years.
A further 50 jobs are to be provided within the next three years by the Australian company, Michell Leather. This company plan to invest £4 million, with IDA support, in wet blue leather operation at Killowen, County Waterford. While we are disappointed that JA/Mont have withdrawn from Waterford, the IDA are actively seeking alternative employment for that site and hopefully will be successful in that regard.