May I allocate a minute of my time to Deputy G. O'Sullivan?
Adjournment Debate. - Apple Computers, Hollyhill, County Cork.
Certainly.
It is with deep regret I have to raise the future of a section of Apple Computers at Hollyhill, County Cork, this evening. Apple Computers have been magnificant employers in the Cork city and county areas for many years. I would consider Apple to be the flag ship of Cork city industry. They gave hope and encouragement to many. They gave work to many people and had the courage to locate their European headquarters in what was and still is an unemployment black spot in the Cork area.
Last evening's statement, therefore, left the workforce in a state of uncertainty. I was up at the plant at midnight last night and met some of the workers coming out. I sensed a fear there for the future of their jobs and their families. Cork cannot endure another blow to the solar plexus of its economic base because any effect on Apple would have a domino effect on many industries that are dependent on Apple in the Cork area.
I welcome the announcement made today that the IDA, Apple and the unions will be meeting this week to discuss the future of the plant. I hope the joint efforts of everybody concerned will achieve something positive. It is a time for a united action from all the political voices in Cork. I know my party will support every effort made by the Minister to achieve a positive solution. I welcome the Minister's positive attitude on the news tonight when she said she hoped that something could be got out of the situation.
In recent hours the question of wage costs and the scale of economy of the Hollyhill plant was mentioned. It is ironic that the jobs may be going to Singapore. Singapore is still classified as a third world country, even though it has a higher standard of living than we have. I would ask the Minister to look at the situation within the European Community where Singapore is granted concessions under the general system of preferment ranging from 4 per cent to 14 per cent. If the GSP were not in operation for Singapore, Apple might not be affected and certainly Western Digital, another casualty in Cork, might not have been affected in the past. I know it is not as simple as that and that it is a very complicated issue, but I am led to believe that the special status that Singapore enjoys will terminate in the next few years. It may be too late at that stage for many of the high tech industries throughout the country and especially the ones in Cork. I look forward to hearing the Minister's response and I now hand over to Deputy O'Sullivan.
I would like to thank Deputy Allen for allowing me in for this brief moment. The fact that Minister Wallace is also in the House is an indication of the seriousness with which we view the situation in Apple. I, too, welcome the Minister's positive response when she said that she hoped that the news may not be as bad as we now believe it to be.
Cork city cannot take another blow of this magnitude. Every effort must be made to save every conceivable job in Cork in the present climate of huge unemployment. A few months ago we welcomed the extension to Apple. It is unfortunate that in this short time there is an air of doom and gloom hanging over the plant. I would ask the Minister to respond positively and she will have my full support in her efforts.
I thank Deputies Allen and O'Sullivan and my own colleague, Deputy Wallace, and all the elected representatives of the Cork area for raising the issue. My gut reaction when I heard of this, was the same as that put forward by Deputies Allen, O'Sullivan and others who contacted me earlier today. It is that this cannot be allowed to happen. It was as if there was to be a stay on matters and if we make a concerted effort in working this through, such as has been evidenced here in the Dáil, and if we do this in an non-acrimonious and cohesive fashion we can achieve the result we want.
Apple Computers have as yet made no final decision on the future of their printed circuit board operation. Therein lies our opportunity because there will be a review which will be concluded between mid-July and end July. That gives three months for the IDA, the political arms, the Government, the workforce and Apple themselves, who have made such a huge commitment to Cork over the years, to put forward a case and to work confidently and competently to see that the result is what we want. Apple, with the assistance of the Government, have grown to be a major employer in the Cork area, employing in excess of 900 people. This affects not just the company but the surrounding companies who draw their strength, their economic viability from the existence of a strong, coherent Apple Computer facility in Cork.
Investment in Apple has not been one-sided but represents a commitment or partnership between all concerned — the Government, Apple management and employees in Cork and Apple Computers Incorporated in the US. All have contributed to their success in Ireland. The total investment by Apple in Ireland to date is £70 million. In the last two years alone, the company invested £40 million in this country. It is that that gives us hope. That investment so recently made cannot be allowed to go to waste. In 1990, the company spent £150 million in Ireland on raw materials and components, salaries, services and consultations and there have been all sorts of spin-off industries. The conveyances used to bring people from their work at midnight will in turn be affected.
Apple's involvement in Ireland has and continues to be successful. I was, therefore, somewhat taken aback when I, like the Deputies in this House, learned for the first time this morning that the company are undertaking a review which could have as one of its consequences the transfer of printed circuit board production to another location.
The market for personal computer products has been in a state of rapid change in recent times. The rate of technological change in itself brings business hazards which must be addresed and kept pace with.
Even Apple, with their differentiated product, have been unable to avoid the consequences of these turbulent market conditions. The company are undertaking a global review of manufacturing policy and I understand that the review will be completed by the end of July next.
If a decision is made to transfer production of printed circuit boards elsewhere, this would permit the Cork plant to concentrate on increased production of finished products. On listening to the tape of the 1 o'clock news today I was glad to hear the local manager of the Apple plant in Cork, Mr. Pádraig Allen, refer to the fact that the company intended to make increased investment into that end of the product within the Cork factory and this would allow the redeployment of some staff presently engaged in printed circuit board production, to the assembly and testing of an increased unit in the Cork plant.
The aim of Apple in Ireland and, indeed, for manufacturing in Ireland, should not be to seek to compete on the basis of cost but rather to choose to do so on differentiation and total quality. I am encouraged that Apple management today stated that they would be undertaking further investment here so as to enhance their plant's capabilities through differentiation with a view to increasing their market share. I will be putting it clearly to Apple that some re-balancing will be expected.
Let me conclude by re-emphasising that it is not only prudent but essential that Apple review their manufacturing options not only to survive but to succeed. We will be stressing that valueadded through differentiation is our competitive edge. I assure the House that the Department, the IDA and I will be assisting in the Apple review which is now under way. Much work remains to be done by all of us between now and the end of July.
Today, at my request, I met the chief executive of the IDA and it was a thorough and comprehensive meeting. Also at my request, a top level delegation from the IDA will go to the Apple headquarters in California to discuss with the technical experts what can be achieved within the Cork plant. I want to be very clear and succinct in this regard; we now have three months during which Apple — their generousity of approach must be acknowledged — will have a review of the operation. Apple have invested much here and we, in turn, have invested a great deal in Apple — our people, infrastructure, optimism and hope. In this review period of 12 to 14 weeks, the consensus achieved in this House tonight among the political parties, the will of the Government and the will of Apple to seek a way through this difficulty — the cohesive strength of all those approaches and my proposed input — will, I hope, have the desired effect. I hope that the reliability and strength which Apple have given to the manufacturing base in Cork will continue.