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Dáil Éireann debate -
Wednesday, 5 May 1993

Vol. 430 No. 3

Adjournment Debate. - Ballinasloe (Galway) Shoe Factory.

I thank you, a Cheann Comhairle, for allowing me to raise this matter on the Adjournment and I thank the Minister of State, Deputy O'Rourke, for coming into the House to reply. In Ballinasloe we rightly regard the Minister of State as our neighbour in Athlone, she has taken a great interest not alone in this problem but in the others which the town has faced in recent months and years. I also thank the Minister for Enterprise and Employment, Deputy Quinn, for his efforts in this regard. I am aware that he met his counterpart in the Spanish Government, Mr. Noval. Further, I wish to thank the Tánaiste and Minister for Foreign Affairs, Deputy Spring, who was also in contact with his counterpart in the Spanish Government. Indeed, the Tánaiste and Minister for Foreign Affairs summed up the position well in relation to the Dubarry shoe factory when he said that the matter in regard to the factory Agreda in Spain, where there is a strike, was bound up in a tangle of legal, financial and political difficulties.

The situation at the Dubarry factory in Ballinasloe where 350 jobs are in jeopardy is very serious. In addition, the jobs of those working in ancillary industries, including those who work from home where they stitch this product, are also under threat. This evening SIPTU officials and the personnel officer at the Dubarry factory are meeting workers at the Spanish plant at Agreda. I hope there will be a successful outcome.

The Tánaiste and Minister for Foreign Affairs mentioned the legal, financial and political problems in Spain. One of the difficulties is that two regional governments in Spain are dealing with this matter. The parent company is located in one region while a subsidiary is located in another. These two regional governments are controlled by the nationalist and conservative parties whereas the socialist party comprises the central government. To complicate the matter further the Spanish general election is due to be held on 6 June. There is a tendency, therefore, to let the matter rest but this is not good enough. We have to use every means at our disposal to get the Spanish Government to intervene.

Having regard to the factors to which I referred, the ability of the Spanish Government to intervene directly may be limited but the Minister of State should have the question of compensation for workers on strike in the factory in Agreda resolved as quickly as possible. This is the kernel of the issue. The factory in Agreda works on a subcontract basis for the Dubarry plant and it is essential that the moulds are released for the factory in Ballinasloe where they are used in the manufacture of the very popular boating shoe.

There has been much speculation in the media as to whether the workers will be put on short-time. Indeed, the question of whether half the workforce will be paid off has been raised. Such a prospect should not be considered at present, to allow the IDA and SIPTU to find a solution. In this regard I thank the regional manager of the IDA, Mr. Tom Hyland, for the work he has done. I am aware that the management of Dubarry and SIPTU are working hard to resolve the matter and I wish them well.

In conclusion, there have been many job losses in Ballinasloe in recent months. As the Minister of State is aware, Top Quarries closed while there were redundancies at the AT Cross factory. Therefore, it would be a serious matter if there were further job loses in Ballinasloe as a result of the problems in the Dubarry factory. I hope the Minister of State can give us some grounds for hope in her reply this evening.

I thank the Deputy for raising this matter tonight in which my colleagues, the Minister for Arts, Culture and the Gaeltacht, Deputy Higgins, the Minister of State at the Department of the Taoiseach, Deputy Treacy, and indeed many other Deputies have an interest. I share the concern expressed by the Deputy tonight and I assure him that the Government is very concerned about the continuing threat to jobs at the Dubarry factory in Ballinasloe arising from the problems experienced by the company with its Spanish supplier.

As the background to the case has been dealt with in detail by Deputy Kitt, in the newspapers and in radio programme I will not waste the time of the House by going over the same ground. The Deputy asked about progress and the up-to-date position. In particular he raised the question of redundancy payments for the Spanish workers which is the crux of the matter.

I should point out that since the problem arose, Government Ministers and Departments, the IDA and SIPTU have all been working very closely in support of the company to seek a resolution of the problem. The Department of Foreign Affairs has been very active in this case and the embassy in Madrid has been working very closely with the Dubarry representative in Spain and with visiting SIPTU officials in dealing with the Spanish workers, management and the examiners appointed by the Spanish courts.

A number of weeks ago the Minister for Enterprise and Employment, Deputy Quinn, asked the ambassador in Madrid to personally intervene on his behalf in an effort to bring this complicated issue to a speedy conclusion. In addition, the Spanish ambassador to Ireland was contacted in similar terms. When it became apparent that this would not lead to a solution the Minister, Deputy Quinn, personally contacted his opposite number in Spain and further underlined the critical nature of the situation and the likely impact on jobs at the Dubarry factory if the problem was not solved urgently. He informed his opposite number that vital European — indeed worldwide — orders were now at risk, given that Dubarry's products are internationally renowned. In response, the Spanish Minister said that he would take all possible steps to find a solution to the problem within the framework of the collective autonomy that operates in Spain in the region concerned.

The Tánaiste and Minister for Foreign Affairs, Deputy Spring, who is currently in Spain, discussed the matter with his opposite number and has underlined to the Spanish Government the vital necessity to do all in its power to resolve the matter urgently. The Tánaiste and Minister for Foreign Affairs, like the Minister for Enterprise and Employment, Deputy Quinn, received a positive response. It should also be borne in mind that the Spanish factory concerned is in liquidation and in the hands of the courts. Allied to the redundancy issue, it is a complicated matter. Every effort has been made to solve this ongoing problem. The State agencies, in particular the IDA, are also assisting the firm in its current difficulties.

Our main aim is to maintain employment at the Dubarry factory which is one of the best run factories I have ever seen. There is an excellent relationship between the management and unions. It is a model firm. It is quite tragic this malaise has complicated the issue. All the State agencies are working very closely and we are working closely at the highest level in Government, at administrative level and at union level. Indeed, the SIPTU official has been out in Spain for a number of weeks meeting his opposite number in Spain. This is a very complex political, with a small "p", problem to resolve particularly in view of the circumstances obtaining in both firms.

Dubarry has made every effort to maintain its full workforce and has continued to do that in spite of very great difficulties. It is seeking ways every hour of the day to continue to keep every person in employment. It enjoys a very high reputation internationally.

I have given the most up-to-date position. Every effort is being made to ensure that the workers in Dubarry, Ballinasloe, can have every confidence in their future and in retaining their jobs. However, let me emphasise that it is a very difficult and complex situation and we are faced with a very human problem in the firms in Ballinasloe and in Spain. We will have to work ceaselessly to resolve it. I understand a delegation of workers went to Spain with that objective in mind.

As the firm is literally down the road from my home I speak with a certain local knowledge. I know what is happening from speaking to people. There is a huge measure of good-will behind the factory to have the matter resolved and bring it to a reasonable conclusion. I thank Deputy Kitt for raising this matter and I will continue to keep the Deputies informed of developments.

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