Dáil Éireann debate -
Wednesday, 27 Apr 1994

Vol. 442 No. 1

Adjournment Debate. - Carrick-on-Shannon (Leitrim) Factory Closure.

Mr. Ellis

I wish to thank the Chair for allowing me to raise this subject on the Adjournment. I pay tribute to Wessel Industries for the contribution it has made to the economy of Carrick-on-Shannon for almost 40 years. The company was set up in the mid-1950s under a Government incentive programme and it has been reasonably successful since then.

Its recent closure with the loss of 42 jobs is a blow to an area that has suffered a number of serious industrial losses.

During the past 12 months there have been job losses with the closure of the GEA plant in Carrick-on-Shannon and, in the neighbouring town of Drumshanbo, with the closure of the Lairds jam manufacturing plant. The Minister and the IDA should specifically address the problems in Carrick-on-Shannon by attracting an industry to replace Wessels or, if possible, provide aid to save some jobs in that company. The loss of 42 jobs in that area is as severe as the loss to Galway of the Digital company 12 to 18 months ago. In the context of our major industries 42 jobs would be considered small but such loss, in addition to 40 manufacturing jobs during the past 12 months, is a major blow to that area.

I appeal to the international wing of the IDA and the Department to set up job creation projects in Carrick-on-Shannon to replace the jobs lost recently. That is not an easy task but Carrick-on-Shannon has a good basis for attracting industry. Some of the jobs in Wessels should be protected or, if that is not possible, the IDA and the Department of Enterprise and Employment should give special treatment to that area to replace those jobs lost.

That area has suffered a decrease in population during recent years and is probably the area in the west that has suffered most. Now that a long-term employer has gone out of business the Government and the IDA should give a commitment to provide a replacement industry.

Minister of State at the Department of Enterprise and Employment (Mrs. O'Rourke)

I fully appreciate Deputy Ellis' concern about the impending closure of Wessels Ltd., in Carrick-on-Shannon in County Leitrim. I an conscious of the effect its closure will have on the employment situation there and on the employees concerned. Deputy Ellis emphasised the good record of the company in Carrick-on-Shannon and its beneficial impact on the surrounding countryside.

On 21 April 1994 Wessels announced the closure of its operation in Carrick-on-Shannon with the loss of 42 jobs. I understand negotiations were concluded and agreement reached on the terms of closure with the employees and their union. The other Wessels operations in Dublin and Longford are not affected.

The plant at Carrick-on-Shannon, owned since 1982 by Wessel Industries Ltd. was established in 1953 to manufacture wiring accessories. Since Wessels took over manufacturing was carried out under licence for a UK grouping.

Over the past two years the electrical accessories business has experienced increasing competition from the Far East. The competitors are mainly Hong Kong companies. Faced with a deteriorating market and in a desire to improve its profitability by using surplus capacity in the UK, the licensing company decided not to renew the manufacturing licence with Wessels and to distribute the product directly to the Irish market. That decision resulted in the recent announcement of the closure of the company.

While the withdrawal of this manufacturing licence will result in the closure of the facility, Wessel Industries has actively sought alternative business for the Carrick-on-Shannon plant in conjunction with the international wing of the IDA Ireland and Forbairt, its domestic wing.

I am aware that IDA Ireland has made numerous attempts to find suitable projects — joint venture partners — to provide work and save jobs at the Carrick-on-Shannon plant since it became aware of the impending withdrawal of the manufacturing licence. Those efforts included IDA overseas offices entering discussions with a number of potential investors. Despite those strong domestic efforts and those of a concerned community, no suitable partner has been found.

Against this background, IDA Ireland, in conjunction with Forbairt, continued to actively seek alternative business for the Carrick-on-Shannon plant. I am glad to tell Deputy Ellis that as a result of these efforts, his efforts and those of concerned community leaders, in recent weeks, a party has been identified who has indicated a definite interest in establishing a new alternative electrical manufacturing business, albeit on a smaller scale than the Wessel plant. Negotiations are at an advanced stage on this proposal with Wessel and Forbairt. I assure the House that every effort is being made to facilitate the start-up of this new business as quickly as possible.

In the broader context, I am confident that the difficult employment situation in Leitrim will improve. I am aware that Forbairt has been working closely with community groups in the area in order to encourage and promote employment opportunities and that a number of companies, supported under the small industry programme, have grown to become medium sized ones. I can assure the Deputy that both the IDA and Forbairt will continue to actively market the Carrick-on-Shannon area as a first class location for investment. In this regard, the development agencies are making a special effort this year to market the advance factory of 24,000 square feet in the area which it has recently acquired.

There are strong indications — I am not prepared to go further — of a replacement industry, albeit on a smaller scale, for the Wessels factory. The advance factory of 24,000 square feet in Carick-on-Shannon is being aggressively marketed. Forbairt is actively encouraging the development of small community industries and some have commenced. Carrick-on-Shannon needs all the positive help possible. I hope the Deputy's raising this matter will result in positive news for Carrick-on-Shannon in the near future.