Dáil Éireann debate -
Thursday, 16 Feb 1995

Vol. 449 No. 3

Adjournment Debate. - Threatened Job Losses at Cork Plant.

Mr. D. Wallace

I take this opportunity to congratulate the Minister for Enterprise and Employment, Deputy Richard Bruton, on his appointment and also my constituency colleague, Deputy Allen, on his appointment as Minister of State at the Department of Education and at the Department of the Environment. I wish them both every success.

The threat to more than 100 jobs at the Sunbeam factory is a cause of utmost concern to all the representatives of this northside Cork constituency.Our area has been hit by a number of industrial blows in recent years and has borne many job losses associated with the closure of Fords, Dunlops and Verolme. The level of unemployment in some streets of this constituency is in excess of 80 per cent and it goes without saying that the loss of a single job in the area is not acceptable. The loss of 100 or more jobs cannot be allowed.

I call on the Government to give the serious developments at Sunbeam urgent and immediate attention. It must take every possible step to resolve whatever temporary difficulties are affecting the company. Since a rapid and effective response is urgently required from the Government I will ask the Minister for Enterprise and Employment to outline his understanding of the situation and the steps he has taken already to defuse the current crisis.

I would like the Minister to outline the precise steps he intends to take to ensure the future viability of the enterprise. For many years State agencies have been actively involved in attracting new enterprises to this country and in many instances they met with substantial success. However, attracting new business is extremely difficult with increasing competition from other countries, especially throughout the EU and Asia. This makes it all the more important that we hold onto and develop those established industries. Where they have a long and proud history, such as in the case of the Sunbeam factory, it is all the more important to ensure the plant's immediate survival.

The knitwear division of Sunbeam directly employs more than 100 workers. When we take families into account at least another 400 or 500 people depend on the company for support.The Minister has substantial resources at his immediate disposal and must make full use of them to ensure the jobs are maintained at all costs.

While the plant may be going through a difficult trading period at the moment it is lucky to have an extremely well-trained and highly motivated staff who must not be let down at this critical time. I thank the Minister for coming to the House to deal with the matter and look forward to his response.

Minister for Enterprise and Employment (Mr. R. Bruton)

I thank Deputy Wallace for raising this important issue. He will be aware that the Minister of State, Deputy Allen, has also been in touch with me for some time about the matter which is of considerable concern to people in Cork. I assure the Deputy that I appreciate the general unease of the company's workers regarding the uncertainty of their future employment. I know that the problems at Sunbeam are a matter of great concern in the local area.

I well understand that the people in Cork are concerned and worried about the effects job losses would have on the people directly concerned as well as on the local economy. I understand, however, that Sunbeam has been forced to introduce lay-offs in the knitwear section because of severe liquidity problems.

As the Deputy is aware, Sunbeam has a long tradition in Cork having been originally established in 1954. In recent years it has experienced various changes. The UK Response Group took over the company in 1986. The present Sunbeam Industries took over the operation in 1990 after it was put into receivership following the collapse of the UK company.

Since its start-up in 1990, Sunbeam Industries has provided employment for more than 300 people. It has achieved a major growth in sales in its various operation division — knitwear, socks and underwear. Unfortunately, this growth in sales was not matched by profits leading to the company's present liquidity difficulties. The knitwear division employs about 100 people and is run as a separate company. This division in particular has experienced major cash flow and working capital problems. Sunbeam, therefore, has decided to start laying off some of the workers. It is a matter of extreme regret that 27 employees were laid off last week and a further three are expected to be laid off tomorrow. I understand the company will be reviewing the overall employment position in the light of the work available over the coming weeks.

My Department and Forbairt have been working closely with Sunbeam over the past four years and substantial State funds have been invested in the company over this period. Forbairt has also been actively involved in various ways to help make Sunbeam more competitive.

As part of the ongoing work with Sunbeam, Forbairt has commissioned a firm of consultants to examine the future options for Sunbeam. The consultant's report, which is expected in the next couple of weeks, will help Forbairt and the shareholders decide on the company's future possibilities. I can tell the House and the Deputy that I and my Department, together with Forbairt, will keep in close contact with the company in the coming weeks.