Dáil Éireann debate -
Tuesday, 7 Mar 1995

Vol. 450 No. 2

Private Members' Business. - Threatened Job Losses at Cork Plant.

Miss Quill

I wish to share my time with Deputy Wallace. Exactly three weeks ago on February 21, I first raised the issue of the impending crisis at Sunbeam Industries in an effort to alert the Minister and Government to the serious developments there. On almost every sitting day in the meantime, I have attempted to raise the issue either on the Order of Business or by way of Private Notice Question in an attempt to shake the Government out of its complacency and get it to intervene in time to save the jobs in Sunbeam. Today, three weeks later, the grim position has worsened. Unless a successful buyout package can be negotiated immediately the plant will close on Friday, March 10 and 108 workers stand to lose their jobs. This must not be allowed to happen. It would be a mortal blow to the workers, their families and the local economy in north Cork city. This area has suffered severely over the last 12 years as a result of the collapse of a range of traditional industries. One more closure could not be sustained in this area of chronically high unemployment. The position at Sunbeam must be confronted with all the resources we can command.

I wish to bring two factors to the Minister's notice. First, the production capability of the plant is very strong. There is a highly motivated workforce, many of whom are so dedicated that they have not taken annual holidays for three years. Such a workforce cannot lightly be thrown on the scrap heap. Second, market opportunities for the product are very good. There is a strong, solid customer base and there are orders to the value of £2.5 million on the order books as we speak. This is not an ailing industry but one worth intervening in and throwing a lifeline to at this juncture.

Speed is of the essence. Orders for summer stock are now coming in and if Sunbeam cannot meet them immediately the business will go elsewhere and the long term viability of the plant will be in serious jeopardy. I appeal to the Minister to leave no stone unturned, to use all the resources as his command to ensure a successful buyout takes place without delay and that the jobs in Sunbeam get the same level of attention as was given to the jobs in Packard and Irish Steel. An equivalent amount must be invested in this plant to save those jobs.

Mr. E. O'Keeffe

They are to close Irish Steel.

Mr. D. Wallace

I thank the Deputy for affording me an opportunity to join with her in expressing my serious concern at the position in Sunbeam which I outlined on the Adjournment two weeks ago. The Minister gave certain assurances that his Department and Forbairt would be available immediately to assist Sunbeam in every possible way. Unfortunately the position has deteriorated rapidly. Far from finding a solution, on Friday next the company will go into liquidation. I said we could not afford to lose 110 jobs in the region. Not only those with jobs would suffer but their families and others in the community. I am sorry to say that I have not seen any evidence of the commitment given by the Minister regarding the situation I outlined two weeks ago. Deputy Quill mentioned the commitments given elsewhere in the country but such a commitment has not been evident in the case of Sunbeam. I appeal to the Minister to ensure within the next 24 hours that the factory will not close. If it does the implications for north Cork, which cannot sustain such a closure, will be horrific.

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

The commitment given that my Department and its agencies would make every effort to deal with this problem has been honoured. An enormous amount of work has been put into trying to find a solution to the problem and we are continuing to do so at a difficult time and in difficult circumstances.

There is no question of complacency on my part or on the part of the agencies who work on my behalf. As Minister I must work within the law. I do not have the capacity to put money into any company. As Deputy Wallace knows, Forbairt must recommend the proposals. It is important that the House be aware of the capacities and limitations of Ministers. I assure Deputies that I have worked diligently on this issue. Since 16 February, when we last discussed the matter, I have been conscious of the concerns of the workforce about the future.

Robert Andrews Textiles, the knitwear company, is run as a separate operation and has incurred serious losses since its start-up. These became particularly acute over the course of the last year. The accumulated losses have caused serious cashflow problems and led to the decision to put Robert Andrews Textiles into voluntary liquidation.

Since its establishment, Sunbeam has achieved big sales growth in all its operations. Regrettably, growth in sales has not been matched by growth in profits, mainly due to difficult trading conditions in the domestic market, high overhead costs and lack of finance to invest in more up to date machinery and equipment.

Since Sunbeam Industries was formed in 1990 the IDA, and now Forbairt, have made sustained and substantive efforts to aid the company in its endeavours to achieve its target sales growth and commercial viability in a particularly difficult and challenging sector. This included substantial State funds for investment and working capital purposes which I outlined previously to Deputy Dan Wallace.

When I became aware of the recent problems at Sunbeam Industries I asked the competitiveness and employment protection unit of my Department to work closely with Forbairt and the company in their effort to secure the future of the Sunbeam operation in Cork. Forbairt engaged a range of external consultants to assess the financial position at Sunbeam and to advise on its future viability, including the question of a management buy-out of Robert Andrews Textiles. Forbairt has given detailed consideration to all the data at its disposal arising from these reports and is continuing its discussions with all interested parties regarding the various options to secure the future of the Sunbeam facilities at Cork. The question of attracting an outside investor who would be interested in becoming involved in the Sunbeam operation is also being addressed.

As the Deputies will know, I had a very informative and constructive meeting earlier this evening with Ministers and a number of Members of the Oireachtas, including the two present from the Cork area, about the Sunbeam position and have also had discussions with the promoters of the management buy-out proposal for the knitwear company. The management buy-out group submitted a revised proposal which I have asked Forbairt, which was also represented at this evening's meeting, to consider overnight. A short while ago I had discussions with the chief executive and the chairperson of Forbairt about the need to address this issue as a matter of extreme urgency. I have been assured by Forbairt that they are exploring every avenue possible.