Dáil Éireann debate -
Thursday, 30 Mar 1995

Vol. 451 No. 4

Written Answers. - Waterford Wedgewood Funding.

Mary O'Rourke

Question:

78 Mrs. O'Rourke asked the Minister for Enterprise and Employment the State funding given to Waterford Wedgewood; the terms under which such funding was given; the present employment numbers in this firm; the proposed employment numbers; the number of employees who will lose their jobs as a result of this State injection; and if he will make a statement on the matter. [6699/95]

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

Forbairt has been in discussion with Waterford Crystal for the past few years on ways in which it might restore its international competitiveness and thus secure the future of manufacturing jobs at Waterford.

Waterford Wedgewood has drawn up a IR£13 million investment plan which will entail the expenditure of more than £IR7 million on a tank furnace alone. In addition, the company has agreed to undertake a significant R&D programme to capitalise on this new technology. The Government has approved the making by Forbairt of R&D grant assistance towards the programme.

To help support the IR£13 million investment programme, Forbairt plans to make an investment in cumulative redeemable preference shares which will be repaid to that agency within an agreed time frame. The Deputy will appreciate that details of the package negotiated between Forbairt and the company are confidential to the parties.

Current employment is 1.500 and Forbairt accepts that, in the company's drive to achieve international competitiveness, a reduction in employment in the short term will be necessary. Negotiations have already taken place between the company and trade union representatives and agreement was reached on the various issues in relation to the tank furnace last year. The success of the investment programme will dictate the numbers employed in the long term.

Finally, the strategic importance of this industry should not be underestimated. Waterford Crystal is one of the very few home-grown enterprises to become a world-leading brand. Without this substantial investment by the company and the State investment approved, the inevitable result would have been the winding down of crystal manufacturing in Ireland with the consequent risk to all 1,500 jobs and major loss to the economy as a whole.