Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 17 Oct 1995

Vol. 457 No. 1

Adjournment Debate. - Job Losses at Ballyshannon (Donegal) Plant.

I thank the Ceann Comhairle for allowing me raise this matter on the Adjournment. I wish to share my time with Deputy McGinley.

I am sure that is satisfactory.

Yesterday evening we heard the inevitable news that 126 temporary lay-offs in Donegal Rubber Limited would become permanent redundancies from 1 December next. This is regrettable given that Ballyshannon is already an unemployment blackspot.

Donegal Rubber Limited which has been based in Ballyshannon for many years has unfortunately had to succumb to market pressures which have led to decreasing orders for car components. It is regrettable that only 65 jobs will be retained in this plant which was set up by a German company. I impress upon the Minister the need to secure the 65 remaining jobs and to ensure that the IDA follows through on its contacts to attract another investor in the company. He will have to work in conjunction with Údarás na Gaeltachta in this regard but I ask him to please ensure that there is a new investor in this company.

I also ask him to again consider setting up a task force in Ballyshannon with a view to attracting investment into the area. This town has not benefited from the peace process and there is an opportunity to tap into many of the resources made available as a result of the peace in Northern Ireland. I would appreciate if his Department and Údarás na Gaeltachta worked with the local communities in attracting industry to Ballyshannon which has many benefits such as a national primary road, an electricity supply and many other attributes necessary for investment.

I implore the Minister to ensure there is proper investment in Ballyshannon which unfortunately will also have to deal with a reduction in the labour force in the ESB station. The loss of these 126 jobs in Donegal Rubber Limited is indicative of the lack of investment in the north west region. The great work carried out by one international company, Fruit of the Loom, distorts the IDA figures. I ask the Minister to secure the jobs still in existence in Donegal Rubber Limited.

I thank my constituency colleague, Deputy Coughlan, for sharing her time with me. I too was dismayed by the announcement yesterday evening that 126 workers in Donegal Rubber Limited in Ballyshannon will be made redundant. When the announcement was made at the end of August I immediately contacted the Minister's office. I pay tribute to him for acting so promptly at that time and for getting in touch with the development agencies, mainly the IDA and Forbairt. Those organisations have informed the Minister that they are monitoring the situation in Ballyshannon and doing everything possible to save these jobs.

There are two priorities in so far as Ballyshannon is concerned. First, the remaining 65 jobs in Donegal Rubber Limited should be protected and every support should be provided by the IDA in identifying a new investor and helping the company to survive. Sometimes it is much easier and more important to maintain jobs than to create new jobs. The second priority must be to attract new industry into Ballyshannon which has a skilled workforce, excellent educational facilities and a national primary route which is an attraction for potential investors. The town commissioners and the development association are very responsible and, with the goodwill of the Department and the development agencies, it should be possible to attact a new industry into the town to take up the slack and relieve the problems caused by unemployment. Údarás na Gaeltachta which has an interest in this industry also has a role to play in this regard. I have been assured that there is co-operation between the IDA and workers and I hope we will be able to deliver good news to the people of Ballyshannon who have suffered more than most areas in County Donegal in recent years.

I share the concerns of the Deputies about this matter. The Donegal Rubber plant has been in operation in Ballyshannon since 1978. I fully appreciate that any threat to the future of the company is a matter of considerable concern not just to the workers at the plant but to the Ballyshannon area. The company plans to introduce a redundancy programme which will affect 126 full-time and parttime workers and it will shortly commence consultations with worker representatives regarding the nature of the prospective redundancy package. These measures have mainly been brought about by a difficult sales position and fierce competition in the European car industry. Donegal Rubber Limited competes in the very highly competitive lower margin segment of the rubber auto components market.

The world recession in the car industry in recent years has led to increasingly intense competition in the sector. I have been advised by the IDA that Donegal Rubber Limited, in conjunction with the IDA, is endeavouring to find an investor for its Ballyshannon operation, to strengthen its market share and secure the remaining jobs. The company has stated that it is determined, with the co-operation of others, to secure the plant for the foreseeable future.

Decisions affecting the future of Donegal Rubber Limited are, in the final analysis, a matter for the company and its parent in Germany. I have no direct function in such matters. I have asked the IDA to continue to work with the companies in an effort to achieve the best possible outcome for Donegal Rubber Limited and for employment in the area. I fully share the Deputies' concerns and will impress upon the IDA the need to pursue new investors for the plant.

Deputy Coughlan raised the issue of a task force for the Ballyshannon area to attract investment. The State agencies are committed to supporting initiatives in County Donegal, particularly in the Ballyshannon area. I do not see fruitful progress being made by setting up task forces because, increasingly, there would be a demand to set up a task force for every town in the country. This would dissipate the efforts of the State agencies.

The IDA and Forbairt are committed to working with the voluntary agencies, including the development association, the town commission and the county enterprise board on which Forbairt is represented to attract industry to the area. I will draw their attention to the acute concerns of the Deputies.

Top
Share