Dáil Éireann debate -
Tuesday, 17 Oct 1995

Vol. 457 No. 1

Adjournment Debate. - Closure of Killarney (Kerry) Plant.

Mr. O'Leary

I thank the Minister for coming into the House to outline the steps being taken by his Department and the IDA to find a purchaser for the Ireprod factory in Killarney which is due to close with the loss of 75 jobs. The imminent closure of this factory is another blow to the town where the unemployment problem is serious.

Ireprod Limited was established in December 1990 and employed between 90 and 100 at peak times. The parent company has decided to close the plant and transfer all operations to France. It appears to the people of Killarney and the staff in this industry that neither the Department nor the IDA has made serious efforts to attract a replacement industry. This industry was granted a four month reprieve recently and its closure is now imminent on 29 February 1996.

Eighty per cent of those employed are under 30 years of age and a number are married. Others are due to get married and many are already paying mortgages. This industry consists of a sewing section, metal fabrication area, paint plant section and two assembly lines. At one time there were four assembly lines. The staff are young and highly skilled. I ask the Minister to impress upon the Department and the IDA the urgent need to attact a replacement industry.

We all know what happened to the Pretty Polly factory. On Wednesday, 21 June last in a debate on the serious unemployment problem confronting the country I explained that there were approximately 1,500 people registered as unemployed in the Killarney area. The Pretty Polly factory was allowed to close with the full knowledge and consent of the Minister, the Department and the IDA. This was a massive blow not only to the 152 employees but also the business community and the local economy. Following the closure of Pretty Polly, the loss of Ireprod is a further bitter blow.

Unfortunately, many observers take the view that, because of the heavy investment in tourism and the success of the tourism sector, there is no need for industrial development in the Killarney area. Nothing could be further from the truth. While I accept the season is now longer, it must be borne in mind that the industry is seasonal in nature. This has a knock-on effect in the town during the winter months.

Last June I asked the Minister to set up a special task force for Killarney in order to resolve the serious unemployment problem in the area, but he rejected my proposal completely. I ask him again to do so. Such a task force would work closely with the State agencies to maximise the job opportunities.

The live register includes many well educated young people with great knowledge in the various areas of high technology. The experience and tremendous capacity of the Ireprod employees should also be of assistance to the State agencies in their efforts to maximise job opportunities and to attract a replacement industry for the Ireprod factory.

The special task force would assist voluntary organisations in the area, such as the UDC, the Killarney Chamber of Commerce, SIPTU, the Killarney Resource Group, the Killarney Job Creation Forum and others who are doing their best to attract industry to the area, but they lack the necessary finance and expertise to travel abroad to canvass prospective industries. That is the reason a special task force should be established.

The failure of the IDA to fill a 25,000 sq. ft. advance factory in the industrial estate in Ballyspillane must be questioned. What emphasis do the Minister and the Department place on the final destination of industrialists attracted to this country to set up businesses? Is it the Minister's intention to find a purchaser for the Ireprod factory in Killarney, the closure of which is imminent with the loss of 75 jobs, and what efforts are being made by the IDA and the Department to fill the vacant factory space in Killarney town in industrial buildings built by Fianna Fáil?

The IDA has a negative attitude towards Killarney. The bottom line is that the number of persons employed in manufacturing industries in Killarney has dropped from 1,600 to 700 within 12 months. The Minister has done nothing to resolve this problem. I ask him to find a purchaser for the Ireprod factory as a matter of urgency.

Mr. R. Bruton

Ireprod is a French-owned company which acquired the former Kiddieproof factory in Killarney in 1991 for the production of child care products. I understand that the company has been experiencing trading difficulties for some time past which have adversely affected its performance and financial position and resulted in the lay off of some workers.

Efforts to put the Killarney operation on a sounder and more viable basis have not been successful. Accordingly, the parent company has decided to phase out production at the Killarney plant early in 1996. The company has agreed to this timetable with a view to allowing IDA Ireland time to market the plant as a going concern or to attract an alternative project to the factory. In this connection everything possible is being done with the objective of safeguarding employment at the plant.

I am fully aware of the need for the provision of additional significant employment opportunities in the Killarney area, particularly because of the job losses in the area during the past year or so, including the closure of the Pretty Polly factory and the consequential adverse effects on employment and the local economy.

The industrial development agencies are redoubling their efforts to promote the establishment and expansion of projects in the Killarney area. In this regard every effort is being made to ensure an early and favourable outcome. I am confident that the obvious attractions of Killarney and the co-operative efforts of all the interests concerned will facilitate the attraction of much needed new investment and jobs to the area.

The Deputy again suggested the establishment of a task force for the area. As I indicated to his party colleague, Deputy Coughlan, who suggested the establishment of a task force for the Ballyshannon area, the difficulty is that if a task force was established in every area where a particular company was experiencing difficulty, the country would be dotted with task forces and the efforts of the IDA would be dissipated. I would prefer to work with the established networks.

The IDA has good relations with the local community. It is committed to working with them and to redoubling its efforts. Since the closure of Pretty Polly it has been arranging visits to that factory and is determined to attract an alternative project for the Ireprod factory or find a buyer for it as a going concern. That is the best way forward. I will draw the attention of the State agencies to the Deputy's acute concerns and insist that they maintain their strong efforts to maximise job opportunities in Killarney.

The Dáil adjourned at 9.10 p.m. until 10.30 a.m. on Wednesday, 18 October 1995.