Dáil Éireann debate -
Tuesday, 5 Dec 1995

Vol. 459 No. 3

Adjournment Debate. - Kingscourt (Cavan) Plant Closure Proposal.

Mr. B. Smith

I thank the Chair for affording me the opportunity to raise this important issue on the Adjournment and I am glad the Minister is present to respond. The announcement of the closure of Iduna Ireland Limited in Kingscourt, County Cavan, has come as a severe blow to the 50 employees of the company, their families and, indeed, the local community. It is the one factory in the area whose employees are almost all female. To lose one's job at any time is heartbreaking but the news of job losses at Christmas is even more difficult for everyone concerned.

I raised this matter by way of parliamentary question earlier today and I sought this Adjournment debate to highlight once again my serious concerns about the loss of these jobs. It would appear from the Minister's reply to my parliamentary question that the decision to close the factory is irreversible due to the company's decision to rationalise its worldwide operations. I appeal to the Minister, and through him to all the State agencies, to explore every avenue and make every contact possible to find a replacement industry as a matter of extreme urgency.

The workforce in Iduna Ireland Limited is highly skilled. That makes the task of IDA Ireland and all the other State agencies to secure a potential investor much easier. The skills of the workforce, coupled with the strong work ethic of the people of Counties Cavan and Monaghan — and I am sure the Minister would include north Meath as well — make Kingscourt an attractive town for any potential investor.

The existing employees of Iduna Ireland Limited want to work and Kingscourt and its catchment area cannot afford to lose those jobs. Kingscourt is a town with great community spirit and an enterprise culture. A potential investor would be given the utmost help and co-operation from the local community and local public services.

I know from officials in the State agencies that they are fully aware of the strengths of Kingscourt as a centre in which to invest, with its easy access to airports and ports, to densely populated centres and, most important, the availability of a top class workforce.

I trust the Minister will ensure that the negotiations to secure a replacement industry will be conducted with the utmost urgency because that employment is absolutely necessary for the individuals concerned and the Kingscourt area in general.

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

I assure the Deputy that the proposed closure of Iduna Ireland Limited is a matter of great concern to me. I share his anxieties at the effects this will have on the workforce, their families and the Kingscourt economy. In my written reply earlier today, to the Deputy's question, I referred to the reasons leading to Iduna's decision to close and also to the strenuous efforts being made to find a replacement industry.

Basically, the position is that due to increased competition from the Far East and high production costs in Europe, Iduna NV, the Dutch owners of Iduna Ireland Limited decided to rationalise their worldwide operations. As a result, the company advised IDA Ireland earlier this year that they intend to close the Kingscourt plant. At the request of IDA, Iduna deferred closure until the end of the year and the plant is now scheduled to close on 22 December 1995. I have asked the State Agencies to do everything possible to find a replacement industry for Kingscourt. In this regard the overseas and regional offices of IDA Ireland have been informed of the impending closure of the facility and the availability of a skilled workforce.

As I mentioned in my reply earlier, IDA Ireland is making every effort to seek a new investor for this facility. Interest has been expressed by a number of potential investors and the IDA is currently engaged in ongoing discussions with one of these investors.

Both IDA and Forbairt are continuing to promote the Kingscourt area as a suitable location for further industrial development.