I thank the Deputies for raising this matter on the Adjournment. I will examine the problem in AIBP but, as Deputy Ahern knows, we rely on the Labour Relations Commission and the Labour Court, the proven experts in this field, to assist such parties. Their services are available to assist them in resolving disputes. All Governments have correctly taken the view that direct intervention would only undermine those valuable services which have succeeded in reducing the rate of industrial disputes in recent years.
I note the Deputy's comments about industrial infrastructure. My Department is working with the agencies concerned and public representatives to ascertain what can be done in that area. Many Deputies have referred to the matter.
I do not share Deputy O'Rourke's concern about over-reliance on the electronics sector. We have successfully built critical mass in this sector, we have built skills around it and brought in big players. Following sub-supply opportunities for domestic industry and follow-on green field investment by overseas companies, given our track record in this sector, we secured a first mover advantage in the electronics sector and we are now developing the fruits of that advantage. The electronics sector, in particular, is changing rapidly. It is inevitable that in any sector markets will change, products will become redundant and if companies do not develop new products they will suffer. We have a strong and creative electronics sector and we should continue to exploit our advantages in that area.
In the past two months, 175 jobs have been lost in the Key Tronic plant and, recently, Ecco Limited — Harris Ireland — laid off 40 temporary workers. I will outline the position in relation to both of these companies.
The launch of Microsoft's "Windows '95", heightened distributors' demand for the keyboard manufactured by KeyTronic. As a result, KeyTronic increased production, purchased extra equipment and employed an additional 200 people to meet this demand. Now, however, increased stocks and a lower than anticipated demand have led to excess manufacturing capacity. Simultaneously, some of KeyTronic's other customers reduced orders as a result of a less buoyant than anticipated October-December 1995 quarter which has led to a significant build-up in personal computer inventories.
These factors, taken together, have left KeyTronic with no alternative but to reduce capacity. It is unfortunate that the anticipated demand did not materialise and I know that IDA Ireland is examining the position very closely to see what can be done to redress the situation.
Ecco established a facility in Dundalk as far back as 1966 to manufacture electronic protection devices. The company laid off 40 of its temporary workers who were employed specifically to cater for a seasonal demand in their product. Unfortunately, Ecco sales projections for the latter half of 1995 proved to be too optimistic and did not materialise as anticipated. Overall, however, Ecco has performed extremely well in recent years with employment increasing from 265 permanent people in 1992 to 300 permanent people at present. While the company does not foresee the temporary staff being re-employed in the short-term, neither does it foresee any further layoffs.
It is important to point out that County Louth is the location for an impressive array of overseas companies: Quantum, from the US customises the PC hard disc drives produced by IKEI Panasonic, from Japan; ABB from Switzerland manufactures process control equipment for the paper making industry; AFL/Stribel is involved in the manufacture of auto components; National Penn, is involved in the mail order business and Riverside Manufacturing Company Limited manufactures industrial clothing. Clearly, therefore, the north-east region has a significant base of high technology companies which is a key factor in attracting overseas investors. Indeed, the north-east region as a whole has more than 40 overseas clients.
In addition, the announcement last November that American Power Corporation is to locate its uninterruptable power supplies project in Drogheda will result in an investment of £14 million and employment for 300 people at full production.
As regards indigenous industry. Forbairt, through its north-east regional office, continued to actively promote the area for industrial development. For example, during my visit to Boston with Forbairt officers last November. I announced three specific business partnerships between Irish and US companies, including one from County Louth. This was between Creative Media Training Services Limited in Drogheda and Paradign Incorporated of Florida.
Forbairt is also working with Dundalk regional technical college in seeking to source potential technology based startup companies. In addition, on the indigenous side, I draw the Deputies' attention to the recent opening of Potato Cuisine Limited in Drogheda which will create more than 60 jobs.
Both IDA Ireland and Forbairt will continue to build on the developments in Dundalk, and County Louth in general. The big challenge for 1996 is to add to the impressive list of developments in the area. The current peace process will assist the industrial development agencies promotional efforts in the appeal of the entire north-east region and Dundalk in particular.
The Dáil adjourned at 9.10 p.m. until 10.30 a.m. on Wednesday, 7 February 1996.
