asked the Minister for Enterprise and Employment his views on the closure of Donegal Rubber, Ballyshannon, County Donegal, on 8 February 1996, and the subsequent loss of 67 permanent jobs.
Private Notice Question. - Closure of Ballyshannon (Donegal) Plant.
I share the Deputy's concern at the loss of a further 67 jobs at Donegal Rubber. The plant has been in operation in Ballyshannon since 1978 and has given good employment in the area since then. For the past few years concern has been expressed about the future of the company, because of the situation at the parent company which was experiencing decline in market share and in a weak financial position.
Donegal Rubber competes in a very highly competitive lower, marginal segment of the rubber auto components market. In 1995 the company introduced cutback measures involving the layoff of 126 full-time and part-time workers. The IDA had been aware of the company's difficulties and have maintained close contact with both local Irish management and the parent company in Germany. I understand the IDA introduced a number of potential investors to the company but none of these attempts has come to fruition.
The closure of the Ballyshannon plant takes place against the background of the difficulties being experienced by the parent company and the closure is part of a restructuring of the parent company's activities. I have asked the IDA to redouble its efforts to find a replacement investment for the area and to work with other State and voluntary agencies for this purpose. I have also contacted Forbairt asking for a particular effort to assist Ballyshannon.
I thank the Minister for his reply. Is the Minister concerned that over the past 18 months to two years when a review on restructuring was taking place in this company, at the behest of the IDA and Údarás na Gaeltachta, that the expansion of the company some years ago—as suggested by many in Ballyshannon—was to their detriment and downfall?
I presume the Deputy is referring to the expansion in the Údarás plant. The plant was grant-aided prior to my term in office so my knowledge of its background is scanty. Obviously, the agencies concerned assessed the project and were satisfied that there were real market opportunities in 1991 for further growth in this product market. It has now transpired otherwise. If, implicit in the Deputy's question is concern that the agencies are not sharing information and being conscious that there is no danger of displacement, I assure her procedures are in place to ensure that a decision in relation to one agency does not encroach on another. We must view this closure in the context of 800 to 900 people being made redundant in the German company prior to the decision being made at Donegal Rubber. This was a broad based restructuring of their operation and it is against that background this has occurred. I assure the Deputy that every effort was made to protect these jobs. As recently as yesterday, the chief executive of the IDA was engaged in intensive meetings in Germany. I have spoken to him since then but no positive outcome could be achieved. We are conscious of the needs of Ballyshannon which I have stressed to the IDA and Forbairt.
Arising from the Minister's assurance that he will impress on the IDA and Forbairt the necessity for investment, will he consider setting up a task force, involving all the State agencies, to work with the local people and some of those who will lose their jobs to ensure we have real investment, given that there are almost 1,000 people on the live register in Ballyshannon, to which will now be added 67? Following the changes regarding the ESB station and probably at Finner Camp there are major difficulties in Ballyshannon given that it is an employment black spot. Will the Minister give an assurance that he will set up some type of organisation or task force what would work with all the State agencies and the local people to encourage investment and, perhaps, to make available the existing factory, which is owned by the German company, to others who may invest in the town?
I am not in a position to agree to the establishment of a task force. The difficulty with that type of proposal is that every time there was a company closure a task force would have to be established and there would be a multiplicity of task forces. That would not be an effective use of the resources of the State agencies. The company has agreed to make the premises available at a special rate and to work with the IDA in seeking alternative industry for the factory in Ballyshannon. Forbairt is working with the Erne Trust on the idea of an enterprise centre or incubator unit. I hope their work will come to fruition.
On the broader strategic issue, there is no doubt that in general the availability of suitable land presents a problem in attracting inward investment to the Border counties. As the Deputy will be aware, this issue is being addressed by an inter-agency group to see whether some of the funding available for the Border region could be usefully channelled towards this purpose for the provision of important infrastructure.
I cannot agree to the Deputy's request, although understandable, that a specific task force be established, but I hope the work that is in train will keep Ballyshannon to the fore.
Will the Minister ensure that there is positive discrimination in favour of the town to ensure that it does not lose out in attracting potential investors to the Border region? As he can appreciate, feelings are running high following the loss of this industry.
The IDA is determined to do all it can to ensure that a replacement industry is found. This is at the top of its agenda. I have contacted the chief executives of the respective agencies, Mr. Kieran McGowan and Mr. Dan Flinter, to emphasise the needs of Ballyshannon.
That disposes of questions for today.