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Dáil Éireann debate -
Tuesday, 20 Feb 1996

Vol. 461 No. 7

Adjournment Debate. - Portarlington (Laois) Engineering Plant.

(Laoighis-Offaly): I am grateful for this opportunity to raise a matter of great concern to the people of Portarlington and, in particular, to the families of approximately 200 workers whose livelihoods depend either directly or indirectly on Butler Engineering. I know this concern is shared by Deputy Cowen and my other colleagues in the constituency.

While this group of companies has seen good and lean times over the years, it has remained one of the major employers in the Portarlington area. It came as a great shock to the town last Friday to learn that Mr. Ray Jackson had been appointed as receiver of Butler's. The ripples of fear and apprehension have spread throughout the community since then and I am asking the Minister on their behalf to tell us clearly that his Department, Forbairt and all the relevant State agencies are doing everything in their power to protect and preserve these jobs.

The engineering sector within which Butler's operates is difficult and competitive. That the group has suffered, since the passing of the late Mr. Pat Butler, is not in doubt, neither is it any secret locally that the terms of the last State investment in the group were somewhat controversial, especially in relation to net job creation and lack of trade union representation in the newer part of the group. Nevertheless, Butler Engineering has succeeded in competing for and winning much valuable business over the years, not only in Ireland but also abroad. Examples of its work can be found at the TEAM Aer Lingus headquarters in Dublin Airport, the Riverside Stadium in Middlesborough and also at Hampden Park in Glasgow. Ireland needs modern technological companies such as this.

The midlands region, which has dozens of engineering companies, many founded on skills built up over the years in firms like Bord na Móna and the ESB, needs major flagship firms such as Butler Engineering. The tradition of high quality engineering skills which has grown up around this company must be protected and everything possible must be done to promote it and provide new jobs in the future.

The town of Portarlington needs help from whatever quarter it can get it. It has seen the loss of many jobs in traditional industries. An example is the closure of the ESB power station some years ago. Butler Engineering, along with another local factory, Arlington, provides the bulk of employment in the area. People in the town are concerned but they are also fighting back. Local students won this year's Aer Lingus Young Scientist Competition. The local enterprise and tidy towns groups, and statutory bodies such as the county council and the County Enterprise Board, are trying to enhance the attractiveness of the town and build on its excellent road and rail links to attract new industry. Their efforts would be dealt a body blow should the jobs at Butler's be lost. This cannot be allowed to happen.

The legal situation regarding receivership or examinership has yet to be clarified. That gives us time to act but whoever acts must ensure that the group continues to trade, that the jobs are protected and that the company is expanded.

I thank the Minister of State for coming into the House to address this urgent issue. I wish to acknowledge also the interest and concern shown by the Tánaiste, with whom I discussed the matter yesterday, and by the Minister for Labour Affairs, Deputy Eithne Fitzgerald, who has agreed to my request to meet representatives of the workforce on the matter this Thursday. Co-operation, hard work and urgent action are required to save the jobs, reassure the workers and their families and give some hope to the town of Portarlington. I hope the Minister of State can assure us that this will be forthcoming.

I thank Deputy Gallagher for raising this important matter especially in so far as the employment of 140 people in Portarlington is at risk. Butler Engineering, based in Portarlington, County Laois, is a long established indigenous engineering company which has been engaged in structural steel fabrication for both the Irish and the UK markets. It is by any standard a sizeable Irish company and in recent years it has been involved in a significant export trade to the UK market. Employment at the Portarlington operation currently stands at 140.

As the Deputies will be aware, Butler Engineering has been experiencing trading difficulties for some time which, over a period, have led to substantial losses. I fully appreciate the importance of the employment afforded and I assure Deputy Gallagher that for several years considerable efforts have been made by the relevant State agencies and financial institutions to assist in putting the plant on a more viable footing. Unfortunately, those considerable efforts have not proved successful to date.

Last Friday, 16 February, a receiver was appointed to the group. Yesterday, a petition was presented to the High Court for the appointment of an examiner and a court hearing for this appointment has been set for 26 February. Pending the hearing for this appointment, the company is under the protection of the court. The Government fully recognises the importance of Butler Engineering both economically and socially, in particular for Portarlington, and the problems which could arise through any major job losses at the plant. We acknowledge the important role a company of this size can play in the overall fabric of life in a town such a Portarlington.

I assure the Deputies in the House that every effort is being made and will continue to be made to ensure a commercially viable solution can be found for the plant. Forbairt will provide every assistance possible with a view to facilitating a restructuring or take over of the plant and the safeguarding of the optimum employment. I am hopeful that the ongoing efforts will be successful at safeguarding the future of the plant.

Butler Engineering has liabilities totalling £3.55 million to Forbairt, £2.5 million in capital grants and £1.05 million in preference shares.

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