Dáil Éireann debate -
Tuesday, 3 Dec 1996

Vol. 472 No. 3

Written Answers. - Watchdog Committee Report.

James McDaid

Question:

46 Dr. McDaid asked the Minister for Enterprise and Employment if the watchdog committee has reported to him in relation to the current situation in respect of a company (details supplied) in County Donegal; and if he will make a statement on the matter. [23008/96]

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

As part of the early warning system, an interagency group was set up by my Department whose role is to ensure that mechanisms are in place in the relevant State agencies, to enable the early identification of companies at risk. This will allow these agencies to arrange the appropriate interventions in order to facilitate companies in dealing with their difficulties. In line with this objective, IDA (Ireland) which is a member of the group, is keeping the situation at Fruit of the Loom under constant review.

As the Deputy is aware, Fruit of the Loom has placed virtually all of its production staff on a three day working week, with effect from 1 July 1996. Initially, it was envisaged that this arrangement would continue until year end. However, on 8 November 1996, the company announced that it was extending short-time working into the first quarter of 1997. The company has stated that the continuing softness in European consumer products markets, which has led to a decline in demand for its products is the main reason for this extended period of short-time working. I am naturally very disappointed that Fruit of the Loom has been forced to take this decision. It must be recognised however, that this decision was dictated by current market forces.

I should add that, following the company's announcement of short-time working, last June, I met the chief executive of the Fruit of the Loom Inc. in the US and outlined my concerns regarding the overall situation at the company.

I can assure the Deputy, that in conjunction with IDA Ireland, both I and my Department are keeping the situation at Fruit of the Loom under active review. I have asked the IDA to continue its close contact with the management of the company and to give it every possible support in its efforts to restore full-time working at Fruit of the Loom at the earliest possible opportunity.