I wish to share my time with Deputies Ned O'Keeffe, Michael Ahern and Dan Wallace.
Adjournment Debate. - Jobs in Youghal Carpets.
Is that agreed? Agreed.
This is the second time in as many weeks that I have spoken about jobs being lost or jobs at risk in the Cork area. Two weeks ago I mentioned Irish Crown Cork Company Limited which is closing its doors on 20 December and laying off 210 people, thereby making it one of their bleakest Christmases.
There are 300 jobs at risk in Youghal Carpets in Killacloyne because the American owner company has signalled its intention to pull out. I call on the Minister for Enterprise and Employment and IDA Ireland to pull out all the stops to ensure that an alternative investor is found for that company so that these jobs can be saved.
This is a viable industry with a highly skilled workforce which produces a product of prestige. I am proud that all the carpets in my house are Youghal carpets. This company has undergone a series of rationalisation programmes recently which means its productivity is high and its labour costs are competitive. There is a tradition of carpet making in this area which, if lost, may not be recreated. Youghal Carpets is a brand name which instils the same sense of pride as Waterford Crystal. This industry must not be allowed to disappear.
I ask the Minister and IDA Ireland to pull out all the stops to secure these jobs. It is just as important to save existing jobs as it is to create new ones. There is no economic justification for sending IDA officials around the world looking for new investment when they could help to save existing jobs.
I welcome the Minister for Enterprise and Employment to the House because it is seldom that a Minister takes the Adjournment matters. They usually pass them on to the Ministers of State. We cannot afford to lose this important traditional industry. The manufacture of carpet yarn is an old industry on this island and the Minister must protect it.
A total of 315 families face a bleak Christmas at a time when the economy is buoyant and we hear on a daily basis about growth rates and low inflation and interest rates. I welcome the announcement yesterday of 300 new jobs for my constituency, but they will be phased in over three years and many of those industries do not reach their full potential. Why not protect the 315 jobs at risk in Youghal?
The Government's policy on job creation in the southern region is disappointing. Apart from the announcement yesterday, that region has been neglected compared to the Dublin area. I understand the Government was notified some months ago about the problems at Killacloyne, but little or no action was taken. It makes a big deal about announcing new jobs, but there are no announcements when jobs are lost.
Youghal Carpet Yarns is owned by an American company. The Minister made great play about the jobs in Semperit. I urge him to put similar criteria in place to rescue the 315 jobs in Youghal. He should support the management proposals or make the necessary funding available to further modernise that important facility. A study of the plant should be carried out before the jobs are lost.
I thank Deputy Quill for allowing me to say a few words about Youghal Carpet Yarns, particularly as it is located in the parish of Carrigtohill. Having worked as an auditor in Youghal, Celbridge, Ennis, Navan and other subsidiaries, I am familiar with the problems and successes of the company down through the years.
Youghal Carpet Yarns is the only survivor of the group. When I was a Minister of State in the Department of Enterprise and Employment, the plant was reorganised to a become a slim, efficient and profitable plant. The parent company wants to sell it off, even though the management is happy with its success in recent years. I understand the IDA is making every effort to get a buyer for the plant. Many companies depend on it for yarn. It is crucial for the 315 workers and the associated service industries that the Minister makes every effort to secure a buyer for the plant.
I, too, thank Deputy Quill for allowing me to speak on this matter. I appeal to the Minister to become directly involved in the position at Youghal Carpet Yarns.
This is the third occasion I have had to speak on an Adjournment debate about such matters. There were 460 jobs in Sunbeam in Cork in 1994, but there are only 60 now. The Minister's assurances in that regard were not realised. Even though a strong case was made for Irish Crown Cork, the future is also uncertain for those jobs. We are here again tonight making a case for the 350 jobs in Youghal Carpet Yarns. I accept the IDA is doing an excellent job, but unfortunately the future does not look bright for the workers in Youghal Carpet Yarns. I urge the Minister to become directly involved in this matter. While his efforts in terms of jobs in other parts of the country have been successful, that has not been the case in the Cork area. On behalf of the workers in Youghal Carpet Yarns, I appeal to him to become directly involved with the IDA to ensure the jobs are retained and, if not, replacement jobs are found as soon as possible.
I appreciate the concerns of Members in this regard. Several Members from this side also contacted me in the past few days to express similar concerns.
Youghal Carpet Yarns has announced it is to withdraw from woollen yarn spinning at its Killacloyne plant. The announcement was made following the parent company's decision to divest itself of all its axminster carpet operations.
As the Deputy is aware, Youghal Carpet Yarns has undergone a number of changes in recent years. In 1995 it was taken over by Carpets International (UK), which is a subsidiary of Shaw Industries, Georgia, USA. The Cork plant currently operates as a division of the UK operations.
While the woollen carpet industry has declined in recent years, it was hoped that, following the takeover of Youghal Carpet Yarns by the UK company, its future would be secure. This optimism was helped by the fact that Carpets International, following its takeover by Youghal, embarked on a major restructuring of its European carpet operations, including the Killacloyne plant. I understand, however, that Carpets International has now decided to radically and suddenly change its focus, with the result that it is exiting the carpet weaving sector of the business, and concentrating on the polypropylene and nylon part of its operation. This, of course, has impacted on the Youghal plant and, consequently, Youghal Carpet Yarns has been forced to announce its decision to withdraw from woollen yarn spinning.
The company recognises the impact its decision will have on the local community, particularly as it is a long established business. It is with this in mind that the company has decided to gradually phase out its operation in the next few months. During this period, the company, with the full co-operation and assistance of the State agencies, including IDA Ireland, is making every effort to sell the business as a going concern.
I have already discussed the possible sale of Youghal Carpet Yarns as a going concern with one of the directors of Shaw Industries and I have been assured of the group's full support in securing a prospective buyer, which would help protect the maximum number of jobs at the Youghal plant. The owners of Youghal Carpet Yarns recognise the high skills and high level of commitment and co-operation from the Youghal workforce. This will be a major positive factor in securing a new owner for the operation. I am encouraged that there has already been an expression of interest in the Killacloyne plant and this will be pursued vigorously.
I accept that the local community, particularly the employees and their families, are concerned about the future of the plant. I know from contacts from Members on this side of the importance of Youghal Carpet Yarns to the local community. In this regard, I confirm that the State agencies, my Department, local government, Deputies and myself will continue to work closely with Youghal Carpet Yarns and any other interested parties in an effort to find a buyer for the Youghal operation.
Deputy O'Keeffe's belief that Cork is being neglected is unfounded. An additional 5,000 people were employed in the Cork and Kerry region last year. While the position in Youghal is disappointing and must be tackled with vigour, it would be a mistake to suggest that Cork is being neglected by the Government or that there is not good economic prosperity there.