Dáil Éireann debate -
Thursday, 10 Jul 1997

Vol. 480 No. 3

Adjournment Debate. - Asahi (Mayo) Plant.

Ms Cooper-Flynn

Ba mhaith liom ar dtús mo comhghairdeas a thabhairt duit agus tá siúl agam go néireoidh leat sa phost nua. This morning I raised the matter of the possible closure of the Asahi plant. Since then, unfortunately, events have been overtaken with the terrible news at 1.30 p.m. today that the Asahi plant is to close. This news is disappointing for the north Mayo region as it involves the loss of 315 jobs and the loss of an annual investment of £10 million into the local economy. There is already a serious unemployment problem in the north Mayo region and a resultant dependency on the social welfare system.

The loss of the 315 jobs affects not only people in Mayo but people in neighbouring counties such as Sligo. The news is particularly disappointing given that today I spoke to staff members of the Asahi plant and also to the union representatives. I have no doubt that had this matter been referred to the Labour Court tomorrow, as offered by the union representatives, a solution could have been found. I am disappointed the Japanese management could not wait an extra 24 hours to see if it was possible to find a solution to this serious problem which has thrown the north Mayo region into crisis.

The union representatives would have been available today, or tomorrow at 2.30 p.m. as arranged, but unfortunately, they received a negative response from the Japanese management.

A number of questions must be asked. This company has been in existence for the past 20 years and even though there are different cultures between the Japanese and the Irish, the Japanese management was well aware of the industrial relations procedures that exist in Ireland and that it is common for matters to be referred to the Labour Court Why could an additional 24 hours not have been given? It raises the question of whether the viability plan drawn up by the previous Government before the general election was viable or was just an election gimmick to get us over that date in June. This is a very serious situation.

I welcome the efforts being made by the Minister. I have just come from a press conference with her a moment ago and I accept she is making every effort to ensure that another industry will be found for the north Mayo region. However, the track record of State agencies in this regard in County Mayo is very poor. Last year the IDA announced 17,000 jobs in Ireland as a whole but not one job in County Mayo. I know the Minister is committed, but I would also ask for commitment from the State agencies to ensure that a real effort is made under the new North Mayo Enterprise Initiative to find an alternative industry. Currently in County Mayo thousands of people are devastated as a result of today's decision which they cannot understand.

Is there any possibility, even at this late stage, that the Japanese management might reconsider and go to the Labour Court tomorrow? Is there any possibility that if the employees in the Asahi plant, who are meeting at present, reballot their members this evening, the factory could be saved? I thank the Tánaiste for her efforts to date. The loss of this factory is of primary concern to the people of Mayo. The proposal to look for a viable alternative is welcome, but it would be better to save the factory we have because it is very difficult to attract jobs to this region.

Tánaiste and Minister for Enterprise and Employment (Miss Harney)

I thank Deputy Cooper-Flynn for raising this issue on the Adjournment. I share with her the concerns she has expressed about the announcement today by Asahi Chemicals of its decision to withdraw from Ireland. That will be a devastating blow to the workers involved, to Killala and to the north Mayo region.

I assure the Deputy of the Government's commitment to act immediately to put in place a North Mayo Enterprise Initiative with a view to seeking an alternative buyer for the plant at Killala, looking at the possibility of training or retraining the workers involved, working with the IDA to find an alternative foreign investor for the plant and supporting indigenous Irish industry in any efforts it might make to locate in that region. I am particularly conscious that there is an advance factory in Ballina. It would be my intention, working with the new North Mayo Enterprise Initiative, to find a suitable industry to locate in that area, and we will leave no stone unturned to bring that about.

The textile industry generally and the synthetic fibre sector of that industry have been going through enormous rationalisation over the past ten years. This company has suffered enormous losses, notwithstanding the fact that it has received substantial grant-aid and State support. In Europe generally only nine out of 20 plants remain, and only five out of 11 companies in this business. The parent company in Japan made a decision some time ago to withdraw from certain segments of the market. That included a decision to withdraw from Killala. It wanted to withdraw on favourable terms by supporting a management buy-out option. That option was a very good one, and the company was supportive of it. I regret very much that the workers did not think alike. For that investment-led option to work the support of the workers was necessary because it would have required enormous restructuring in work practices and in other areas. In a letter dated 3 July, the parent company made it clear to the workers that they would accept the outcome of the ballot. Unfortunately, it was in the negative and the company acted accordingly.

Notwithstanding the ballot, the industrial development agencies, Forbairt and the IDA, met for some considerable time yesterday with the vice-president, Mr. Namba. Later last evening I and the Minister of State, Deputy Kitt, met him and his colleagues. We asked for more time to give the workers an opportunity to reflect on the decision that had been made. We were keen that the industrial relations machinery of the State should be made available to resolve the difficulties if that were possible. However, it was very clear that there was no going back; they were not willing to go back on the decision they had made because the board of the parent company had made that decision and had made it clear all along that the only basis on which they would support the management buyout was with a decisive vote from the workers.

Today the workers were told of the management decision and, although the Chairman of the Labour Court made it clear that she was willing to intervene, the company is not prepared to facilitate a hearing tomorrow before the Labour Court. We may regret that. I certainly regret it. The SIPTU official, Ms Jeanette Hughes, said today that the decision was final, that there was no way of going back.

However, we must not engage in the blame game. We must look to the future, and it is with that in mind that this morning I invited the County Manager, Mr. Des Mahon, to chair the new North Mayo Enterprise Initiative. It will include members of the IDA, Forbairt, FÁS and from the Ballina Chamber of Commerce, a representative from the local community and Bishop Finnegan. I hope they will set about their task very quickly. I intend to meet them shortly, and the Government will give them every support in seeking alternative opportunities for the workers involved here and for the region generally. We hope that our combined efforts, the partnership approach that we are supporting in making this announcement, will succeed in delivering an alternative opportunity for the workers and their families in a region that will tonight be very devastated by what they have just heard. I hope that this initiative will work in the same way as the initiatives taken when there were factory closures in Tallaght, Ballyfermot, Tipperary and Galway. People working together, focused on the future, wanting to provide opportunities and fill the vacuum that will inevitably be created can achieve an enormous amount. In that, they will have my full support and that of the Government.

I thank Deputy Cooper-Flynn who has been in touch with me constantly in relation to this matter, as has the Minister of State, Deputy Moffatt. I hope to work with her and the other representatives from the area to turn around a devastating blow in a very short time.