Dáil Éireann debate -
Thursday, 29 Jan 1998

Vol. 486 No. 2

Adjournment Debate. - South Kildare Task Force.

Mr. Wall

I thank the Minister for taking this matter, which is of vital importance to my constituency, particularly the south of the constituency. The trouble for this area began in the late 1970s and early 1980s when there were major job losses. From having approximately 12 active industries with a high level of employment, the problem began with the closure of Irish Board Mills Limited with the loss of approximately 150 jobs. This was followed by the closure of IVI with a similar loss of employment. The downward trend continued with the closures of Sherwood Medical Limited and Pymah and dramatic reductions in the workforce of Bord na Móna and a number of other industries such as Peerless, Sportswear Limited., Minch Norton and others. In each case the losses were due to economic factors and not the unfortunate workforce. The workforce available is of the highest calibre.

The news in relation to Borden Limited is a cause of despair. I was an employee of Borden for the past 13 years. The possible loss of a further 60 jobs would decimate south Kildare, particularly Athy. It would be the fifth industry to close in the area without any replacement being found. I ask the Minister to make every effort to tease out all avenues in an effort to save the company. A community cannot sustain such losses. I cannot sufficiently impress upon the Minister the effect the closure of Borden would have.

The education system in Athy is excellent with good schools, committed teachers and strong support structures within the schools, all helping to prepare the child to become a student. Unfortunately there is nothing in the area to complete the cycle by ensuring the student becomes a member of the workforce. The unemployment figures for the area show no reduction. Comparison of the 1990 and 1996 figures shows an increase in unemployment for the area which goes against the national trend. As elected representatives, we cannot permit this to continue. We must ensure every effort is made to rectify it and that Athy is no longer an unemployment blackspot.

It is imperative that the Minister puts in place a task force of the relevant State agencies and local representatives and organisations, such as trade councils, development associations, the chamber of commerce and the local UDC. This local input is vital to ensure everything possible is done to put all local information and ideas regarding possible investment in the area at the disposal of the Department and the State agencies.

I have met the chief executive officer of Forbairt, the regional directors of the IDA Ireland and Forbairt, the Kildare County Manager, the ASK Partnership board of directors and many others in an attempt to further the efforts of this area in obtaining further investment in industry. However, this fragmented method is not achieving short-term results, although I believe these efforts will result in long-term advantages.

The intervention of the Minister is important. I ask that the Minister establish the task force as a matter of urgency in order to end the decline and to help Athy regain its rightful place as an area of high employment.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. T. Kitt)

I thank the Deputy for raising the matter and I wish to assure the House that I share his concerns on the future of the Borden factory in Athy.

I wish to briefly set out, for the information of the House, the background to the difficulties facing the plant. Borden International produces milk powder and is second to Nestlé, the multinational conglomerate, in this global market. The company has two facilities in Ireland, situated in Mallow and Athy, with approximately 60 people employed in each plant.

The Mallow plant purchases milk powder and cans it. The plant in Athy manufactures metal cans and sells a major proportion of its output to the Mallow facility which, I understand, will be closed as a result of the agreement by Nestlé to acquire Borden International's milk powder interests. This means that the Athy plant will lose its largest customer, thus jeopardising employment there.

Forbairt is working closely with Borden and other interests in order to secure the future of the Athy factory and maintain employment to the maximum extent possible. The Deputy can rest assured that everything possible is being done to safeguard employment at the plant.

The other two companies mentioned by Deputy Wall have been closed for some time. IDA Ireland continues its efforts to find a replacement industry. In the case of the former Sherwood Athy plant, there have been a number of recent site visits by interested overseas investors to the facility.

On the general question of employment in South Kildare and Deputy Wall's suggestion of a task force for that area, I would point out that a considerable amount of work is being done by the industrial development agencies in conjunction with community and local authority representatives in the area to promote the establishment and expansion of industrial projects. Negotiations are ongoing between IDA Ireland and interested parties in relation to the provision of an advance factory in Athy. Also, planning permission is currently begin sought for a new privately funded advance factory at Newbridge which, when occupied, will have a positive impact on employment opportunities for the southern region of the county.

As regards County Kildare generally, I should point out that the county does well in the matter of job creation. The recent Forfás employment survey shows that in terms of both net change and first time jobs, Kildare had the second best outturn after Dublin. The continued expansion of major companies located in County Kildare, such as Intel, Hewlett Packard, Wyeth Medica, Modus Media, Oral B and Donnelly Mirrors, indicates a strong growth expectation for 1998.

It is also of interest to note that although some of the traditional large employers in the food sector in County Kildare have reduced their employment levels, new companies, now leaders in the consumer product market, have been established and have created new employment.

The development agencies are working closely with industry and local interests to promote industrial development in the South Kildare region through the attraction of new industry and the expansion of existing industry. In the light of current developments, the agencies are intensifying their efforts to facilitate additional investment, job creation and job maintenance in this region. Given this ongoing work, I am not convinced that the establishment of a specific task force for the region is required to address the current problems.

An Leas-Cheann Comhairle

It is important that Members who have matters on the Adjournment should come into the House in good time. I am in the position this evening where, with no Members being present in the House, I would be obliged to adjourn the House without pursuing the other matters on the Adjournment.