Dáil Éireann debate -
Thursday, 19 Feb 1998

Vol. 487 No. 5

Adjournment Debate. - Ballinamore (Leitrim) Textiles.

Mr. Ellis

I thank the Cheann Comhairle for selecting this matter for the Adjournment. It concerns the constituency of Deputy Brendan Smith and the Leas-Cheann Comhairle which will be affected by the closure of this company. A number of people who worked in Ballinamore Textiles come from County Cavan.

Ballinamore Textiles has been in operation in Ballinamore for 25 years. When it was set up it was the flagship of a new renewal in County Leitrim. It came in the wake of the closure of the Dromod to Ballinamore railway line and the area was in a very deprived state 25 years ago. Since then Ballinamore Textiles has been a major employer in the area and employed up to 160 people when it was at its peak.

In October last year there were temporary layoffs which became permanent. On Friday last, 13 February, which I described locally as "black Friday", the company announced, without any notice to anybody, that it proposes to run down the plant over the next eight weeks, making everybody redundant by 10 April. The company stated its reasons for doing that are loss of market share and high production costs. I cannot agree with them, mainly because across the Border the same group of companies are reportedly expanding. I am concerned about whether those jobs are being merely transferred from one plant to another.

We would all sympathise with the workers who have lost their jobs, but sympathy is not of great use to anybody. They want to know what the Government can do to find alternative employment for them in the area.

There are suggestions of a possible takeover of the plant and I understand the former owners are willing to discuss this with anybody. A special package should be provided via the IDA or Forbairt to make it attractive for a replacement industry to take up the premises occupied by Ballinamore Textiles. It has a number of advantages, including a fully trained workforce available to it, with 25 years' experience in the textile industry.

I accept that the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, is unable to attend the House this evening. I am delighted that the Minister for Public Enterprise, Deputy O'Rourke, is taking this debate on the Tánaiste's behalf. Will the Minister convey to her Cabinet colleague the need for priority to be given to finding an alternative industry to replace jobs in an area which has suffered badly in recent times?

Prior to the setting up of Masonite, Ballinamore Textiles was the biggest employer in County Leitrim. I appeal to the Minister and the Government to use their full influence, as we will be doing at local level, to persuade the IDA and Forbairt to put a rescue package in place for the jobs and, hopefully, to find an alternative entrepreneur to take over the business.

Minister for Public Enterprise (Mrs. O'Rourke)

I thank Deputy Ellis for raising this matter. As he said, the Tánaiste is unable to be here, but she has asked me to represent her and the Cabinet in answering the matter. She has already indicated her concerns about the closure of Ballinamore Textiles in a written reply to Deputy Brendan Smith earlier today.

The loss of 106 jobs is a serious setback for Ballinamore and the surrounding area. I fully sympathise with local people but, as Deputy Ellis said, sympathy is not enough. The loss of 106 jobs in an area the size of Ballinamore has enormous implications when it is placed in context.

Ballinamore Textiles Limited was established in 1972 by Cooneen Textiles of Northern Ireland. Up to late last year the company, which manufactures children's clothing, had sold virtually all its output to its parent company, which in turn supplied various multiple stores. Intense competition put great pressure on the Irish operation and, as a result, Ballinamore Textiles had to reduce its levels of projected sales. The question of lay offs was raised in the House by Deputy Ellis and everyone hoped they would be only temporary. Sadly, however, that was not to be the case.

Deputy Ellis may recall that last October, in response to questions raised by him and Deputy Brendan Smith, the Tánaiste asked IDA Ireland to actively assist Ballinamore in identifying new market outlets. While the company did win new orders, it appears they were not sufficient to ensure its future viability.

In a recent press statement, the company referred to these efforts and indicated that as it had only limited access to finance it was left with no option but to bow to market forces. Employees will be made redundant on a phased basis over the coming weeks.

Last Friday, when it was learned that the company intended to cease operations, IDA Ireland was immediately asked by the Tánaiste to liaise with other development agencies and FÁS in efforts to secure alternative employment opportunities for the Ballinamore workforce. The IDA and Forbairt have already contacted a number of clothing companies regarding the possibility of locating in Ballinamore. The IDA will meet the management of Ballinamore Textiles shortly to ascertain the company's plans for the premises.

As well as actively exploring the possibility of finding a new clothing operation, the development agencies are also vigorously pursuing other industrial opportunities for the Ballinamore area. They will meet the company's management and make every endeavour to locate employees in other industries.

As we are all aware, the textile industry is a difficult and competitive one in which to operate and that has always been the case. The increasing use of technology has made it even more competitive. Deputy Ellis said he wants every effort made through the offices of the Tánaiste and the Cabinet to find a replacement industry for Ballinamore. I will certainly convey his concerns to the Tánaiste when I raise the matter with her in Cabinet early next week.