I wish to share my time with Deputy Coughlan.
Adjournment Debate. - Donegal Plant Job Losses.
Is that agreed? Agreed.
Herdmans (Ireland) Ltd. has been in Ballybofey for 30 years and has provided industrial employment in an area where such opportunities are severely limited. Because of recent difficulties, mainly due to the downturn in the linen industry caused by the strength of sterling and the virtual collapse of the Far East market for linen, Herdmans is obliged to introduce redundancies in its plants on both sides of the Border. Forty-one employees out of a total workforce of 108 in Ballybofey are being made redundant within the next few weeks. This is a severe blow, not only to those who are losing their jobs but to the economy of the Finn Valley where there are so few alternative employment opportunities.
Many of the workers concerned have given up to 30 years devoted and loyal service. At this stage of their working lives the prospects of other employment are almost negligible. Unless circumstances in the Finn Valley change for the better their future would seem to be among the ranks of the unemployed. The workers accept that these steps must be taken by the company to protect the remaining jobs. However, our priorities must be twofold. In the first instance we must ensure that the remaining jobs in Ballybofey remain viable and permanent. We appreciate the company's decision to maintain operations in Ballybofey and perhaps in the future when there is an upswing in the linen market it may be able to expand the workforce.
The second priority is to treat those being made redundant as generously as possible. They are being offered statutory redundancy plus 25 per cent. The workers are not being unreasonable. In fact they are highly responsible and are only asking for a little more, namely statutory redundancy plus 60 per cent.
I understand that there is an application with the IDA for assistance to purchase new winding machines for the plant. Will the Minister use his good office to expedite this application and do anything which can be done to improve the redundancy package?
The Finn Valley area is an unemployment blackspot. The Minister should urgently request the Department and the job creation agencies to give the establishment of jobs in the region the highest priority. The jobs lost in Herdmans need to be replaced immediately to restore spending power in the Finn Valley area and, in particular, in the Ballybofey-Stranorlar areas.
I am grateful for the opportunity to speak on this matter. The Finn Valley area is an unemployment blackspot. It has been neglected for many years without real investment or the provision of new employment. Therefore, the loss of 41 jobs in Herdmans is a body blow to the area and to those being made redundant. Herdmans has a strong tradition in Ballybofey and the linen industry and I realise that the company has to rationalise, mainly as a result of the closure of the Japanese market and the reduction in sales in the Far East. One of the company's greatest concerns is that all its sales are in sterling and the difficulties it faces are due to the strength of sterling.
I appreciate the commitment of the company and the family to the Ballybofey area. It has tried to be as fair as possible in the rationalisation programme with losses occurring on both sides of the Border. However, the employees have shown commitment over 30 years and should be treated fairly and equitably. Their concerns about the redundancies should be listened to and a more acceptable offer should be made to them. I am also concerned about the long-term viability of the textile industry. The support services should be made available by the Department to assure the 65 people remaining in the company that their jobs will be safe and that every effort will be made to assist the company to market its products.
There is a need to create new jobs in the Finn Valley area. We have to deal with the Northern Ireland situation in competition with the Northern Ireland bodies to the detriment of many Border areas. The Celtic tiger has developed in towns such as Letterkenny but Ballybofey, Stranorlar, Convoy and Killygordon have not developed. Every effort should be made to create new employment in the Finn valley area and to support the existing jobs in Herdmans. I would appreciate the Minister's personal intervention in this matter.
I am naturally disappointed at the announcement that Herdmans (Ireland) Ltd. has decided to make 41 of its 108 strong workforce in Ballybofey redundant. The loss of these jobs will be a great disappointment to the people of Ballybofey and the surrounding area. I fully appreciate the concerns which the redundant employees and their families are experiencing. The Deputies are aware that the company is in the process of an overall restructuring programme. The process will not only affect the Ballybofey factory but also the company's operations across the Border where it plans to close two mills at Killyleagh Yarns, County Down and Henry Campbell Yarns, Mossley, County Antrim, resulting in a further 200 job losses.
Herdmans, which was established in Ballybofey in 1964 to manufacture grey yarn for the linen industry, has been affected by difficult marketing problems. These difficulties arose due to the high value of sterling and the financial crisis in Asia. The inability of the company to maintain its competitive edge in the world export market has forced it to radically restructure its operation.
While the decision to implement cutbacks in both Northern Ireland and Ballybofey is disappointing, I accept that it is important for the Herdmans Group to take the necessary remedial measures to ensure the long-term viability of its operation, thereby helping to safeguard the remaining 67 jobs in Ballybofey. Herdmans recently advised the Department that it intends implementing the redundancy programme in Ballybofey between 20 June and the end of August 1998. On the question of redundancy terms, this is a matter in which I have no function. However, I am aware that discussions have been taking place between the relevant trade union and the company management.
I am concerned that the redundant workers should be well equipped to find new job opportunities. In this regard, FÁS and the industrial agencies have been asked to maximise the employment opportunities in the north-west. FÁS has advised me that personnel from its placement services office in Ballybofey will be inviting all of the redundant workers for interviews in order to determine their training needs and to advise them of the job opportunities currently available in the region. The ex-Herdmans employees will be invited to apply for the various training schemes run by FÁS. If sufficient numbers require a particular training skill, FÁS will consider running a special course to cater for these needs.
In tandem with the direct action taken by FÁS, the development agencies are doing everything possible to maximise job opportunities in the Donegal region. Donegal is a target location for inward investment by IDA Ireland. The agency has put in place a number of new measures including higher grant levels and improved marketing material to assist in the marketing of County Donegal.
I am hopeful that the co-ordinated efforts of the various agencies will help the 41 redundant employees to obtain replacement jobs as quickly as possible. I thank the Deputies for making the case for these unfortunate workers in such a sincere manner and for highlighting the need for investment and job creation in their region. At their request, I will take a personal interest in the matter and indicate my desire and that of the Government that a special effort be made to ensure County Donegal and Ballybofey in particular receive the full support of the IDA, Forbairt-Enterprise Ireland and the County Donegal Enterprise Board to attract further investment to the area and assist existing companies to take on extra staff. We will do our best to ensure a collective and co-ordinated effort is made to ensure the Deputies' wishes are fulfilled.