Dáil Éireann debate -
Wednesday, 2 Dec 1998

Vol. 497 No. 6

Written Answers - Job Protection.

Johnny Brady

Question:

124 Mr. J. Brady asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals, if any, her Department or the industrial development agencies have to safeguard the current employment at CTM, Southborough, Kells, County Meath; if grant assistance was awarded to any firm manufacturing a similar product as CTM; and if she will make a statement on the matter. [26064/98]

John Bruton

Question:

125 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason 150 jobs are being lost at Southborough, Kells, County Meath; if her attention was drawn to the fact that a major multinational company had plans to switch suppliers at the expense of Southborough; if so, if she made it known to the company; if her attention had been drawn to the fact that a newly established company in Tullamore, County Offaly, was receiving the contract to supply the multinational company; if this new company has been grant-aided by IDA; if the company has sought any financial assistance from the IDA; and the role, if any, the IDA played in attracting this company here. [26065/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

I propose to take Questions Nos. 124 and 125 together.

As the Deputies are aware, I met yesterday with a deputation of public representatives and representatives of management and the workforce to discuss the serious situation arising from the expected substantial redundancies at this company early next year because of a loss of business from its major customer. I conveyed to them my serious concern at these developments and indicated that IDA Ireland is arranging an urgent meeting with the US parent company, CTM, to clarify its intentions with regard to the plant. It will also again be pursuing with the company's major customer the position in relation to existing business. Simultaneously, the industrial development agencies will work closely with the company in seeking to identify alternative markets and job opportunities.

I am fully aware of the valuable employment afforded in Kells by this company over the years and of its importance as an employer in the local economy. I assure the House that every effort will be made to minimise the job losses involved and find alternative jobs for workers affected.

As regards grant assistance to a newly established company in Tullamore County Offaly, I understand that the company in question received no employment or capital grants. The establishment of this company was not, in itself, the cause of the loss of the multinational company contract by Southborough which has given rise to the current difficulties.