Dáil Éireann debate -
Thursday, 4 Feb 1999

Vol. 499 No. 5

Written Answers. - Job Losses.

Phil Hogan

Question:

67 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the recent loss of employment in Kilkenny Textile Mills, Kilkenny; the urgent proposals, if any, she has to improve the manufacturing base in Kilkenny arising from this further loss in employment; if her attention has further been drawn to the deep public concern in the Kilkenny area in relation to the manner in which State agencies have been unsuccessful in attracting inward investment that will create manufacturing employment in Kilkenny city; and if she will make a statement on the matter. [3105/99]

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

I am naturally disappointed that Kilkenny Textile Mills (KTM) is making 40 staff redundant in its Kilkenny factory. Unfortunately, it comes as a result of competitive pressures from towelling producers in the Far East.

KTM was established in Kilkenny in 1983 following the closure of Fieldcrest, the US towel producer. KTM is a wholly owned subsidiary of Santens BV, Belgium, a family owned group engaged in the manufacture of terry towelling products.

On 18 January 1999, Kilkenny Textile Mills announced that, as part of an overall restructuring plan, the company proposes to seek 40 redundancies in its spinning plant. These redundancies are a major blow to the 40 employees concerned. I have asked FÁS to ensure that an appropriate programme is put in place for those who are being made redundant.

In relation to the Kilkenny area generally, I have been pressing for some time to have additional industries located there. Government policy is directed towards encouraging foreign industries to locate in regional areas and I have again taken the issue of foreign industry for Kilkenny up with the IDA.

An infrastructure has now been put in place to attract more investment into Kilkenny. The new 55 acres business and technology park being developed by IDA Ireland in the town is a key part of the strategy to encourage modern businesses in sectors such as information technology, healthcare and international sectors to locate in Kilkenny. A new 25,000 sq. ft. modern advance factory has commenced construction on the new business park and a 24,000 sq. ft. advance office building will commence construction shortly. Both of these buildings will be strong incentives to bring new business into Kilkenny and they will be important new tools in the IDA's promotion of the location.