Dáil Éireann debate -
Tuesday, 9 Feb 1999

Vol. 500 No. 1

Written Answers - Kilkenny Plant Restructuring.

John McGuinness

Question:

98 Mr. McGuinness asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department or the IDA have met with the owners or management of a company (details supplied) in Kilkenny; the intentions of this company in relation to the remaining jobs at the plant; the assistance, if any, her Department or the IDA are giving the company; if the employees who lost their jobs are being reskilled by FÁS or the IDA to take advantage of other company expansions in the Kilkenny area; if a skills audit has taken place; if other companies have been notified of the results of such an audit to determine if the available skills can be matched to vacancies or possible future vacancies; and if she will make a statement on the matter. [3573/99]

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

Kilkenny Textile Mills, 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. Reducing employment to 40 will allow the plant to operate at full capacity, thus negating the need for short-time working. In this regard, the company has given assurances that the remaining jobs at the plant are secure.

To date there have been no job losses at the Kilkenny plant, as the company is in negotiation with the trade unions on a redundancy package. The IDA has been in contact with FÁS with regard to a skills audit of those employees to be made redundant. FÁS has offered its services and proposes to provide interviewing facilities at the plant and training courses to the employees concerned. In addition, those who are to be made redundant will be considered for suitable job vacancies notified to FÁS.

The IDA has been in regular contact with the management of Kilkenny Textile Mills and will continue to work closely with the company and offer assistance wherever possible.