Dáil Éireann debate -
Wednesday, 23 Jun 1999

Vol. 506 No. 6

Adjournment Debate. - Job Losses.

Mr. G. Reynolds

I wish to share time with Deputy Ellis. I welcome the opportunity to raise this matter in the House.

We were devastated by the news that 40 jobs were to be lost in Drumshanbo. The employees have been informed that these job losses will take place next Friday. There is a young workforce at Leitrim Foods in Drumshanbo and, unfortunately, the chances of those young people being re-employed in County Leitrim are extremely slim. In the past 18 months in County Leitrim, 100 jobs were lost in Ballinamore and now 40 will be lost in Drumshanbo.

The Government established a task force 12 months ago but it has not yet reported.Unfortunately, that will not save the jobs of the 40 people who face job losses next Friday week. I call on the Government, particularly the Tánaiste, to intervene in this matter in Drumshanbo to see if it is at all possible to save these jobs. If they are not saved, it is highly unlikely these young people will be re-employed in the county. County Leitrim has a difficulty in that it needs people and jobs. It has less than 700 industrial jobs and these 40 to 50 jobs losses are equal to 500 in an urban centre. It is a devastating blow, particularly to the young people and their families.

I understand the Tánaiste is on a trade mission to the United States, and I hope she is successful. I also hope she is successful in bringing further employment to County Leitrim because we are fed up seeing jobs being created elsewhere. County Leitrim seems to be the only county losing jobs. Not only do we need job creation but policies should be put in place so that we can have sustainable jobs. I hope the reply we receive from the Minister tonight will give some hope to the people facing a difficult time in the coming weeks.

Mr. Ellis

I thank Deputy Reynolds for allowing me to share his time. We both tried to raise this matter on the Adjournment but he was successful. I sympathise with the workers in Drumshanbo who have been issued with redundancy notices for next Friday week. We are all shocked that this company, which is part of a major food processing company, has been unable to continue its operations in Drumshanbo. In light of that, there is a need for the IDA and Enterprise Ireland to take immediate action to provide jobs in County Leitrim. We have had considerable job losses, despite the gains in other parts of the country, and there is a need to bring sustainable jobs to the area. When I say that, I mean jobs of a high skill nature. Some of the jobs which the county has secured in recent years are in highly competitive markets, such as the food market in which this company was engaged. We all know that when one is operating in a very competitive market, there is a grave danger that job losses can occur at short notice.

A task force was put in place following the Ballinamore textiles saga, and I call on that task force to report immediately to the Government so that we may seek positive action by the Government, IDA and Enterprise Ireland. The loss of these jobs cannot be sustained by the county. While we may have had some good news today as regards the new tax incentives which will be available in the area, there is no use putting those incentives in place if we do not have the necessary back-up from the job creation agencies to ensure we reap the benefit of them.

The only way we can maintain our county is if we get special priority treatment from the IDA and Enterprise Ireland. I spoke to the Tánaiste about this matter prior to her leaving for the United States and she assured me she will do everything within her power to endeavour to have replacement jobs found as quickly as possible. Having spoken to the company, I believe there is no prospect that it will be able to continue.

Mr. N. O'Keeffe

I thank Deputy Reynolds and Deputy Ellis for raising this important matter. I very much regret this development and extend my sympathy to the workers of Leitrim Foods and their families. The loss of an industry, whatever its size, is a traumatic experience. This loss will affect not only the workers, their families and the local economy, but also the wider rural community. The decision to close Leitrim Foods was made by the management of this concern on commercial grounds.

The House can be assured, however, that every effort is being made and will continue to be made by Enterprise Ireland to obtain an alternative enterprise for the Drumshanbo facility. Towards this end, discussions are taking place on an ongoing basis, but at this stage it is essential of course that this process should not be prejudiced in any way. I will, of course, remain in close contact with Enterprise Ireland on the matter.

I understand that the closure affects the ready meal and sauce manufacturing element of the enterprise and that the burger operation is scheduled to continue in different premises from September next. I also understand that the reason for this closure is that the level of sales necessary to make the company viable did not develop. Trading conditions for an enterprise, such as Leitrim Foods, are always fraught with an element of risk and, as is the case with industry in general, the extent to which our food industry can maintain and expand its market position will be determined by its ability to function successfully in today's competitive climate. It is recognised that the food industry is particularly competitive.

The current development strategy for the food industry, the food sub-programme, has enhanced the competitiveness of the sector and considerable progress has been made across the sector in positioning it to meet the competition. The range of support measures has encouraged greater productivity and increased efficiencies. Allied to the market-oriented nature of the strategy, these have assisted the industry to increase total output by £2.2 billion and exports by £1.I billion over the 1994-98 period.

The Food Industry Development Group, established under the aegis of my Department, has also highlighted the need for continuing attention to competitiveness and market orientation. The group's report points out that the competitive pressures on the industry will increase and that the extent to which it can meet growth opportunities depends on its competitiveness and capabilities in terms of price, quality, variety, innovation and service. The group recommends building on the actions undertaken in the food sub-programme.