It is with deep regret that I inform the Minister of the bad news of the closure of the Molnlycke Factory in Dunmanway, County Cork, with the loss of 113 jobs. This information was released on 3 February by the company directors, creating an air of dismay in Dunmanway which has been so badly in need of industrial development through the years. When the factory came to Dunmanway 25 years ago, in 1975, it was a major boom to the town as it was the key factory at that time. To this day 113 people are employed there. Its loss will be severely felt by everybody concerned, including the business people of Dunmanway and the employees of the factory.
I understand the closure has been brought about by competition from companies in the Far East. These companies operate with lower production and labour costs in Mexico and the Far East, bringing about a situation in which European manufacturers find it impossible to compete. I also have the impression that the company has decided to relocate the manufacturing of its specialty single use drapes and sets to Thailand. The decision is based solely on the fact that Thailand provides cheap labour. The fact that the employees in Dunmanway, some with 23 years service, have become highly skilled seems irrelevant.
I urge the Minister to inform the Government of the serious situation which could result from the WTO talks recently opened in Seattle. If the regulations are entertained in the Far Eastern countries, with wages being increased, we would be on par with such countries where currently employees, who are probably surviving on a bowl of rice per day, are being paid a pittance. The time is right for the Minister to ask the Tánaiste and Minister for Trade, Enterprise and Employment to take immediate action on this matter.
I urge the Minister to set up a task force with a view to getting a replacement industry for Dunmanway. When factories closed in places such as Limerick, Galway and Clonmel, immediate action was taken by the Tánaiste to establish a task force to find a replacement industry. That is what the people of Dunmanway and west Cork need. There is a need for action, not soft talk. Action speaks louder than words. The Tánaiste who is also responsible for trade and commerce should visit Dunmanway immediately and instruct the IDA to secure a replacement industry. Dunmanway, the surrounding hinterland and villages, including Rosscarbery, Drinagh, Drimoleague, Ballineen and Enniskean, has been devastated. The workforce will feel the sting of unemployment when they go on the dole early in the new millennium. They do not have much to look forward to.
The Tánaiste should therefore act immediately. I am sorry she is not present to hear what I have to say. I thank the Chair for giving me the opportunity to raise this important matter which I will keep under active review in the hope the Tánaiste will be able to remedy the situation.
