Dáil Éireann debate -
Wednesday, 23 Feb 2000

Vol. 515 No. 1

Written Answers. - Job Protection.

Nora Owen

Question:

83 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason jobs are threatened in a textile factory (details supplied); the efforts, if any, she is making for replacement jobs; and if she will make a statement on the matter. [5568/00]

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

Jay Bee Limited, Carndonagh, County Donegal, advised employees on 16 February that owing to difficult market conditions and low cost competition, it has no option but to close the plant. The company currently employs more than 100 people and all redundancies will be implemented on a phased basis between mid-March and mid-April. FÁS will undertake a programme of registration interviews for the workforce who will all be offered re-training opportunities.

Jay Bee Limited has been competing in the mid-market ladieswear sector, supplying formal blouses to many well known high street names in the UK. This product segment of the market has been under severe price competition from low cost imports and the sterling differential, coupled with a declining demand for the products caused by a shift to casual wear, changing lifestyles and a reduction in clothing expenditure. Given the high labour cost element, the company concluded that it is no longer cost effective to produce these garments in Ireland.

It has for some time been recognised that the clothing sector will continue to contract in terms of employment and the number of companies involved. The Irish clothing industry is in a period of great change, as the effects of a strong economy influence the economic factors underlying the sector. Donegal has been particularly badly affected by the reduction in employment in the clothing sector. However, the Government is committed to finding replacement jobs for Donegal. As a result of intensive promotion of Donegal by Enterprise Ireland, I announced last week the details of a major investment package leading to the creation of over 200 new jobs for Donegal. Most of the jobs are in the internationally traded services area and all of them are in Irish companies.

I met with the Donegal task force last week to discuss the implementation of its recommendations and other development opportunities for the county. The task force report has ensured that Donegal now has a head start on other counties in terms of devising an economic development plan and in ensuring the various public, private and community interests can continue to work together to ensure that the needs of Donegal are met.