Dáil Éireann debate -
Tuesday, 21 Nov 2000

Vol. 526 No. 3

Adjournment Debate. - Job Losses.

Mr. O'Shea

I thank you, a Leas-Cheann Comhairle, for the opportunity to raise this urgent and important matter. I also thank the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Treacy, for coming to the House to reply, but given the gravity of the situation in Waterford I am disappointed the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, is not present – I saw her in the House a short time ago.

This evening 119 people employed by Tech Industries in Waterford face a bleak winter. Last Friday out of the blue the company announced it would close its factory on 31 December next and that every job would be lost. The timing could not be less opportune as families prepare for Christmas. The news was greeted with shock and alarm, not just among the workforce and union officials but also within the wider community in Waterford.

Tech Industries has been in Waterford for 22 years. The company makes bottle caps for the cosmetics industry and it claims that its current trading problems are the result of rising inflation, exchange rate problems and a significant increase in the cost of the main raw material for this industry, oil. While new employment opportunities have been created in Waterford in recent years it still has a stubbornly high rate of unemployment. Unemployment rates in some areas of the city and county are nothing short of scandalous. Unemployment is still a major problem in the constituency and the potential loss of 119 jobs is a devastating blow.

Workers at Tech Industries have mortgages and bills to meet. Their lives have been thrown into turmoil by last Friday's announcement. Despite talk of full employment which is increasingly becoming an accepted truism trotted out by economic commentators and others, the reality in my constituency is that if these jobs are lost the workers will face an uphill struggle to find new jobs with decent pay and conditions.

I urge the Tánaiste to take immediate steps to fight to ensure that as many jobs as possible are retained at the plant. Local trade union officials are confident that a large number of these jobs can be saved and that the plant can remain viable and continue to provide employment in Waterford. With this goal in mind SIPTU, the union representing the majority of the workers in the plant, is eager to enter into immediate negotiations with the company. A meeting took place this afternoon and I ask the Tánaiste to fully support the efforts of the unions at the plant. A high level of intervention by both the Minister and the IDA may well be crucial in reversing the company's decision to pull out of Waterford completely.

In addition to the immediate question of saving the jobs at Tech Industries, I support trade union calls for the Minister to establish an employment task force for the Waterford region. There has been a constant haemorrhage of jobs from Waterford over recent years and the record of inward investment there has not matched that in other counties and regions. Waterford is an excellent location for employment and significant investment can be attracted to the constituency if an overall plan involving all State agencies such as the IDA, Enterprise Ireland, FÁS and the Waterford Institute of Technology is drawn up and everyone works to a common agenda.

I sincerely hope the Minister of State will be able to give positive news to the workers at Tech Industries and the Waterford community. All of them are deeply concerned at the poverty and disadvantage which unemployment still causes in the constituency.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The Tánaiste, Deputy Harney, had a prior commitment and, consequently, could not be present. She was in the House for the previous debate because she had a personal interest in it and was available. I am honoured to take this debate on her behalf and I assure the Deputy that the Government takes collective responsibility seriously.

I thank the Deputy for raising this matter. I regret the announcement by Tech Industries of its intention to cease production in Waterford, where it has provided valuable employment to many people since 1987. The company employs 117 people in the manufacture of injection and compression moulded bottle caps which are mainly used in the cosmetic industry.

Tech Industries informed IDA Ireland on 20 November 2000 of its intention to cease production in Waterford on 31 December 2000. The company stated that there has been a severe decline in markets caused by exchange rate, inflationary and other pressures. These included a significant increase in the cost of its core raw material, a by-product of oil. The company operates on high volumes and low margins and could not continue passing on price increases to its customers.

Tech Industries made significant investment in the plant in recent years and despite efforts by management and employees, the company is unfortunately no longer capable of sustaining ongoing losses. IDA Ireland has spoken with the president of the company who outlined these reasons for the announcement of the closure. The IDA is liaising with US management on avenues which could be explored to preserve certain elements of the project which are viable in Waterford. These discussions are at an early stage.

IDA Ireland continues to actively promote Waterford city and county as a suitable location for inward investment projects. In 1999 both Allied Signal and AOL Bertlesmann announced expansions which between them will create 500 jobs. This is an endorsement of the success of the companies' existing facilities in Waterford. In 2000, Microbrush in Dungarvan was approved to create 35 new jobs in the dental hygiene field.

Other positive developments include a new 25,000 square foot advance building to be constructed in the Waterford Industrial Park and the development of a prestigious 70 acre technology park on the Cork Road near the Waterford Institute of Technology. Site development is almost completed. Planning permission has been obtained for 200,000 square foot of office buildings, to be constructed by the private sector. In Belview, IDA Ireland has assembled 176 acres which is being promoted as a strategic site for large process industry. The IDA is continuing to work with the Belview forum towards the provision of services including gas, electricity, water etc.

In addition, Enterprise Ireland is working with indigenous industry in the Waterford region to assist it to develop sustainable competitive advantage. The agency aims to build on the success achieved in the area in 1999 when a net gain of 107 jobs was achieved by companies in its client base. In a separate development in February last NTL announced the establishment of a high-tech customer management centre which will create 250 jobs.

FÁS employment services officers are to meet the staff at Tech Industries. They will hold individual guidance and counselling interviews. Following this process FÁS will provide guidance in relation to jobs and appropriate training courses. I am confident that the strenuous efforts being made by the development agencies will yield positive results on the industrial front for Waterford and it is not proposed to establish a task force at this time. However, I assure the Deputy and other Members from Waterford that the Tánaiste, myself, our colleagues in Government, the Department of Enterprise, Trade and Employment and the State agencies, including the IDA, Enterprise Ireland and the county and city enterprise boards in Waterford, will do our utmost to ensure that this difficulty is overcome as quickly as possible and further investment is made in this important area.