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Dáil Éireann debate -
Wednesday, 22 Nov 2000

Vol. 526 No. 4

Adjournment Debate. - Threatened Job Losses.

Thank you, a Cheann Comhairle, for giving me this opportunity to raise the important question of the future of the Irish Biscuits plant in Tallaght. More than 600 people are directly employed by this company and probably up to 200 other workers are employed in contract services such as transport, cleaning, catering, security and so on. There is also the knock-on effect on companies such as Cadburys and Greencore which are major suppliers to Irish Biscuits.

I welcome the Minister of State at the Department of Agriculture, Food and Rural Development, Deputy Ned O'Keeffe, but I regret that the Minister for Enterprise, Trade and Employment, Deputy Harney, is not present and has refused to take this item during Question Time or on the Adjournment.

This, after all, is an industrial matter, a matter about jobs and the Tánaiste is the Minister with responsibility for industry and jobs. On top of all that, the matter is in her own constituency. There is widespread concern this evening about what the future holds for the people employed at Jacob's or Irish Biscuits. There is a meeting scheduled for Friday next between management and unions in London. Although it is known there has been contact with the Irish Government, it is not known what is the response of the Irish Government or what information the Ministers have in their possession about the future of the plant at Tallaght. Is there a buyer in prospect? We know the French multinational, the giant food company, has put the company on the market. Danone has pulled out, is disposing of the company but we do not know if there is a buyer in prospect. If there is we do not know what the future holds for the plant at Tallaght being maintained as a going concern.

The Ceann Comhairle knows that Irish Biscuits is an operating subsidiary for Jacob's and has almost half the share of the Irish biscuit market. What disturbs me about the absence of the Tánaiste tonight and the Minister of State for Agriculture, Food and Rural Development being present is that there was a very dispiriting response from the Minister for Agriculture, Food and Rural Development, Deputy Walsh, in this House on 26 October when in an extremely casual, off-hand and misleading statement he told the House:

I have no reason to believe that rumours that the company in question is to be placed on the market are anything other than speculation. My information is that the company is currently concentrating on the manufacture of its well-known brands and on sustaining its 600 jobs in Ireland. However, it should be noted that as a private company it is entitled to make its own decisions.

It is clear from that reply that the Minister was wrong and that the Minister took no trouble to establish the true position. At that time the dogs in the street knew that the plant at Tallaght was working well below capacity and that rumours of wind-down, sale or closure were widespread. Now we know that Danone is retrenching to the savoury and snack end of the business but we do not know what is the future of the sweet biscuit part, that is the plant in Tallaght. The Tánaiste refuses to come into the House to make whatever information she has available to the workers at Tallaght. My understanding is that a company called Hicks, Muse, Tate & Furst may be interested in acquiring some of the business being disposed of by Danone. I am hopeful but I do not know that the Tallaght plant may be part of that acquisition. I would like the Minister to tell the House what information he has on that.

Workers who have given many years of loyal service deserve to know what the future holds for them. They deserve the courtesy of a considered and informed reply from the Minister of State tonight. It is critical in an area already badly affected by the closure of the Packard plant – and this plant is no more than a quarter of a mile from the Packard plant – that the jobs at Irish Biscuits are secured. Any assistance toward that objective ought to be forthcoming from the Government. I would like to hear from the Minister of State what information he has and what actions have been taken by the Government to protect the jobs at Tallaght. I hope the Minister of State will be able to tell us that there is a buyer in prospect, if not the company I mentioned then other prospective purchasers and that the jobs will be maintained at the modern plant at Tallaght which has a good industrial relations record and good productivity output and that that plant will be maintained and the jobs will be secured into the future. I hope the Minister of State, Mr. Ned O'Keeffe can confirm that.

I thank Deputy Rabbitte for raising this important matter which is so relevant in his constituency and to others. Irish Biscuits Limited has been producing biscuits for 150 years. It has a well trained work force of more than 600 people and is regarded as an efficient producer within the biscuit industry. Irish Biscuits Limited has indicated to Enterprise Ireland that there are a number of offers on the table by various parties to acquire Irish Biscuits from its parent company, Groupe Danone of Paris. These offers are being considered by Groupe Danone but a decision has not been made to date.

I reiterate the point I made in response to a question to this House at the end of last month, that as a private concern Groupe Danone and Irish Biscuits are responsible for deciding their own future. Decisions of this type are normally taken for commercial reasons. However, it is not axiomatic that job losses follow. Should a new owner acquire the company, Irish Biscuits is confident it can continue and thrive as an efficient biscuit manufacturer.

I share the management optimism about the future of Irish Biscuits. Up to recently, it was purely a production facility and the strategic and marketing decision-making powers rested with the UK facility in Aintree. Now, however, the Belgard Road facility is viewed as a stand alone business unit with the group. It is a profitable company with annual sales of more than £80 million of which a quarter is exported. It has a well-trained work force and unique attributes in that it has the technology to manufacture its speciality mallow products that should serve to ensure its viability and its position on the Irish market. Its market share here is 50 % and growing.

I assure the House that my Department, in conjunction with Enterprise Ireland, will continue to monitor the situation closely.

That is an entirely inadequate response to a very serious industrial situation.

The next two matters relating to Monaghan General Hospital are to be taken together. Each Deputy will have five minutes and the Minister of State has ten minutes to reply.

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