Dáil Éireann debate -
Tuesday, 30 Jan 2001

Vol. 529 No. 1

Written Answers. - Job Losses.

Michael Ring

Question:

176 Mr. Ring asked the Tánaiste and Minister for Enterprise, Trade and Employment the action the Government will take in relation to job losses at a company (details supplied) in County Mayo where there was a loss of 170 jobs directly along with 50 sub-contractors; the help being given to Ballina in this regard; when they can expect replacement jobs; and if she will make a statement on the matter. [2195/01]

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

On 11 January 2001, the company announced the closure of its plant in Ballina. The reasons for the closure are that the plant is not profitable and the business is not core to the parent company. The Ballina plant has suffered from under-investment, loss of markets, price erosion, poor product mix and high logistic costs. It was particularly vulnerable to increases in labour costs. The first redundancies are due to commence in February 2001.

Since the closure announcement, FÁS has been in contact with the general manager of the company on a number of occasions. A FÁS team has been established to assist those being made redundant in guidance and career counselling, in matching for job vacancies and by providing training courses, if necessary.

IDA Ireland is also working with the company in attempting to get a suitable project for the Ballina facility. The company is still in operation and operations are to be phased out in coming months. In the meantime, the company has provided the IDA with a building specification of the plant and a skills inventory of the workforce, with a view to securing a replacement industry.

The IDA and other State agencies have been asked to actively promote Ballina as a location for new investment, particularly bearing in mind that there is a period of some months before the company fully closes. The availability of a prime facility and a highly committed workforce will be a strong attraction for potential investors.

The IDA has radically changed its policies in the past 18 months with the objective of delivering 50% of all new jobs from greenfield projects into the Border, midlands and west region in the period to the end of 2002. Results for 2000 are ahead of expectations compared to the three year target set out at the beginning of the year.

The north Mayo enterprise initiative has been asked to examine the implications of the company's closure and to include its findings in the final report.