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Dáil Éireann debate -
Thursday, 22 Feb 2001

Vol. 531 No. 2

Adjournment Debate. - Factory Closures.

I welcome the opportunity to raise this matter in the House. The announcement last Thursday that Celtic Circuits Limited, Listowel, will close down on 2 March came as a major disappointment to the 33 staff members at the plant. The closure also represents a significant setback for job creation in Listowel and its hinterland, which has been hard hit by job losses over the past five years. The town lost 105 jobs when Neo Data closed in 1997, 55 jobs in Radlink in 1999 and 75 jobs in Munster Electronics in 1997. A local food company, Caterbake, also closed in 1999 with the loss of ten jobs. The combined loss of 250 jobs over the past four years in a town of this size is equivalent to a loss of at least 100,000 jobs in Dublin. One can imagine the outcry which job losses on that scale would cause in the capital city.

Celtic Circuits, which was established in early 1998, manufactured printed circuit boards in the medium-sized high-tech speciality area. Despite large investments in plant and machinery, the company got into difficulties, largely due to lack of sales and slowness in building up its market. Other contributory factors included the slow-down in the US economy and strong competition from products imported from Asian and east European sources.

I commend the diligence and hard work of the company's managing director, Mr. Kevin Neville, and his staff over the past three years. The com pany developed from producing single layer printed circuit boards to manufacturing quality-assured, high-tech, multi-layered and gold-plated products. The commitment and dedication of the employees was exemplary at all times. The employees are willing to co-operate in every possible way with any future purchaser of Celtic Circuits. They are prepared to be reasonable and receptive to any proposals to secure the survival of the company.

In view of the job losses in Listowel over the past few years and the fact that the local community has raised more than £1 million under a BES scheme to construct a state-of-the-art advance factory in an effort to attract industry to the town, I ask the Minister to see that a special effort is made by his Department, the IDA and Shannon Development to secure an industry for Listowel.

This town now has four empty industrial sites. I doubt if there is any other Irish town, outside the major urban centres, with this amount of unoccupied industrial space available. This level of job losses is unacceptable. I ask the Minister to back the genuine efforts of the local community and labour force to promote industrial development in Listowel by directing the IDA and SFADCo to give top priority to finding a replacement industry as soon as possible.

I share the Deputy's concern at the loss of 33 jobs in Celtic Circuits. This loss is a major disappointment to the people of Listowel and its immediate area. The company was established in 1998 to manufacture printed circuit boards. Its initial development was based on the annual demand for such products from two specific companies. The intention was then to build on this business. Celtic was an Irish owned operation and an investment of over £2 million had been put into the company by way of plant and machinery. The company has suffered significant losses since last year and this has led to unsustainable accumulated losses over the years. The company has been trading at a loss and this could not continue, and responsibility to ensure it did not continue rested with the company directors. A further investment of approximately £500,000 was needed for the company to keep trading. Current problems stemmed from competition in the Far East as the price of printed circuit boards has fallen worldwide. This competition has made it extremely difficult for Celtic to secure business locally. A typical example is that the company recently bid for particular business in competition with a supplier from the Far East and the winning price from the Far East supplier was equivalent to Celtic's material costs.

Despite large investments in plant and machinery, lack of sales and slowness in building up the market are largely responsible for the company's difficulties. Furthermore, the situation has not been helped by the slow-down in the American economy and by heavy competition from printed circuit boards imported from the Far East and eastern Europe, as I have already outlined. Unfortunately, the directors of the company had no further options open to them and last Friday, 16 February, they informed the company's employees at a meeting that the company would cease to trade and would go into liquidation.

The present position is that the company has called a meeting of its creditors and this is scheduled to take place on 1 March. I understand that the company will cease trading at that time. The workforce has been kept informed of developments. Over the coming days, parties who might have an interest in a printed circuit board facility will be contacted and informed of the situation. I hope something will emerge from this consultation process.

I will ensure that the State development agencies, IDA, Shannon Development, Enterprise Ireland, the Kerry Enterprise Board and FÁS, will all work closely together and with other interested parties to find a replacement industry for Listowel and also to promote the development of existing industry in the area. The full supports from FÁS will also be available to the workers. These include briefing the workers on their options, individual interviews with the workers to understand their specific needs and making available a short training programme to include job seeking skills and confidence building measures.

I am confident that a focused development agency approach, integrated with a local based approach, both of which address the employment situation, will make it possible to find a replacement industry for the jobs that have been lost. Shannon Development has been particularly concerned with and interested in improving the employment situation in Listowel.

In addition to Shannon Development's efforts there has been a strong focus by IDA Ireland over recent years on achieving better progress in job creation and economic development in north Kerry. Five new projects were announced in north Kerry over the past three years, four in Tralee and one in Castleisland. These projects will create over 700 jobs for the area. I share Deputy Deenihan's concern and appreciate that there is a large surplus of available workspace in the area, as he pointed out. My Department and the State agencies are giving this matter the highest priority. We are optimistic that through negotiations over coming weeks and months we will find a replacement industry as quickly as possible to ensure that the skilled workforce in the area is not lost.

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