Dáil Éireann debate -
Tuesday, 15 May 2001

Vol. 536 No. 2

Adjournment Debate. - Job Losses.

Mr. Browne

(Wexford): I thank the Chair for the opportunity of raising this matter and the Minister of State for coming in to reply.

Enniscorthy received the bad news at the weekend that Wexal Limited was to close at the end of July with the loss of 150 jobs. It came as a great shock to the workers, the business community and the people of the town. Enniscorthy has only three overseas companies, the largest of which is Wexal in which many of the people employed are young people with mortgages. It has come as a major blow to them that they will now be out of a job.

Enniscorthy has suffered severely in recent years. Last year we had the closure of Wennas and Minch Norton, and now have this shattering blow with the closure of Wexal. There has been very little support from the IDA or the Department. We have twice the national unemployment rate and the highest youth unemployment rate in County Wexford, but despite repeated requests for support from the IDA, it has never been given.

Today we had a meeting in Dublin with representatives of the IDA which was not very productive. They talked about the advance factory which is to come on stream and said that Wexford and Enniscorthy were a priority. If the fact that there has been no industry and no job creation in Enniscorthy in the past three or four years is not a priority, I would hate to see what is. The way we have been treated in recent years is an absolute disgrace. Despite high job creation in the country, we have not received our fair share of the national cake. Of about 1,500 jobs created in the south east in the past two years, not one came to Enniscorthy. Very few came to County Wexford. That is unacceptable to me as a public representative from that county. We deserve our share of the national cake.

During the years we were told by the IDA that we did not have the infrastructure in Enniscorthy. We engaged in urban renewal, built new hotels, a new swimming pool, a new cinema and new sewerage schemes. We extended the sewerage scheme to the industrial site on the Dublin Road. We have all the infrastructure in place and still nothing has happened. Enniscorthy has had an unfair deal in recent years. What is needed is for the advance factory to proceed immediately. We need the IDA to purchase a land bank in Enniscorthy and, most important, we need a replacement industry for Wexal.

This situation cannot be allowed to continue. Most of those employed in Wexal are young people with young families. They have bought houses in recent years at between £80,000 and £120,000. They have major mortgages and no hope of getting a job for the future. I ask the Minister of State to use all his influence with the IDA and the powers that be to ensure a replacement industry is obtained for Enniscorthy in the near future and that the advance factory and the purchase of lands will proceed without further delay.

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

I thank the Deputy for raising this important matter on the Adjournment.

I regret the announcement by Wexal International Limited of its intention to cease production in Enniscorthy where it has provided valuable employment during the past 24 years and contributed greatly to the economic life of the Wexford region. The announcement came as a great shock to those concerned. The company currently employs 150 people, of whom 35 are temporarily laid off.

Wexal has had several owners during its long history. Its current owner is Alcoa of Switzerland which acquired it in May 2000 as part of its takeover of the Reynolds Metals Company. Alcoa is primarily a producer of aluminium. Wexal manufactures aluminium tubing for automotive and engineering applications.

On 10 May, Alcoa announced its intention to close the Wexal extrusion plant in Enniscorthy by the end of July 2001. The company stated that the reason for the closure was that the plant was finding it increasingly difficult to compete in terms of production costs with its competitors in Europe.

Since the closure announcement, FÁS has been in contact with the company with which it has been agreed that a number of FÁS employment services officers will meet all the staff to interview them on an individual basis before the proposed closure date. FÁS guidance and counselling interviews will address the question of jobs and training at the interview stage. Depending on the requirement needs of the staff, suitable training courses will be run and every effort made to find alternative employment.

The company initiated a consultation process with employee representatives on 10 May to ensure an orderly closure. It has given a commitment that it will explore all areas to help employees during this difficult period by offering out-placement support and transition support services, such as training opportunities for new jobs. It will also consider various aspects of the plant closure with the local community, customers and suppliers and deal with their concerns with integrity and respect.

The Government is fully committed to ensuring the most equitable distribution of job opportunities nationwide. For this reason, it has ensured the strategy underpinning the national development plan will be driven by a strong emphasis on attracting high value added projects and balanced regional development. The development agencies are strongly focused on achieving this aim and resources are being deployed accordingly.

We are acutely aware of the need to develop employment in the Wexford area and to encourage industrial development in the south east region. Following a report completed by Peter Bacon and Associates, entitled, County Wexford: A Strategy for Economic Development, which highlighted the constraints for future development in the county, the Minister for Enterprise, Trade and Employment established the Wexford Enterprise Initiative with the aim of assisting local interests to identify means of promoting a greater level of industrial investment, including the attraction of mobile international investment to the Wexford region. On 31 March 2000, we received the report of the initiative. It set out a very comprehensive blueprint for the development of the county and makes recommendations across a wide number of investment priorities. To turn it into reality will require a spirit of collaboration, commitment and self help from all those involved. The implementation of the report is being undertaken by a sub-group of the county development board. Its successful implementation will do much to improve the environment for enterprise in County Wexford.

Arising from its involvement in the Wexford Enterprise Initiative, IDA Ireland has developed an integrated marketing strategy for the county with a view to increasing the level of inward investment. This strategy includes a focused sectoral and geographical approach for new greenfield business, coupled with an added value focus for the existing base of overseas industry in the county. It will also include a comprehensive upgrading of IDA Ireland real estate in the county and the provision of new modern facilities to cater for emerging sectors. In relation to Enniscorthy, IDA Ireland proposes to upgrade the five acre industrial site to business park standard. A local community based group has been awarded a BES certificate by IDA Ireland to con struct an advance factory on the site. IDA Ireland, in conjunction with Wexford County Council, is continuing to seek suitable additional land for a new business park. In addition, Wexford Community Development Association and Enniscorthy Enterprise and Technology Centre are being grant-aided under the community enterprise centre initiative which is managed by Enterprise Ireland on behalf of the Department of Enterprise, Trade and Employment. These enterprise centres are aimed at meeting the needs of local communities and assisting them in establishing new start-up businesses.

The implementation of the strategy will position the county to significantly increase the level of investment. IDA Ireland will work towards addressing the various impediments to new inward investment identified in the report of the Wexford Enterprise Initiative, namely, support infrastructure, particularly telecommunications, and skills availability. The Deputy can be assured that the Government and the development agencies will do their utmost to secure alternative employment opportunities for all the workers affected by this unfortunate closure in Enniscorthy.