I thank Deputy Stanton for tabling this matter. I acknowledge also the brief comments by my colleague, Deputy Michael Ahern. That indicates to me that this is an issue which goes beyond party politics and is one about which we are all concerned.
Irish Steel Limited, and we have discussed this matter here in recent days, was formally owned by the State until it was sold for the nominal consideration of £1 in 1996. It then became known as Irish Ispat Limited. Irish Steel had been making a loss prior to that time and its future viability was in serious doubt. It had run up serious debts and the workforce at the time were facing a bleak future. Under the sale agreement, the State agreed to write off accumulated debts of £17 million and to inject a total of £20 million cash into the enterprise.
Following the announcement by Ispat on 14 June, the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, travelled to London on Friday, 22 June and, together with officials from her Department, met senior management of Ispat at its headquarters. The purpose of that meeting was to discuss the threatened closure of the Ispat plant at Haulbowline in County Cork.
It was made quite clear to the Tánaiste at the meeting that Ispat International considered the Haulbowline plant not to be viable and that steel production there had no future. The Ispat board had made an irreversible decision to close the plant and a meeting of creditors was called for Thursday, 28 June with a view to appointing a liquidator.
Since 1996 when the State sold its shares in Irish Steel to Ispat, Irish Ispat Limited has been a private company. While the Government regrets very much the closure of the plant and the consequent loss of over 400 jobs, we must accept the decision of the company.
There is no information currently on the company's debts or the possible impact on creditors who have been called to the creditors' meeting tomorrow, Thursday, 28 June. If or when a liquidator is appointed he or she will take charge of the assets and discharge the liabilities of the company. It will, therefore, be the responsibility of the liquidator to deal with the company's creditors.
The outstanding debts of the employees in regard to wages, holiday pay, minimum notice, sick pay, etc., or any payments due to the private pension scheme, can be paid from the social insurance fund. Such payments are processed by the liquidator through a scheme which is administered by the Department.
This is a devastating blow to the workforce and their families. I am aware that many of the workers had put a whole lifetime of work into steel working at Haulbowline. The priority now for the Government is to ensure the availability of alternative employment in the area as has been requested and pursued by the Deputies who raised this matter tonight. In this regard, the Tánaiste and I have already been in touch with the director general and chief executive officers of the development agencies operating in the region.
Since Ispat's assumption of the operation of the plant in 1996, the FÁS office in the south-west region has had a direct involvement with the company and the workforce. FÁS will immediately establish local interview facilities in Cobh and Carrigaline, provide a flexible approach to each worker in terms of interview and registration for alternative work, commence contact with the workforce with a series of information sessions on employment opportunities in the greater Cork area, and provide training in a range of programmes, including crafts, information technology and construction skills. FÁS has already established a local support group in order to deliver on the range of labour market services that are available.
I thank Margaret Martin of the Chamber of Commerce in Cobh and the harbour area who got in touch with officials of the Department to offer the assistance of the chamber in whatever way possible. The Cork Development Forum, which was established about five years ago and operates under the auspices of the chamber, will be a major force in the drive to secure new enterprises in the area. The forum is a widely representative group including the Cork County and City Managers, the regional directors of the IDA and Enterprise Ireland and the President of UCC, among many others. Its mission statement is to support the development of the Cork area as a national growth centre and to ensure balanced regional development.
