I raise this item on the Adjournment to draw attention to the fact that Comer International is experiencing difficulty in relation to the current market. The company employs 180 people plus a number of part-time staff and seasonal operators. It has been in the Castlecomer area for the past 33 years and is the main player in the world-wide yarn market. In fact, the world headquarters of its operation is based in Castlecomer. Its customer base covers over 67 countries. Its effectiveness, in terms of the marketplace, can be underlined by the fact that it is there for 33 years and is a main player. The difficulty it is experiencing is due to costs and its product is mounting up because of the company's inability to deal with the price on the current markets.
I want to draw attention to its cost base. I raised some of the issues here almost 12 months ago. This industry has given good employment in north Kilkenny for 33 years. It is one of the only companies to have lasted for such a length of time. Most of that area in north Kilkenny where it is located is recognised as disadvantaged under the RAPID programme. If this factory was to run into difficulty it would cause further economic problems for the area.
There is an in-built bias in investment towards the IT sector and while I support the development of information technologies, perhaps it is time to look at the development of a bias towards the textile industry which is currently under threat. I ask that the PRSI rates for this sector be reassessed and that the energy costs sustained by companies' such as Comer International be addressed also. Last year this company paid £1.5 million in energy costs, an increase of £250,000 over the previous year. That is a serious disadvantage to the company as it adds to the cost of the product going to the market and makes it uncompetitive.
I have no doubt that if the various State agencies give the appropriate support to the company at this stage it will pull through its present difficulties. It is extremely important in terms of the employment it gives to north Kilkenny. It behoves us to give as much attention as possible in terms of State support to the company. I understand that a meeting is to take place shortly between company management and some of the representatives of the State agencies and I hope that out of it will come some type of structure that will deliver benefits to the company in terms of its markets and will examine the cost structure in regard to the issues to which I have drawn attention, particularly PRSI and energy costs. Because of the presence of a skilled workforce and good management through good times and bad, if we structure some kind of support for the company it will pull through and grow and prosper. Take-overs have been occurring in that sector and if we are to the fore in supporting that industry in north Kilkenny we will ensure it continues into the future. It has built on fairly secure jobs and we can maintain those, but it does require assistance with its current difficulties.
