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Dáil Éireann debate -
Thursday, 28 Nov 2002

Vol. 558 No. 3

Adjournment Debate. - Job Losses.

I thank the Ceann Comhairle for allowing me to raise the announcement today of the loss of 185 jobs in Comerama in north Kilkenny. This factory, which was named Comer International in 1969, started operations as a result of the demise of the coal mining industry in the area and it was a significant boost to employment and the economic development of north Kilkenny. Comer International, a company of some size and importance, was able to employ, train and upskill people who had been involved in another industry.

The textile plant at Comerama has been involved in the manufacture of woollen yarn and lycra for export to the fashion trade. Fashion is a cyclical industry and the textile industry worldwide has been subject to upturns and downturns in recent years. There was never an occasion, however, in the lifetime of this plant that unions, management and the company did not come together to resolve their differences.

Recently, the level of activity in the woollen trade began to cause difficulties as cotton became the fashion of the day. This made management and workers concerned for the future viability of the plant. Co-operation between workers and management bailed them out of short-term difficulties in the past and they approached this difficulty in the same spirit. That co-operation was evident when public representatives, management and unions met recently to come up with ideas to persuade the Minister and the Department of Enterprise, Trade and Employment to come up with a viability plan for the factory. Such a plan is vital because it is rare that a plant of such significance can be found in a small town. The national spatial strategy calls for inward and mobile investment in the gateways, hubs and larger urban areas. An employer of the size of Comerama in an area like Castlecomer, however, is not easily come by. That is why every effort must be made to keep the business alive.

The Department of Enterprise, Trade and Employment was informed that a small financial injection would give an opportunity to see if the export of yarn would increase. Unfortunately, this idea was not accepted by the Minister or the State agency. That is regrettable. It is also a matter of regret that the Minister did not, as originally envisaged, see fit to meet representatives of the management, the unions, the workers and public representatives last Tuesday evening to point out the difficulties she had and to give an opportunity to members of the local community to explain their co-ordinated approach and how they intend to retain the plan and develop it in the future. The business was not given a chance to survive in the short-term.

Following the very sad announcement today by the management in Castlecomer, I call on the Minister to immediately establish a task force with the same haste she would apply in other parts of the country. She should recognise the importance of this facility to the town of Castlecomer and the surrounding area. I refer here to the involvement of management and workers in the plant over the years and the enormous impact it has had on the community in Castlecomer and the surrounding parishes. Support should be provided, through the statutory bodies and the local authorities, in order to facilitate the provision of a replacement industry as quickly as possible at this very modern plant.

There has been a great deal of discussion about the national spatial strategy in recent days. The first test of the strategy will be to bring businesses out from the centre of commercial and business activity to the regions and, in particular, to places like Castlecomer, where there is a modern building and a good workforce available. I am sure members of that workforce will have no difficulty in acquiring new skills, if necessary. Many people have spent their lifetimes working in this plant. I do not say this in a party political way, but every effort must be made to bring together the various interests and ensure that a replacement industry is found in order to give hope and a morale boost to the workers in the lead-up to a very bleak Christmas.

I thank the Deputy for raising this matter on the Adjournment. This is the third time Comerama has been raised on the Adjournment of the House. The company was also discussed on 26 June and 15 October.

Comerama has two plants in Ireland, one in Castlecomer, County Kilkenny, as outlined by the Deputy, and one in Bunbeg, County Donegal. Approximately 180 employees work in each plant. The industrial development agencies, particularly Enterprise Ireland in regard to the Kilkenny plant and Údarás na Gaeltachta in regard to the Donegal plant, have been trying to assist the companies with their current difficulties for some time. Last Friday, the Tánaiste met the managing director of Comerama. He indicated that a review of operations was under way. Both production lines in Castlecomer were closed at that stage. It was high stock levels and a slowdown in drawing down from customers that forced the company to place staff on short time initially. Unfortunately, further action had now become necessary due to continued difficult retail conditions.

Comer International spins yarn that is then sold on to weavers who weave the yarn into cloth. The cloth-fabric is then made up into clothing for male and female underwear, suits, trousers and shirts. However, cotton is now much more popular than wool and cotton has enjoyed considerable success over the past few years. Cotton is approximately one fifth the price of wool and the trend is still to cotton and away from wool. Eight years ago there was a surplus of wool and the price of wool was suppressed. This has now changed and wool prices have risen substantially. Wool spinners have not been able to pass this on to clothing manufacturers. Retail sales have been poor worldwide, which has reduced the demand for cloth.

Significant investment has been made in the company by Enterprise Ireland, most recently in April 2002, when training assistance was provided. Enterprise Ireland has provided total funding of more than €3.5 million. A number of meetings took place between senior executives of Enterprise Ireland and the company. It was Enterprise Ireland's clear understanding that the company required a significant increase in working capital. However, this could not come from Enterprise Ireland as it was not legally in a position to provide funding of this nature.

I understand that the reason for the closure of the Castlecomer plant is primarily a market issue and this is further compounded by the fact that there are also competitiveness issues. This was explained to the workforce in Castlecomer this afternoon. The company announced that the Castlecomer plant will close with immediate effect and notice was given to all staff today. I understand negotiations with the unions on redundancy will begin on Monday.

Nothing new on replacing the factory.

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