Dáil Éireann debate -
Thursday, 6 Feb 2003

Vol. 560 No. 5

Adjournment Debate. - Job Losses.

Caoimhghín Ó Caoláin

County Monaghan has recently been struck by the loss of two significant and long-standing employers, with the impending closure of CPV Limited in Clones and the loss of 60 jobs at Lissadell Towels in Carrickmacross announced this week. In all, 159 workers are being made redundant in a county without major industry and very little inward investment of significance. These losses are, therefore, devastating to the economy of County Monaghan.

Two towns at opposite ends of the county, Clones and Carrickmacross, are being struck in a similar way. Medium sized manufacturing industries have gone and left many in the community without employment. This follows the loss of more than 300 jobs at Monaghan Poultry Products within the past two years.

The announcement of the closure of CPV Limited in Clones came five days before Christmas and was a grievous blow to the 99 workers. We can only imagine the impact it had on them, their families and the wider community in Clones. CPV Limited was the main manufacturing industry in Clones, a town which already had a higher than average level of unemployment for many years. It has been know for some time that CPV Limited's parent company was trying to sell it off but that does not lessen the cruelty of the closure for those dependent on the company for their livelihood.

Earlier this year, after a meeting with management and long before the final decision was announced, I raised with the Minister for Enterprise, Trade and Employment, Deputy Harney, the difficulties of that company. It is vital that the Minister, her Department and all the relevant agencies should intervene without delay to find a replacement industry or industries for Clones. This town has long suffered the economic and social effects of partition as well as the wilful neglect of successive Governments. It must not be allowed to sink once again into a position of marginalisation.

When the closure of CPV Limited was announced, I e-mailed the Minister's office urging her to take immediate action to rescue or replace these crucial jobs for the workforce and the wider Clones community, but I have yet to receive a substantive response. She was able to quickly respond to me with what I regard as snide and slanderous remarks this morning following another question I put to her.

The second blow to employment in County Monaghan came with the news this week that the Lissadell Towels factory at Aclint Bridge in Carrickmacross is to lay off 60 employees. The redundancies are due to take effect in the next 70 days. Lissadell Towels has been in south Monaghan for over 30 years. This news is a huge blow to the entire community. Carrickmacross has seen great improvements in recent years which make this setback all the more disappointing. Taken individually, these job losses in County Monaghan are not as great as some which have taken place in other parts of the country, but in relative terms they are hugely significant.

The harsh reality is that as far as high technology jobs and modern employment opportunities are concerned, the Celtic tiger was allowed to bypass County Monaghan through the neglect of successive Governments. We have been deprived of much of the infrastructure and inward investment that is essential for the development of our region. We were not equipped to reap the full benefits of the economic upturn over the past decade. Our grossly over-centralised economy has kept major job opportunities in concentrations along the eastern and southern seaboards. Despite lip service paid to the Border, the midlands and the west – the BMW region – we are still being kept on the margins.

On behalf of the people of County Monaghan, I urge the Minister for Enterprise, Trade and Employment, Deputy Harney, her Department and all the relevant agencies to combine in a concerted effort to replace the jobs lost in County Monaghan. The hard-working people of that county, who have a stake in its future for their children, deserve nothing less.

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

I thank the Deputy for raising this matter on the Adjournment. I apologise for the Tánaiste's absence. She is attending a management meeting of the Department outside the city.

I, the Minister and Department officials learned with grave disappointment of the recent decision by CPV Limited to cease production at its Clones facility with the loss of 98 jobs. I am conscious of the effect the closure of this plant will have on Clones and, most immediately, on the employees and their families. I understand IDA Ireland met executives from the parent company, Terex Corporation USA, and the Irish facility on 11 December 2002 to discuss the future of the plant at Clones. CPV has been experiencing extremely difficult market conditions, including strong competition from manufacturing bases in South Africa. In an effort to improve efficiencies the company implemented a voluntary redundancy programme, involving 40 people, in November 2002.

IDA Ireland understands that CPV does not have the orders to sustain the plant and is currently operating at a loss. Consequently, financial difficulties have forced the parent company to close the plant. The facility is due to close in the coming months unless a buyer can be found to purchase the plant as a going concern. In the event that a successful outcome is not achieved prior to closure, IDA Ireland will continue to market the facility through its network of overseas offices in an effort to secure a new company to take over the facility as a manufacturing operation.

The position in relation to Lissadell Towels is that an interim examiner was appointed on 30 January 2003 to assess the future prospects of the company. The outcome of this assessment will probably involve a cessation of manufacturing, but the continuation of the company as a trading company. The reasons for this change of direction relate to competitiveness issues. I understand the company will discuss with its union representatives from SIPTU and its staff proposed redundancies due to a significant decline in its business activity, which is mainly as a supplier to the international hotel bedroom and bathrooms market.

In reaction to the closure announcement at CPV Limited, FÁS, the national training authority, contacted the company to discuss a detailed programme to assist those who are being made redundant to find suitable alternative employment. FÁS will make available its full range of support services, including skills analysis, jobs placement, guidance and counselling interviews, identification of training needs and suitable training courses. FÁS will also ensure ongoing support and action to keep redundant workers in touch with the labour market. I understand that FÁS has also contacted Lissadell Towels Limited to arrange a meeting next week.

In terms of finding new investment and providing new sources of employment in Monaghan, I am determined to do everything I can to see that this happens. The State agencies continue to aggressively market the area, which forms part of the Border, midland and west region which is a priority location for jobs promotion by the agencies. The agencies are also committed to bringing about balanced regional development. The availability of suitable premises and committed and motivated workforces are major selling points.

Recognising that urban environments are generally more attractive for mobile investment, IDA Ireland has adopted a target of having 50% of all new greenfield investment located in the Objective One region, which includes Monaghan. IDA Ireland has sought to encourage investments in defined sectors, such as medical devices, ICT, engineering and internationally traded services and software sectors to the region, which seeks to build on the relative advantages in different towns.

Enterprise Ireland is working closely with its client companies and regional partners in developing and sustaining businesses in the area, enhancing the business environment and encouraging new start-up companies with strong growth potential. Enterprise Ireland, as part of its regional development, also encourages Dublin-based companies to locate their business expansions in the BMW region. In addition, it is actively promoting the Lough Egish Food Park for any companies that are considering locating to the region. The park is a flagship project to attract food companies to the region and a number of companies have already located there.

I assure the Deputy that the State development agencies, under the aegis of my Department, will continue to market County Monaghan for investment and will make every effort to secure alternative employment for the workers affected by the closure.

Mr. Stanton

I thank the Ceann Comhairle for allowing me to raise this matter on the Adjourn ment. I also thank the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Fahey, for coming into the House, although I am disappointed the Tánaiste could not be here. According to the Minister of State, a management meeting of the Department is more important to the Tánaiste than the Parliament and the job losses about which I will speak. I am also disappointed the Ceann Comhairle's office did not allow me to raise this issue by way of private notice question because the Adjournment does not allow for a question and answer session. That shows the inadequacies of our system.

I want to draw the Minister of State's attention to the fact that in recent times more than 1,000 jobs have been lost in east Cork with the closure of IFI, Irish Ispat, Youghal Carpets in Carrigtwohill, Universal Foods, Artesyn in Youghal before Christmas and Technicolor yesterday evening with the loss of 234 jobs. What action will the Tánaiste, her Department and the State agencies take to deal with that? There were two major plants in Youghal, Artesyn and Technicolor – formerly Panasonic and Kodak – which was opened in 1997 by the then Minister, Deputy Richard Bruton. There is not any major manufacturing plant now in Youghal. It is becoming an unemployment blackspot. It demands urgent Government action, not a task force or a discussion group. I want to know what the Minister and the Department will do about it.

Will the Tánaiste visit Youghal? Will the Minister of State indicate when she will visit the town and meet the people? If there was a plant or a pub to be opened, she would be there. More than 1,000 jobs have been lost, but the Tánaiste has not visited the area.

Many families, who have mortgages and children in college, are affected by this closure. A woman who rang me yesterday told me that she had bought a new house three weeks ago. There was not any sign of the plant closing. Did the Department have any advance knowledge of this closure and, if not, why? Is there an advance warning unit in the Department? Does the Department keep in contact with the multinationals? Why was it decided to keep the plants in Poland and Wales open – I do not want to bring any misfortune on workers in those locations – while Youghal was closed? What is the Minister of State's understanding of the reason the plant was closed? Is it related to the underlying costs in the economy which have been driven up by the Government's mismanagement of it?

Youghal lost 234 jobs this morning and 160 jobs before Christmas. That is 400 jobs in a small town in a short period of time. However, there is not any sign of a replacement industry.

Youghal needs a boost. It received a blow some weeks ago when it was announced that a new community school would not go ahead, despite weeks of planning. I urge the Minister of State to consult with his Government colleagues with a view to bringing some good news to the town. There is a swimming pool project ready to proceed. Could the Government give the go-ahead for that, rather than dragging its feet again? The new community school is badly needed and would be a great boost to the people of Youghal. A school and a pool are both needed in the town.

I look forward to the Minister of State's response. I hope he has some plan of action rather than just reading a prepared script referring to task forces and meetings with IDA officials, all of which will be forgotten within a few weeks. I intend to raise these issues day after day on behalf of people whose families are facing a bleak future without any worthwhile income. The Minister should ensure that the workers in the non-unionised plant concerned are given adequate and proper redundancy payments and use all the resources of the State to ensure that they are properly looked after in that regard.

Youghal is a beautiful area, a lovely seaside resort with excellent people and great potential for tourism development. It has taken one hammer blow after another and it is now time to turn that situation around. I call on Ministers and Ministers of State to do something for this town and its people at this time. We must not forget that other jobs are also affected when a plant of this type closes, including service and support industries and part-time workers. It is up to the Minister of State and his colleagues to act in the matter.

Mr. Fahey

I thank the Deputy for raising this matter on the Adjournment. However, I reject his allegation that nothing has been done. A significant effort is being made to deal with the catastrophe that has occurred in Youghal. The Deputy's constituency colleague and my Department colleague as Minister of State, Deputy Michael Ahern, is in Youghal today. For some days and, indeed, since before Christmas he has been involved in a number of initiatives and there are developments.

Mr. Deasy

Why is the Minister, Deputy Harney, not here? Why is she in a management meeting? Hundreds of people have lost their livelihoods. Why is she not in Dáil Éireann?

An Leas-Cheann Comhairle

The Minister of State without interruption.

Mr. Fahey

I will outline to the Deputies exactly what is being done. I reject the reference to a prepared script. This is the Department's response to the problem. I can assure Deputy Stanton that if he were in the Department, the situation would not be any different. All of us realise that these situations are extremely difficult. Jobs are being lost and nobody can wave a magic wand to save them. To suggest, as the Deputy has done, that there is another way is simply not correct.

Mr. Rabbitte

Why did lightening strike twice? There are 360 jobs involved.

An Leas-Cheann Comhairle

Deputies should allow the Minister of State to reply.

Mr. Fahey

Many jobs are being lost in this economy at present. That is a fact of life, irrespective of what party is in Government. I do not believe there is much any party could do to change that situation.

Mr. Deasy

One small area lost 400 jobs in the last six months.

Mr. Fahey

The announcement by Technicolor yesterday that it intends to close its Youghal plant—

(Interruptions).

Mr. Deasy

Can the Minister of State name one area which has lost more than east Cork and west Waterford in the last six months?

An Leas-Cheann Comhairle

Order please.

Mr. Fahey

—with the loss of 182 full-time jobs and 52 temporary jobs is a devastating blow, both for the workforce in the company and the community as a whole. It is all the more so coming soon after the recent job losses announced by Artesyn Technologies.

Technicolor, a subsidiary of Thomson SA headquartered in France, took over Matsushita Electric's DVD business in mid-2002. This was a joint venture formed in 1999 between Panasonic Disc Services Corporation and Eastman Kodak Company. MMMI took over the assets of Kodak Ireland Manufacturing Limited, Youghal, County Cork, which was established in 1996 to manufacture CD-R disks. Yesterday, Technicolor informed the Minister that it intended to close its Youghal facility. The company explained that its decision follows a comprehensive review of the European DVD market, with the company concluding that to effectively compete it must continue to strengthen its supply chain and reduce manufacturing costs to enable competitive pricing for customers. The company's manufacturing and packaging operations are to be transferred to other existing facilities in Wales and Poland.

I understand that FÁS, the national training authority, is contacting the company today to discuss a detailed programme to assist those who are being made redundant to find suitable alternative employment. FÁS will make available its full range of support services, including skills analysis, jobs placement, guidance and counselling interviews, identification of training needs and suitable training courses. FÁS will also ensure ongoing support and action to keep redundant workers in touch with the labour market.

Enterprise Ireland and the South Cork Enterprise Board will meet with employees of Technicolor interested in starting their own busi nesses to outline the range of supports available from both organisations. Following the recent Artesyn job loss announcement, IDA met with the Youghal Chamber of Commerce and is currently working on a profile of the area which will become an intrinsic part of the IDA marketing material for the region. IDA hopes to meet with Technicolor in the coming days to discuss the situation, particularly with regard to the future utilisation of the 120,000 sq. ft. building which is being vacated by the company. IDA has been working with Artesyn to prepare a profile of its building and it is intended, with the approval of Technicolor, to undertake similar profile work of that building. This will prove useful in the future marketing of the property to potential investors.

While east Cork has suffered a large number of job losses in recent times, it has also been successful in attracting new overseas investments to the area, with nearly half of all job announcements in the south-west region in 2002 being located in east Cork. This is expected to lead to over 600 new jobs in the years ahead at Schlumberger, Fournier, RF Integration, Dow Corning and Amersham Health. East Cork has proved to be a particularly attractive location for the health care, pharmaceutical and internationally-traded services sectors and IDA Ireland is hopeful that this will continue in 2003.

The Government is committed to ensuring the most equitable regional distribution of job opportunities and the Minister has impressed on the development agencies the importance of making even greater efforts in this field. I assure the Deputy that the State agencies under the auspices of my Department will continue to strongly promote east Cork in the attraction of inward investment and the development and expansion of indigenous industry, including small industry.