As the first two items selected relating to the closure of the Graham & Heslip factory in Ennis are being taken together, each Deputy has five minutes and the Minister of State has ten minutes to reply.
Adjournment Debate. - Job Losses.
The closure of Graham & Heslip is a major blow to the town of Ennis and the surrounding area. Graham & Heslip purchased a family run business in Ennis two years ago and now it has gone without as much as a day's notice to the loyal employees it inherited with the takeover of the company. Some of these employees have been in the business for the past 18 years. The company employed a large proportion of local young people, had a highly trained and qualified staff and produced a high quality product.
What are these employees to do? They have been left without their pay, their P45s, their holiday entitlements and an alternative employer. They find themselves unemployed after receiving only a few minutes' notice and to add insult to injury, the owners of this company tried to take the machinery and tangible assets from the plant the following day. What type of treatment is that for any employee? Is this to be a precedent for other companies to follow? Is this what the Irish workforce has to put up with, a company coming from only up the road in Belfast to strip them of their assets, take their customer base, their machinery and their business portfolio? Did this company have any intention of making a go of it in Clare? How are companies like this to be made accountable? What happens when it is a company from outside this island? How are employees to know in the worse case scenario, like we now have in Clare, that they will receive their pay and notice of unemployment? What are the safeguards to protect against this happening?
Many families, both young and old, have been affected by this closure. To bring it home to the Minister of State, I personally know two young people who, when they left on their honeymoon two weeks ago, had a livelihood and now have to return to unemployment and face the prospects of not being able to pay their mortgage and other everyday bills. Is that what is in store for young couples trying to make their way in this country?
This is the third factory closure in Ennis over the past three years. Clare is turning out to be a blackspot for job losses and there is no action from the Government. Following the closure of Tellabs in Shannon, with the loss of 400 jobs, there is little or no industry in west or north Clare.
When I was elected to the council 18 years ago, Milltown Malbay was a thriving industrial town. Since then all the industries in this town have closed down. Shannon Development and the Western Development Commission are in charge of encouraging industry to Clare. Not one major factory has been set up in the county within the last ten years.
The deepest water in the Shannon Estuary is on the Clare side. Although successive Governments commissioned reports on the development of the estuary, these are now gathering dust in the Minister's office and now we are led to believe that the present Minister is preparing another report on the estuary. It is about time the Government woke up, listened to the people of Clare and did something positive about job losses.
I alerted the Minister for Enterprise, Trade and Employment, Deputy Harney, to the crisis in Clare in a parliamentary question on Tuesday, 5 November. I asked her to visit Clare. In her reply she stated she would be in the county at the end of that month. She came but did not address the job crisis. She also stated that Shannon Development was developing a 35 acre information age park which will provide a new focus for industrial development in County Clare, and particularly for Ennis. The park will offer a potential investor world class accommodation and infrastructure. This is a major initiative for Ennis and County Clare and will be a key focus for Shannon Development's promotional activities in the area.
I say, live horse and you will get grass. I ask the Minister of State to do whatever is within the law to ensure that these workers get their entitlements. I also ask the Minister to visit Clare and set up a task force to tackle the unemployment situation in the county.
I congratulate our neighbours in Roscrea on the announcement of 300 new jobs. I would ask the Minister to follow with a similar announcement for County Clare because at this point we are desperate. There are many people unemployed in Clare who will never work again.
I am delighted to see that three Oireachtas Members from Clare, including Deputy Killeen, are supporting the motion. I am sure he will brief the Minister of State on the closure.
As my colleague, Deputy James Breen, stated, the people of Roscrea are celebrating tonight with the excellent news that Taro Pharmaceuticals Limited is to set up as a new major industry to replace the Miza facility which closed recently, and I welcome this good news.
This is a far cry from the position of the 42 workers of Graham & Heslip in Ennis who, on Friday, 7 February at 2 p.m., were told that they no longer had jobs with the company and were given 50 minutes to gather their personal belongings and leave the premises.
The print company was established in 1984 and many of the workers have given long loyal service over the years. Thermofoil Printing, as it was then known, was taken over some years ago by the present owners, Graham & Heslip, who I understand were given considerable financial assistance by Shannon Development.
I visited the premises on Monday morning, 10 February, to speak to the workers and heard today that they still have not received their P45s, P60s or RPIs. This is a disgrace. Every effort must be made by the Minister, Deputy Harney, to deal with this unacceptable situation, to make sure the employees are given their full statutory redundancies and that the terms of the employment legislation are complied with.
Has the Minister made contact with the owners of the company? Has a liquidator been appointed? Has a creditors' meeting been arranged? I understand that the matter was raised in the Upper House last week and at that time no contact had been made with the directors.
This is a devastating blow for the town of Ennis. The disgraceful manner in which these workers lost their jobs is another milestone in the industrial decline of Ennis. The number of jobs lost in County Clare over the last two years is well over 600. The alarming statistics of job losses have been backed up by recent live register figures for Ennis. The numbers on the live register have increased by 12% from 1,813 in 2001 to 2,034 in 2002. In October 2000, the figure was 1,448. This means that unemployment figures in Ennis have grown by about 40% in two years, and that does not include the latest redundancy figures. Companies that have shut their doors in Ennis in recent times include Overland Bowling, Studio Eyewear and Pacific Scientific, as well as a number of smaller companies whose closures were never reported on the media because of the small job losses.
Last October, I asked the Minister to visit County Clare when the Tellabs facility in Shannon announced its closure with the loss of over 400 jobs. I also asked her to give priority to County Clare for job creation and to establish a task force. Unfortunately at the time she said she had a heavy schedule of official commitments and would not be in a position to visit Clare.
The Minister also stated that she was encouraged by job creation in the mid-west. The facts I mentioned earlier do not tally for the town of Ennis, where every day there are young people, many of whom have mortgages, coming into my office with their CVs seeking jobs to replace the ones they have lost. It is most humiliating for them. A jobs task force must be set up to focus on re-engaging the hundreds of workers who have lost their jobs and to attract new inward investments. Deputy James Breen and I have highlighted the serious situation.
To add to these difficulties, the Ennis by-pass is not getting the go-ahead in 2003 and, therefore, there will be no jobs for road building workers, Shannon Airport is under constant threat with many services lost in recent weeks – 50 jobs were lost at Cable & Wireless in Shannon two weeks ago. The Minister of State with responsibility for labour affairs, Deputy Fahey, has offered to come to Ennis, but this is not good enough. We want the Minister to see for herself the situation in the town named as a hub for job creation in the national spatial strategy programme. A hub for job losses might be a better title because no major industries have come to Ennis in many years, despite the fact that it was the first information town in the country. There is no prospect of immediate broadband technology. Positive action must be taken by the Government to find jobs for the unfortunate people such as those who lost their jobs at Graham & Heslip last week.
I thank the Deputies for raising these matters on the Adjournment and I also thank Deputy Killeen, who has advised me on the matter. I am indeed aware of the sudden closure of the company in question. The closure came about without prior notice. Shannon Development, the industrial development agency with responsibility for the company in the mid-west region, immediately advised the Department of Enterprise, Trade and Employment.
This is a long-established company in Ennis. Originally, it was established as Thermofoil Print Limited in 1984. In early 2001 it was acquired by its present owners when a subsidiary company took a 75% shareholding in the original company while one of the founders of the original company retained the other 25%. It has received considerable financial assistance from Shannon Development over the years. The company designs and produces specialised products for the domestic market. Its main product areas are greeting cards, packaging, annual reports and promotional colour printing. I understand it had a good reputation as a specialist in a range of printing options, including full colour printing, embossing, watermarking and carton manufacture.
A substantial number of the employees have been with the company for a number of years. Traditionally, the company has been regarded as being a stable source of employment in Ennis. Shannon Development had a review meeting with the company last summer and at that stage the feedback from the company was very positive. Therefore, the news of the closure is surprising, although it is of course a greater shock to the employees of the company.
Shannon Development has been trying to contact the company to discuss what is happening. The Department of Enterprise, Trade and Employment has written by registered letter to the company reminding it of its obligations in respect of collective redundancies, minimum notice and statutory redundancy generally as a collective redundancy notification had not been received in respect of the company. However, direct contact has been established with the company by my Department. In correspondence to my Department the company says that the decision to cease trading was only taken after all other avenues had been investigated and exhausted.
There are certain provisions in employment legislation which must be complied with. Under the terms of sections 9 and 12 of the Protection of Employment Act 1977, an employer who proposes to undertake collective redundancy is obliged to consult the employees' representatives and give the Minister for Enterprise, Trade and Employment written notice of his proposals at the earliest opportunity and, in any event, at least 30 days before the first dismissal takes effect. The Act provides for significant penalties in the event of non-compliance by an employer with the relevant provisions. Furthermore, there are provisions whereby employees can refer to a rights commissioner complaints regarding non-compliance with information and consultation provisions. In addition, there are statutory provisions relating to minimum notice and redundancy payments which have to be complied with.
I share the concerns expressed here about this most unfortunate situation. Every effort is being made to unravel the problems. The further job losses in the second company in Shannon arise from a corporate restructuring of worldwide business in the company. The job losses will take place over the next nine months, with one third taking place in June, a further one third in September and the final one third in November 2003. I understand local management in the company is currently in negotiation with staff representatives regarding redundancy terms.
I am grateful to the Ceann Comhairle for the opportunity of raising this important issue on the Adjournment. There is extreme disappointment in County Cavan at the decision of Teradyne Incorporated to close its manufacturing facility in Cavan town and move its assembly operations to Blanchardstown. It is a great source of disappointment to the 37 permanent employees and 25 temporary employees. The expected closing date of 28 March will be etched on the minds of those employees.
In 1997 I enlisted the support of the Taoiseach and the Tánaiste to try to bring inward investment to County Cavan and I appreciate their efforts and wholehearted commitment to the creation of jobs in the county. In November 2000, the excellent news was confirmed for us that the American company Teradyne Incorporated was to invest €62 million in a major new industrial campus near Cavan town. The development was to create 740 jobs over a five-year period. It was a great achievement to bring Teradyne, a major world leader in interconnection systems manufacture, to Cavan. The announcement represented the first significant IDA Ireland supported investment in the county in more than 22 years. With efficiency, Cavan County Council processed and approved the planning application. An appeal was lodged to An Bord Pleanála and, unfortunately, a delay of almost seven months occurred. However, basically the same decision was made by the board after this time as had been made by the local authority originally.
That delay caused considerable problems. At the end of October 2001, we heard the extremely disappointing news that Teradyne had deferred the construction of the industrial campus and was to continue instead its operations in a temporary base in the IDA Ireland advance factory near the town. Since then, 60 people have been employed at that location, who are now to lose their jobs. In securing this inward investment in the first place, there was a wholehearted, co-operative effort by the executive of Cavan County Council, local public representatives, the IDA Ireland regional manager and staff and the county enterprise board. Indeed, Teradyne has acknowledged that it received at all times the wholehearted co-operation of the statutory agencies in County Cavan and the support of the public at large.
County Cavan and the Border region in general suffered immensely as a result of the 30 years of troubles in the northern part of our province of Ulster. Our natural economic hinterland was cut off. We did not get adequate Government investment or inward investment. The decision of Teradyne to locate in Cavan clearly demonstrated that major companies recognised that things had dramatically changed in the Border region and that a centre such as Cavan is now an attractive location for foreign direct investment. The county has a good workforce, a diligent people with a commitment to work. Huge numbers of our people, particularly our young people, who are highly qualified and skilled, are working in the technology industries outside the county. We need modern, knowledge-based industry to attract these people back to the county and to retain the emerging workforce, who are currently attending second or third level colleges.
County Cavan has been heavily dependent on local entrepreneurship to meet its employment needs. I compliment those companies which, through the most difficult of times, have provided worthwhile employment opportunities in our county. In more recent times, those companies have traded in a better economic climate. Overseas firms represent 27.7% of all manufacturing and internationally traded financial services employment in the county, compared to a national average of 52%. I ask the Minister for Enterprise, Trade and Employment and the industrial promotion agencies for a focused and targeted campaign to secure a major new industry for Cavan. The ingredients that made the county attractive for inward investment two years ago are all still in place.
The development of the peace process has brought many benefits to the whole island, particularly to our province of Ulster. Over the years, I, with Deputy Crawford and other public representatives, have consistently raised in this House the need for counties such as Cavan and Monaghan to gain a new economic dividend, particularly in the area of job creation. If Departments and State agencies are serious about tackling the imbalance in economic development, areas such as Cavan and Monaghan have to be given priority when it comes to the push that is needed to attract necessary and additional job opportunities.
The Minister, the Department and the industrial promotion agencies can promote Cavan's case easily and credibly. The county has a well educated, computer literate, highly motivated and flexible workforce. Its people share our sentiments that we need those jobs.
I support the case made by Deputy Smith.
The attraction of new foreign direct investment to Ireland is statutorily charged to IDA Ireland. Despite the global economic downturn, the level of foreign direct investment in Ireland, relative to the size of the economy, remains one of the highest in the world. Ireland today competes with many other countries for new projects and, indeed, the relative attractiveness of one regional location in Ireland to another is often the decider for a company as to where it will locate. This makes the challenge in Cavan even greater.
The designation of Cavan town as a hub in the national spatial strategy confers on it a strategic position in the overall development plans for Ireland, acknowledging that it can support development in both the gateways and rural areas which surround it. Cavan town, with Dundalk, Monaghan and Drogheda, is one of the four towns of emphasis in the north-east region for the IDA Ireland and is strongly marketed for new investment. IDA Ireland is currently investing €1 million in Cavan in enhancing the 35 acre business park at Killygarry. This will bring the park up to flagship standard and will greatly enhance its attractiveness for new inward investment. The work is already under way involving the extension of internal roads, services and extensive landscaping. IDA Ireland has also sought and received planning permission for two 2,500 sq. meter advanced technology units from Cavan County Council, which will be constructed on a roll-over basis by the private sector.
The announcement on Friday, 14 February 2003 by Teradyne Incorporated that it will close its manufacturing facility in Cavan town presents a challenge to try to secure a replacement industry. When we announced just three years ago that Teradyne was to establish a major facility in the town, it represented the culmination of many years of work by IDA Ireland and others in promoting Cavan for new inward investment. The decision by the company to locate in Cavan highlighted the fact that the smaller regional locations can support significant industry. Nothing since then suggests that there is any need to review this thinking because the Cavan location did not impact on the decision to consolidate the company's operations in Dublin, but rather the general downturn in the worldwide telecommunications industry.
Teradyne acknowledges that the decision to close the Cavan operation is in response to a continuing worldwide electronics manufacturing downturn. This initially caused the company to abandon its plans for the major manufacturing facility in Cavan. It now sees consolidation as the best way of cutting costs and contributing to the viability of its operations in Ireland. In response to the closure of Teradyne, IDA Ireland has already begun an intensive campaign across a broad range of sectors to identify an alternative industry. This involves briefing all its overseas offices on the Cavan facility and appraising them of the skills of the Teradyne workforce. While IDA Ireland is concerned that the current economic downturn, particularly in the telecommunications sector, will increase the difficulty of getting an early positive result, it is determined to work closely with FÁS, Enterprise Ireland and the other local stakeholders to minimise the effect of the closure and to find an alternative industry as quickly as possible.
Enterprise Ireland, the agency responsible for the development of indigenous enterprise, continues to work with companies in County Cavan to assist them grow their sales and exports and improve innovation in order that they can compete on world markets. In terms of job creation, activity is focused on the creation of new jobs through support of entrepreneurs setting up new high potential start-up companies, the retention and creation of new jobs in existing companies and in enhancing the innovation capability of Ireland at national and regional level through support of research in companies and third level institutions. Enterprise Ireland is continuing to concentrate on maximising job gains in its client companies.
In County Cavan, Enterprise Ireland has focused on building and construction materials as a targeted sector and is endeavouring to build on the existing cluster of companies in the county. Enterprise Ireland is currently working with Foamalite Limited in Lough Gowna, County Cavan, to further develop its sales, exports and innovation. This company, which began in 1998, is an excellent example of a new company in this cluster. In November last, an €88 million investment by Abbott Laboratories, the Chicago based health care company, at its nutritional manufacturing plant Cootehill, County Cavan, was announced by the Minister for Agriculture and Food, Deputy Walsh. This company's expansion was supported by Enterprise Ireland and will lead to the creation of 100 new jobs over the next three years. Enterprise Ireland provides preferential funding for companies with detailed export plans, which are expanding or establishing a business in the county as part of the BMW region. In 2002 funding amounting to €1,205,914 was approved to Enterprise Ireland client companies in County Cavan.
The community enterprise programme is also an important part of Enterprise Ireland's support for community based projects. Under the programme, the agency has helped fund the establishment of six enterprise centres in County Cavan since 1989. These are located in Cavan, phases one and two, Kingscourt, Bailieboro, Cootehill and Killeshandra.
I am confident the initiatives adopted by IDA Ireland and Enterprise Ireland, in partnership with other local organisations, as well as the continuing commitment of the Government to regional development, will bring positive results to Cavan.