Dáil Éireann debate -
Tuesday, 25 Nov 2003

Vol. 575 No. 3

Adjournment Debate. - Job Losses.

Mr. B. Smith

I extend to the Ceann Comhairle my sincere thanks for giving me the opportunity to raise this important issue at this late hour. I am extremely concerned, as is the Ceann Comhairle, at the loss of 38 jobs in Kingscourt. Both of us know many of the employees. They are extremely disappointed, to say the least, by the decision of the management of Horseware Products Limited to cease operations in Kingscourt immediately prior to Christmas. I understand from Councillor Clifford Kelly, who has spoken to some of the factory's employees, that staff learned yesterday of the management's decision to close the facility. It came without warning and was totally unexpected.

It is devastating at any time for a person to lose his or her job, but to lose one's employment at Christmas adds to the pain. Horseware Products Limited was established in 1985 and had its principal manufacturing base in Dundalk. The Kingscourt facility commenced operations in the mid-1990s. The plant has a dedicated and diligent workforce of almost 40 employees. Great credit is due to all involved in Horseware Products Limited on the successful development of a range of horse blankets. The company's product innovation and design has made it a world leader. I have expressed my grave concern to Mr. Jim Mulcahy, regional manager of Enterprise Ireland, and I wish to express it to the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, through the Minister of State, Deputy Noel Ahern.

Horseware Products Limited has been an extremely important employer, particularly for females, in the Kingscourt area. The closure of this factory is all the more unexpected when one considers that it was extended and saw a substantial investment in new technology relatively recently. I understand that some employees may be offered employment in Dundalk which is 25 miles from Kingscourt. This is not a practical option for everybody as many of the employees have young children. Employment such a distance from home would cause considerable strain on some individuals. I make the strongest possible appeal to the Tánaiste and Minister for Enterprise, Trade and Employment, her Department and the industrial development agencies to make every possible effort to retain the current employment in Kingscourt. Such a course should be pursued immediately and as vigorously as possible with the management of Horseware Products Limited.

If their efforts are unsuccessful, I emphasise to the Minister that we must secure a replacement industry as quickly as possible. Mr. Vincent Reynolds, chief executive of Cavan County Enterprise Board, and I have discussed the difficulties facing the Horseware Products employees. We are both of the view that employment, predominantly of females, at this factory is essential to Kingscourt, the factory's employees and their families.

Minister of State at the Department of the Environment, Heritage and Local Government (Mr. N. Ahern)

I thank the Deputy for raising this matter.

Horseware Products Limited has two plants in Ireland, one in Kingscourt and one in Dundalk. The company also has a presence in the United States of America. It employs 170 people, 150 of whom work in Ireland. The company designs and manufactures some of the world's leading brands of horse blankets and exports most of its production to Europe and the USA. Increased competition in the marketplace and the increasing cost base in Ireland means Horseware Products is being forced to restructure its operations. This will involve the closure of the Kingscourt plant at which it employs 36 people and consolidation of all activity in Dundalk. Some staff members in Kingscourt will move to Dundalk and overall there will be approximately 30 redundancies in the group. The business itself is strong and a return to growth and profitability is expected next year.

Enterprise Ireland is actively working with the company to grow its business. The full range of FÁS services are being made available to the workers affected by the closure. Enterprise Ireland continues to work with companies in County Cavan to help them grow their sales and exports and improve innovation to enable them to compete in world markets. Enterprise Ireland has focused on the production of building and construction materials as a targeted sector for Cavan and is endeavouring to expand the existing cluster of companies in the county. In November 2002, Abbott Laboratories, the Chicago-based health care company, announced plans to expand its nutritional manufacturing plant at Cootehill, County Cavan. The expansion is being supported by Enterprise Ireland and will lead to the creation of 100 new jobs over the next three years.

Enterprise Ireland supports infrastructure creation for new enterprises through its community enterprise centre programme. The agency has helped fund the establishment of six enterprise centres in Cavan. In September 2003, the Minister for Enterprise, Trade and Employment announced that the Bailieboro development centre had successfully secured €240,000 for phase 2 of construction of its enterprise centre. IDA Ireland has 42 acres of land at Cavan Business Park, which is being upgraded. The principal focus of IDA Ireland's marketing is the recently vacated 23,745 sq. ft. building at the business park.

I must point out that regional development is a significant focus of Government policy. Its importance has been confirmed in the current national development plan and the national spatial strategy. The strategy addresses the continuing concentration of population and economic activity along the eastern seaboard, especially in the greater Dublin area, with a view to achieving balanced regional development throughout the country.

I have heard what Deputy Brendan Smith had to say and I will report his comments to the Minister for Enterprise, Trade and Employment.