I call Deputy Daly on the first matter.
Topical Issue Debate
I wish to defer it until next Tuesday as I understand the relevant Minister will be present to take it then.
The Minister for Education and Skills will be here next Tuesday.
Is that agreed? Agreed. We shall proceed to the second matter.
Motor Fuels Prices
The Minister, Deputy White, will be aware of the issue I wish to raise. I read his statement concerning his discussions with the oil companies and petrol suppliers. I raise this issue because the wholesale price of oil has, I am thankful to say, been dropping. In the past 13 months it has dropped by almost 40%, but the decrease has not been passed on to the consumer in the retail sector. The Minister has, quite rightly, raised this with the various companies just this week. I thank him for and commend him on it. What is regrettable is that the motorist has lost out substantially because the decrease has not been passed on to him at the pumps. There is almost a cartel operating among the companies. They have managed for a very long period to get away without passing on any proportion of the decrease in the wholesale price of oil. It is the consumer or motorist who is losing out.
The Minister mentioned regulation previously. In the absence of any regulator, it is a fact that the oil companies are the main benefactors. They are holding back the decrease and making a lot of money. The motorist is losing out. As regards the petrol and diesel industries, self-regulation is not working. Prices of petrol and diesel vary from place to place. In some parts of this city, the motorist is being absolutely fleeced. There is an onus on us to rein in the oil companies. It is only fair that the decrease be passed on to motorists.
We all want to see the benefits of international oil price reductions translated into cheaper prices for Irish consumers. Our transport sector is almost completely reliant on oil, which is the most prominent heating method for Irish homes. All our oil is currently imported, and this dependency makes Ireland particularly vulnerable to global price volatility. Ensuring a balanced and secure energy mix is therefore one of the priorities set out in the energy Green Paper published by the former Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, last May. My Department is currently considering the significant issues emerging from the public consultation that followed the publication of the Green Paper, and I will be publishing a new energy policy framework later this year.
Brent crude oil prices are currently at a six-year low of approximately $48 a barrel. Irish consumers are benefitting from falling oil prices at the pump. The European Commission's Statistics and Market Observatory, which produces weekly statistics on consumer prices of petroleum products for the EU, shows that the price of petrol in Ireland was €1.25 per litre, including taxes and duties, at the beginning of this week. The price of diesel was €1.19. This is a significant fall by comparison with the price in the same period last year, when petrol was €1.53 per litre and diesel was €1.47.
As the Deputy will be aware, having touched on it in his contribution, the Irish oil industry is fully liberalised, with free entry to the market. While it is Government policy to encourage price competition and consumer choice, neither the Commission for Energy Regulation nor I as Minister have any statutory function in setting oil prices.
Research previously conducted by the National Consumer Agency indicates that the price paid by consumers at the pump is determined by a number of factors. These include the internationally traded price of crude oil, the consequent price at which the refined product is traded in Europe, tax levels and, importantly, the level of competition in the retail market. The Competition and Consumer Protection Commission, which was created by a merger of the National Consumer Agency and the Competition Authority, has a role in monitoring competition in the oil market to ensure the market is functioning correctly and that consumers are not being disadvantaged. This amalgamated body falls under the remit of the Minister for Jobs, Enterprise and Innovation.
The Deputy implied that consumers, residents and businesses have a reasonable expectation that when the price of oil decreases internationally, as has been the case, this decrease will find its way through to retail prices. In the past week, I have not been meeting oil companies but energy suppliers, namely, the suppliers of electricity and gas to businesses and homes. I sought to meet them to understand their perspective on this issue. The reasonable expectation of the Deputy and citizens, which I share, is that when the input cost decreases, the retail price paid by consumers, and residents in particular, will also go down. I have had very good conversations with pretty much all the energy suppliers in the residential market in the past week. I was happy to welcome the announcement by a number of those companies of reductions in the prices of gas and electricity. Those reductions, while arguably quite modest, are going in the right direction. I do not have a role in setting oil prices. It is not open to me to intervene in this regard, but I have an interest, as do the Deputy and all others, in ensuring that when the input cost decreases, the price of electricity and gas paid by the consumer goes down also.
I thank the Minister. I am not saying there has been no decrease in the price. What I am arguing, as the Minister has acknowledged, is that there is no correlation between the wholesale price and the retail price that he and I, as consumers, pay for gas and electricity. In commending the Minister on his discussions with energy companies, I note that the companies did not make any serious public statement until they were hauled in by him this week or last week.
Up until then, they managed to hide the entire matter from consumers.
In the absence of a regulator one does not expect these energy companies to voluntarily decrease their prices, but two companies with which the Minister held discussions announced within a day of meeting him that they are decreasing their retail prices or considering doing so. I note that in the case of the first one of which I read, the reduction does not kick in until April. That is regrettable. As I stated at the outset, energy prices have been on the decrease for the past 13 months. We are still in winter. I say this because for many families, particularly those with hardship issues, energy is a big cost. It is regrettable that these companies could not follow the example of E.ON in the United Kingdom, which announced an immediate decrease in energy prices. That company is the first to do so in the UK and I hope, for the sake of consumers there, that other energy companies will do likewise. The Minister would probably agree, on the basis that energy companies here have benefitted for almost 13 months, that any decreases they have announced because of his intervention should kick in immediately.
I emphasise that I as Minister have no role whatever in the setting of prices, the determination of prices, or instructing or otherwise requiring companies to change their prices. We all have our views about the legal framework that has been put in place, but this is a fully liberalised market in which the energy companies to which Deputy Maloney referred are in competition with one another. Often consumers are sceptical when they hear Ministers state that people should shop around, but there is a real benefit to be gained from looking at one's energy consumption and considering a switch from one energy company to another, and consumers have made very real gains. I would encourage consumers to consider switching. In other words, people should put this argument to the test, even if they are sceptical about this notion of switching and the competitive environment. They should put it to the test, because there are real gains to be made.
The question I was asked to deal with related to motor fuels and the price at the pump. I do not object to migrating to the other issue, but what I came prepared to talk to the House about was motor fuels. I indicated to the House that there have been substantial reductions in the price of petrol and diesel at the pump. That is factually so. However, we all would like to see the lowest possible prices. I share that view with Deputy Maloney.
On the third issue, Deputy Ellis is not here at present. I presume the Minister of State, Deputy Nash, is taking Topical Issue No. 4.
Company Closures
I appreciate the opportunity to raise this important topic. I am glad the Minister of State, Deputy Nash, is here to respond.
This time last week, the 140 workers at the Bose plant in Carrickmacross, County Monaghan, got the devastating news that the manufacturing plant would cease operations in April of this year. Sadly, the method of communication with the workers was desperate. Some of the workers, whom I spoke to over the weekend and on Monday night, had worked in that plant since 1978-79, while others had 20 to 30 years' service, and all of them spoke in glowing terms of the great employer Bose has been. The method of communicating the devastating news to them was through a video link of four minutes and 40 seconds outlining the plans for the new year for Bose Corporation. The final part of the message was that two plants, including the manufacturing plant in Carrickmacross, would close.
On several occasions on Thursday evening and Thursday night, as well as subsequently, Councillor P. J. O'Hanlon, who is one of the Fianna Fáil councillors in south Monaghan, spoke to me passionately about the devastation that had just been inflicted on the workforce and the community in Carrickmacross and much further afield. On Friday I listened on local radio, Northern Sound, to some of the long-serving workers outline that Bose was their life. They entered good employment there after leaving school. They improved their skills. They ensured that they are a very skilled workforce. That message of four minutes and 40 seconds was, unfortunately, seen by many of those people as the end of their working careers. On Monday night, at a public meeting organised by SIPTU, many of the workers outlined with great clarity their commitment to Bose over the years, stating that Bose was a very good employer and that over the years they had adopted new practices.
Deputy Nash will be aware from his departmental officials and from Enterprise Ireland and IDA Ireland that the Bose manufacturing facility in Carrickmacross has been a model in implementing the lean manufacturing process. It increased productivity and reduced costs. The workers have done everything right to remain as competitive as possible over the years.
The announcement of the transfer of the operations to Malaysia and Mexico was news that came as a shock, out of the blue, to a wide area of south Monaghan and parts of east Cavan as well. Along with my Oireachtas colleagues from Cavan-Monaghan, I had the opportunity, which I appreciated, to meet the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, on Tuesday last. We outlined to him what we had heard from the public representatives in the immediate Carrickmacross area and what we had learned from the workers and their union representatives at the public meeting on Tuesday last. The message that we gave to Deputy Bruton was to engage as vigorously, positively and strongly as possible with the senior management of Bose to see if they would consider reversing this decision.
We must take into account in our deliberations on this topic that Carrickmacross is the only manufacturing facility of Bose Corporation in the European Union. It has been there for almost four decades. It was established in 1978 and has a proud record of good governance and good practice over the years.
I repeat to the Minister of State, Deputy Nash - and I hope he will convey this both in his own work and to Deputy Bruton - that we want the strongest possible interaction from a Government point of view directly with the senior management of Bose. I understand that a senior executive of Bose Corporation is in Ireland today and tomorrow, or some of these days. On behalf of the workforce and the community in Carrickmacross, I ask that the Minister, Deputy Bruton, and the Minister of State, Deputy Nash, or whoever else, meet directly with that senior management official and give the strong message that we are anxious for the company to consider reversing its decision. They have a highly skilled and committed workforce in Carrickmacross who produce product of the highest quality, and it is that international corporation's only manufacturing facility in the European Union.
I thank Deputy Smith for raising this issue. I am concerned about this closure announcement for Carrickmacross. Not only is it confirming a large number of job losses, but it was totally unexpected, and the manner in which the news was broken to long-serving staff was a poor reflection on the company. The way in which this devastating news was given to Bose staff was uncaring, cold and unacceptable. As a Minister from the Border region, I am taking a close personal interest in the matter and I am acutely aware of the impact this announcement is having on workers, their families and the wider community in Monaghan, Cavan and Louth.
We must be mindful of the plight of the workers at Bose and their families as they face into an extremely difficult time following the announcement. As Deputy Smith outlined, many of the workers have very long service with the company and have shown considerable flexibility and adaptability on work practices over the years. The staff have been very responsive to the needs of their employer and the business. It is upsetting to learn at very short notice that production is being transferred to Malaysia and Mexico. I understand that another Bose facility in North Carolina is also due to close.
An inter-agency group, led by Enterprise Ireland, has now been established to address the job losses at Bose. Its membership includes representatives of all the relevant State players - that is, IDA Ireland, Enterprise Ireland, the Department of Social Protection, SOLAS, the Cavan and Monaghan Education and Training Board, the local enterprise office, LEO, and Monaghan County Council. The group is providing a co-ordinated approach to the needs of the affected staff. In addition, my colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, has spoken directly with company management in the United States. He expressed the Government's regret at the way in which this announcement was handled, and particularly the lack of notice given to workers and to the enterprise agencies, the IDA and Enterprise Ireland. I understand he also asked the company if it would reconsider its decision or extend the period of notice that has been given to workers. Unfortunately, the company is insistent that the closure will happen. As Deputy Smith also outlined, the Minister is also arranging a meeting with a senior Bose executive who is travelling to Ireland from the USA to discuss the situation.
I myself have been in contact with the IDA and Enterprise Ireland at the highest levels and have asked them to redouble their efforts to secure new projects for County Monaghan and the broader region, to explore all opportunities to replace the jobs being lost in Carrickmacross and, thereby, to find a replacement industry for the site. We must focus on the skill sets of the employees to pursue new job opportunities for those workers. The IDA has already contacted its network of offices worldwide in an effort to find replacement investment. It is worth remembering that the IDA has been particularly successful in attracting major employers to the north east region in recent years and will seek to build on that success in highlighting the clear advantages of Monaghan, with which I am only too familiar.
Enterprise Ireland, whose companies in the region have been very successful in increasing job numbers in recent years, will pursue all possibilities among its client companies to seek to identify a potential replacement for the town. The agency will continue to develop expansion projects by Irish companies in the area, as it has done in recent years.
I reassure Deputy Smith that I and my Department are working closely with the IDA and Enterprise Ireland to get certain projects across the line in the Cavan and Monaghan area which will deliver investment and jobs. Everything that can be done will be done in this case. Deputy Smith has my personal assurance of that.
I thank the Minister of State, Deputy Nash, for his reply. I note that he issued a statement very quickly on the matter last Thursday night, and I appreciate that. I am pleased to hear the Minister of State confirm that the Minister, Deputy Bruton, is arranging to meet a senior Bose executive who is travelling to Ireland from the USA to discuss the situation. That proposal was put to the public meeting in Carrickmacross last Monday night by Councillor P. J. O’Hanlon. It was endorsed by all of the public representatives present, including Oireachtas Members and other councillors, and by all present. In the meantime, individual members of the workforce have been in contact and no effort is spared to ensure the meeting with the senior manager takes place this week if at all possible. I hope the Minister of State will convey to the Minister, Deputy Bruton, the anxiety I convey to him on behalf of the local community and the workers in Bose that the meeting take place.
From what the Minister of State has outlined, I am aware that the company has indicated it is not open to reversing the decision. That is regrettable. We hope the Minister will make some progress in that respect without ever trying to raise expectations. It would be irresponsible for any of us to do that.
The Minister of State mentioned the closure of the plant in North Carolina. The timeframe for the closure there is next September, whereas the proposed closure date for the Carrickmacross manufacturing facility is April. The closure of the plant is devastating news but the very short timeframe in which it is proposed to cease operations there is further crippling news.
I thank the Minister, Deputy Bruton, the IDA and Enterprise Ireland for meeting Oireachtas Members, including me, last Tuesday. Local authority members for south Monaghan, along with senior council officials, also met with Oireachtas Members in the meantime. They conveyed to us the understandable concerns of the local community. Monaghan County Council is a proactive, progressive council that will do anything within its remit to try to help out in the situation. I am sure the Minister of State is aware of that himself from his geographical location as a neighbouring public representative. We hope every effort will be made by the Minister of State, Deputy Nash, the Minister, Deputy Bruton, and all the relevant officials in the Department and the agencies to try to impart the strong message to Bose that it has had a very successful manufacturing operation in Carrickmacross since 1978 and that it has a very skilled and committed workforce. Currently there are 140 employees, but traditionally, an additional 60 to 80 seasonal employees were also taken on. We are talking about a workforce of 200 in a relatively small town, which is of huge importance.
Over the years the workforce in question adopted and adapted to new work practices. The IDA confirmed to us the other day that this was one of the manufacturing facilities that had been in the lead in rolling out a lean manufacturing process, which has reduced costs for companies and increased productivity. Given all that, everything must be done to try to assist the workers who unfortunately received the devastating news this time last week.
It was devastating news indeed. I am in the happy position of knowing quite a number of Bose workers from my constituency of Louth, especially people in the Ardee and Dundalk areas. They enjoyed their experiences and were very committed to the company. Like me, they were very disappointed at the sudden turn of events. The IDA and Enterprise Ireland are extremely annoyed at the turn of events and the completely unacceptable manner in which the devastating news was imparted to the employees.
As I stated, the Minister, Deputy Bruton, will meet Bose executives at the earliest opportunity. He will raise all of the issues Deputy Smith has expressed in the Chamber today on behalf of the people of Carrickmacross and all who are currently employed at Bose. I am very conscious of the difficulties in attracting new industry to regional centres. For that reason, we have initiated the development of new regional strategies to be rolled out this year as part of the Action Plan for Jobs 2015, which was launched today. I am hopeful that the initiative and its momentum will help to reinvigorate the industrial base of areas of the country that are away from the main urban centres, areas such as Carrickmacross, and other areas across the Border region. As Deputy Smith is aware, the IDA has had considerable success in attracting new industry to County Louth, for example, in recent years. The Carrickmacross area is not too far from Louth. It is just across the border, and the two areas have much in common in terms of the skilled and dedicated workforce and the good infrastructure in the area, with the N2, which is very close to main urban centres in both Northern Ireland and the South.
In addition, Enterprise Ireland has made significant strides in job creation among client companies in the indigenous sector, with 8,476 net new jobs being created in 2014. Monaghan has enjoyed some success in that regard also. The numbers employed in Enterprise Ireland’s agency companies in Monaghan have risen from 3,638 in 2009 to 4,170 last year. That is a significant achievement and a major jump in a short period.
Eighteen thousand more people are at work in the Border region in the past couple of years since the action plan for jobs was initiated in 2012. That is not to say that there are no challenges. The problems experienced in Carrickmacross as a result of this devastating announcement illustrate one of the major challenges we have as a country to ensure balanced regional development right across the country, not just in the major towns and cities but in the Border region and everywhere else. An area like County Monaghan needs investment and can attract investment because of its location and workforce.
I thank Deputy Smith for raising this matter and I will communicate his concerns to the Minister, Deputy Bruton, as I know he takes this matter extremely seriously.
The Dáil adjourned at 4.10 p.m. until 2 p.m. on Tuesday, 3 February 2015.