Skip to main content
Normal View

Seanad Éireann debate -
Tuesday, 30 May 1995

Vol. 143 No. 12

Adjournment Matters. - Kilmallock (Limerick) Industry.

I welcome the Minister. He spent some years here and graduated from this House. I wish him every success. I raise the situation in Neodata because there is a rumour that a number of jobs could be lost in the Kilmallock plant. I may have a parochial mentality, because I live 14 miles from Kilmallock. It is one of Limerick's ancient towns and was built a long time ago. It has great historical monuments which ensure its historical value remains and these include the old wall which can be seen by anyone visiting Kilmallock.

The area has lost many businesses and much employment of late. The creamery closed, as did the ESB office, because of rationalisation. The railway station, which was very important at one time, is also gone and the area is now threatened with the loss of 35 jobs because of rationalisation. Neodata had a problem at the end of 1993 because of the loss of contracts. At that stage negotiation with the parent company ensured that these contracts would be renewed and jobs were saved at the factories in Listowel and Newcastlewest.

I understand a meeting is arranged for next Friday and it is hoped that management and unions will devise some plan. The Minister would probably know more about that. It is important to ensure that the contracts negotiated in 1993 are concluded and that some new contracts are negotiated to ensure employment will continue in Kilmallock particularly, because the area has little employment and industrialisation. There are almost no factories in the area. It is one of the oldest towns in County Limerick and Munster and it needs industrialisation and the continuation of the Neodata factory as well as the factory at Newcastlewest. I appeal to the Minister to use his influence to ensure the 35 jobs in Kilmallock are saved. I thank the Minister.

I thank Senator Kiely for his kind opening comments. It is always a pleasure to come back to the Seanad. Members here have a more even spirited way of conducting debate than in the Lower House as is probably fitting to the House's name.

Neodata Services Inc. has its headquarters in Boulder, Colorado, and provides comprehensive, integrated out-sourced services to organisations using direct marketing. These services include magazine, book and product fulfilment, product warehousing and distribution, telephone customer service and marketing database management. Neodata came to Limerick in 1969 to establish a back office data processing operation engaged in magazine subscription for the US parent. It did so without State aid of any kind; the internationally traded service sector did not qualify for State aid at that time. During the following 25 years Neodata expanded to three other midwest locations — Newcastlewest, Kilmallock and Listowel.

Following the announcement by Neodata in November 1993 of their intention to consolidate to their headquarters in Colorado, the company and IDA Ireland worked vigorously to prevent the potential loss of 400 jobs at Neodata's Irish operations. These efforts resulted in a proposal for grant assistance which would save 260 jobs. The proposal was approved by the Government last October.

Neodata Ireland has broadly restructured its operations during the last 18 months to better provide a more cost effective service in an increasingly competitive global market. While the company has been particularly successful in identifying and securing new business for its offices in the midwest, a drop in demand for the services provided at Kilmallock has resulted in the introduction of a voluntary redundancy programme at that office. The programme, which involved 35 redundancies, has been fully subscribed and will be implemented over the period 2 June to 13 October, 1995.

In addition to the voluntary redundancies sought, Neodata will also be implementing a programme of temporary layoffs during the summer months. Approximately 19 permanent staff will be affected by these layoffs, which are not expected to last beyond September. These layoffs are necessary due to a delay in securing contracts and to seasonal variations, which are normal during this time of year. Neodata Ireland is currently in negotiation with a number of European based multinationals concerning business for its Irish operations, and it is expected that one or more of these contracts will be signed during the next three to four months, thereby providing further job opportunities at Kilmallock and re-employing the 19 staff temporarily laid off.

The restructuring at Kilmallock does not impact in any way on Neodata's other offices at Listowel, Newcastlewest and Limerick city. Indeed, employment levels across these latter offices are currently at 180 and may rise slightly during the year as work volumes increase. The net effect of these changes, therefore, is to consolidate Neodata's employment levels across all its offices at approximately 215 permanent staff.

Neodata Ireland has been working very closely with IDA Ireland in seeking new business opportunities. The negotiations to which I have referred are currently at a sensitive stage, and the potential clients required confidentiality prior to formal contracts being signed. The lead time associated with entering into a contractual agreement with new clients is between nine and 12 months. Neodata are advanced into that lead time with a number of potential clients. However, while they consider the prospects for new business favourable, they are not in a position to offer any guarantees in this regard at this stage.

The importance of Neodata to the town of Kilmallock is appreciated, not least by the company itself. Indeed, I understand that the managing director of Neodata, as the Senator has acknowledged, has extended an invitation to the appropriate public representatives, including TDs, Senators and councillors, to attend a meeting with Neodata management on 2 June to keep them abreast of all the latest developments. Although they are faced with some short term setbacks, I believe that there are longer term opportunities available and it is Neodata's intention to pursue these opportunities with determination. I can assure the Senator and the House that in these efforts they will continue to have the full support of IDA Ireland.

Top
Share