I wish to share my time with Senator Neville and Senator Kelly.
Adjournment Matter. - Assistance for Limerick Plants.
Is that agreed? Agreed.
Their time might be limited enough before I have finished, but I am prepared to share my time.
Some other Senators had their motions down before you.
I would like the Minister for Enterprise and Employment to provide assistance to the Neodata plants in Newcastlewest and Kilmallock, County Limerick, which are due to close at Christmas. In calling on State agencies to find a replacement, Senator Neville is accepting that the plants have closed. Senator Kelly wishes to make a statement on the loss of 107 jobs.
As I said recently on the Order of Business, I cannot understand why the Neodata management plant is in Limerick. There are other factories in Kilmallock and Newcastlewest. It surprises me that these two factories are closing when Listowel has remained open. I do not know whether that is due to political influence or not but I will ask Senator Kelly or Senator Neville to explain it.
It seems funny that Klopman's staff got a three month reprieve but Neodata in Newcastlewest could not get a reprieve. They were just told to get out and their jobs were lost. There is desperate concern about this in west Limerick. I do not know whether it is because of political influence but I am delighted that Senator Neville and Senator Kelly are here to explain whether it is or not.
The Minister is here to explain. That is the Minister's job.
I wish to quote from an article in The Kerryman of 24 November 1995 entitled “Kostal may create 300 jobs in Tralee”. It reads:
The German owned automotive components manufacturing company Kostal, which employs over 1,000 people in Abbeyfeale and Newcastle West, is now giving very serious consideration to opening a new manufacturing facility in Tralee, The Kerryman learned this week. Workers at the two West Limerick plants have just been told about the company's proposals. But The Kerryman understands that no final decision has been made...
Is it because of political clout? I address that question to the Minister. When I raised this matter last year, Neodata promised they would not interfere without consulting the employees. However, they did not do that. They just informed them they were closing. Is it because we have no Minister in west Limerick that we are being victimised? I would like Senator Neville to address that.
The Taoiseach, Deputy Bruton, said he would do everything possible to ensure that operations would continue at Kilmallock and Newcastlewest so that employment would continue there. It is very strange to see that the Listowel plant will remain open. Senator Neville gets a lot of votes in Listowel.
I do, actually.
I would like him to comment on that.
We could all call for the continuation of Neodata, but realistically a company in America has decided to close its two plants in Kilmallock and Newcastlewest. We could shout from the high heavens asking Neodata to let the plants stay open but that will not happen. These are commercial decisions made by hard-nosed commercial people.
I am asking the Minister to call on the State agencies to immediately get a replacement industry which complements the excellent skills of the people employed by Neodata in Kilmallock and Newcastlewest who were involved in keyboard operations for mail order work. In addition, their skills should be updated so that companies will be attracted to Kilmallock and Newcastlewest because of that. FÁS and other agencies should introduce proper programmes to update the skills of the people.
I have been involved in industrial relations for over 25 years and I am amazed by the number of companies which declare redundancies before Christmas. It is an awful time of the year in which to make redundancies. These people have been employed by this company for ten, 15 and 25 years. Many of the women are the breadwinners so the trauma and difficulties they are experiencing are of concern. As somebody who was made redundant after 23 years in a company, I know exactly what they are going through and I can empathise with them.
The State has a duty to respond to the situation as it has elsewhere and for which I compliment it. It did fantastic work after the closure of Digital in Galway. We are asking it to apply the same skills and to make the same responses to Newcastlewest and Kilmallock as it did on other occasions. The expertise and agencies are available to do this. Senator Kelly, who is from Newcastlewest, is extremely interested in this and has made very pertinent and progressive statements. Given that many of these people have been employed by this company for 20 year and are the breadwinners, we strongly urge the Minister to seek a replacement industry.
It is strange that Senator Neville is talking about replacement industries. I will not let west Limerick down.
We are debating Neodata.
Senator Neville has accepted that Neodata will close and he will not do anything about it.
I am extremely disappointed that Neodata is to close but I am a realist. Decisions have been made on a commercial basis by an international company. I want to look forward rather than plough back over something which will not happen. Neodata has made a firm decision and I want the Minister and the Government to replace that industry.
Why is it keeping Listowel open and not Newcastlewest and Kilmallock?
Two years ago Senator Kelly, other politicians and I met fortnightly with Neodata and extended the life of that company but Senator Kiely attended few of those meetings.
I was there.
I thank Senator Kiely and Senator Neville for sharing their time. I would remind Senator Kiely that Neodata has been in trouble for two years. My sister was one of the first to be made redundant in Limerick city. I addressed the girls in Newcastlewest who are my neighbours, my cousins and my husband's cousins. I also taught many of these girls. I would like to say that Neodata will stay on in Newcastlewest but, I spoke to the managing director of Neodata and asked if there was anything the IDA or Shannon Development could do and the answer was no. I cannot change a decision Neodata makes.
I applaud Senator Kiely for his diligence in looking after Newcastlewest and Kilmallock but it is a pity his Fianna Fáil constituency colleagues were not present in the Dáil to raise the same question. They have been conspicuous by their silence on this matter. It might have something to do with the fact that 107 women will lose their jobs. If I could ensure that those jobs would remain in Newcastlewest, I would do so because it means a lot to me. However, I cannot perform miracles. If a company makes a decision to locate in Timbuktu, Senator Kiely knows we have no power to change that decision.
I resent the fact that Senator Kiely is playing with the livelihood of 71 women by making a political football of this. He discussed issues which have nothing to do with Neodata. I ask the Minister what companies in Europe were contacted and if this can be done again. The Minister must ask the IDA to find a replacement industry as quickly as possible because I care about these women.
I thank the Senators for raising this matter in the Adjournment. On 28 November the Minister was advised that there were serious problems at Neodata and the matter was discussed on the Adjournment in the Dáil on 29 November.
The position is that Neodata has announced the closure of its Kilmallock operation with the loss of 36 jobs and the Newcastlewest operation with the loss of 71 jobs with effect from 15 December 1995. Neodata has four operations in Ireland at Kilmallock, Newcastlewest, Listowel and Limerick. It will retain its Listowel operation where 93 people are employed and Limerick where seven people are employed.
I understand the company's main reason for the closures is that a current contract will only be retained at a lower level of business in 1996 and, therefore, fewer employees will be required. I emphasise that it is not a question of providing further grant assistance to the plants with a view to preventing the closures. Grant assistance has been made available for the jobs at Neodata. The problem, however, is one of securing business to facilitate the retention of the jobs.
Why were they not retained in west Limerick?
Regrettably, as Senators are no doubt aware, this is not the first time Neodata has run into problems. In November 1993, just over two years ago when the company employed 400 between its four Irish location, it announced that it was consolidating all of its operation back to Boulder in Colorado with the loss of 400 jobs in Ireland. In the event, collaboration between the IDA and the company prevented the loss of 260 jobs with two major contracts being secured.
Kilmallock was again in the news last May when a drop in the demand for the services provided there resulted in the introduction of a voluntary redundancy programme at that office. The programme involved 35 redundancies and was fully subscribed. In addition to the voluntary redundancies, Neodata also had to introduce a programme of temporary layoffs last summer involving almost 20 permanent staff. This was due to a delay in securing new contracts and to seasonal variations which were normal at that time of the year. Indeed, Senator Kiely and others raised the question of job losses at Neodata in County Limerick in this and the other House.
Neodata has now concluded that it has approximately 100 people in excess of what its current order book justifies. While it still has a major contract in the US, and has negotiated another contract for 1996, the work will be at a lower level and, accordingly, it will require fewer people. In addition, the company's efforts to develop a European market has not, so far, proved successful. Neodata is continuing its marketing efforts in Europe. In this process it will have the continued support of IDA Ireland. This process will, however, take time. In the meantime, the company may consider that it cannot justify the present levels of staffing. Accordingly, it plans to restructure the Irish operations to have a more cost effective base from which to move forward in the future.
The net result is that the company is closing the Kilmallock and Newcastlewest offices. Following this, Neodata will have 100 permanent staff — 93 in Listowel and seven in Limerick. In addition, during 1996 Neodata expects to have up to 100 full-time equivalents working as temporary and part-time employees between Listowel and Limerick.
While it is indeed very disappointing that Neodata should have to close its offices in both Kilmallock and Newcastlewest, I would like to point out that industrial development agencies have been very active in the Limerick region in attracting new industries and assisting in the expansion of others. Companies such as Analog Devices, Dell, Cabletron and AST continue to expand in the Limerick area. They have invested substantial capital and this, coupled with their relationship with the University of Limerick, will ensure that they remain at the forefront of their technologies. In addition, the arrival of new overseas companies such as Vistakon, which will employ 450 people by 1998, and APC, which will commence recruitment of 300 people next year, are positive developments for the area as a whole.
In conclusion, I assure Senators that every effort will continue to be made to ensure that Neodata has a future in Ireland. Neodata first came to Limerick in 1969. It did so without State assistance of any kind, as the internationally traded service sector did not qualify for State aid at that time. However, it has been grant assisted in the meantime. It has been a major employer in the midwest for over 25 years and its ongoing contribution to the Irish economy is very much appreciated.
The Minister's immediate concern and that of the industrial development agencies will be to see what can be done about replacement industry for the Kilmallock and Newcastlewest areas. The agencies will redouble their efforts to find replacement industries and they will also continue to support the efforts being made by Neodata to secure sustainable new business.
With regard to the question raised by Senator Kelly, I do not have details of the amount of moneys paid over by way of grant assistance in the past but I shall endeavour to have the information made available to the Senators. Every effort is being made to ensure that the level of investment in that area will be sufficient to encourage the replacement of any jobs that are lost.
The Seanad adjourned at 8.25 p.m. until 10.30 a.m. on Wednesday, 13 December 1995.