I thank the Minister for coming to the House to discuss this important matter and I thank the Leader for affording me the opportunity to make a statement on the devastating news received last Thursday and Friday in Limerick. The workforce at the Krups/Moulinex plant, which employed 500 people, was asked on Thursday afternoon to attend a meeting on Friday at 8 a.m. Something similar obviously occurred at the Tarkett plant.
The words Celtic tiger have been mentioned numerous times in recent years. Our economy has grown by leaps and bounds. When something like this happens it is extremely difficult for people to understand, particularly people in the workforce involved. To be told one is losing one's job is a devastating blow at any time, but it is exceptionally so six weeks prior to Christmas. Many of the employees affected have worked in Krups for many years; up to three generations of some families were employed there. I compliment the workforce for the responsible manner in which it reacted to the news.
The Krups workforce is flexible and hardworking and its track record is second to none in the area of industrial relations. It is a shame that a decision has been taken by the management of Krups/Moulinex to close the Limerick plant. As with other closures, the reasons given relate to the collapse of markets in eastern Europe. We are all aware of the serious crisis in Irish agriculture where the closure of markets in eastern Europe has caused serious problems. It is ironic that similar problems are being experienced in both the agriculture and manufacturing industries due, in the main, to problems which are outside the control of the Government.
The Minister for Enterprise, Trade and Employment visited Limerick yesterday and was the bearer of good news for Shannon with the announcement of 500 or 600 jobs. She also had the difficult task of visiting the Krups plant where she met the workforce and mid-management and confirmed the loss of 500 jobs. It is extremely difficult for people to comprehend these losses. The jobs involved were good ones which paid £10 million in wages annually, with an additional £5 million in indirect spin-offs in goods and services. In the era of the Celtic tiger, it is extremely difficult to explain to people why they are facing job losses. Some of the employees come from deprived and underprivileged parts of the city and county, places such as Southill.
I welcome the setting up of a task force. On previous occasions, such task forces or inter-agency response groups have proved highly successful. When Digital closed in Galway with the loss of 700 jobs the task force was responsible for the creation of approximately 4,000 jobs, a marvellous achievement. We witnessed a similar situation in Packard in Tallaght where the industry was replaced with an investment of £16 million. Seagate, the electronics firm in Clonmel, was replaced with an investment of £15.5 million and 500 jobs. I read an article in The Examiner recently on which the headline ran “Task Force Worth Their Weight in Gold”. Although they have not succeeded in all cases, they have been very successful.
I sincerely hope every help and consideration will be given to the inter-agency response unit which has been set up to deal with the dire situation in Limerick. In the past number of months, Limerick has been fortunate with the expansion of Dell and other industries which saw new jobs come on stream. All that counts for nothing when one witnesses the loss of 500 jobs among a flexible, multi-skilled workforce. I am sure everything will be done to secure at least the same number of jobs as are being lost in the Krups plant.
Workers in the plant had some indication that difficulties were being experienced and contemplated being put on a three or four day week but, to my knowledge, none was aware of the serious consequences they faced. The employees were informed on Friday morning that their jobs no longer existed.
I feel obliged to make this statement on behalf of the people of Limerick and the Krups workforce. I know the Minister of State, the Minister for Enterprise, Trade and Employment and the Government will do their utmost to support the inter-agency group to ensure that a replacement industry is found in the near future. When things such as this occur, for us it is a devastating blow for a week or so. After a month that feeling gets less and after a while we tend to forget about it. Limerick experienced something similar when Ferenka, a huge industrial employer, closed its doors with the loss of 1,400 jobs. I hope this time we can respond positively. New jobs have been announced over the past number of months and I know the Minister for Enterprise, Trade and Employment has secured many jobs on a regional and strategic basis, something which is very important. At one time many industrial jobs were being created in large urban areas and bigger cities, particularly in Dublin and along the east coast. Jobs are vital everywhere and I suggest and hope that everything possible is done to help the workforce and ensure the jobs in Limerick are replaced.
