I wish to share my time with Senator Cassidy.
Adjournment Matters. - Factory Closures.
Is that agreed? Agreed.
I was devastated and disappointed when I heard that Oxford Health Plans, which was located in Mullingar, was closing less than two years after it opened. The 125 people who worked there are not the only people affected as many ancillary jobs which were created as a result of its existence will be lost. This closure follows quickly soon after that of the Tarkett factory which resulted in the loss of 141 jobs. The Minister for Enterprise, Trade and Employment adopted an inter-agency approach to find a replacement industry for Tarkett. It was replaced quickly and I congratulate everybody concerned.
The manner in which the announcement of the closure was made irritates me most. Most staff members heard about it on RTÉ news while others only realised there was a problem when they were not able to access their computers. Some people left permanent employment and others returned to Ireland in order to take up employment at Oxford Health Plans. My son was within an "Amen" of taking up a job there but, thankfully, he took the right decision.
Mullingar has much to offer in terms of infrastructure as it contains colleges, hospitals, the seat of the country council, a military barracks and is surrounded by major roads, which will continue to be developed. The people of Mullingar are looking to their public representatives to try to find a replacement industry as a matter of urgency. The town is in the Objective One region and that is important. It is easily accessed and, for example, the rail service is undergoing improvement. I thank the Minister for Public Enterprise, Deputy O'Rourke, who is from Westmeath, for her proactive approach to the area.
Every effort should be made to replace Oxford Health Plans as soon as possible. I hope the company will discharge its responsibilities to its workforce in the established fashion. I wish the Minister for Enterprise, Trade and Employment and whatever group she establishes every success. Mullingar needs it and one could not pick a better centre in which to set up an industry. Given that there are four secondary schools in the town, there is a ready supply of well educated young people to take up jobs along with the well trained workforce which was employed at Oxford Health Plans.
I thank Senator Glynn for affording me the opportunity to speak on this matter. I also thank the Minister of State, who is familiar with Westmeath and is no stranger to the people there. I support the call for everything to be done to try to replace the 125 jobs which have been lost in Mullingar. The population of Dublin will be 2 million in 2011 while north Westmeath has declined in population by more than 30 per cent over the past 25 years. That is an appalling statistic for an area which is only 50 to 55 miles from Dublin.
Westmeath was a five seat constituency 25 years ago. It was then reduced to four and now it is reduced to three. Employment was never more needed in Mullingar and its environs and I call on the Minister for Enterprise, Trade and Employment to put a task force in place as she did when the Tarkett factory closed. That was a success and I thank the Connaughton family for purchasing that site and retaining it for the local people.
The long-term experience will be that Irish people must be supported to create employment because they will not run away. There must be a more aggressive training system for young people in our national plan. I am a member of Westmeath Vocational Education Committee. There are 515 people enrolled in Mullingar Vocational School this year, an ideal opportunity for learning skills with the hands as well as the brains, whether carpentry, plumbing or electronics, and skills for girls and well as boys. This has to be a part of our national plan.
Every town in the midlands that I know of has benefited from the decentralisation programme except Mullingar. We may not have a Government TD in Mullingar and I do not know if that has anything to do with it. It certainly looks very pointed. I cannot speak for the rainbow because we are not elected as rainbow public representatives, but Senator Glynn and I are part and parcel of this very successful Government. The achievements of this Government are unparalleled in the history of this country. We are delighted to be members and say that we are Fianna Fáil public representatives but when it comes to Mullingar we need decentralisation. We need an arm of a Department in Mullingar. We are the capital town, not of Westmeath but of the midlands, and we deserve recognition which we are seeking through the intervention of the Minister of State, Deputy Moffatt.
I thank Senators Glynn and Cassidy for raising this matter on the Adjournment and the Tánaiste regrets that she cannot be here in person to address the problem outlined by the Senators. I share the Senators' concern and disappointment over the recent decision by Oxford Health Plans to discontinue operations in Mullingar with the loss of 135 jobs. I am very conscious of the effect which this will have on Mullingar and most immediately on the employees concerned.
Oxford Health Plans Incorporated is a US public company which employs approximately 6,000, primarily in north-east USA, in the provision of managed health care. In October 1997, the Government approved a proposal by Oxford Health Plans to establish a claims processing operation in Mullingar. It was targeted to employ 500 by the year 2000. Employment peaked at 187 in late 1998 and the operation currently employs 135 people.
At the time of the Government's approval, Oxford Health Plans was the fastest growing company in the managed health care industry in the US and was ranked fifth in the Fortune 100 list of the fastest growing companies. It was financially strong with consistent profit performance above the industry norm. Its employment targets for the Mullingar operation were considered conservative relative to their projected growth.
However, Oxford Health Plans Incorporated has been experiencing difficulties for some time now. It has been losing market share and as a result has been downsizing. Over 500 jobs have been lost in its US operation in recent months. IDA Ireland were aware of these development and have been monitoring the situation closely. They have been in regular contact with the company, including the parent company, in an effort to persuade them to maintain the Irish operation. On the recommendation of the IDA, the Tánaiste also made representations. Despite these interventions the company has decided to close the Mullingar operation with immediate effect as part of its strategy of consolidating its claims processing to a few sites in the United States in order to reduced administrative costs and achieve economies of scale.
The Tánaiste met with the company last week and they explained that this decision was necessary as part of its need to continue its internal restructuring to recover its business and cope with the ongoing decline and loss making it has been experiencing recently.
The company has assured the Tánaiste that it will give every support to the workforce to find alternative employment and has offered an exit pay package to the worker to allow them time to seek new employment. The company regrets the way that these changes have impacted on a dedicated workforce and says it in no way reflects on the performance of the employees.
Oxford Health Plans has also committed to meeting all its liabilities to IDA Ireland and will give every support and assistance in finding alternative business for the facility in Mullingar. IDA Ireland is actively working with potential investors to acquire the Mullingar facility for a new international service operation. I am optimistic that these tasks will conclude successfully in the coming weeks.
While Mullingar has experienced a number of closures in recent times this does not reflect on the town itself but more on the constantly changing structure of business and industry. Indeed, IDA Ireland has been very successful in recent times in attracting inward investment to Mullingar. The Tánaiste announced on 18 May 1999 that IDA Ireland had successfully reached agreement with the Taiwanese public company, Hon Hai Precision Industry Company Limited of Taipei, to establish two industrial projects in Mullingar which together involve investment of more than £8 million and will lead to 500 new jobs over the next few years. In one of these projects the new company, Foxteq Engineering (Ireland) Limited, will invest nearly £4.5 million in establishing a facility to manufacture enclosures for some of the leading personal computer manufacturers, mainly Dell and Apple. The company expects to create 350 jobs within the next four years.
The second project, Foxconn Ireland Limited, will employ 150 over the next three years. It will involve a £3.5 million investment in facilities to establish the company's first European design and low volume production centre for specialised electronic components, including cable assemblies and connectors. Over one fifth of the employees in this project will be third level graduates with particular technician skills in IT design.
Enterprise Ireland are also active in the region. In November 1998 the Tánaiste announced an expansion by Genesis Fine Arts which produces a wide range of cold cast bronze figurines for sale to both domestic and export giftware markets. The new expansion will create an additional 32 jobs, bringing total numbers employed in the company to 74 within a four-year period.
Everything possible will be done by FÁS to enhance the employees' prospects of re-employment.
Given the continued improvement of the economy as a whole, the ongoing efforts of the State agencies and the commitment by the company to give every support, I am confident that the Oxford Health Plans workers will not have too much difficulty in finding alternative employment in the region.
Go raibh maith agat.
I support Senator Cassidy's call for decentralisation for Mullingar and in reply to the final comment the Minister made, in one of the recent industries set up in Mullingar, people of 36 years of age were told they were too old. That is an outrage and a scandal. People who have lost their jobs in this situation or any other should be considered when a replacement industry is established.
The Seanad adjourned at 10.35 p.m. until 10.30 a.m. on Thursday, 14 October 1999.