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Seanad Éireann debate -
Thursday, 28 Jun 2001

Vol. 167 No. 9

Adjournment Matters. - Job Losses.

I thank the Minister of State for taking this matter. I raise it to ask the Tánaiste and Minister for Enterprise, Trade and Employment to address the position that has developed in Roscommon town with the closure and loss of jobs at Precision Castings and to consider establishing a special task force to promote alternative job creation in the area.

Precision Castings has been in Roscommon town since 1976. Up until now it has employed approximately 42 people. Those people are about to be dumped on the unemployment list. This is a major blow not only to the town of the Roscommon where an industrial job has not been created for over ten years but to the employees and their families. Some of the employees have been with the company for 25 years and others were relatively new to it. They will be out of a job and they and their families will suffer the loss of an income.

It is the general opinion of the people of the town of Roscommon that the Government statutory agency, the IDA, has neglected and failed to respond to the calls made over a period for an advance factory and industrial jobs to be created in Roscommon. We are facing the crisis of a loss of 42 jobs and there is no alternative employment. As an immediate measure I call for the establishing of a special task force to promote alternative job creation in that area. That is the minimum that is required at this time.

Local statutory agencies such as Roscommon County Council and voluntary agencies such as the chamber of commerce are willing and available to assist such a task force. There is a vacant advance factory in the local industrial estate. It has been vacant for the past ten to 12 years. At a time when jobs are being provided all over the country, it is beyond belief that this fine facility which could accommodate any major pharmaceutical industry has been left vacant all that time. A factory owned by Roscommon County Council has also lain idle. The Minister of State will be able to appreciate the anger among the people in the town of Roscommon at the closure of its oldest industry and the fact that the Department of Enterprise, Trade and Employment and the IDA collectively have failed to respond to the calls to provide industrial jobs in the town.

I have led deputations and made representations to the Minister of State's office where I outlined our requests. I have brought representatives of the chamber of commerce and the county council, both elected and at executive level, to his office to highlight and explain our basic requests. While we have had encouraging words from the Department and the IDA, nothing has come of our efforts. We have reached a crisis regarding industrial and manufacturing jobs in the town.

It has been brought home to me that urgent action is needed. I am here to explain to the Minister of State that the people of Roscommon are not prepared to be treated as second class citizens. They are entitled to their just share of the national cake at this time. It must be explained in detail to the industrial authority that all its efforts and energies must be focused on County Roscommon, particularly on the town of Roscommon.

More than 2,000 applications for planning permission have been made to the local authority this year, many of them by young couples who want to set up home. The agencies given statutory responsibility for providing employment have failed to respond to the town of Roscommon. It is of no comfort to the people of the town that decisions have been made which we all welcome regarding the BMW region, of which we are pleased to be part, and the Shannon tax corridor, which is helpful to the northern half of the county. It is of no comfort to the people of Roscommon that not alone are no new jobs being created there but some of the existing ones will be lost.

At a time when we hear that the city of Dublin is bursting at the seams and can no longer contain its population due to the economic activity taking place there, one can understand the anger and frustration of the people of the town of Roscommon about the current position. These people demand special attention. I hope that in response to this matter an early decision will be made to set up a special task force, that such a task force will involve local and national statutory agencies and incorporate voluntary bodies that are willing to help and that as a result a major decision will be made in favour of the town of Roscommon to locate industrial and manufacturing jobs there in the very near future.

I thank Senator Finneran for raising this important matter on the Adjournment. As he will know, I am very much aware of the town and its surrounding area and the importance of this matter, having spent my early days in neighbouring County Galway.

The closure of Precision Castings will be a big disappointment to the people of Roscommon town and the surrounding area. I fully appreciate the concern experienced by the redundant employees and their families.

As I understand the situation, the problems for the workers in the company revolved primarily around a pay issue. The union representing the workers submitted a claim which was outside the terms of the Programme for Prosperity and Fairness. The claim was rejected by the Labour Relations Commission and the Labour Court. The union then voted for an all out strike which commenced on 11 June last. With the strike still continuing, the company felt it had no option but to cease manufacturing with the loss of 42 jobs. The closure will take effect from 27 July 2001.

As Senator Finneran pointed out, Precision Castings has been operating in Roscommon for 25 years. It is the longest established manufacturing industry in the town. The company manufactures precision steel castings for a variety of markets and most of the production is exported.

Last August the company lost a major customer to competition from the Far East. This was a serious setback and resulted in changes in overtime and shift working. The union pursued a claim for its members, which was in addition to the current national wage agreement. No agreement could be reached at local level or at the Labour Relations Commission.

The case went to the Labour Court last February and a recommendation was issued. The Labour Court rejected the claim and recommended that the company should set about drawing up plans for a "gain sharing scheme". Due to health and safety regulations the company also needed to invest in lifting equipment. The Labour Court acknowledged that this was necessary for the company to remain viable. However, the company could not make the necessary investment while the wage issue was unresolved and yesterday's closure announcement was the culmination of these events.

The question of a task force for County Roscommon also arose earlier this year when Roscommon County Council asked the Tánaiste to establish a task force for employment creation in the county. Last February, the Tánaiste said the development agencies under the aegis of her Department were fully committed to the promotion of employment in the county, which forms part of the Border, midlands and western region, a priority location for jobs promotion by the agencies. The agencies also work closely with local development bodies, including Roscommon County Development Board and the county council as well as other local bodies and interests, to facilitate an integrated approach to development in the area. In those circumstances, the Tánaiste did not consider it necessary to appoint a job creation task force for the county.

I am satisfied that a focused agency approach combined with a local based approach to address the jobs situation make it unnecessary to establish a specific task force for County Roscommon. This would only serve to add an additional layer over the combined and committed efforts of the local organisations which work effectively together. I appreciate Senator Finneran's remarks. Roscommon is part of the BMW region and I can give the Senator an assurance, on behalf of myself and the Tánaiste, that we will monitor developments closely to ensure the current serious problems surrounding this closure are dealt with urgently.

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