I welcome the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Treacy, but I am disappointed the Minister, Deputy Harney, is not in the House as I have things to say directly to her. This matter concerns job losses at the Herdmans factory in Ballybofey which is of serious concern to the people of Ballybofey and the Finn Valley in general.
People in the area are in a state of shock following the unwarranted notice given to 59 full-time and 28 temporary staff at the Herdmans (Ireland) factory in Ballybofey. This company has been in Ballybofey for about 40 years, but was originally based in Sion Mills for about 100 years. The company's main manufacturing base is in Sion Mills where up to 650 are employed. The plant in Ballybofey produced linen yarn for finishing in Sion Mills.
The company has been a good employer in Ballybofey and the Finn Valley area and is one of the few manufacturing employers in the region. In April 1998 the House debated the company's reduction in its workforce by 42 in what we were told at the time was a rationalisation programme to help secure the remaining jobs at the plant. Unfortunately we are debating this issue again following the announcement that all jobs in Ballybofey are to go.
In 1998 the company's flax section was relocated to Sion Mills. Unfortunately some the workers in Sion Mills are also being made redundant due to the rationalisation programme. The cutting of weekend and some nightshift work is regrettable as all the workers who will be laid off are from the Ballybofey area. This is a black day for the Finn Valley.
The problems arise due to the fact this company is involved in the textile industry and is not immune from competition from countries with low production costs, fluctuations in fashion and the general difficulties faced by manufacturing companies. The two main manufacturing employers in the Finn Valley area were both involved in textiles. Unfortunately Nena Models in Stranorlar had to lay off 43 employees in January. County Donegal has lost over 3,000 jobs in the textile industry in recent years. Many of these jobs have been lost due to the relocation of production to low-cost countries. I hope the Minister of State will clarify whether this option is being considered by Herdmans.
The employees being made redundant have given long service to the company. Many of them are in their forties or fifties and have given over 30 years' service to the company. These workers were offered statutory redundancy, but this is not good enough after all these years of service. Will the Minister of State clarify the position in this regard?
Were the Department of Enterprise, Trade and Employment or the agencies under its remit notified in advance of last Wednesday's notice to the employees? I trust the Department will ensure the State agencies try to find an alternative industry for this plant. Public representatives from Donegal South-West are meeting the management on Monday. The Minister must go to Ballybofey and the Finn Valley.
A proposal was put to the county council meeting last Monday and the Minister is visiting Inishowen next Friday to advise on two further employment projects. Before we even knew of these job losses the councillors knew how poorly the Finn Valley area had been looked after by the State agencies. We decided at that meeting that the Minister, Deputy Harney, would be asked to come to meet us in Ballybofey next Friday.
Questions have to be asked about the State agencies and their performance in the Finn Valley area. This area has suffered due to 30 years of Northern Ireland troubles. While our colleagues across the Border are getting 80% of European funding, we are getting only 20%. I have been at meetings in Ballybofey long before these job losses were announced, complaining about the lack of investment in industry. While there is investment for small indigenous industry coming through Enterprise Ireland, the policy of IDA Ireland is to concentrate on Letterkenny.
Following the Fruit of the Loom debacle, Letterkenny and Buncrana were highlighted as the two towns for attracting employment under the policies of the IDA. That is of no benefit to most of the western rural part of Donegal and particularly the Finn Valley where for years there was nothing other than agriculture. There is a good commercial community in that area. It is not good enough to decide to put the jobs in Letterkenny and expect people to travel there from Ballybofey. Great improvements have been made, but they are all in the Letterkenny area. I want that policy changed.
Ballybofey is a large town where there are very few opportunities available and in this year alone the town has lost between 200 and 250 jobs in the manufacturing industry. I want places like Ballybofey to be given special attention to try to attract a serious large-scale industry. I accept Enterprise Ireland is trying to create small indigenous employment but that is not enough. The Minister should look at the policy of IDA Ireland in relation to Donegal. We cannot put all the jobs into Letterkenny and leave the rest of the county without jobs. Even Ballyshannon is one of the towns included in IDA Ireland policy. I cannot recall over the past four or five years one job being created in the Ballyshannon area.
I appreciate what the Minister has done in coming to Donegal on numerous occasions to assist, advise and announce new jobs. However, she must now change the policy of IDA Ireland in relation to places like the Finn Valley.
