Seanad Éireann debate -
Wednesday, 26 Jan 2005

Vol. 179 No. 1

Job Losses.

Mr. Wilson

This is the first opportunity I have had to congratulate Deputy Killeen on his appointment as Minister of State at the Department of Enterprise, Trade and Employment. I wish him well in the years ahead.

What steps will be taken to secure replacement jobs in view of the closure of Ezy Koter Limited, Virginia, County Cavan? This is a pressing issue. Last week, the announcement of the pending closure of Ezy Koter Limited was a devastating blow to the east Cavan region. For over 20 years the company has brought huge benefit to the Virginia area. Ezy Koter Limited manufactures paint rollers and trays but the company has found itself unable to compete against cheaper imports manufactured in Asia. This Easter, 46 people will lose their jobs with the closure of the plant and this has been a major blow to Mullagh, Maghera, Munterconnaught, Virginia and the surrounding area.

It appears that the company will offer a good redundancy package to those affected but replacement jobs must be an immediate priority. While IDA Ireland carries the main responsibility for ensuring that a replacement industry is found, I urge the Minister and his Department to redouble their efforts in job creation in this area of Cavan. I call on FÁS to visit the factory and conduct a skills audit of the workforce and, where necessary, provide training for those who require it to assist them in obtaining alternative employment.

I am aware from the chief executive officer of Cavan County Enterprise Board, Mr. Vincent Reynolds, that a number of people are interested in purchasing this valuable asset of 30,000 sq. ft. of factory space. I urge the Minister to provide any assistance he can in this regard. My colleague, the Minister of State, Deputy Brendan Smith, has been in contact with the Minister and I, along with my colleague, local councillor Shane O'Reilly, support him in his endeavours to find a replacement industry.

Deputy Brendan Smith also had discussions at the end of last week with senior officials in both Enterprise Ireland and IDA Ireland about the urgent need to provide new jobs in the Virginia area. The county manager, Mr. Jack Keyes, my colleagues on Cavan County Council and the county enterprise board will support the national development agencies in their task to create jobs locally.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Killeen)

I thank Senator Wilson for raising this important matter on the Adjournment and, like the Minister of State, Deputy Brendan Smith, for raising it previously with the Department.

I am conscious of the adverse effect on the workers and their families of the announcement of the closure of Ezy Koter Limited, Virginia, County Cavan. Ezy Koter, which manufactures paint rollers, announced on 20 January 2005 that it is to close its operations at Virginia with the loss of 45 jobs. It is expected to do so around Easter.

According to the company, underlying market conditions have rendered the operation non-viable and, unfortunately, with cost-competitiveness now the key to the marketplace, many companies in lower-tech manufacturing are experiencing the same difficulties. Ezy Koter blames cheaper foreign imports for the closure as it has been operating in a marketplace that has become increasingly more competitive. It has decided to source roller products from the Far East.

Finding alternative employment for the workers affected is a priority for the State development agencies. I assure the House that IDA Ireland, Enterprise Ireland and FÁS will play their part in developing a way forward in conjunction with the Cavan County Development Board.

FÁS, which met representatives of the company yesterday, will provide advice and training opportunities for the Ezy Koter workforce and has outlined the full range of its services to the company. The range of FÁS services on offer includes the following: top level agreement with the company on responsibilities and actions; intensive interviews, individually and/or in groups, with affected workers that will outline the range of supports and services available; preparation of a skills analysis report by FÁS based on identified workers' needs and local opportunities; referral by FÁS of affected workers to jobs, training courses or other options; establishment by FÁS of special or customised training courses where necessary; and ongoing support and action to keep redundant workers in touch with the labour market.

IDA Ireland, with the co-operation of EzyKoter's parent company, will make a full assessment of the company's facilities to establish whether it can be marketed for other activities. IDA Ireland is also actively marketing the new privately owned 25,000 sq. ft. factory premises in Virginia. In addition to promoting Virginia, it is also actively marketing Cavan town for potential foreign inward investment. It has recently completed a €1 million upgrading of Cavan business park to raise its profile and increase its attractiveness for inward investment.

IDA Ireland also received planning permission for two 25,000 sq. ft. advance technology buildings on Cavan business park at the end of 2002. While it would have been the intention to seek a developer to provide the first of these buildings during 2003, the final vacation by Teradyne of the existing building on the park means that it is currently available for marketing. This effectively requires that the plans for a new building be postponed. In addition, with the completion of the metropolitan area network in the early part of next year, the park should be able to provide considerable broadband solutions to potential customers. IDA Ireland is also cognisant of the range of smaller buildings provided through private developers in Cavan and through bodies associated with Cavan County Enterprise Board.

I assure the House that the State development agencies, under the auspices of my Department of Enterprise, Trade and Employment, will continue to work closely together and with local interests in order to promote Virginia and County Cavan for further investment and job creation.