I should like to point out that I had some misgivings as to whether the subject-matter of this question was really proper to be raised on the Adjournment. It can be raised only in so far as it affects the action of the Minister. No reference may be made to the control, administration or management of any firm or company, either direct or by insinuation, innuendo or suggestion.
Private Deputies' Business. - Adjournment Debate—Unemployment in Tullamore.
I want to give the Minister and the House an assurance that I raise this matter with my colleagues respecting Leix-Offaly, not in a political spirit but in the spirit in which we believe we are anxious to direct the attention of the Minister to the seriousness of the situation which at present prevails in Tullamore. It is only right and proper that note should be made of the fact that some years ago, when the present Minister for Industry and Commerce occupied a similar position, that he played a good part in assisting the establishment of this industry at Tullamore, in which the local Deputies at the time—among whom was Deputy Davin, who is now in the House—figured very prominently.
The town of Tullamore has benefited from this well worthwhile and very good industry since it was established, and I am sure the Minister can safely agree with this, that it is the only manufacturing industry in that provincial town. It is an industry which has kept the home fires burning in many of the 700 homes which are gravely concerned. Seven hundred workers were employed in the mills in Tullamore. Most of those were local boys and girls, and when I say that the seriousness of the situation affects the town of Tullamore principally, it is right to say that it affects the towns of Mountmellick, Daingean and Clara, and the villages of Kilcormack and Clonaslee, because for a radius of 20 miles around Tullamore this industry employed every available girl and provided transport to bring them to their work daily and return them to their homes. Seven hundred people were employed at the best possible rates of pay and under the best possible conditions of employment.
That staff of 700 has been reduced to 320 approximately and those men and women who were the pioneers of the establishment of this industry and who went to England to become experts in the business now find that they are forced to emigrate.
I consider that it is the duty of the Minister to endeavour as far as possible to see that the services of such expert people are retained in our own country. It is a most deplorable and alarming state of affairs and calls for immediate action on the part of the Minister to see that some steps are taken to have employment provided for these key men so that they will not be forced, as they are being forced, to emigrate.
In this district employment of this nature is very scarce. Of the 60 girls who were employed from the town of Mountmellick, the majority of them have now emigrated as there is no alternative employment. Business houses in Tullamore, where all these people spent their wages, have been adversely affected. As far as I can see from the gravity of the situation the town of Tullamore is slowly becoming and will become, unless some steps are taken to prevent it from happening, similar to a wayside village.
It is true to say that there are other concerns giving employment in Tullamore but it is well known that the principal provision of employment in that town came from the spinning mills. The loss of wages affects the town very seriously. It affects practically every home in the town. The 340 people who are at present employed are employed for only halftime, whilst the other branch of the industry, the weaving end at Portlaoise, is working full-time and overtime. It is something certainly which needs some explanation.
I raise this problem because of the seriousness with which the members of the urban district council at Tullamore view it, with which the clergy of Tullamore view it, with which the trades council and citizens of Tullamore view it. Because Deputies of the Opposition are raising it, I would like the Minister to understand that we are raising it with very genuine and sincere motives to be helpful to him and it is in this light that I am directing his attention to the position. He has already received a resolution from the trades council and from the urban district council and he knows that the loss by such a large number of persons of their employment, both boys and girls, must very seriously affect the town.
As one who is very anxious to help the Minister in this situation and to assist the workers who are concerned, I would ask him to accept the request which has been made by the trades council to call a conference of the management and the workers with an independent chairman, say, from among the senior officers of his Department, or himself, in order that some steps may be taken for the purpose of increasing the production in the mill. My only concern is to see that we get that mill back on its feet again so that full-time employment may be restored to all the workers.
I do not propose to detain the House on this subject, as Deputy O'Higgins and Deputy Davin are anxious to contribute, but I view with the gravest possible concern this situation and I ask the Minister to take action before it is too late. The good workers are leaving the country and the mill at present is of little use to Tullamore where you have 300 people employed out of 700, with the 300 people only on half-time. The traders of the town are affected as are all branches of life there. The town of Tullamore is one of the most thriving, the most sucessful and prominent business towns in the Midlands and unless something is done it will be reduced to a wayside village. We do not want that to happen and we hope we have the support and co-operation of the Minister in endeavouring to solve the problem that has arisen in Tullamore. We will be grateful for any assistance the Minister can give. I am not raising this from political motives. I am anxious to help the workers by having the Minister's attention drawn to the plight in which the workers of Tullamore are placed at the present time.
I do not want to say anything now that will prejudge or prejudice in any way the decision of the Minister upon the requests he has received from the Tullamore Trades Union Council on this matter. Since the 2nd October last I have been present at many private meetings and conferences in connection with this very serious state of affairs. In company with other colleagues I met representatives of the workers in Portlaoise on the 29th October. I subsequently met members of the urban council together with representatives of the workers and other interests in the town. Last Sunday we were all summoned by telegram from the Tullamore Trades Union Council to meet representatives of the workers. When my colleagues and I turned up we were met by hundreds of employees, some of them working short time and others out of work, all of whom were waiting to hear what we had to say. I made a suggestion, which was agreed to by my colleagues and eventually agreed to by the trades union council, who had summoned the conference, that it was undesirable to talk in public on a delicate situation of this kind, that I came for the purpose of having a conference with unions covering all classes of workers in the town, and that I did not think it would serve any useful purpose to address the workers in the circumstances. I discussed the matter privately with members of the traders union council and the representatives of the unions concerned. They eventually decided that the Minister should be requested to use his good offices and his personal influence, if necessary, to summon a conference representing the management and the unions catering for the workers concerned to be accompanied by the Deputies for the constituency and the chairman and secretary of the trades union council. I understood from the Minister's reply to-day that he has not yet given a decision with regard to that matter. I am not going into the merits or demerits of the concern, as I have no expert knowledge in regard to its working. However, I have reliable information from those associated with the management side and with the workers' side.
I have already said that no reference must be made to the management, control or administration of any firm or concern.
I am not criticising one or the other. I am sorry to say this, and I would like it to be a point for the Minister's consideration: Unfortunately, the feeling between the management and the workers, both employed and unemployed, is not too good. I feel certain that, for that reason alone, apart from other good reasons, the conference suggested by the trades union council would be bound to have a good effect. I, therefore, urge the Minister to use his good offices for the purpose of convening such conference.
Mr. O'Higgins
I would like to add my views to what has been said by Deputy O. Flanagan and by Deputy Davin. I feel certain that the Minister appreciates the importance of this industry to the town of Tullamore, to County Offaly as a whole and, in fact, to the entire constituency we represent. The fact that this matter has been raised here by three Opposition Deputies is not any indication that there will be any peculiarly political approach to this grave problem. I recall that on the 9th June, 1949, a Fianna Fáil Deputy representing the constituency of Laois-Offaly raised, by way of parliamentary question, a matter relating to this industry because at the time there was some fear that workers might be leaving Tullamore. The question was properly raised because the industry is of the utmost importance to the town. We are not discussing that or concerned with it now, but the situation as it exists at present, however it was caused, is serious in the utmost.
Apart altogether from the number of workers who have been laid off and the number who are working short time, the most serious feature is that trained workers are leaving Tullamore and being lost to the country. Should the factory, say, in a month's time, endeavour to open its doors again it will find considerable difficulty in replacing the labour which has been trained over a number of years. I was shocked to learn last week that the laying-off of the overseers employed in the factory has already started. That is a most serious step, and it means that the only door open to these men is emigration. This means a loss of employees who have been trained over a number of years. Whatever decision the Minister may come to I urge on him to realise, and I am sure he will do so, the complete feeling of dismay which has been caused in Tullamore in recent months because of the situation which has arisen in Salts, Limited. All the inhabitants of the town have an interest in this factory, be it monetary or otherwise. They feel that the industry carried on there is part of the town and any suggestion that Salts, Limited, might be in difficulties means a suggestion directed against Tullamore itself. Deputy O. Flanagan, Deputy Davin and I have been concerned in recent weeks with regard to the problem which has grown up. As Deputy Davin stated, it has been suggested that, perhaps, some fact-finding conference might be convened at the instance of the Minister. I do not know whether or not that course would commend itself to him. However, I would urge upon him that some action of that kind should be taken. It may be that a conference could not remedy whatever working difficulties beset the industry, but it will restore the confidence of the workers.
I am aware that there is such a lack of confidence at present that even the men still working in the factory are applying for passports, with a view to going to England. Even these men who are lucky enough not to be let off feel that there is no future in the industry, and they are seeking employment outside the country. They have no information as to what is happening to the industry and, consequently, lack the confidence necessary to face the future. A conference would at least remedy that situation. It would explain to the employers and the employees the difficulties with which the industry is faced and would enable both management and employees to work together to overcome these difficulties.
Any curtailment of output or loss of employment in this industry is, naturally, of very grave concern to the Government. As soon as it appeared likely to develop, the Government took all the action within its power to endeavour to remedy the position, both by curtailing imports of worsted cloths of the kind that would be woven from yarns produced at Tullamore and by imposing a customs duty on yarns of that type also.
Deputy O'Higgins spoke about a fact-finding commission. I do not think we need any commission to find the facts. The Tullamore concern is at present working upon short-time and has been compelled to lay off a substantial number of its workers because it is not getting enough orders for its products to keep it in full production. It is not getting enough orders because of the conditions now prevailing in the woollen and worsted industry due to the trade recession, and, in a special way, to the abnormal stocks of woollen and worsted cloths in the country. The woollen and worsted mills are themselves working to less than capacity and they are the customers of Salts for yarn.
It has been said that one worsted concern in Portlaoighise is working full-time. I am delighted to hear that, and the employees of Salts ought to be delighted, too, because the fact that one concern in that industry is working full-time is an indication that a revival in trade and in the industry will come and with it a flow of orders into Salts which will permit of increased activity there.
The firm of Salts, like other firms, might have continued to employ workers producing for stock against the time when orders would be resumed. I understand they did so and that they are now holding heavy stocks; but their position was further complicated by another fact of which I think Deputies ought to be aware. In September or October of 1950 Salts were requested by Deputy Costello, as Taoiseach, through the Industrial Development Authority to carry more than their normal stock of wool tops. Wool tops are the raw materials used by spinning mills. They were asked to carry four months additional stock of wool tops and in compliance with that request from the Government conveyed to them by the Industrial Development Authority Salts made a purchase of wool tops to that extent. Unfortunately they bought at the top of the market. As the House knows the price of wool began to fall from that time on and has continued falling ever since. The price of wool is now 30 per cent below what it was before the Korean war started. The carrying of these heavy stocks by Salts involved it in a very substantial loss.
If you look at the balance sheet you will see that their profits went up.
For what year?
The year ending 30th September last.
I am telling you the position as it is now.
And their dividends went up?
Because of the existence of these stocks carried at the request of the Government and on an undertaking given by the Industrial Development Authority that if the price should fall they would be protected against loss by some action of the Government, I advised the Government to reimpose the customs duty. Salts ordinarily sold their products at world prices but the process of liquidating these exceptional stocks makes it impossible for them to do so now and their yarns are at the present time slightly above world prices; yarns sold for weaving into cloth for home consumption are sold at slightly above world prices. That may also have an effect upon their sales although I do not think it can be appreciable.
It was recognised that Salts would have to carry themselves the corresponding loss upon their normal commercial stocks so that the situation which has developed generally affecting all branches of the woollen industry has hit Salts particularly severely.
I find it difficult to forecast when this position may rectify itself. Sooner or later it certainly will rectify itself. By stopping imports of woollen and worsted cloths and restricting, as we have, imports of yarn we have created a situation where the revival of Salts' trade depends entirely upon internal conditions. The whole of the market for worsted yarns and cloths woven from these yarns is reserved for Irish producers. Normally one would expect a revival of trade in the woollen mills to begin now. The spring period is usually the busiest period in that industry. The existence of these exceptional stocks on the hands of traders undoubtedly complicates the position and there is no means of finding out to what extent these stocks are being reduced or disposed of. The woollen trade throughout the world is still very much depressed.
I had an opportunity of discussing that position with the president of the Board of Trade in London this week. He was making representations to me concerning the restrictions we have imposed upon imports from that country and it is obvious that, bad and all as the position has been here because of the recession in the sale of woollen goods, they have been worse hit in other countries. In fact Salts themselves claim that they are working to a higher proportion of their capacity than is their spinning mill in England. On the other hand, the woollen manufacturers, some of them at least, have told me that they are beginning to get orders again, that they are hoping to expand their production and get back to normal working soon. If that is so then, subject to whatever stocks they may be holding, orders to Salts may be increased.
I want to refer now to the request I received to summon a conference. It is obviously no matter of difficulty for me to summon a conference and appoint an officer to preside over it. I would do so if I thought it would do any good. On the other hand, I would not do so if I thought it would do harm. None of the Deputies who spoke in this debate made any suggestion as to what that conference might do. I will discuss the position with the management. I will be quite frank. I notice that in the request I was asked to summon representatives of the Irish Transport and General Workers' Union and the Workers' Union of Ireland. I understand the management of Salts have an agreement with the Irish Transport and General Workers' Union. I have seen Press reports which suggest that the Workers' Union of Ireland are now recruiting members amongst Salts' employees. Every Deputy here knows that the Irish Transport and General Workers' Union might refuse to attend a conference at which the Workers' Union of Ireland is represented.
That is not true.
Mr. O'Higgins
The Minister should not bring that in.
It is true.
They attended last night at Tullamore.
I do not know if it is true but it has been frequently stated——
Check it up.
——that the rivalry between these unions is so strong they will not meet in conference.
Mr. O'Higgins
We have all been very careful to act in accordance with the ruling of the Chair and I suggest the Minister should follow the same example.
I am dealing with the request that a conference should be summoned and I want to be quite certain that in inviting both unions to a conference I will not be taking sides in an inter-union dispute.
Mr. O'Higgins
You took sides long ago.
I want to assure the Minister that the object of the conference is to discuss the low production and unemployment and has no relation to any inter-union dispute, and that was not discussed last Sunday.
I can go only upon the strength of certain statements in the Press that there is only one union authorised to speak for the workers employed in Salts. However, as I have said, I have no objection to summoning a conference if there is any reasonable hope it will do any good. I cannot decide on that issue without giving the management an opportunity of expressing their view. They may hold the view that it would do more harm than good to have the intimate affairs of their company discussed at a conference at which political representatives as well as trade union members would be present.
You can leave Deputies out of it if you want to.
A conference between the management of the company and representatives of its own workers through their trade union would not be a matter of any difficulty to me. In fact, I would be surprised to hear that my intervention would be required to make it necessary. I will inquire into the matter, however.
The Dáil adjourned at 11 p.m. until 3 p.m. on Wednesday, 27th February, 1952.