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Dáil Éireann díospóireacht -
Wednesday, 9 Dec 1970

Vol. 250 No. 4

Ceisteanna-Questions. Oral Answers. - Hibernian Transport Group.

28.

andMr. M. O'Leary asked the Minister for Transport and Power the current position in respect of employment for the various categories in the operation of the Hibernian Transport Group.

29.

andMr. M. O'Leary asked the Minister for Transport and Power whether he has had discussions with the Irish Transport and General Workers Union on the employment position in the Hibernian Transport Group; whether any assurances have been given to the union; and whether any further meetings with the union will be necessary.

30.

andMr. M. O'Leary asked the Minister for Transport and Power whether any consideration has been given to a possible link-up with one or other of the semi-State companies to safeguard the interests of those whose security of employment has been threatened by the possible close down of the Hibernian Transport Group.

31.

asked the Minister for Transport and Power what the present position is regarding Hibernian Transport; and if he will give an up-to-date report on developments which have taken place since the liquidation was announced.

32.

andMr. M. O'Leary asked the Minister for Transport and Power if he will arrange for a full investigation of the circumstances leading to the close down of the Hibernian Transport Group.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 28, 29, 30, 31 and 32 together.

The High Court made an order on 7th December confirming the petitions of the creditors for the compulsory winding up of the Hibernian Transport Group of companies and appointed two liquidators for this purpose. The provisional liquidator who had earlier been appointed had asked staff members of the group to accept employment on a weekly basis pending clarification of the overall position. I understand that the liquidators now appointed will retain staff in employment during the period of the liquidation to the extent that remunerative occupation will exist for them.

I am informed that of approximately 500 employees of Hibernian Transport about 80 have to date left the employment of their own accord and about 70 have had their employment terminated last week-end because there was no further work available for them. It is believed that the majority of those who left have since secured employment elsewhere.

The Minister for Labour is concerning himself with the implications of the loss of employment for the employees concerned and the question of entitlement to redundancy payments; his Department is making arrangements to interview workers who become disemployed and who have not secured other jobs themselves. Officers of that Department will make every effort to find jobs for those employees.

I met representatives of the trade unions concerned, including the Irish Transport and General Workers Union, on 19th and 20th November. I undertook to have inquiries made about the position of the group. Unfortunately, my inquiries did not disclose any good prospect of achieving the objective of continuing the group, or any part of it, in activity as a going concern for any appreciable length of time.

CIE investigated, in consultation with the provisional liquidator and the creditors, the prospects of salvaging such of the group's operations as might prove to be viable but due to the lack of adequate information as to liabilities and trading prospects and in the absence of financial backing to provide working capital and protect the rights of creditors it was not found possible to take effective action.

I have no statutory powers which would enable me to hold an inquiry into the circumstances leading to the close down of this group.

Did I understand the Minister to say that due to, among other factors, a lack of information, CIE could not co-operate with any section of the group's activity in maintaining employment and the operation of the group?

CIE are moving on the business end operated by the Shannon Travel section of the group, particularly in the American market and the European market. In regard to actually taking over the operations of some sections of the group this is a matter which will have to wait for further elucidation because the very complex arrangements in which the various sections of the group are entwined have not been unwound to the satisfaction of anybody who might view the prospect of going in on a business basis.

What about private enterprise capitalism now?

Who is competent to unravel the complications the Minister referred to? Is the Minister saying that on their unravelling depends the possibility of maintaining employment for those people?

This is precisely the purpose of the High Court liquidation proceedings. This is precisely the reason why two liquidators have been appointed to embark on the unravelling process and in the meantime to maintain as many people as possible in remunerative employment.

Has the Minister at this moment any request by any section of the employees' unions for a further meeting with him?

Not at this time. I met the representatives of the unions twice and I would be glad to meet them again. As I see it now, it is in the hands of two court appointed liquidators and the process will have to proceed in that way.

In view of the fact that the workers in this group were deliberately kept in ignorance until they were told that the outfit was to close down would the Minister not now consider the introduction of a system of industrial democracy or workers' democracy so that workers will be involved in the decision making of groups like this?

No amount of workers' or industrial democracy will solve problems of this kind, unfortunately.

Has the Minister any comment on the behaviour of this group when he remembers that workers, as I said before, did not know anything about the company until they were told they would be redundant a short time afterwards?

It would be more desirable to inform them.

Would the Minister try with his colleagues to devise some ways and means whereby workers will be informed?

Has any Irish company taken over the business of Palgrave-Murphy out of Antwerp, Le Havre and Rotterdam? They have 50 per cent of this business. Has any Irish company taken over this business, or is it all now in Dutch hands?

What Irish ships are running out of Dublin?

That is not involved in the series of questions I have answered.

It is involved in Question No. 30 which refers to people losing their jobs in Irish Shipping because of the close down of this group.

That is a separate question.

It is not.

Those people are losing their jobs because no Irish company is taking it over.

Question No. 33.

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