With the permission of the Ceann Comhairle, I propose to take Questions Nos. 156 to 161 together.
The firm in question made an announcement on 8th December, 1970, to the effect that, because of the market situation for their products, they had been forced to decide upon a major curtailment of manufacturing activities in one of their factories. It was implicit in the statement which I issued on the same date that I had prior information about this matter. It was, of course, desirable that I should be in a position to take appropriate action as early as possible with the object of alleviating the situation for the workers affected. As I indicated in the statement to which I have referred, I have declared Clara to be a designated area for the purposes of the Industrial Development Act, 1969. The effect of this is that any new industrial projects locating in that area will be eligible for the maximum rate of grant allowable. In addition, the Industrial Development Authority have decided to construct an advance factory and steps to that end have already been taken. I am not in a position to state the amount of employment which may be given in this factory. In any case all the new employment is unlikely to be provided in one factory. While I am not at liberty to go into detail I can say that a number of proposals for new industrial projects for Clara are already under urgent examination by the Industrial Development Authority and there are expectations of an early and favourable decision concerning one of them at least.
It is correct that my Department has maintained close contact with the firm in question in recent years. This was done because jute was recognised to be a problem industry and the aim was to safeguard, as far as possible, the position of the industry and the workers. As I indicated in reply to a parliamentary question on 18th June, 1970, the steps taken in that connection included special arrangements negotiated for jute products under the Anglo-Irish Free Trade Area Agreement, grants by the Industrial Development Authority towards the cost of adaptation and diversification projects carried out by the firm concerned, financial assistance under the technical assistance scheme administered by my Department, facilities for the importation of materials where necessary, and assistance in the field of marketing.
I should point out that this particular factory was operating at a high level of production and employment up to recently. Although special attention was being paid to the industry the fall in demand for its products recently has been more rapid than could have been anticipated. The redundancy which is arising in the industry has not been caused by free trade conditions or entry to the EEC. Jute goods have not been subject to a reduction of protection under the Anglo-lrish Free Trade Area Agreement and we are not yet members of the EEC.
