asked the Minister for Industry, Commerce and Energy if he will state, in relation to the Irish tanning industry, the State subvention made available to support the industry in the present period of recession.
21.
Ceisteanna—Questions. Oral Answers. - Tanning Industry
20.
asked the Minister for Industry, Commerce and Energy if the EEC Commission have yet made a decision on the question of dumping of processed hides on EEC markets from third countries; if not, when the decision is expected; the outcome of the representation made by the European Tanners Federation; and if he will make a statement on the matter.
22.
asked the Minister for Industry, Commerce and Energy the steps the Government, in conjunction with the EEC Commission, are taking to safeguard the jobs threatened in the Irish tanning industry by unfair competition from abroad; and if he will make a statement on recent discussions held in Dublin and Brussels.
23.
asked the Minister for Industry, Commerce and Energy if he will make a statement to the House concerning the closure of Gorey Leather Company Limited, Gorey, County Wexford; and the extent to which alternative employment opportunities have been provided in this area.
24.
asked the Minister for Industry, Commerce and Energy his view of the prospects for the hide-processing industry.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 20, 21, 22, 23 and 24 together.
I would refer the Deputies, in the first instance, to the statement made by the Minister of State, Deputy Raphael Burke, in the course of the Adjournment Debate on 14 November 1978 on the problems of Irish Leathers Ltd.
The Minister of State subsequently called personally to the EEC Commission and supported strongly the application made by COTANCE, the European Tanners Confederation, for remedial action in relation to the imports into the Community of cheap South American leather. He also raised the matter in the Council of Ministers.
The general problem was discussed at a further meeting in Brussels on 21 December between COTANCE and the EEC Commissioner concerned. I understand that the Commissioner noted that the Irish industry had particular problems and gave the impression that there would be an early decision by the Commission.
In the meantime, action in relation to a complaint about dumping by Brazil has been in train. The position was considered by the EEC anti-dumping committee and the Brazilian Ambassador called to the EEC Commission last week to answer the points that had been raised with him by the Commission. His response will be considered by the anti-dumping Committee.
I understand that at the meeting on 24 January between COTANCE and officers of the EEC Commission the position was again reviewed but that nothing tangible emerged. I may say that I am disappointed at the inadequate response of the Commission so far, to the representations that have been made to them.
I have had two meetings with representatives of the company—one in conjunction with the Minister for Labour—and have pressed them strongly to defer the redundancies until such time as the outcome of the representations to the EEC Commission becomes known and the company has discussed its financial problems with Fóir Teo. and the Industrial Credit Company. The only concession made by the company was to defer the proposed redundancies at Dungarvan and Portlaw for a month but the redundancies at Gorey scheduled for 2 February were to go ahead as planned. Following talks last week between the Irish Congress of Trade Unions, the Federated Union of Employers and the company, the Gorey redundancies were, however, put back for a week to allow for further discussions between IT & GWU and the company.
The company have indicated to me that, to maintain the company at anything like its present size, they would require a huge injection of direct State aid, and I had to tell them that it was not feasible to provide aid on such a very large scale and in such a manner. The only form of direct operating subvention that can be made to the company is the Employment Maintenance Subsidy. The Minister for Finance agreed to the extension of the subsidy to all the company's tanneries although the tanning industry was not originally included in the scheme. The purpose of the scheme, however, is to avoid redundancies. In view of the redundancies the company has announced, its participation in the scheme is being reviewed at present. The company has already been paid about £23,000 under the scheme.
It transpired at my meetings with the company that they had not approached the normal State agencies for any assistance in their difficulties. I suggested to them that they should approach Fóir Teo. and the Industrial Credit Company for assistance. I understand that they are now working on proposals to put to these two bodies and have had preliminary discussions with them.
I explored the possibility of a takeover of the Gorey tannery by other interests but the company would not be prepared to dispose of the tannery, either to the IDA or to private interests, if it were to continue in a similar range of production to that at present carried on.
I am fully aware of the serious social implications of the closure of the Gorey tannery. I have asked the Industrial Development Authority to give urgent attention to securing a project for the Gorey area, where an advance factory has already been provided, and they have assured me that priority is being given to this matter.
From what I have already said, it will be apparent that the prospects for the Irish tanning industry at present are uncertain. Its future will depend to a large extent on the effectiveness of whatever action may be taken by the EEC Commission.
How soon does the Minister expect a decision from the anti-dumping committee?
I had hoped to get it before now. Unhappily, I have not, and I cannot give a precise date simply because I do not know. I note with some regret that, although the Irish Government and the Irish tanning industry gave the Commission all the information required in regard to the disruption of our own market, the same enthusiasm was not shown by the tanning industry in other Community countries. For that reason perhaps the Commission may not be able to act as quickly as they might have done. I hope the other countries will see the importance of protecting the European tanning industry.
I agree it is unfortunate that the other countries have not backed us up in this. The Minister mentioned Brazil only. Have any of the other countries who export leather into the Community been approached?
I understand Brazil is the main culprit in this respect and that leather of this kind is also coming from Argentina and Uruguay. I believe the nature of the measures being used by Brazil in relation to its exports is such that it is more objectionable from a free trade point of view, and for that reason, and because it is also by far the biggest of the countries involved, the Commission have taken the matter up with them. Any decision made in relation to Brazil is likely to be followed in regard to both Argentina and Uruguay.
If the anti-dumping committee are successful and there is a future for the retention of all the employment in Irish Leathers, will the Minister and the Government see to it that this company will be tided over their present difficulty?
I have urged the company very strongly to avail themselves of the facilities which are available here for tiding companies over temporary financial difficulties. I was most disappointed that, up to the time I asked them to do that, they had not taken any steps in that regard. They have begun the necessary negotiations now. I do not know what either of the agencies concerned will do, but I am sure they will be as helpful to Irish Leathers as they have been to many other firms during the years.
I am amazed that the company concerned did not make a move earlier to get State aid. Because of the nature of the tanning industry, leaving aside the question of dumping, would the Minister immediately take a deeper interest in this question on social grounds, in the context of unemployment in the area, and ask the Department to approach the company in relation to redundancies? Will he ensure that State aid will be made available this week in order at least to delay redundancies until the Commission's findings have been made known?
We asked the company to do that—we pressed them very strongly to do that. I had two meetings with them; the Minister for Labour had meetings with them; the Minister of State, Deputy Burke, had several meetings with them. The Department had several meetings with them. Indeed, I am not aware of any single firm which has got more ministerial attention in the last number of years in an effort to get them to behave in what we would regard as a reasonable fashion—to approach the State agencies for finance to tide them over what we hope are temporary difficulties. We must bear in mind that up to last year this was a profitable company. I would even at this late stage appeal to them again to await the final outcome of the application that has been made in Brussels on their behalf and by them. Unofficially, I understand—I have not been told by the company—that there may have been some slight alleviation in the position in the past day or two, that there may be some temporary improvement at the Gorey end.
Will the Minister agree that the attitude of the company in precipitating redundancies without first having gone to the State agencies, particularly to Fóir Teoranta, cannot be condoned, that the company should now defer those redundancies not just for a week but for several weeks to enable Fóir Teoranta to come forward with a package and that the company's behaviour has not been what one would have expected from a major Irish company? Would the Minister not heartily endorse that?
I have told the company or their representatives exactly what the Deputy has now enunciated. I did that about five or six weeks ago. I would hope that even at this late stage the company will do what umpteen other companies have been forced to do—to go to the State agencies who are there to help companies out of this type of difficulty. My general experience in dealing with matters of this kind is that a company may say to me "We have been with Fóir Teoranta, they have given us £½ million and they will not give us any more. We have been with CCT, they have given us £½ million and they will not give us any more. Is there anything you can do for us now?" At that stage the company have their backs to the wall. It is difficult to consider that a company who had not done anything until I approached them a month ago are in the same position. I understand that at the time I had my first meeting with them the company did not even have a debenture on their property. A debenture is regarded by manufacturing companies almost as a fact of daily life. One would take it for granted that a company would give a debenture to their bank.
The remaining questions will appear on next Tuesday's Order Paper.