Deputy Blaney has received permission to raise on the Adjournment the question of the interests of the workers in Irish Picture Mouldings Limited. Deputy Blaney has not more than 20 minutes.
Adjournment Debate. - County Donegal Industry.
I asked for this to be raised this evening because of the extreme urgency of seeking the Minister's assistance and the assistance of the various agencies of Government at his disposal to try to safeguard an industry which is basically viable so as to safeguard the interests of the workers who number approximately 80 the loss of whose employment would be a severe blow not only to them but to the immediate surrounding area and the economy of Donegal town. Of all places that might lose an industry and jobs Donegal can least afford to lose them. As was shown recently in figures given here as a result of a question I put down, our percentage unemployment is the highest and is not far short of being double the national average.
Irish Picture Mouldings Limited has been in existence in Donegal for several years and it provided much needed employment. It seemed to be going exceedingly well and had extended its operations to Glenties, where a further factory premises was provided, and to Dunkineely. All three of these centres were delighted with the additional employment in a high unemployment area. However, difficulties eventually overtook the operations of Irish Picture Mouldings Limited and the Glenties operations came to a standstill as did the Dunkineely operations. In 1977 the difficulties appeared to be of an extreme nature and threatened the existence of Irish Picture Mouldings Limited, now confined to Donegal. Due to last minute efforts by all concerned in the Department and in the State agencies in dealing with such crises in any industry, Irish Picture Mouldings Limited did not fold at that time but was brought under a new company known as Murvagh Limited.
I am not quite clear as to where Irish Picture Mouldings Limited ceased and where Murvagh began nor am I particularly concerned about the name applied to this factory. However, I am fully satisfied from personal knowledge of the industry that the basic operations that have been going on in Donegal for a number of years are sound and that this industry given the right method of operation can be salvaged and can be a viable proposition. Others better qualified that I also hold that view. While providing jobs for the 80 now threatened with the loss of employment Irish Picture Moulding Limited could be capable of employing more people. On this basis I appeal to the Minister, in view of the fact that the workers got notice which terminates on 16 March. That does not give them very much time. If the operations cease and the work force are dispersed we may well have lost this very valuable work-giving industry for ever. I appeal to the Minister to try, by utilising all the agencies at his disposal, to bring about a quick examination of the possibilities for the future of this industry, to come to their aid fast rather than when it is too late and to let the workers and their jobs take precedence over all other considerations. I would appeal for action to ensure that this factory continues. It is firmly held that this export and home industry is viable.
In these days when it is difficult to obtain work, when such efforts have to be made at such a high price by our State agencies to create new industries, it would be a sad thing to see a viable factory being lost because of the difficulties being encountered in the recent past. Basically it is a viable proposition with export potential and a work force that know their jobs. I appeal to the Minister to examine this urgently with all others interested in the salvaging and the creation of industry, to see how this factory can be salvaged rather than allowing the work to be dispersed and then trying to re-create it. Undoubtedly, if this could be done with the least possible break, this would be the best way to do it. We have spent much more per job in many other places with less success that would be obtainable in Donegal town.
My persistence in trying to get this heard in the House is because of the urgency of the matter and the immediate prospect of the loss of 80 jobs. Notice expires on 16 March which is very close. I am happy that the House and the Ceann Comhairle found it possible to allow this question this week although for various reasons it could not be heard last week. Nevertheless there is time for the Minister and the agencies at his disposal to act. If the Minister acts his efforts will be worth while and there will be a happy outcome not only for the workers but from the national point of view. The factory is potentially viable and has export potential, and the Minister is the man who holds the key that can salvage the factory.
I had a question down last week but withdrew it because of a bereavement in the family. I also am very concerned about Irish Picture Mouldings. This is a male-orientated factory, as Deputy Blaney said, with over 80 maies working in Murvagh Limited. Throughout the entire county of Donegal jobs are very scarce, as the Minister probably knows, and we have the highest unemployment rate in Ireland at present. The national average is 9.9 and in Donegal we have an average of 16 per cent. As regards this factory I understand the work force have been put on two weeks' notice and it is very disturbing to hear of the difficulties they have run into.
Briefly I should like to give the Minister a history of the causes, as I see them, for the problems now facing Murvagh Limited. A family group began in a small way manufacturing picture frames——
I am sorry to interrupt, but this firm is in receivership and we cannot discuss the internal affairs of the firm. We may deal with the employment it is giving and so on, as Deputy Blaney has done, but I have a feeling the Deputy is going into the internal affairs of the concern and that we cannot do.
I understand that. I want to talk about Irish Picture Mouldings and Murvagh Limited, the two are married intricately together. There were four factories—two in Donegal, one in Glenties and one in Dunkineely. The two in Donegal were going very well and the IDA then decided to give a grant to another factory in Glenties and to another in Dunkineely. The factory in Dunkineely never got off the ground really. At that time I asked the general manager in Donegal and the IDA the position regarding the Dunkineely branch of Irish Picture Mouldings. That is a few years ago. I was told at that time that in no length of time a full work force would be employed in that factory.
The IDA had problems getting back the Glenties and Dunkineely factories when Irish Picture Mouldings wound it up. That brought us to over a year ago when this new company, Murvagh Limited, was formed. The problem then was that three groups of directors—we can call them the Dublin group, the Donegal group and the IDA themselves—took a 10 per cent interest in this factory, Murvagh Limited. The IDA agreed with the others that they would start this very viable industry which was in receivership. As I understand it, Irish Picture Mouldings Limited was put into a receivership and the new company, Murvagh Limited, was then formed.
I should like to ask the Minister why was Murvagh Limited at that time saddled with the tremendously high overheads of the old company, Irish Picture Mouldings? Surely the IDA and the Department should have seen that if the company were to be viable it was given a fair chance. My information is that it was saddled with extremely high overheads as far as the bank and other creditors were concerned. I understand that the Donegal group who are shareholders were appointed directors and that they in turn had some family connections——
The Deputy is now doing what he was asked not to do, getting into the affairs of the company. This is not done when a company is in receivership. It is in order to deal with the employment and the loss of jobs and what it means to Donegal.
I understand. It seems very wrong that these people should have been appointed shareholders in the new company. I understand the bank did put in an extra £20,000 recently and that the management of the new company has approached or will shortly approach the Minister to discuss the future of Murvagh. The present situation is a severe blow, particularly to Donegal Town and I appeal to the Minister to consider this viable industry and the needs of the area. When the IDA gave grants originally they were satisfied it was a viable industry and even yet there is little doubt that it could be a viable industry. I suggest that perhaps the IDA should take a greater shareholding in the new company without being saddled with very high overheads. There is very high unemployment in the area and it is difficult to get a viable male-orientated industry anywhere. The one we have in Donegal should be kept going.
I am informed that a receiver has been appointed to Murvagh Manufacturing Limited which bought the assets of Irish Picture Mouldings Ltd. and Irish Art Frames Ltd. The affairs of the company are now under the control of the receiver. I understand that he has given the employees one month's protective notice. Substantial support has been given to the enterprise by the appropriate State agencies, the IDA and Fóir Teoranta, in the past few years, including a substantial contribution to a rescue package formulated in 1977 when the enterprise was previously in receivership. Further assistance was offered recently by Fóir Teoranta subject to conditions which were not accepted by the company. If proposals should now be formulated for the re-structuring or takeover of the company, the State agencies would be prepared to consider whether there is any further assistance they could give. Failing that, the IDA would seek to promote a replacement industry in the area.
The amount paid out to the company over the past few years by the State agencies I referred to comes to approximately £650,000, an extremely high level of support for a relatively small enterprise like this. Fóir Teoranta recently offered further assistance subject to a condition which regrettably the company did not accept. There was an unfortunate development in the past week, just about the time the receiver was appointed, when unhappily one of the people prominently identified with this company died suddenly. This may have some effect on the future of the company. The remaining directors perhaps have not yet had an opportunity to reassess the situation arising out of that unfortunate happening. I believe that one of them was abroad when it happened.
I would be hopeful that the receiver, in conjunction with the existing directors, would be able to talk to the IDA and Fóir Teoranta at a very early date with a view to trying to put forward a further rescue package for this enterprise. Of course it will have to be subject to certain conditions. I would hope that those who remain in the company would see fit at this juncture to agree to a particular condition which I consider not to be unreasonable. The prospects of maintaining the company in production would be reasonably good if that condition were acceded to.
I should have mentioned that, in addition to the moneys put up by the IDA and Fóir Teoranta amounting, as I said, to about £650,000, which is a very heavy level of support, the Department of Labour made payments to the company recently under the employment maintenance scheme. I met some people connected with this firm in the recent past and I had a useful discussion with them. Various other people connected with the firm have also been seen in my Department in the recent past. My Department are both willing and anxious to assist in what way they can, as are the State agencies concerned. The condition they have put forward is not unreasonable and is regarded as such by nearly everybody connected with this company.
If the persons on whom compliance with that condition rests were able to see their way to comply with it I would be reasonably optimistic about the future. Deputies were right when they said this is a potentially viable undertaking. Unhappily, the management it received in the past—I am not talking about the very recent past but in the less recent past—was such that it got into difficulties before. With co-operation from all involved, which I hope will be forthcoming, it should be possible to overcome these difficulties now and to get what I agree is a potentially viable industry back into a reasonably strong position where its future and the future of its employees will be assured.
I do not think there is anything further I can say or I need say at the moment, except once again to express the hope that the co-operation which has been sought will be forthcoming. If it is, in spite of the exceptionally heavy support they have already given, the State agencies in all the circumstances will not fail to give such further support as is necessary.
Could I ask the Minister one question?
Just one. It is not usual.
With the appointment of the receiver and the passing of one of the premium directors of this company in the past week, is it not the case that, despite what I have said, what Deputy White has said and what the Minister has said about the potential viability of this factory, time is of the essence? Will the Minister take a personal interest in the matter so that it will not go by default due to recent happenings which might cloud the issue?
I have already done that. Unhappily, my personal interest in matters of this kind does not necessarily guarantee success.
The Dáil adjourned at 9 p.m. until 10.30 a.m. on Wednesday, 28 February 1979.