asked the Minister for Industry and Energy the steps he is taking to ensure the immediate reopening of Clondalkin Paper Mills which closed on Friday night last in view of the considerable loss of employment and the strategic loss of the country's last remaining white paper mill.
Private Notice Questions. - Clondalkin Paper Mills.
I very much regret that, despite the considerable progress which had been made in the negotiations which were initiated by me on 8 December 1981, the proposals for a new company to operate the mill had broken down.
Since last October, I personally, the Minister of State, and various State agencies have been in constant touch with the Clondalkin Group and the trade union group in an effort to solve the problems at the mill and secure their continued employment of the workers. It is my understanding that the latest negotiations broke down on the question of the terms of a bonus scheme. Both parties were willing to refer this matter to independent arbitration in the event of failure to reach agreement after a period of three months but agreement could not be reached on the terms of reference to the arbitrator.
In view of the failure of the recent negotiations the only possible solution in the matter is to have the assets acquired by another party with a view to continuing paper-making. In collaboration with the liquidator the IDA are renewing their efforts to identify potential partners with a view to arranging a takeover. In addition, I understand Fóir Teoranta would be willing to examine any proposals involving new partners in a reconstituted company. It is too soon to say whether these approaches will be successful.
Would the Minister agree that it is totally unsatisfactory from the national point of view that the last remaining fine paper mill in the country should go and that we should not have access to paper within our own shores? In these circumstances, would he consider taking the sort of steps I took in relation to Chipboard Limited, Scarriff, where we were in danger of losing the entire chipboard industry? Paper is at least as vital strategically as chipboard. For that reason, the Minister should ensure that the industry is continued.
The Deputy will agree that exhaustive efforts have been made to keep the operation going but I regret these have not been successful to date. I do not think it profits us to compare one case with another because this is different to the case referred by the Deputy.
Different Ministers.
If Deputies want to treat it on that level they may. In this case every effort was made to get a rescue package together and I have outlined the reasons why these have foundered. We are still trying to arrange a takeover.
Would the Minister not agree that the cost of saving this mill on the basis of the proposals put to him before Christmas are a great deal less that the cost of saving the mill in present circumstances, and if he had acted more expeditiously before Christmas we would not be in the present situation?
We should resist the temptation to play politics on serious issues like employment in particular concerns.
That is very weak.
Without going into the rights or wrongs of the undoubted inactivity by the Minister before Christmas, would he not agree that an independent chairman, agreed by all concerned, should try to knit this matter together? As there is a working asset in Clondalkin and as there is expertise at worker and management level in this concern, this matter should be treated with extreme urgency.
We will spare no effort to see that this operation is continued and if there is any hope we will co-operate to keep the operation going.
Would the Minister not agree that an independent chairman agreed by all sides should be appointed immediately?
I accept the Deputy's sincerity, but the problem is bigger than he says and we will continue to make every effort to keep this operation going.
In my view the people who have been constructive in this matter have been the workers and trade unions. They made a unique effort to make a 10 per cent contribution to whatever new structure might be devised. It is very important that the workers and trade unions be included in any discussions which take place. Heretofore, there has been a lack of credibility and confidence because of the absence of these people at such discussions and negotiations.
I would not accept that anybody was excluded from the discussions on the rescue operation since the crisis arose. I realise there is a problem where companies get into difficulties and employees are excluded from major discussions but that relates to weaknesses in the present company legislation.
I am giving the Minister free advice——
As Deputies who represent the area know, industrial relations problems in this firm date back a number of years.
In view of the Minister's commitment to State enterprise, could he tell us if the Government would be prepared to take over the operation of the Clondalkin Paper Mills?
I want to correct the Deputy: the State were involved in this matter; Fóir Teoranta were involved to the extent of 45 per cent. During the latest attempt that foundered, the State was involved through the IDA and Fóir Teoranta.
Would the Minister suggest to the Government that the National Development Corporation, when established, take over this concern?
The National Development Corporation's prime role would be to give new life to the concept of State enterprise in private and public concerns. The difficulty in this case is that we have been unable to get agreement on a rescue package with a reconstituted company. The difficulties that obtain in this rescue package will also obtain in any other rescue package.
The Minister seems to be making a great many excuses about the past. What does he intend doing about saving this mill and these jobs?
I was in touch with management this morning and we are maintaining contact, but I must admit that I am not very hopeful. I am continuing my efforts to see if we can get this operation to continue and we have made every realistic effort to do this.
This matter will not disappear.
Unemployment does not disappear.
I am calling the second Private Notice Question in the name of Deputy Woods.