I thank the Chair for allowing me this question on the Adjournment. This is the second factory threatened with redundancies that I have mentioned here today. This is indicative of the very serious situation that exists in Waterford city and county. So far as employment is concerned Waterford has become a disaster area. In recent years we have seen the closure of a string of old established industries — Denny's Bacon Factory, Goodbodys, the jute factory, the papermills, the chipboard factory, the CAP factory, Wellworthy's tool-making factory, Gouldings Plastics, Fismar and others. One of the few remaining long-established businesses in Waterford, the ACEC factory which makes electrical components and equipment, particularly transformers has run into a very rough patch and redundancies are threatened. Thirty workers have been told they would be put under notice from tomorrow, 30 April.
In 1978 this company employed 300 people and at present they employ 210. The work force will not be very pleased if there is any further move to increase the number of redundancies. I am asking the Government to bring pressure on the concerns involved to ensure that the employment content is not reduced further. There are two major industries involved, the ESB, a State-sponsored body, and the parent ACEC company based in Belgium. It is a sad commentary when we see that this factory's problems arise because of non-investment in up-to-date equipment by the parent company, and as a result, that factory is not in a competitive position. I am asking the Minister to put pressure on the parent company to up-date the factory and to see that the most modern equipment is installed so that they can be competitive.
In fairness it must be admitted that a few years ago the parent company set up a new section to manufacture equipment for lighting effects. That section has been so successful that they can barely keep up with orders. The major labour content in the factory is involved in the manufacture of large transformers but that section has been run down to the point where the factory is now non-competitive.
The other concern involved is the ESB. We must face the fact that the ESB must buy equipment on the best terms but home industries must be very seriously considered. If the Government put pressure on the ESB to accept home produced equipment these threatened redundancies need not take place. It would be much cheaper for the ESB to pay slightly higher prices for their equipment than for the Government to hand out huge sums of money by way of redundancy, unemployment and pay-related benefits. I ask the Minister to investigate this.
This is the only factory in Ireland which manufactures large transformers. At the same time the ESB stores contain transformers, 80 per cent of which are of foreign origin. Those transformers are the life blood of the factory in Waterford and that factory is having difficulties at present. It need not be in serious trouble if decisive action is taken in time.
A new power station is being erected at Moneypoint. County Clare. I am told by the ACEC workforce that every transformer for that power station has been imported. I am told also that 75 per cent of the transformers for the ESB power plant at Tarbert, County Kerry, have been imported. The greatest irony of all is that in Butlerstown, a few miles outside Waterford city, the ESB in recent months installed a 31.5 MVA transformer costing about £100,000. That transformer was imported, although the same type of transformer can be manufactured at the ACEC plant in Waterford city and would give up to two months employment. One can imagine the annoyance and frustration felt by the work force in that factory when they see the ESB importing a product thay can produce but which they do not supply largely due to the fact that their equipment is not modern and up-to-date and therefore they cannot be competitive.
It is a two-fold problem: poor equipment and a lack of resolve on the part of a semi-State body to endeavour to help home industry which is having difficulties. It is obvious that the ACEC factory and the directors must invest in the transformer division as a matter of urgency. It is also imperative that the ESB should meet the ACEC management and work out a new contract under which ACEC will be given long-term commitments for the supply of transformers. That is the short-term and the long-term solution to the problem. The Government must halt the import of transformers until such time as the jobs in ACEC are secured. That is another immediate short-term measure which we should take.
In essence those are the points of the case I want to make here today. The Minister was most helpful in his capacity as Minister for Transport and Minister for Posts and Telegraphs in the past. He has outstanding business acumen. I would ask him to take a personal interest in the problems of this industry which, as we all recognise, can easily be saved. I would like the Minister to give a commitment to take that interest and to see that the jobs of 210 people in Waterford are saved. We cannot afford any further closures or redundancies in that city. As I said at the outset, it is the unemployment black spot in the whole of Ireland.
