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Dáil Éireann díospóireacht -
Friday, 2 Jul 1982

Vol. 337 No. 4

Written Answers. - Granard (Longford) Factory Closure.

547.

asked the Minister for Industry and Energy (a) if he is aware of the grave dissatisfaction in Granard, County Longford, because of the closing of a factory (details supplied) and the making redundant of 78 workers; (b) the efforts which were made to keep the factory open; (c) the grants or loans, if any, which the factory received; (d) if grants or loans were repaid; (e) the efforts the IDA are making to attract a replacement industry; and (f) if he is aware that the loss of almost 80 jobs has serious consequences for the employees and that it is a serious blow to the economy of the town.

I am, of course, very conscious of the impact of the closure of this factory on the employment situation in Granard and the workers who have lost their employment and on Granard town generally. When it became known that there was a possibility of the factory closing down, the Industrial Development Authority made strenuous efforts to secure a take over of the factory as a going concern. This involved identifying a large number of firms abroad which might be interested in such a take over and making contact with them. A take over was arranged with a German company but unfortunately this company withdrew only a very short time before the factory actually closed.

During my industrial promotion visit to Germany in May, however, I held discussions with an individual within the German company as a result of which negotiations with this new promoter began to see if agreement could be reached on a take over. These negotiations are continuing. The IDA have assured me that if a take over cannot be arranged, they would give priority to finding a replacement industry for the area.

In so far as the 7,000 square feet advance factory in the town is concerned, I understand that an overseas company are showing strong interest in locating an industrial project there. In addition, the IDA are actively promoting for industrial purposes its 4.5 acre site in the area.

As indicated in the IDA annual report for 1980, a total of £112,250 was paid to this company in grants. A substantial portion of this grant payment will be repayable if the present owners are not prepared to leave the grant aided plant and equipment in place for a new owner. No loans have been made to the company by any of the State agencies.

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