asked the Minister for Industry and Energy if he is aware that Group Textiles Ltd., Edenderry, County Offaly have let almost their entire workforce go and that there is imminent danger of the factory ceasing production completely; if he is further aware of the serious repercussions this will have on the town of Edenderry where there is already high unemployment; the action his Department have taken to date to help this company; and the plans they have to help the factory to reopen.
Ceisteanna—Questions . Oral Answers . - Edenderry (Offaly) Factory .
6.
: I am aware that Group Textiles Limited, Edenderry, have recently laid off all their workers.
I am deeply conscious of the impact which the closure of this factory would have on the town of Edenderry but I can assure the Deputy that the IDA, in conjunction with the company, are making every effort to have the factory taken over as a going concern. The company's difficulties have arisen because of the collapse of their main export market but I can also inform the Deputy that Córas Trachtála are in touch with the company and will be prepared to provide them with appropriate assistance where possible.
: Is the Minister aware that this company were in touch with the IDA and asked them to purchase or to lease back a portion of the factory from them as the floor space they had was too large to maintain their work force? Would the IDA have a look at this suggestion to see if they could be given some capital to proceed further?
: The IDA are fully aware of the situation of the company. I suggest that the main problem in the company relates to design and markets rather than anything else. I pointed out this quite clearly in my reply. Córas Tráchtála are fully involved at this stage in the company's affairs.
: Is the Minister aware that quite a sizeable proportion of the materials manufactured by this firm are for export? Can the Minister outline what positive line the IDA and Córas Tráchtála are pursuing in relation to having this factory re-opened?
: The IDA are doing everything possible to have the company taken over as a going concern. As I pointed out in my answer, the reason is that the factory's main export market collapsed and this was beyond the remit of the IDA. The IDA and Córas Tráchtála are attempting to remedy the situation. The IDA are actively pursuing the possibility of having the company taken over as a going concern.
: Is the Minister aware that this company have applied for planning permission to use the accommodation for a retail outlet?
: I am not so aware.
: I have information that they have applied for planning permission to use it as a retail outlet. Would the Minister not agree that part of the problem is the recent high costs involved for the company from VAT and other charges which have made their exports impossible from a cost point of view?
: The Deputy will be aware that if the company decided to ask for planning permission they would not apply to my Department. They would apply to the Department of the Environment. I am sure the Deputy is further aware that since the bulk of the company's production was exported the incidence of VAT would not apply.
: I take it from the Minister's reply that this company have now closed their operations and that the IDA are negotiating with others for the takeover of the company if possible. Is that correct?
: That is correct. Córas Tráchtála are involved with regard to design and marketing of their products.
: I would like to say——
: I allowed the Deputy several supplementaries. This is the final supplementary.
: This is a very important matter. There were 250 employees up to recently. I am alarmed that this company have applied for planning permission——
: The Deputy must ask a question.
: Is the Minister aware of the great importance of this in view of the fact that this company have applied for planning permission to use the premises as a supermarket or other retail outlet?
: As I explained in my reply and at the risk of repeating myself——
: We do not want any repetition if we can avoid it.
: Is the Minister alarmed at this?
: I have no responsibility for the decision of a company to ask for planning permission. That is entirely between the company and the Department of the Environment.
: That is not the question I asked. Is the Minister familiar with the change of use? I know Deputy Enright would not be as familiar with the position as I am.
(Interruptions.)
: I know about the 250 people who were employed there.
: The Deputies can finish this out in Laois-Offaly or some other place. A final supplementary from Deputy Enright who put down the question.
: In regard to the collapse of the market, as the Minister of State outlined in his reply, will Córas Tráchtála make an effort to obtain alternative markets for this firm? I notice in the reply the Minister of State mentioned that all the work force have been let go. Would he be in a position to endeavour, through, Córas Tráchtála and the IDA to obtain some alternative markets or retain some of the markets this firm have lost?
: I appreciate the interest and understanding which Deputy Enright has in regard to this problem. Córas Tráchtála are very much aware of the needs of the company in relation to markets and design and if Córas Tráchtála can help them to recover their main market in England that will be done. If there can be a diversification of markets achieved Córas Tráchtála will do all in their power to achieve that diversification.
: Question No. 7.
: May I ask the Minister——
: I am moving to the next question.
: Would the Minister of State be prepared to receive a deputation in regard to this? It is a straight yes or no reply.
: If anything can be achieved by my meeting a deputation I would only be too happy to do so.
: I am glad to hear that.