I am indeed aware that Paul and Vincent have decided to close their Tullamore animal feeding plant at the end of the present month. The closure of any undertaking is a matter of great concern to all of us especially when our unemployment figures are already at such a high level.
This firm is one of the largest producers of animal feed in the country. In addition to the feed mill at Tullamore they also have mills at Edgeworthstown and Kilmallock.
During the seventies the animal feed industry experienced considerable growth, in particular following our joining the European Economic Community. A peak in production was reached in 1979 when the industry produced about 2.1 million tonnes of feed. This expansion encouraged a number of existing firms to modernise and expand their production capacity and some new firms entered the industry for the first time. Paul and Vincent were among the firms which decided to expand by setting up a new mill in Edgeworthstown which commenced production in 1981. However, since 1979 the demand for compound feeding stuffs has levelled off and, as new capacity continued to come on stream, some excess capacity developed in the industry.
What Paul and Vincent are now doing is rationalising their operation by confining production to only two mills — those of Kilmallock and Edgeworthstown — instead of three. The mill in Tullamore is not up for sale and, in fact, in the event of a more favourable climate developing in the industry, I could well imagine that the question of re-opening the plant would not be ruled out. I regret very much that, because of the company's decision, taken on commercial grounds after careful consideration of all the relevant facts, about 40 employees of the company will be made redundant. This was a decision which the Board of Paul and Vincent themselves took and I very much regret that there are no measures open to me which would enable the proposed closure to be averted.
I share the Deputy's concern at the general employment situation in Tullamore. However I have been assured by the Minister for Industry and Energy that the IDA have been successful in attracting new industry to the town in recent years. A number of prominent companies have set up in the area and employment is already being provided by these companies for several hundred people. These companies are expected to provide substantial job opportunities in the years ahead. In addition, a number of small industries have also been established in Tullamore with IDA assistance during the past few years. In the four years from 1979-1983 manufacturing employment in the area has increased by over 18 per cent.
The IDA are promoting Tullamore on a priority basis for new industry. As part of their efforts, they have committed considerable resources to the provision of land and factories in the town. At present, the IDA have a 27,000 sq. ft. advance factory and two small units each of 3,000 sq. ft. available for industrial development. Two units are at present occupied by one firm on a temporary basis until they relocate to their new factory. In addition, four units each of 3,000 sq. ft. have been provided by private finance and these are either occupied or reserved for small industrial projects. The IDA also have a total of 59 acres available for future development.
The IDA are also seeking to identify a suitable project to take over the Tullamore Yarns factory. A full specification of the factory has been circulated to the IDA's overseas offices.
As I said at the outset, I regret the closure of the Paul and Vincent mill in Tullamore. The house can be assured that the Government are very concerned at such closures and, as I have indicated, the IDA are actively pursuing the establishment of industry in the town and locality.
During the course of his contribution Deputy Connolly requested that I convey his views to the Minister for Industry and Energy and I will gladly do that. I will also let the Minister know that the Deputy is anxious that he should receive a deputation from the Deputies in the constituency of Laois-Offaly, together with representatives of the county council. I will also convey that request to the Minister who has, I believe, communicated in writing today to the Deputy about the general unemployment problems affecting the Tullamore district. I hope we can be of some assistance.
