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Dáil Éireann díospóireacht -
Tuesday, 14 Feb 1984

Vol. 347 No. 12

Adjournment Debate. - Cancellation of Proposed Nenagh (Tipperary) Factory.

I welcome the opportunity of raising this question in the House, the appropriate place to do so, and I thank the Ceann Comhairle for having allowed me.

To the extent that we can undo the damage done to the Nenagh area, the prospects for employment in that and in the north Tipperary region in general, that is my sole purpose in raising this issue here. Most of what I have to say will relate to the actions to be taken to recompense Nenagh and north Tipperary for the unfortunate circumstances which gave rise to the cancellation of the Elfab Electronics Components Industry which, by decision, was to have been located in Nenagh.

I want to give the background to the situation in that area. For some time with the prospective closure of Mogul Mines, which has since closed, it was the preoccupation of all of us from Nenagh — the town in which I was born and reared and one that has been very kind to me in my 19 years in public life — that the closure of Mogul Mines would give rise to major redundancies and that a number of skilled and semi-skilled people would come on the market. We are talking of the order of 500 people. For that reason it was always promoted as an area of priority for industrial development in order to accommodate those who would become redundant in that event and who have since become redundant. I might say that during my term as chairman of the urban council, in conjunction with the development authority for north Tipperary, the county development team, we made proposals. I am glad to say that the two major estates, the one in question here, Lisboney Estate, and the Gortland Roe Industrial Estate, which is located right behind my own house, were planned and developed by us at that time. As chairman of the urban council I took the view that if we were to attract industry to Nenagh always we should match our words with actions and that an industrial estate should perhaps be located in one of the most attractive areas. Both of these estates were regarded as attractive. Despite whatever criticism I have to make of statutory bodies the industrial estates, particularly that at Gortland Roe has, if anything, enhanced the residential character of the area. Without sounding holier than thou I might commend that approach to all public representatives. The fact is that industrial estates properly planned, with proper amenity facilities, can add to the attractiveness of an area.

I might make one other preliminary point. Over the last few days since I first became aware of this situation — I suppose it is understandable that, as a member of the Opposition I did not become aware of it as soon as the Minister or other Government Deputies, but last Thursday I did become aware of it — I issued what I hoped was a responsible statement to various newspapers. In the event the statement I issued did not appear in any newspaper, though a statement of my townsman here appeared at great length in one of the newspapers to whom I have given a considerable statement.

——and the Irish Press.

The question might well be posed: did I not have the concern for my own place, the place I was born and reared, that my colleague and townsman had? I want to put on the record that indeed I had but I couched my remarks in terms that were concerned more with the future than the past. Despite the fact that RTE could see fit to give me only 30 seconds this morning when this issue was being discussed, I shall try to arrange to allow my townsman here, Deputy Ryan and, if possible, Deputy Molony who represents north Tipperary as well, a little more than the 30 seconds RTE saw fit to make available to me this morning. This is a matter that concerns all of us and this is the appropriate place to raise it.

Before I talk about attracting other industry to Nenagh or north Tipperary may I stress that nothing I say here should take from the impact of the native, indigenous industry in that place. The contribution of native industry — and I do not propose to mention them by name: they would not expect it — is the greatest guarantee any of us has that we will have secure and permanent employment there. In talking about attracting foreign investment to our country I want to make it clear, particularly in so far as Nenagh and north Tipperary are concerned, it is the indigenous industry that must be respected as making the most secure contribution to the employment prospects of the place, and that is certainly true of my own town.

The second point I should like to make is that in relation to this town particularly, we have a work force second to none. Nenagh has a fine industrial relations record and the educated, skilled and trained work force available is among the best available anywhere in the country. It is for that reason that this unfortunate event has been of particular concern in that, in so far as a decision was taken, I am quite sure it was taken on the basis of locating in Nenagh originally, on the strength of the skills of the people in the place, the work force and educational facilities available there, also the social and recreational amenities in and around the area from the Shannon to the hills. I recall in particular when we were opening some of the factories there taking their promoters on a tour of the region when they suggested that I had been, if anything, a little too modest in selling the place because it was much more attractive than they had ever expected. That is the place that has been seriously damaged by the unfortunate circumstances that developed in the last few weeks but which came to light last week only.

In order to undo the damage — and it can be undone — two or three things are required. First of all there should be an independent investigation — and I understand the SFADCo intend doing this — into the circumstances which gave rise to the cancellation of the location of this industry. Secondly, there should be an independent investigation into the responsibility for the events that occurred giving rise to the cancellation. It appears that SFADCo had responsibility for the construction, maintenance and supervision of factory plants in the area, as agents of the IDA, in particular for this factory plant located at Lisboney, Nenagh, where there is already an existing rural industry. I might modestly say that the industries that have been attracted to Nenagh happened to come within the term of office of the Fianna Fáil administration, something of which we are rather modestly proud. That is why it is regrettable that the other one that was coming to this area——

The Deputy is bad at modesty.

Modesty is not the Deputy's strong point either. Nonetheless the facts speak for themselves.

I am very humble.

The facts speak for themselves.

I think it is proper to tell the Deputy that he has ten minutes left.

I shall do the best I can within that time. SFADCo have responsibility for physical planning, construction and supervision. The first question which must be asked, and I am sure the Minister would like to deal with the matter, is how it happened that a factory which was built at considerable cost on a site which had been developed also at considerable cost should be flooded on a crucial occasion, that of the visit of the promoters of the factory. I should have thought that responsibility for inspecting public property, if no more, would have required regular supervision, which would oblige the authorities of the State to ensure constant inspection.

This is the first time that it has been flooded.

I appreciate that, but it happened to be flooded, unless I am told something different by the Minister, on a rather crucial date when the promoter or his representatives were going into the factory. Action might have been taken to ensure that whatever short-term remedial action was required would be taken to guarantee against the loss of the factory to Nenagh. Secondly, in so far as remedial work is required, there is another matter. This industry is located on the Lisbunny estate on the Dublin side of the town, adjacent to the river. There is an embankment between it and the river. I think there were two recent occasions on which it was flooded — the Minister would probably be aware of that. It was also flooded once before, as Deputy Ryan is hinting. In the Shannon Industrial Estate which is below the level of the Shannon river, an adequate embankment has been provided and adequate pumping facilities, the technological sophistication of which I do not know. However, I know that it has been such as to guarantee against flooding of that site, which has never been flooded. It should have been possible, indeed it is essential, that the planning and construction of the Nenagh site could guarantee likewise. In so far as it has not so guaranteed at the moment, it is essential now that the necessary works be undertaken to ensure that, with the shortest possible delay, this industrial estate which in every other respect is a very attractive location adjacent to a main arterial road will be made waterproof in every sense of the word, foolproof against unfortunate events of the kind which has just occurred.

It is a matter of absolute urgency to undo the damage which has been done to Nenagh and the area, but I am quite sure that the damage can be undone. Any promoter coming to any part of North Tipperary would be attracted by the circumstances which I have mentioned, the work force and the excellent industrial relations record which is second to none. There is no point in crying over spilt milk. The promoter has gone to Limerick. His intention was to purchase the Nenagh factory as a measure of his real, permanent interest in the area. There is no point in begrudging Raheen estate in Limerick their good fortune because of what has happened in these unfortunate circumstances, but the work force of Nenagh deserve better. The young people there, many of whom were being interviewed for employment in this very factory, deserve better and the taxpayers deserve better in that public property which has been funded by them should be adequately supervised and protected.

The Minister present in the House and his colleague, the Minister for Justice, Deputy Noonan, from Limerick, announced perhaps two weeks ago the location of the factory in Limerick. In making that announcement they made no reference, as far as I can read, to the circumstances which brought about the transfer of the location from Nenagh to Limerick. I believe that they should have done so. There was no point at that stage in trying to gloss over what had happened, or conceal the facts. It should have been indicated that in view of the circumstances it was necessary to transfer what was proposed and definitely decided for this estate in Nenagh to Raheen Industrial Estate. However, that is probably not a matter of great consequence.

I am going to allow my colleagues a little more time than RTE allowed me this morning. It is now a matter of urgency with the Minister, the IDA and SFADCo to ensure that this industrial estate, Nenagh in particular and North Tipperary in general — Thurles, Roscrea and Templemore — be given top priority. I regret that if this factory could not be located in Nenagh it was not transferred to one of these places. I am quite sure that my colleagues will join with me in this.

We are speaking about one of the most attractive locations for investment in the country, with one of the best work forces and with educational and social facilities second to none. It is regrettable that it has become, to a certain extent, a matter almost of amazement in the public mind that this could have happened and that Nenagh might be regarded in their minds as a place which somehow or other is not suitable. It is most suitable. I hope that very soon the Minister will be able to announce something at least as effective to replace this lost industry. I yield to my two friends.

I shall be very brief.

On a point of order, I hope the Chair will indicate how much time is left between Deputy Ryan and myself.

I had 30 seconds this morning.

I shall be calling on the Minister to conclude at ten minutes to nine.

In the circumstances, could I have some direction?

The Deputy can be quite sure that I shall be only a couple of minutes.

Shall I have two minutes, then?

I shall be very brief. As Deputy O'Kennedy, my fellow townsman, has indicated, I put my case fairly substantially to the media and indicated my shock and that of the people in Nenagh and its environs at the decision of the American firm of Elfab not to locate their industry at the Lisbunny Industrial Estate. I must compliment our county development team for the work which they have put in during the last 12 months. I wish to impress on the Minister the urgency of a replacement industry to compensate for the substantial loss of 600 jobs which occurred when the Mogul mines closed in June 1982. The county development team, the IDA and SFADCo have all been working together as a team to ensure that every effort is made to have a sizeable industry located there, to offset this terrible loss of jobs and of something in the nature of £5 million per year to the economy of the general Nenagh area.

I have been in contact already with the Minister's office. We had a special meeting last night of the urban council which was held in a very responsible manner, with no recriminations against anybody. We appreciate that what has been has been. In an effort to offset the tremendous loss to the Nenagh area we are asking, firstly, that the Minister carry out a full-scale inquiry into the reasons for this event. I am only a layman and I have seen the site but I shall give no indication of what I think about it. Let the consultants who have the knowledge inspect the area and report back to the Minister.

I ask the Minister now for an even greater commitment but I compliment him on the efforts he has made. I have made many representations to him in the last 12 months and I acknowledge his interest in promoting industry in the Nenagh area. I ask him to ensure that everything possible is done in the immediate future and that a deputation from the Nenagh Urban Council and the county development team be invited to meet him as soon as possible, with a view to erasing this blemish which has unfortunately been put on our town.

This happened through no fault of anybody. It was a unique occurrence. The American representative saw the situation and walked away, but that is the right of any entrepreneur. We did the best we could to try to convince him, but unfortunately he left Nenagh. We are saddened by this loss but look forward to the Minister doing all that he can to assist us.

Hear, hear.

I probably now have minus time and I wonder if the Minister will be good enough to give me two or three minutes in which to make my contribution.

I advise the Deputy to get on with his contribution.

I wish to express regret over this unfortunate event. I also regret some of the publicity which this matter has received. I believe that some of the publicity has done more to damage the prospects of getting industry into this estate in Nenagh than the incident which occurred. It seems apparent, from initial inquiries and investigations, that this flood was essentially a freak and that it was most unlikely it could have been anticipated at any stage in the design of the plant. That being the case, there is every danger that the sort of publicity we have seen will have the effect of blackening that factory and I regret that that has happened.

I hope the Deputy is not referring to anything said this evening.

I am not referring to anything said this evening. My time is short and I ask the Deputy not to interrupt me. It is most important that there is an end to this sort of publicity. I am quite satisfied that the Minister will carry out whatever investigations are necessary to confirm what happened and, if there was a question of negligence, it can be dealt with. We know that the IDA and the county development team of which I am proud to be a member have worked very hard to get an industry like this to Nenagh. They did manage to attract it, so it is quite clear what the interests of the IDA are and those of the county development team. I want to stress that everything that can be said has been said decently by the townspeople of Nenagh. It is a most attractive location for this type of industry. We should stress that, forget about what has happened and let a proper inquiry take place. I understand from contacts I have had with SFADCo and the IDA that plans are already in train to put in the extra embankment needed to give a guarantee to any new industry——

The Deputy is now in the Minister's time.

——which may be attracted into this area. I hope that the Minister will take kindly the words of Deputy O'Kennedy. I must express my disappointment that other parts of north Tipperary were not looked at for the location of this industry.

I am very concerned at the circumstances which led to this decision by the Elfab Corporation. Immediately I learned of the flooding I ordered that an inquiry should be carried out by my Department and all the agencies concerned. I can well appreciate the disappointment felt by the people of Nenagh as expressed by their three Dáil representatives, particularly against the background of the substantial job losses which occurred recently with the closure of Mogul Mines.

I intend to meet the chairman of SFADCo on Friday to convey my concern about the matter and also my concern that everything should be done to attract an alternative industry to Nenagh. However, I am pleased that it was possible, notwithstanding these unfortunate circumstances, to keep this industry in Ireland. It could easily have gone to another country and we were very fortunate to find another suitable site within the same general region although not as near to Nenagh as I am sure its representatives would wish.

I should like to outline some of the facts regarding the situation. The site in question for an advance factory was originally identified as being on a suitable industrial site by officials of Tipperary (North Riding) County Council and Shannon Development. On receipt from its consultants of a satisfactory report on the suitability of the site for industrial development, SFADCo purchased the 69-acre site for £149,000 in 1976. They engaged architects and consultant engineers for the construction of a 24,000 foot square factory which was commissioned by the IDA as part of their advance factory programme. As has been indicated, there are already a number of other factories on this site and they were not affected by the flooding. Plans and specifications for the factory were drawn up by the consultants in accordance with normal practices having taken into account all available information from both public and private sources on the water levels of the small river which runs along one side of the site.

The factory was completed in September 1983 at a cost of £23.54 per square foot, a total cost of £564,000. The Elfab project was subsequently secured by the IDA which had vigorously promoted the factory. On 30 January 1984 there was flooding at the factory because of a day of heavy rain and thawing snow and ice on the surrounding hills which improved the environment from one point of view but also led to flash flooding. The flood was discovered by Elfab's architects and engineering consultants who were carrying out a survey in the factory. They informed the IDA who, in turn, informed SFADCo. Elfab had intended visiting the factory site the following week. In the meantime, the IDA devised a temporary drainage system designed to ensure that the factory was in order before representatives of the company visited it as planned. However, even with the promise of a permanent solution to the flooding problem, which would have taken until about June to complete, the company felt that they could not continue with their intention to locate at that factory. In addition, they had fears in regard to the availability of the site for effluent treatment in view of what had happened.

Strenuous efforts were made to get the company to remain in Nenagh. SFADCo offered to build them another factory on higher ground in the estate and to give them existing factory space, rent free, awaiting that event. This was not acceptable as it would have involved a delay in production start of 18 months. The IDA arranged for representatives of the company to visit other available factories in north Tipperary, including Thurles and Roscrea. These sites were not considered suitable by the company because the Irish premises were to be their European headquarters and they would have been too small. The only alternative was a 32,000 sq. foot SFADCo factory at the Raheen Industrial Estate in Limerick.

I should like to reiterate my regret and that of the Government at the loss of this valuable and much needed industry. I concur with what Deputy Molony said about publicity and that is the answer to Deputy O'Kennedy's point about the announcement of the factory in Limerick. I do not believe that publicity is necessarily of assistance in this matter although I acknowledge the need for an inquiry. In fact, I had initiated an inquiry long before there was any publicity.

The point I was making was that it would have been better if it had come from the Minister rather than being leaked.

That is an arguable point. I am concerned that this is not the first time this site was flooded and I intend to ensure that this is taken into account in the detailed inquiries which I have set in train. I acknowledge the interest shown by all the public representatives in the area in securing an industry for the site. I hope we will be successful in securing alternative industry for Nenagh in the reasonably near future but we must recognise that we are working in a very difficult industrial environment and it is not easy to take projects off the shelf. That makes this event all the more regrettable. However, as I have said, I am initiating an inquiry and it would be wrong to draw any conclusions until it is completed.

The Dáil adjourned at 9 p.m. until 10.30 a.m. on Wednesday, 15 February 1984.

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