Dáil Éireann díospóireacht -
Thursday, 24 May 1984

Vol. 350 No. 10

Adjournment Debate. - New Ross Fertiliser Firm.

Mr. H. Byrne

It is no great joy to be back here speaking about further redundancies in and around the New Ross area, especially the recent spate of redundancies at Albatros Fertilizers which everybody thought was the pivot of industry in that area. Unfortunately, two years ago, when the workforce was reduced from 380 to 240, we thought that the figures would stabilise at that level. Unfortunately management see fit to reduce that still further and are bringing the workforce down to 170. I am led to believe this is not the end of the story and that we will have more redundancies within the coming year.

Albatros Fertilizers Limited were the king-pin which we depended upon in New Ross as a strong base for industry. Unemployment levels in Wexford today are at an all-time high, in the region of 7,000 or 22 per cent. This must rate us as the worst off county. In the New Ross area the figures are in excess of 1,100 and this will bring the figure up to 1,200. I want the Minister to ensure that everything possible will be done to guarantee that we will not have 70 redundancies in Albatros Fertilizers Limited.

Being a farmer myself I am fairly well acquainted with the problem. Because of the fallback in confidence in farming, fertiliser sales have dropped and Albatros Fertilizers Limited have suffered. The management claim that they are not making money and therefore they have to reduce the staff. They are operating a twin system in New Ross. One is all blending, and the other is what is known as granulation or the CCF plant. This plant, which produces a granulated fertiliser which makes it far more easy for farmers to spread it, is the last CCF plant in Ireland. If it is closed, we will have no CCF plant. This is of vital importance. There is still a demand for that type of fertiliser. Is it the Minister's intention to see more imports coming in? From what I hear the CCF fertiliser will come up the same river and be unloaded at the port on which the Albatros Fertilizer Limited factory is built. I appeal to the Minister to retain the jobs in New Ross and not to create jobs for people outside this country.

In 1982 a fairly substantial package was put to Albatros Fertilizer Limited which kept them going until this year. I am asking for it to be continued until confidence comes back into the agricultural scene. Then there will be far greater sales of fertiliser and the CCF plant will be able to continue as it has heretofore. On many occasions in this House we have heard discussions about imports from other countries. Now the problem is on my doorstep. I want to ensure that everything will be done to protect the jobs of Irish people and that we will not be creating jobs for people in other countries.

I believe Albatros Fertilizers Limited are anxious to keep the parent company going in Holland at the expense of the Irish company. I am sure this is the case in many other instances as well. I am particularly interested in New Ross at this stage. I want to ensure that when any company is in trouble the difficulties are shared. Over the years we have done nothing about the importation of fertilisers. This importation has been nothing short of dumping. When manufacturers abroad had a surplus they dumped it here at the expense of our workforce. Being a farmer I would not buy it. I buy Irish. From what I hear the quality of the fertiliser which was dumped here is not nearly as good as the manure made here. I should like the Minister to give me an undertaking that he will have this matter investigated.

I should also like to mention NET who are State-supported. I understand they are considering going into the manufacture of compound fertilisers, be it blending or otherwise. I do not want to see a State-supported company taking jobs from people in New Ross. I am most anxious that the Minister will insist that this does not happen. We want to protect our own people and our own jobs. New Ross port is a very active port. It has done pretty well down through the years. One of the reasons for that is the importation of raw materials for fertilisers. If we have a continuation of the present trend in Albatros Fertilizers Limited the workforce will be lessened again next year and, with less fertiliser being made within the confines of the factory, less imports will be necessary. This will mean a downgrading of the port and probably create redundancies amongst dockers, and so on. We cannot afford that. It is another point I should like to make in favour of the continuation of Albatros Fertilizers Limited.

New Ross station is one of the few stations on a branch line from the main Rosslare—Limerick line. Three people are working there. They depend totally on the delivery of fertilisers to keep the station in operation. If there is a downgrading of Albatros Fertilizers Limited, or if less fertiliser is made which seems to be the trend, the station is in danger too. I understand that recently Albatros Fertilizers Limited have been bringing in contractors to do work which could have been done by the people who are now threatened with redundancy. All these areas should be considered by the Minister to ensure that people who have employment in the area will keep their jobs. I see no sense in bringing in contractors to do work which could easily be carried out by these people.

I know negotiations are going on between management and workers. I do not want to upset those negotiations. I appeal to the Minister to ensure that our unemployment levels in New Ross and the surrounding area will not be allowed to increase. We have 1,200 people unemployed there which is in the region of 20 per cent. Even though the figure is so high, no task force was set up in the area to deal with it. The industry around which employment in New Ross is built is going downhill. I am most anxious that this trend should be halted. I appeal to the Minister to insist that Albatros Fertilizers Limited retain their present staff and to make the necessary finances available. A Leas-Cheann Comhairle, my colleague Deputy Aylward has asked for some of my time.

Mr. Aylward

I will be very brief. I agree completely with what has been said by Deputy Byrne. He forgot to mention that the plant is actually situated in south Kilkenny in my constituency, and redundancies will have a very serious effect, not only on the economy and people of New Ross who are losing their jobs, but also on many families in south Kilkenny. Deputy Byrne has rightly pointed out that this is the last CCF production plant in Ireland. It is my belief that if we permit this one to go we will be making a very serious mistake. Up to 30 jobs will be lost in this plant and an additional 40 jobs will go because of the change in the bagging plant and the modernising of the rest of the operation. I recall that in 1982 I approached the Minister concerned on behalf of Albatros and the Government, through Fóir Teoranta, made a £2 million interest free loan to the company. At that time they were informed by a team of consultants from London that the plant was viable and would be viable for many years to come. It was on the basis of that advice that the loan was made available as part of the package for the rescue of Albatros. However, two short years later we are now informed that that is no longer the case, that the plant is no longer viable and 70 jobs have to go. In fact, 33 per cent of the total workforce is being made redundant. I do not think that is fair. We are all aware of the hardship that is involved when people lose their jobs and that is why we are calling on the Government to make every effort to ensure that the jobs are maintained there.

There is an interesting feature to this. At present the particular blends are imported and we are told that that is the reason why there is no need for this central compound fertilising plant. In years to come when there may be an agricultural boom on the Continent those blends may no longer be available to Ireland we can all understand what the consequences will be for Irish farmers then. That valid point should be taken into consideration. If those blends are not readily available Irish farmers, and ultimately the whole economy, would suffer. We should ensure that at least one plant of this type is kept in operation here. The Minister should consider that point.

When I hear of plants like Albatros, or other multinational companies, reducing their workforce I am suspicious of the decisions that are taken in board rooms in Holland and other places outside the country. Suspicion can be cast on this operation. It may be dangerous to make such a statement at this time, particularly when negotiations are taking place between management and unions but too often in the past we have all had experience of such an operation.

I should like to draw the Minister's attention to the fact that whenever there is a closure or loss of jobs the State suffers a loss of revenue through PAYE and PRSI payments and the fact that the State has to pay social welfare benefits to the people involved. That should be taken into consideration in all cases where there is a loss of jobs and one balanced against the other.

We could ask what is the solution to the problem based on the facts put forward by the company. The maintaining and the keeping of jobs is of vital importance. One suggestion is that the interest free loan facility should be extended for a few years, if that would mean that the jobs would be saved. We have been told that if the plant is to continue it will cost so many pounds per tonne extra to the company and I should like to know if the Minister will consider subventing that premium. We have spent money on many less deserving programmes down the years. These redundancies will have a serious effect on the economy of New Ross. The loss of so many jobs to such a town is a terrible blow. South Kilkenny, parts of Waterford and other areas will also be affected. Members from all sides of the House are genuinely interested in maintaining the 70 jobs at risk. It is possible that this is the thin end of the wedge. Other companies may decide that they wish to modernise and if that occurs I have no doubt we will be discussing further job losses in Albatros and many other companies. The Minister should take note of the points we have made and make every effort possible to have the jobs maintained.

Mrs. A. Doyle

I should like to thank the Chair for giving me an opportunity to say a few words on this topic that has affected all of us who have an interest in New Ross and South Kilkenny. The tragedy that is New Ross's over the years does not need any cataloging by me or any Member. It has been done adequately on many occasions. The increase in the unemployment figures in New Ross is on a par with the social consequences of what is happening in Cork, albeit on a smaller scale. Anything mooted that will further exacerbate that problem is of major concern to us all. I appeal to the Government, in particular to Minister of State, Deputy Birmingham, to investigate the situation in the Albatros factory in New Ross. If anything can be done, I urge him to see to it that it is done. I have full confidence that if the Government have a role to play they will do so.

In summer 1982 the company had to implement a very comprehensive cost-reduction programme. A drastic effort was made to arrest the inevitable total failure and rescue the company. At that time they got help in terms of cash injections from Government agencies and their parent plant. Without the 1982 rescue operation we would not be here today discussing the existence of the company in New Ross. However, a couple of years further down the road we are discussing the appalling consequences that inevitably will result from 70 redundancies that are motted. The company insist that this is essential if they are to safeguard the jobs of the majority, the other 140 who are to be retained. We have to accept that from the company as being the position. If we are in a position to reduce the number of redundancies we will all have done a good day's work.

The corrective measures taken in 1982 meant that the company have been reasonably viable up to now. Unfortunately, the interest free period on the cash that was injected at the time is now over and I believe that is causing the immediate crisis. Considerable repayments have to be met and interest will be gathering from now on. The management of the company are doing everything possible to ensure a viable and sustainable future for the 140 employees who will be kept on. They have such a firm conviction that Albatros can and may become a viable company again that the shareholders have shown their faith by investing more than £700,000 in Albatros to improve efficiency and working conditions. They insist that it can again fulfil its vital role in the Irish market in the fertiliser area.

To survive, however, there will be a very difficult period with redundancies and operational trimming. As a result, negotiations are under way between unions and management. Politics are not involved in this issue because it affects us all across the board but if there is anything any of us can do as local representatives we are available to resolve any problems and, if possible, reduce the number of redundancies involved. The company insist that this can be done only through the co-operation of all concerned. They are adhering to the principle of the CCF production and the maintenance of employment in this area is proved by the fact that they are the last CCF product company here. The decision, as a result, has not been an easy one. We talk long and hard at different stages about import substitution and looking after our own markets with our own produce but here is an area where we appear to be going in the opposite direction. I know I can rely fully on the Government's interest in this and, I am sure, help if there is any role they can play in this tragic decision about to be taken in New Ross town.

Minister of State at the Department of Labour (Mr. G. Birmingham)

At the outset I should like to say that I share the concern expressed by the three Deputies, two from the constituency and one from a neighbouring constituency, for the people in New Ross who have been given notice that they will lose their jobs. Even the cold print of the Official Report will indicate the shock this will cause in an area where we are all aware that already an unacceptably high level of unemployment still exists. I suppose that it is not unexpected in some ways in that it is not the first occasion that the House has been called together in this fashion to discuss redundancies in this enterprise. Deputies will recall that in March 1982 my colleague, Deputy Yates, sought an Adjournment debate on this issue when at that stage some 150 redundancies were proposed and some of the then Members contributed to that debate and expressed then their concern and anguish.

Let me explain, so that there will be no dispute or uncertainty about this, that some of the issues that have been raised go beyond the remit of any one Department. Matters that have been raised would seem to be at times the concern of my Department in so far as we are concerned with ensuring that workers in such a situation receive their full statutory entitlement. It is a concern, too, of the Department of Industry, Trade, Commerce and Tourism, perhaps to a degree the concern of the Department of Agriculture and in some respects the concern of the Department of Foreign Affairs. Matters raised by Deputy Byrne in particular would seem to be properly the subject of discussion of various international bodies, including GATT. My Department are involved to a limited extent only.

I do not want to minimise my personal concern and distress at the issue. Deputy Avril Doyle, Deputy Yates and my colleague, the Minister of State at the Department of Agriculture, have spoken very frequently and with great passion about the situation at the moment in Wexford. Our particular concern is with the situation that arises under the Protection of Employment Act, 1977. That Act requires that the Minister for Labour be notified of redundancies of a certain scale, basically collective redundancies, and that, of course, includes redundancies on the scale now envisaged at New Ross. The Minister for Labour has been informed of 69 redundancies, so to that extent and, indeed, in other respects, the Protection of Employment Act, 1977 has been complied with. The Act envisaged, and it is the case, that the relevant trade unions would be consulted and the notice prescribed, 30 days, has been given. I would like the House to know that on receipt of that notification my Department responded immediately. Quite literally within 24 hours of receiving notice of redundancies on this scale, my Department contacted the Department of Industry, Trade, Commerce and Tourism. That we have responsibility in the job creation area and responsibility in association with the IDA is material. We have been in touch with the regional director of the National Manpower Service at national level and in particular their self-service section and also we have alerted those people in the Department whose function it is to administer and activate various intervention schemes that are the responsibility of my Department, particularly the employment incentive scheme. Certainly there is no lack of will or interest on our part.

We are dealing with a preliminary advance warning notice so what I am about to refer to does not arise at this stage, but were there to be any suggestion that statutory entitlements were in question or in danger, then my Department would be there to assist. At this stage, as Minister of State at the Department charged with manpower services, I can only echo and share the distress and anguish that have been expressed by Deputies on both sides of this House, and indicate that anything that can be done by my Department or any other Government agency will be done to help in this most unhappy situation.

The Dáil adjourned at 5.25 p.m. until 10.30 a.m. on Friday, 25 May 1984.