asked the Minister for Industry and Commerce if his Department keep records of industrial closures; if he will give details of the industries that have closed in the past 12 months; and the number of jobs lost (a) in each case and (b) in total.
Ceisteanna—Questions. Oral Answers. - Industrial Closures.
59.
My Department have no responsibility for the collation of official statistics on factory closures. Manufacturing concerns are under no obligation to notify my Department when they cease production.
However, the Industrial Development Authority's records show that during 1987, a total of 7,799 jobs were lost in 493 factory closures.
Mr. Bruton
How many closures does the Minister expect to occur in the current year?
The Deputy will be well aware from his period in the Department that it is a completely imprecise science to try to forecast what closures might or might not occur. The Deputy will also be only too well aware that this Government are confronting the root causes of factory closures which he will also be aware have arisen because of lack of competitiveness over the years, the cost of money, the rate of inflation being too high and so on. In that regard the 1987 actions of the Government, in attacking the lack of competitiveness of Irish industry, will bring their rewards in this and ensuing years.
We will see.
The reduction in the rate of inflation to approximately 3 per cent — targeted for two and a half per cent in 1988 — a reduction in interest rates, in the cost of money, no increases in electricity charges in 1987, no increases in postal and telecommunications charges in 1987, are all very important factors in input costs of which the Deputy is well aware. He should remember he preached the same gospel on this side of the House for a very long time. The difference is that we did something about it. All of those factors will help improve our competitiveness.
If the Minister repeats it often enough somebody will eventually believe it.
I do not deal in fairy tales. There will be a further reduction in ESB charges, in accordance with the budgetary provisions, of 5 per cent to industrial users. Indeed, the ESB are on record within the last day or so as committing themselves to freezing the cost of electricity up to the end of the year 1990. All of those factors together will bring about an improvement in competitiveness and reduce the number of factory closures.