Deputy Paddy Harte gave me notice of his intention to raise on the Adjournment the subject matter of the imminent closure of Porter's factory in Castlefinn.
Adjournment Debate. - Castlefinn (Donegal) Factory.
Thank you, Sir, for this opportunity. I wish to share my time with Deputy McGinley.
Is that agreed? Agreed.
I thank you for allowing me to bring to the attention of the House a calamity, for it is nothing short of that, in the town of Castlefinn in County Donegal along the Border. Partition dealt this area a raw deal in 1921, as was the case of Donegal as a whole. No county has suffered more from partition that County Donegal, a fact very often forgotten by successive Governments in this House.
A family business was founded in Castlefinn in 1920 so it has been in existence since the foundation of this State. That family business has been employing people since, some of whom are now fourth generation. Sixty-five jobs are at stake at the moment, but there is potential there for 100 jobs. The company manufacture top quality shirts. About two years ago they employed top marketing and production personnel to advise them on getting into a higher grade of production, which they did but that has not worked out too well.
This factory was opened in 1982, the old factory having been destroyed by fire. The IDA and the other State agencies came to the rescue of Porter's factory at their time of crisis after the fire in 1979. The fire destroyed the building but it did not destroy the trade. At the moment the company face a two pronged attack; they are short of capital because interest rates on borrowing are too high and, of course, they have a marketing problem. They have a marketing problem in the export market and from cheap imports and that is causing a crisis. It would be a calamity and no credit to any Government or any person in public life if we did not take a stand on this very severe crisis in a small community. Here are a family who have been employing three and four generations of people in Castlefinn and who over the last 60 years have contributed in a major way to the economy through the pay packet, income tax, social welfare contributions and the spin-off effects in a small community. There is but one month left. The stocks on hand will keep them going for a month and then closure is threatened.
Many people from that area are in my neighbourhood but in Deputy McGinley's constituency and they have a companionship in the factory that they are very proud of. The labour force admire the way the factory has been managed and the management appreciate deeply the efforts put in by the workers who have been described as the best labour force in Ireland. There are excellent factory premises, top rate workers and machinery that can manufacture garments that can compete with the best in the world.
My appeal this evening to the Minister and the Government is to come to the rescue of the Porter factory in Castlefinn by making money available, if that is possible. I see no reason it should not be possible. Córas Tráchtála should step in and help in the marketing field.
I want to pay tribute to the Porter family for the way they have handled this and for the concern they are showing in trying to keep the factory open. They are in an impossible position. I make this final appeal to the Minister to come to their aid because their contribution to the formation of this State and to its economy cannot go unnoticed at this time. Castlefinn is a town devastated by unfair cross-Border trade. People go across the Border to buy cheaper goods and the business people in Castlefinn are having a tough time. It is depressing to go into the village at any time despite the best efforts of everyone concerned. It will be totally devastated if this factory is allowed to close.
Deputy McGinley has some four minutes.
I thank my colleague, Deputy Harte, for sharing his limited time with me. As he said, Castlefinn is in my constituency and the workers whose jobs are on the line at the moment are divided between the two constituencies. We are both very interested in the future of this industry.
As Deputy Harte said, Castlefinn is a Border town that has experienced the kind of difficulties that Border areas have been subjected to for many years. It is in the Finn valley and while there is excellent agricultural land there, there are but few industries. In Castlefinn itself the Porter family, who have had their factory there since 1920, were the main employers in the area and have provided excellent employment for between 60 and 70 workers these last 70 years. They have produced an excellent quality shirt not alone for the Irish market but for the UK market. Indeed, only months ago plans were announced by the Minister's predecessor, the Minister for Industry and Commerce, for major expansion at the factory, the job numbers were to be doubled there. It came as a massive shock to the workers of Castlefinn last Monday week when they were put on notice that their jobs were on the line and that they had only a few weeks left. As I said, there are very few industries in this part of Donegal. Another major industry in the town of Convoy, a long established industry that employed hundreds of people, the Convoy Woollen Mills, closed down about two years ago. If Castlefinn were to go now it would be a devastating blow to that area. The workforce are mostly female but in that part of Donegal they are the main breadwinners for their families. If the factory is to close I can see it contributing certainly to higher unemployment in the area and ultimately to more emigration, something we can ill afford in Donegal. We have one of the highest rates of unemployment in the country and the highest rate of emigration.
I appeal to the Minister to get all the agencies involved, the IDA, his own Department and any other agency who could have an input into this to try to retrieve the jobs of these 60 to 70 people.
In conclusion I reiterate what Deputy Harte has said, that the Porter family, first established in Derry at the beginning of the century, came into Donegal and have built up an excellent relationship with the people of Castlefin, particularly their own employees. They are held in high esteem. I ask the Minister to give every consideration to a solution so that the management and control of this factory will be left if at all possible with the Porter family. If they were to leave the country or lose this factory after their record and the esteem they have earned in the community it would be a major blow to that part of the country. I ask the Minister to keep these points in mind and do everything possible. If the jobs go it will be a lean Christmas indeed for the 70 families who are dependent on the work in this factory for their livelihood and it will end in higher emigration and higher employment. We are depending on the Minister to do his best.
I share the Deputy's concern about the proposed closure of H. G. Porter Limited manufacturing operation at Castlefin, County Donegal. That concern has been expressed here so well by Deputies Harte and McGinley and it has also been expressed by my colleagues, the Minister of State at the Department of the Gaeltacht, Deputy Gallagher, and Deputy Mary Coughlan. Indeed, the consequences for the workforce involved, many of whom have given long years of service are serious.
The firm in question has been operating in Castlefin since 1921 and had concentrate on the manufacture of shirts for the home market since 1966. The company experienced difficulties over the years including the destruction of their premises by fire in 1979. Adverse factors such as the advent of free trade, cheaper imports and changes in the market place with a growth in market share of the multiples have contributed to the firm's difficulties. The elimination of tariff barriers, after our entry into the EC, resulted in rapid and very substantial penetration of our home market by imports from other member states and from low cost sources.
The demise of the long-established Porter factory is another addition to the list of companies who have been unable to withstand this competition from imports. I am conscious of the adverse impact, both economically and socially, of the loss of 61 jobs as a result of the proposed closure of the H. G. Porter factory and I have asked the Industrial Development Authority to do everything in their power to try, in the first instance, to advert to closure, if possible, or to secure an alternative industry for the area.
Rationalisation and restructuring have taken place on a wide scale in the clothing industry since 1973 when we joined the EC. This is part of an ongoing requirement to adopt changing market opportunities and to restructure to meet competition at home and abroad. Nevertheless, the process has been a painful one with significant job losses. Considerable resources have been employed in the past decade by the State to help clothing companies in this restructuring process and to increase their competitiveness. Strategies have been in place since the early eighties and are continually being refined to assist the industry in its efforts to rationalise and restructure.
These strategies involve the State agencies working with companies to help them address their specific needs by assessing their competitive strengths and weaknesses, by increasing the scale, by assisting them to adopt a strategic marketing approach and to formulate appropriate action plans. The clothing sector at present needs to strategically place itself in order to exploit the opportunities which 1992 will bring and also to withstand the challenges of increased competition. It will be necessary for the sector to place increased emphasis on management, design and marketing functions and to exploit the advantages of quality and quick response to the needs of the consumer in order to remain competitive in the face of the inevitable increase in imports from low cost sources.
The Deputies have expressed support for the factory and its product but, unfortunately, we have not complete control of the home market. Indeed, there has been far too much imports into this country and far too many people are buying imported products and are not supporting companies such as H. G. Porter who are producing an excellent product.
I should like to say that the Deputies' points have been noted here this evening. In consultation with the company and the IDA we are doing our utmost to assess the situation and to retain this industry, if possible, but otherwise to look at alternatives.
Would it be possible for the Minister to accept an invitation to go up and meet the management?
All I can say at this point is that I would have no objection if it would be of any assistance.
I can assure the Minister that I could pass that information to the management.
Let us hear the Minister out as he is now concluding the debate.
I want also to point out that the Minister, Deputy O'Malley, is in Brussels this evening and so is unable to be present for this discussion.