Vol. 395 No. 8
7 Mr. Gilmore asked the Minister for Industry and Commerce the outcome of the meeting between State agencies and the receiver of the Sunbeam Group of companies regarding the possibility of saving the jobs of workers in the firms concerned, which he indicated in Dáil Éireann on 30 January 1990 would be held at his request; the other steps which have been taken to protect the jobs of the workers; and if he will make a statement on the matter.
30 Mr. G. O'Sullivan asked the Minister for Industry and Commerce if he will give an up-to-date report on the efforts to ensure the survival of Sunbeam in Cork; the meetings he has had in connection with those efforts, including any meetings with the trade unions involved; the number of potential purchasers which have emerged; and if he will make a statement on the matter.
35 Mr. Spring asked the Minister for Industry and Commerce if he will give an up-to-date report on the efforts to ensure the survival of Kerry Fashions; the meetings he has had in connection with those efforts, including any meetings with the trade unions involved; the number of potential purchasers which have emerged; and if he will make a statement on the matter.
I propose to take Questions Nos. 7, 30 and 35 together.
As I stated in the House on 30 January last, I am concerned about the threat to jobs in the Sunbeam Group as a result of the appointment of the receiver. I am fully conscious of the adverse impact, both economically and socially, of the possible loss of jobs in the companies affected. For this reason I met Sunbeam Union representatives in Cork on Friday last.
I can assure the Deputies that the State agencies are working very closely with the receiver and all concerned and every possible effort is being made to secure takeovers of the companies in question and to save the maximum number of jobs.
In this regard the IDA and Shannon Development have circulated profiles of the companies to possible interested parties both at home and overseas and the various interests shown in the companies are currently being explored. Deputies will appreciate that contacts between the receiver, State agencies and any potential investors are confidential and disclosure of details of such contacts at this stage would in any event be unhelpful. I can say, however, that I remain hopeful that the majority of the jobs in the group will be saved.
Would the Minister agree that the shock waves of the threatened closure of a plant like Sunbeam highlight the real problem, which is our failure to develop an indigenous industrial sector? Will the report, the completion of which has been delayed within the Minister's Department because of a dispute about industrial policy, address this kind of question? Does the Minister agree, for example, that if Sunbeam were to close the result would be devastation for the entire north side of Cork city? Would the Minister agree that after 30 years of active industrialisation this country should not be left in a situation where the closure of a branch of a multi-national company should pose this kind of threat to employment in te area?
I do not think this really has very much to do with indigenous industry or overseas industry. This particular company was in fact indigenously owned for the great majority of its lifetime.
Not any more.
It happens not to be at the moment and unfortunately, due to circumstances that arose outside this jurisdiction and not in connection with the four subsidiaries in this country, the subsidiaries had to go into receivership. I am well aware of the problems. I am most anxious, as is the Government, to encourage the development of indigenous industry in every way that is open to us. I am not entirely clear what report the Deputy is referring to, but I think he has a question on this matter further down on the Order Paper today. There is no dispute within my Department in regard to industrial policy and nothing is held up or obstructed. I have every reason to be hopeful that the great majority of the jobs in this group will be retained as a result of management or other buy-outs which will take place in the four companies of the group.
May I specifically ask——
Order, I am calling Deputy Gerry O'Sullivan whose Question No. 30 refers and who is present in the House.
Taking into consideration the fact that the receiver has indicated he would be in favour of a management buy-out will the Minister give favourable and sympathetic consideration to any package put forward by management? Bearing in mind that it costs £100,000 per week in wages, time is not on the side of the company or the workers.
I am aware that time is not on anyone's side in a matter such as this. I hope that whatever arrangements can be made will be made very rapidly indeed because presumably the receiver will not be in a position to continue to trade indefinitely. The issue of whether the take-over is by way of a management buy-out or otherwise is for the receiver to decide on in the light of whatever offers he obtains. I am sure the IDA would be glad to look favourably on any proposals which they believe are viable.
Would the Minister consider assisting the management buy-out either financially or otherwise?
Management buy-outs of companies are becoming rather more frequent than they were. They have been the subject of assistance in the past and I have no doubt they will continue to be in the future. I could hardly bind the IDA to a specific form of assistance. The circumstances of each case differ and the IDA would have to examine the proposal. I am sure they do that with every sympathy given the need to try to preserve as many of these jobs as possible.
In view of the circumstances which led——
Sorry, Deputy. The Chair has always felt an obligation to call the Deputy who tabled the question. I called the Deputy first and asked him if he wanted to ask a question and he said no, he would defer to other Members. The Deputy may not play ducks and drakes with the Chair in that fashion. I am calling Deputy Bradford.
On a point of Order, may I not ask a supplementary question arising from what the Minister has said?
I gave the Deputy the opportunity to do that and he declined to put the question. Deputy Bradford.
His question arises from what the Minister has said.
Does the Minister think the National Development Corporation have any role to play in trying to save the Sunbeam plant? Secondly, is the Minister afraid that some of the restrictions which may be announced concerning the business expansion scheme may deflect in some way the funds which may become available to be injected into the Sunbeam plant?
I do not see any role for the National Development Corporation in this matter. I am not aware that any proposals in regard to the business expansion scheme would have any effect in regard to the subsidiaries of the responsible group.
Deputy Gilmore, if he now wishes to put a question.
Thank you, a Cheann Comhairle. In view of the circumstances which led to the receivership of these companies in the first place, does the Minister not believe, as a matter of policy, that the management buy-out option on this occasion of what are perfectly viable companies should be encouraged by the Government and in particular by him?
As I have already said, if any such proposal is made — of course, I do not know if a proposal will be made in the case of all or any of these companies — I am sure it will be looked at very sympathetically by the IDA. Of course, in the case of some of the companies I have reason to believe there will be several proposals and clearly the receiver will have to assess those as he sees fit.
