I wish to share the time I have with Deputy Roche and Deputy Jacob.
Adjournment Debate. - Bray (Wicklow) Plant Proposed Closure.
Is that satisfactory? Agreed.
I will co-operate in that as well.
The Nixdorf Computer International Company Limited, a manufacturing company in Bray, County Wicklow, announced yesterday that the company will cease operating in Ireland on 16 July 1990. As you, Sir, have said, 380 people were employed in the company in January of this year. In January it was announced to the staff that because of marketing difficulties and over-capacity in the computer business, numbers would be decreased and the company were in difficulty in regard to continuing their business. On that occasion I brought up the problem with the Minister in this House, along with other Deputies from Wicklow, and we got agreement that every effort would be made between the Minister, the IDA and the Nixdorf Company to find a suitable possible alternative industry for the premises at Boghall Road in Bray, or maybe by some means the company existing then could be maintained there. The announcement, while not a surprise, certainly comes as a great shock, particularly to the people of Bray, but since the 380 people in that company are drawn from the whole east coast of Wicklow, almost from Arklow to Bray and inland, this is a very severe blow to the county of Wicklow.
It has been said that another company are interested in the site, but up to yesterday no deal had been done and no completion of any prospect of solving the problem or having a company take over the industry in the short-term has emerged. I understand the company — I do not wish to name them at this stage because I understand discussions are going on — are looking at the option in Ireland, which obviously we all hope will be Bray, and one in Scotland. I believe all TDs from Wicklow are interested on behalf of their constituents to see that every effort will be made to secure the option.
Wicklow has been devastated over the last decade by closures of major factories in the county or reductions of staff in such factories. The Arklow area which has a 27 per cent unemployment rate saw the Noritake company close with a loss of about 300 jobs. NET-FII have reduced their staff by about 800 and Shanks Ireland went out of business some years ago. The Avoca Mines closed early in this decade with a loss of about 200 jobs and Veha, a company in Wicklow, were closed for several years. We are thankful that they have started up again, but a very large number of jobs have been lost there. The Irish Jurong company in Kilcoole closed. Beverley Bags in Bray closed and now Nixdorf are closing. These companies have closed but the industries associated with them have seen a loss of jobs in Wicklow far in excess of the numbers I have mentioned.
It is believed that emigration has been between 4,000 and 5,000 in the last four or five years from the county of Wicklow, and at present we have approximately a 22 per cent unemployment rate, one of the highest for any county in the country. This latest blow to employment hopes in Wicklow is devastating to the Bray area, I come in here to ask the Minister to look at the whole problem of unemployment in Wicklow. We have been to the IDA. We have had meetings with the county council and the IDA. We have had the previous managing director of the IDA in Bray, but I have to say the response for the county has been only very slight. Now we have this serious problem where many families are going to suffer as a result of this closure. People with mortgages and HP arrangements for cars and the like have nothing to look forward to. A number have found employment elsewhere — the better skilled will find employment — but a very large residue of staff there will find it very difficult in the present climate to do so.
I want to let in my two colleagues from Wicklow. I appeal to the Minister to take a very close look at the serious position in Wicklow and to regard that county as the unemployment blackspot of this country. I would ask him to get the IDA actively interested in bringing companies into Wicklow. Land is available, as are empty factories. The Minister should ensure that there is a turn around for people who at present are facing only unemployment or emigration.
I thank Deputy Kavanagh for sharing his time. The decision on Nixdorf was a body blow for Bray and for the whole county of Wicklow. It was a particularly cruel body blow, coming at a time when we were beginning to see some signs of a pick-up. Almost two years ago the Minister for Industry and Commerce allowed the IDA to pay the highest level of industrial grant to industries locating in Wicklow. It seemed for a period at the end of last year and the beginning of this year that we were seeing the beginning of a spring. However, the tragic news from Nixdorf showed that it was another false spring in regard to jobs in north Wicklow and throughout the county.
Nixdorf was not just the basis of prosperity in the town of Bray. It filled a very specific place. When the plant was opened a little over a decade ago it gave not only jobs but hope to a town whose traditional industry had been destroyed and which had lost tourism and jobs in hundreds and thousands. This hope was necessary not just for Bray but for the whole county. Wicklow has been devastated and cruelly treated during the past decade and a half with regard to employment. A variety of factors, most of which have been completely outside our control, have conspired to destroy the economy of our county.
In the case of Nixdorf, we can show that the plant was profitable and well mannered, enjoying a perfect industrial relations record. It had contributed to profits, yet at the end of the day circumstances beyond the control of Wicklow people delivered this devastating blow.
Since the beginning of the year I have been in regular contact with the IDA, the Minister for Industry and Commerce, the Minister for Finance and other members of the Cabinet. I thank them for the courtesy and consideration they have shown me and other Wicklow Deputies and representatives.
The final act in this tragedy is set to play itself out in Bray. We are losing the flagship of industry in the county. There are other companies on the sidelines and there has been some very promising news in recent days. It is terribly important not just to the economy of the community in Wicklow but to the wellbeing of the entire people of the constituency and county that we have positive news in this regard.
I thank my colleagues for permitting me to share their time. The demise of this firm, this excellent company which has been providing substantial numbers of jobs in my constituency, is of startling concern. Nixdorf have drawn their workforce not only from Bray, which will be the main victim and the chief sufferer, but also from a much wider hinterland. Even before this catastrophe, the unemployment problem in Wicklow was of alarming proportions. I have spoken on this matter on many occasions in this House and I will continue to highlight the problem until positive action is taken to alleviate the position.
County Wicklow has been deemed a designated area for some years and I was extremely grateful to the then Minister for Industry and Commerce, Deputy Reynolds, for so categorising our county. We in Wicklow have been expecting great things from the IDA in terms of employment creation via this designation instrument. Apart from Bray and the north Wicklow area, the unemployment problem is quite desperate in other areas, such as the town of Wicklow and its hinterland and the western area of the county. The unemployment blackspot is the town of Arklow and its south Wicklow hinterland. We have been greatly disappointed. The IDA, designation instrument or no, simply have not delivered. I have been critical of these people in the past and of other relevant State agencies for their inaction and I intend to hold them culpable until they show some evidence that they are truly in touch with the problem and take action to correct the dreadful problems of unemployment and emigration in the county.
On 22 January last I was present at a chamber of commerce luncheon in Bray which was addressed by Mr. Padraic White, chief executive of the IDA. It was obvious from his speech that he was totally unaware of the difficulties being experienced by Nixdorf. That very evening the dreadful news broke. That level of indifference is totally intolerable and unacceptable. I would ask the Minister and the Government to review the modus operandi of the IDA so that the hundreds of thousands of unemployed people throughout the country, particularly the many thousands in my own county, can benefit from the current economic buoyancy. I would ask the Minister and the Government to make every effort to effect alternative arrangements with all possible speed for these Nixdorf workers.
I would like to thank Deputies Kavanagh, Roche and Jacob for raising this matter on the Adjournment. The problems in Nixdorf first came to our notice at the beginning of this year. In January we were informed that Nixdorf in Germany had decided to shed 5,000 of their staff as a means of cutting costs. This move included the decision to dispose of their manufacturing plant in Bray with the loss of all 400 jobs. A separate training centre and software development centre would not, however, be affected.
Following intensive lobbying by the Minister for Industry and Commerce, the Taoiseach, the Minister for Finance, Deputies from the constituency and the IDA, the threat of an immediate closure was averted. However, the company did point out that because of lack of demand, it would probably be necessary to shed jobs in the short-term. On 13 February the company annouced that there would be 100 redundancies at the plant, effective from mid-March. This was in accordance with the stated objectives of the company and brought employment at the plant down to 280. In May a further 90 people accepted a redundancy package which was available prior to a firm closure date. Eventually Nixdorf decided, because of lack of work for the plant, that they would have to let remaining staff go and they announced that on Tuesday last, 5 June. Both the Minister and the IDA were convinced that Nixdorf could not hold off any longer in announcing closure because of the lack of work for the plant.
The Deputies can be assured that continuous contact has been maintained with the management of the Nixdorf company, both in Ireland and in Germany. Negotiations are in progress with a number of overseas companies and the main aim of these negotiations is to secure a satisfactory replacement project for the Nixdorf plant at Bray. The IDA pipeline for electronic companies is good and based on our success in attracting major electronic companies, like Intel and Motorola in 1989, I am confident that a replacement industry for Nixdorf will be found. I cannot go into further detail about the negotiations for a replacement project because obviously the confidentiality of those contacts is important for their success.
It is important to remember that based on the IDA end-of-year employment survey, manufacturing employment has risen in Wicklow by 397 or 8.7 per cent to 4,931 in two years to November 1989. I am confident that this trend will continue into the 1990s particularly following the Government's designation of County Wicklow for higher level industrial grants from January 1989 for a period of three years. This decision means that maximum grant assistance can be offered for new projects in the county.
So far as Bray is concerned, the level of manufacturing employment continues to expand and now stands at 2,330, representing a net increase of 230 jobs in the past two years. This is a welcome 10 per cent increase, which has considerable spin-off benefits for the local economy. Major companies are continuing to invest in growth and development with the creation of new jobs in Bray, for example, the Pitman Moore expansion in a new 25,000 square foot factory which will create 60 new jobs and the AT & T subsidiary Microwave Radio's research and development facility which has resulted in 50 additional jobs.
Irish owned industry plays a very important role and Bray has such companies as Industrial Print and Richard Barrett Moulds to be proud of. The IDA are committed to developing the existing base of industry and are actively supporting companies which are creating more value added and employment in Wicklow.
The small business sector is also very important and employment in this sector in Bray increased by 16 per cent last year. I was told some time ago that the enterprise centre in Bray would be the largest and most ambitious enterprise centre yet planned by a local community. At that time the project had to be viewed as a major challenge and an opportunity for the local community to further strengthen their already growing small industry base. The involvement of the community in industrial development initiatives is the way of the future and Bray is a great example of the spirit we need for such growth.
I believe that the future augurs very well for Bray as a first class location for industry with a number of clear advantages, i.e. a vibrant young population and a core of modern hi-tech industry. Furthermore there is the development of our roads network, substantially supported by EC funds, such as the ring road to Dublin Airport, the Bray-Shankill by-pass and other plans for further by-pass developments along the route from Rosslare. Finally, there is a world class telecommunications systems and a rapid rail system, the DART. A major factor in the future marketing of Bray will be the 50 acre site earmarked for industrial development.
In conclusion, while I deeply regret the decison of Nixdorf to close, we must all face up to the reality of the situation and look to the future. We must accept that Nixdorf had maintained an operational presence in Bray for as long as was economically possible. I was encouraged by the company's press release issued last Tuesday in which they said that all commitments entered into would be fully discharged, including obligations to creditors and employees. Nixdorf have agreed to continue in close co-operation with the IDA to ensure the best possible outcome in terms of a replacement industry for Bray.
The Dáil adjourned at 5.25 p.m. until 10.30 a.m. on Friday, 8 June 1990.