Bernard Allen
Ceist:17 Mr. Allen asked the Minister for Industry and Commerce if he will make a statement on the proposals to sell Irish Steel Limited.
Ceisteanna — Questions. Oral Answers. - Sale of Irish Steel Limited.
The current position is that negotiations with a number of interested parties concerning a possible sale of Irish Steel Limited have been taking place and are not yet concluded.
Is the Minister aware that informed sources within the company have said that there will be 100 job losses in Irish Steel Limited between now and January? Would the Minister inform the House why it is taking so long to reach agreement with either of the parties interested in taking over the company and the nature of the disagreement which has arisen in Cabinet between himself and the Minister for Finance, Deputy Reynolds, on the takeover?
Discussions are taking place with three parties on the possibility of a takeover. Until the negotiations are finalised with one of the three parties it is not possible for me to bring the matter back to the Government. I understand that the management of Irish Steel Limited met the trade unions concerned on 2 November to discuss the general position of the company and the issues which will need to be addressed to improve competitiveness within the company. These were identified as reductions in costs, including payroll costs, to bring Irish Steel Limited further into line with their international competitors, more flexible working arrangements in line with best practice and more appropriate pay arrangements in large part allied to performance. In response to a query from the union side, management indicated that subject to the foregoing measures it should be possible to reduce numbers on an entirely voluntary basis by approximately 100 persons.
Would the Minister respond to my question as to the nature of the difference of opinion between himself and the Minister for Finance, Deputy Reynolds, on the takeover, and comment on the offer from Korf, the German company, and the suggested takeover by a United States company? Would he give a guarantee to the House that until such time as agreement is reached on a takeover there will be no job losses at the plant? Cork has suffered enough.
The references made by the Deputy to a possible offer or takeover by a particular person or company in the past are purely historical; I am looking at the present and future situation.
It is the Minister who blocked them.
No decision has been made because the negotiations have not yet been concluded.
We have been waiting two years.
When they are concluded, naturally I will put the matter before Government.
Would the Minister agree that he has been considering this matter for quite a long time, and that that is being unfair to the workforce at Irish Steel Limited whose morale at this time is pretty low because of this uncertainty hanging over the plant? Can the Minister give any indication when he expects the negotiations to reach a conclusion?
I agree with the Deputy. It is unfortunate for those working there that the matter has not been concluded one way or the other, but it is in their interests — on reflection I am sure they will agree — that we should try to make the best arrangement rather than an arrangement which possibly might leave them high and dry in six months' time. I accept morale is not helped by this matter but I would remind the Deputy and the employees of the company that if our negotiations were to fail the company could continue as an independent and State owned entity. That possibility is always there. In that regard I do not feel their concern should be too great although I accept they are nervous about the position.
Question No. 18 in the name of Deputy Jim Higgins.
Deputy S. Barrett rose.
I want to dispose of Deputy Higgins's question as he has been waiting for some time.