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Dáil Éireann díospóireacht -
Tuesday, 11 Jun 1991

Vol. 409 No. 6

Adjournment Debate. - Tralee Company Threatened Closure.

The Tralee area is now one of the worst unemployment black spots in the country. At present there are 3,474 people on the live register at Tralee Employment Exchange. Its industrial base has been continuously eroded during the past ten years. One of the major industries in the town, Klopman Limited, are now experiencing major difficulties because of competition from imports from countries outside the European Community. Redundancies are inevitable but I hope closure can be averted.

On 6 May Wabco Westinghouse had to lay off 35 of their 42 employees. They manufacture railway signalling equipment and systems and have been supplying signalling equipment to Iarnród Éireann since 1980. Iarnród Éireann have been their only customer throughout this period. Since 1988, when the company were acquired by Ansaldo spa of Italy, a policy of establishing export markets has been pursued. A commercial agreement was recently concluded with Ansaldo whereby Wabco Westinghouse will manufacture and supply harmonic detector equipment to GEC Alsthom for use in British Rail channel tunnel locomotives. Work on this order is due to commence in November this year. At the end of March the company completed work on the west road contract for Iarnród Éireann. Since the beginning of the year management have been discussing with the chief signal engineer his requirements for the next stage of resignalling work. This concerns the Malahide to Dundalk line.

The company learned at the end of April that the board of Iarnród Éireann had deferred taking any decision on a new contract. At a meeting on 9 May with the managing director of Iarnród Éireann, Mr. David Waters, he indicated that a decision may not be made for "a couple of months". The company had to lay off 35 of their 42 employees from 6 May. The parent company are naturally concerned about the situation. The signalling chief executive of Ansaldo is due to visit Ireland shortly and I am concerned that unless there is positive news on a new contract at that time a decision to close the company will be made.

The signalling work proposed by Iarnród Éireann's signalling department will have to be done at some stage.

Unfortunately, unless the decision to proceed is taken sooner rather than later, the work will have to be done abroad as Wabco Westinghouse are the only indigenous signalling company. I was informed recently that Iarnród Éireann will defer a decision on their resignalling programme until a study on the cross-Border rail link has been completed. However, as this could take a number of months to complete the company could be forced to close in the meantime.

On 22 April the Minister for Tourism, Transport and Communications, Deputy Brennan, was informed of the seriousness of the problem, but he has failed to respond positively. I appeal to the Minister and to the Minister of State present in the House to ensure that funding for this resignalling project is approved immediately before Tralee loses one of its most successful industries and 42 people are left without jobs and a means of earning a decent living. Several young families will be affected if the factory closes. Last week one of their employees was married. Another one is due to be married next week. The workers are seeking positive and immediate action on the part of the Minister and the Government to ensure that the factory remains in production.

I am very concerned by the problems which Wabco Westinghouse are experiencing, and the resultant decision of the company to lay off 35 employees. However, I am advised that the company are taking the necessary steps to address their long term problems, and I am hopeful that these steps will have positive results.

Wabco Westinghouse have been providing valuable employment in Tralee since 1980, designing and manufacturing railway signalling systems. During that time, the company's sole customer has been CIE and Irish Rail, and they have been completely dependent on contracts from them. It is because of a drop in orders from Irish Rail that the current problems in the company have arisen.

In 1988, Wabco Westinghouse were taken over when their parent company, American Standard, were purchased by Ansaldo Transporti spa. Ansaldo are part of the Italian state holding group, IRI Finmeccanica, who employ approximately 500,000 people. Ansaldo design, manufacture and provide integrated transportation systems including power supply, signalling, rolling stock and project management.

At the time of the takeover there was doubt over the long term future of the Wabco facility. The company had been set up to design and manufacture the signalling system for the DART railway system. From a peak of 91 people in 1982 the company have reduced to their current level of 42 people.

The company have recognised the dangers associated with their reliance on a single customer, and I understand that they have made a decision to develop a range of products for sale into the UK. I understand that the company are at an advanced stage of discussions with a customer in the UK for the supply of a new product. Delivery would be due to commence at the end of this year. It is envisaged that this project could secure the long term future of the facility and provide opportunities for expansion.

I also understand that Wabco Westinghouse's parent company, Ansaldo Transporti spa, are engaged in discussions with other potential customers in the UK. I am hopeful that this process can lead to a much wider customer base for the company and will leave them less vulnerable in the future to the changing requirements of a single customer.

If the current layoffs are to be addressed in the short term and the company allowed to develop new products, then they must find business to carry them over until the development of the new products is completed and they go into production. I understand that the company have been discussing contract opportunities with Irish Rail. However, this is a matter between the company and Irish Rail, and not one on which I should comment, except to say the accusation levelled by Deputy Deenihan against the Minister for Tourism, Transport and Communications was wide of the mark. I hope that the discussions can produce a recipe to allow the company overcome their problems. I am confident that with the assistance of the Industrial Development Authority the company will be able to do this. I am satisfied that the company and the Industrial Development Authority are taking all possible steps to address the present difficulties and I hope to see a satisfactory outcome.

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