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Dáil Éireann díospóireacht -
Thursday, 5 Mar 1992

Vol. 416 No. 8

Adjournment Debate. - Clonmel (Tipperary) Plant Closure.

It gives me no joy to say that it is necessary to raise this issue in the Dáil this evening. Unfortunately, circumstances are such that we in Clonmel and in the surrounding area have no option but to bring this very important issue to the attention of the Minister. The failure of the Industrial Development Authority and the Department of Industry and Commerce to find a replacement industry for the Digital plant in Clonmel is the source of extreme alarm and concern among the 80 remaining employees in the company and for everyone in the area who is concerned about the commercial and social life of the town and surrounding area.

I urge the Minister this evening to give Clonmel top priority. This matter must be addressed urgently and with determination. Those of us who live in the locality — I want the Minister to know this — feel that sufficient priority has not been attached to the need to attract a replacement industry to Clonmel. I regret that it is necessary for me to intervene at this stage, but it is both necessary and vital that the urgent need to find a replacement industry be highlighted now.

The announcement of 22 February 1991 that the Digital plant in Clonmel was facing closure, resulting in the loss of 350 jobs, was a massive blow to the town. The shock was, however, eased somewhat when the company gave a commitment to defer total closure until July 1992 to allow all concerned to find a replacement industry for the plant. A year has now almost passed and the remaining 80 workers face unemployment on 1 July.

The recession forced upon the town of Clonmel by the closure of Digital, on its commercial and social life, has been devastating and with no positive news as yet of a replacement industry we are very apprehensive and the future is looking very bleak. The plant was visited by representatives of Cabletron which eventually was located in Limerick, and by Wyeths which was eventually located in Newbridge. Surely this begs the question of what priority has been attached to Clonmel and how vital to the Minister is the fate of its employees and future employment in the town.

Clonmel has lost over 700 industrial jobs during the past three years — 200 jobs at Barlo Heating, 116 at Burke's Bacon and 350 at Digital, while almost 100 jobs have been lost in firms which service those companies. The myth that Clonmel, is doing well commercially and industrially is blatantly disproved by the facts I put before the House this evening. I wish to impress upon the Minister that we are facing a serious deadline and that at this stage a replacement industry is a chronic necessity. With unemployment in the town running at 28 per cent we can wait no longer. Because of this we have got to be aggressive with our demands.

I appeal to the Minister to use all the means at his disposal immediately, to secure a replacement industry for Clonmel before the dreaded date of 1 July. I take hope in the fact that the Minister here this evening is my namesake. I hope that he will make the town of Clonmel his first priority and find a replacement industry for Digital.

During the past two years most of the major players in the mini computer industry worldwide have found it necessary to consolidate and increase their manufacturing efficiency. Digital have been particularly affected by the downturn in the mini computer industry and have implemented cost cutting measures around the world. The decision to close their plant in Clonmel was taken as part of the company's review of their overall manufacturing capacity which has resulted in reductions in both the USA and elsewhere in Europe.

Digital Equipment Corporation first established a manufacturing facility in Ireland in 1971. During the years the company have shown a high degree of commitment to Ireland through expansion and the addition of high skill design and development functions. The work-force in Digital have traditionally proved themselves to be a significant contributor to the success of the corporation and are to be commended in this regard.

As regards a replacement industry for Digital, I can inform the House that the Industrial Development Authority have been actively promoting the Digital factory in Clonmel. Indeed, the Industrial Development Authority are continuing to promote Clonmel, County Tipperary, as a location for industry. This has been evidenced by the fact that there have been 21 site visits to Clonmel during the past year of which seven have visited the Digital site. Two of these companies have made return visits.

Naturally, any discussions the Industrial Development Authority have or continue to have with any of these companies are of a highly confidential nature and it would be inappropriate for me to comment on such discussions for fear of jeopardising a possible project. As is often the case, companies also consider other European locations and are in discussions with competing agencies. Therefore the priority must be to secure any possible project for Ireland and premature speculation or publicity can frustrate this. However, I am happy in the knowledge that the Industrial Development Authority are doing everything in their power to secure a project for the town of Clonmel.

Industrial Development Authority project divisions and overseas offices are fully briefed on the needs of Clonmel for a replacement industry when marketing the town to mobile investments. The promotion of the town is also aided by a promotional brochure on South Tipperary. Clonmel is the administrative capital of the region with the majority of its population under 25. It is also within easy reach of Ireland's main ports and airports.

Clonmel has a number of existing major companies such as Medite Europe Limited, Showerings Limited and Schiesser Limited. Plans for a £15 million extension programme for Medite were announced by the company last year with the creation of 30 additional jobs. All the factors I have mentioned have helped the Industrial Development Authority to attract site visits to the town. Furthermore, the Industrial Development Authority are working closely with the Clonmel community to attract new investment, especially in high technology.

However, most significantly the Industrial Development Authority are working very closely with Digital to find a replacement industry for the factory. An aggressive marketing campaign was embarked upon by Digital and the Industrial Development Authority with Digital funding a promotional video and brochure produced to sell the Digital plant and town of Clonmel. These are being marketed worldwide by the Industrial Development Authority. I am pleased to be able to say that the Industrial Development Authority and Digital have very close involvement in relation to promoting the factory. Digital have been more than willing to discuss at length with industrialists the merits of Clonmel as well as facilitating site visits to their facility.

That was very disappointing. I know the history of Clonmel.

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