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Dáil Éireann díospóireacht -
Tuesday, 9 Mar 1993

Vol. 427 No. 6

Adjournment Debate. - Carlow Unemployment.

(Carlow-Kilkenny): Back in 1926, when the Irish Sugar Company found its feet in Carlow, the problem of unemployment was not very serious because we had other factories there at the time. Carlow had the image of a place that was well off as far as employment was concerned. Then we had the arrival of Braun and Lapple, two superb, efficient German-based companies, giving excellent employment to 1,500 workers in Carlow. They have been caught in the present recession, despite their efficiency, and we hope their predicament will be shortlived. However, the image abroad is that Carlow is a land flowing with milk and honey and that there is no such thing as unemployment there. The reality is that Carlow is floating at 2 per cent above the national figures for unemployment for the last 18 months. Indeed, in December 1992 we had the unwelcome distinction of having the highest unemployment in the southeast. That is something we do not want. Now we have Braun with 300 workers on short time, which I hope will be short term as well. We also have other factories which are on three-day weeks, plus the 110 job losses in Lapple, which is a very efficient company. All in all we are adding to our claim of having over 2 per cent above the national average for unemployment.

I did a calculation on some labour force figures and found that if I eliminated farmers and the self-employed, unemployment for insured workers must be somewhere around 30 per cent. The Chamber of Commerce, which is very active in Carlow, has been working very hard to get an enterprise centre where young businessmen could get established. I hope that when it comes to getting help from the Minister he will be very kind to them. Perhaps the Minister could direct some of the money from unemployment benefits to young people to enable them to serve their time as apprentices and learn the skills that will be useful to them in employment when things pick up again.

The losses in Digital were a major blow to Galway. We have every sympathy for the people of Galway and indeed for the workers who have lost very good jobs. However, we are flabbergasted that we have got only the charity of the Minister's silence in Carlow. No Minister has managed to rise to thinking that Carlow has a problem. Friends of mine down in Carlow have said that we did not get even false promises about Carlow. I hope the Minister will assure me that job losses in Carlow count in the Department. In the past I have been critical of the Minister's position, that in such an important section of Government he has been given the onerous task of reviving his own party. It is a pity that in a Department of such serious concern for the people of Ireland the Minister's loyalties are divided. I hope the Minister will have some good news for me and for Carlow.

I fully appreciate the Deputy's concern about the impending loss of 110 jobs at Lapple Ireland Ltd. at Carlow. I also share that concern. The company currently employs 340 people and manufactures press tools and press parties for the automotive industry. The company was established in 1974 to service mainly the British car market. Its current difficulties are due to the changed market conditions in the UK which in turn are consequent on the worldwide recession which has seriously affected the automotive industry.

I understand that a rationalisation plan is being undertaken by the company to secure the future of the Carlow plant and that discussions are currently in train with the unions to this effect. I am hopeful that with goodwill and flexibility on all sides agreement can be reached on this plan.

Turning now to Braun, matters are a bit more encouraging. Braun also has an established track record in Carlow where it has been since 1974 on foot of IDA assistance. Braun, I am glad to say, is now one of the country's largest manufacturing employers.

The company is a world leader in hair care products, such as hair dryers, hair curlers and electric shavers, and in fact is the only company in the Braun group producing this range. The company's main markets are mainland Europe and Japan.

Recession in its principal European and Japanese markets has meant that Braun has placed some 320 persons on a three-day week until such time as the sales situation improves. I understand that the effect of the sterling crisis has not had a serious impact on the company as its main markets are outside the sterling area. Devaluation has, however, benefited the company as it has improved its competitiveness. As already said, the downturn in sales is totally attributable to the world recession.

The Braun group is itself experiencing a decline in sales due to the recession and a programme of job reductions has been instituted in other Braun plants in Germany, Spain and Mexico. Ireland, up to now, has only experienced short term working and I am encouraged that the company has not opted for lay-offs, preferring rather to hold staff on short term working pending an up-turn. This approach has, I understand, been adopted in the past by the company in line with fluctuations in sales and has permitted employment to firm up with an upturn in sales.

From discussions the company has had with the IDA I am advised it is its objective to maintain long term job levels at over 1,000 people and this is not only encouraging news for Carlow but also a vindication of Ireland as a manufacturing base.

I am confident that the difficulties being faced in Carlow today will prove short lived. Carlow is and will continue to be a key industrial centre in the south east region. It is strategically placed with excellent communications and transport services to the main cities and ports. I know the IDA is working intensively with a range of small business companies to encourage them to develop further and that it will continue to market Carlow as a first class location for foreign business investment. I thank the Deputy for raising the matter.

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