Dáil Éireann díospóireacht -
Tuesday, 1 Jun 1993

Vol. 431 No. 6

Adjournment Debate. - Clones (Monaghan) Plant.

Mr. Crawford

I am pleased to have the opportunity to raise on the Adjournment the serious problem arising from the closure of the CPV factory, Clones, County Monaghan. I thank the Minister for coming to the House to reply to my comments.

The CPV factory has provided excellent employment over the past 25 years for the people of Clones town and surrounding areas. At peak times, more than 160 people are employed full-time in the factory and the benefit of this to the town of Clones is impossible to quantify.

Clones has been badly hit over the years because of its proximity to the border. Garages, filling stations and many other small businesses that carry on business in most towns were closed down mainly because of the taxation problems associated with being in business so close to the Border. The fact that many roads were closed because of the troubles also had an enormous impact on the social and economic life of the town.

In the light of these problems, a serious effort must be made by the Taoiseach, the Tánaiste and the Government, but especially by the Minister for Enterprise and Employment, to resolve the problems at CPV and maintain the workforce for the benefit of the business and social life of Clones.

CPV to Clones is equally, if not more, important than Digital is to Galway. One only has to remember that the Minister and his entourage flew to America at very short notice to do everything possible to save employment in Digital. We welcomed that move at the time. We would expect the Minister to take similar action, to help an Irish company based in Clones remain in business.

I appreciate that Deputy Leonard has said he intends to raise this issue with the Taoiseach and the Minister today.

I wish to give my support, in whatever way possible, to ensure that the town of Clones is not allowed deteriorate any further.

One only has to look at the effect of the mishandling of the position at the Ballybay meat factory to see the damage the loss of 100 jobs, or more, can do to any town. The fact that Ballybay and Clones are so close means that it is even more important to ensure that the workforce at CPV is retained. While CPV employed in excess of 150 or 160 people one must realise also that all the service industries involved with CPV will have to bear the consequences of this closure.

This factory was taken over by Powerscreen Limited, a major international company, late last year. Powerscreen Limited, based in Dungannon, is recognised as a very successful firm and there would seem to be no reason they and the very skilled workforce in Clones should not be able to work as a team to provide long term employment and exports for Clones and the country in general. If this factory closes at the end of June many families will have serious financial problems. Those with house and car loans as well as other commitments will lose their main source of income. The Government and taxpayers will have to bear the cost of providing social welfare benefits and all that that implies.

I would ask the Minister to take whatever steps are necessary to ensure that this major enterprise, in a town with the amount of difficulties Clones is experiencing, is given an opportunity to survive. It is not without sadness I say that the development team is meeting tonight to discuss how it can utilise EC funds and the International Fund for Ireland to develop the structure of the town in general. However, without the workforec in CPV providing some of the town's wealth, those developments may not be possible. I appreciate the Minister being here tonight and I hope he will do what he can in this regard. This is not a political issue, it is a matter of wanting to get something done in a positive way.

Minister for Enterprise and Employment (Mr. Quinn)

May I say at the outset that I fully share the Deputy's grave concern regarding the impending closure of this company and its adverse consequences for employment in Clones. I would like to put on the record of the House, as the Deputy has already indicated, that Deputy Jimmy Leonard, Deputy Rory O'Hanlon and, indeed, Senator Ann Gallagher have all expressed their concern to me over the last number of days about this matter. I want to assure Deputy Crawford that, as Minister for Enterprise and Employment, I will do all in my power to prevent the closure and, if this does not prove possible, to minimise its effects on Monaghan.

CPV has had a long and fruitful relationship with Clones since its establishment in 1967 to manufacture sheet metal containers. Since then it has received substantial assistance from the State for its investment activities. The company supplies containers mainly to the bulk chemicals industry which entered a severe downturn in 1992. This has, unfortunately, resulted in a sharp build-up of capacity in the container supplier industry with consequent downward pressure on prices. In fact, average unit prices for bulk containers have fallen by almost 40 per cent over the past few months.

CPV Limited has been particularly badly affected by the downturn in its customer industry and has been experiencing severe competition in price and quality of product from its major international competitors. As a result the company has been making losses and its order book situation is very poor.

The company was acquired by new owners in 1992, who have been making strenuous efforts to put the undertaking on a more viable footing. However, the management are having to face up to the realities of the deteriorating situation of the company's financial position in the face of the extremely difficult trading conditions in which it is operating. This has led to a situation where management see no alternative option but to close.

I want to assure the Deputy that the IDA are and have been in close and constant touch with the company to see if anything can be done at this stage to avoid closure and consequent job losses. I fully appreciate Deputy Crawford's personal concerns in this matter and I am prepared to be available to meet with whoever he and the other public representatives for Cavan-Monaghan consider would be influential in attempting to find a way to assist this industry. I do recognise its critical importance to the town of Clones.