Dáil Éireann díospóireacht -
Thursday, 6 Apr 1995

Vol. 451 No. 7

Adjournment Debate. - Urban Designation of Athlone Site.

Mrs. O'Rourke

I thank the Minister of State for coming in to reply. I would like to have been in Athlone on Friday last on the occasion of the Minister's visit but as the Forum for Peace and Reconciliation, of which I am a member, meets each Friday I was unable to be there.

The subject I want to speak about is urban designation of a particular site, the subject of the Minister of State's visit to Athlone. A proposal has been submitted to the Government regarding designation of the site of the Silverlea plant in Athlone. Silverlea jeans manufacturer, has run into difficulties and has had to reduce the number of its employees which stood at 170. Against all the odds it has remained open because week by week various efforts have been made through banks and other concerns to keep it in production. It is still in production with one week to go.

The Government, Opposition parties and State agencies have tried to agree a formula which will keep this company in operation. The developer has put forward proposals for the Silverlea plant which is situated on the banks of the River Shannon and meets the criteria of the original urban renewal scheme. I was a member of the Cabinet in 1987-88 when the original scheme was announced and I secured the inclusion of Athlone in it. The original scheme did not prove very successful and we will have to wait to see how this one works. That being said, the scheme was very worthwhile.

I am not talking on behalf of the developer; rather I am representing the employees of Silverlea and the people of Athlone. If the plant secures designation under the scheme and the developer leaves the site intact the employees will be able to buy out the company either on their own or in tandem with another manufacturer or firm. I ask the Minister to give early and favourable consideration to the inclusion of the Silverlea plant in Athlone in the urban renewal scheme to secure the jobs of this highly motivated workforce.

Minister of State at the Department of the Environment (Ms McManus)

I acknowledge the efforts being made by many people and public agencies to resolve the problems the Silverlea plant has been experiencing and to save the maximum number of jobs there. The latest position as I understand it is that the company continues to operate and service orders with a reduced workforce. The question of an employee buy out is still under consideration and a consultant is in discussion with a group of investors. However, it is not possible at this stage to forecast the final outcome.

Against that background, I have asked my Department to examine the question of designation under the Urban Renewal Act of the area in which the Silverlea plant in Athlone is located. My information is that this question arises from an approach by a developer to purchase the factory, demolish it, build residential accommodation on the site and provide alternative accommodation elsewhere for the present Silverlea operation. The future of the plant depends on many issues other than alternative accommodation; there are questions such as the discharge of accumulated debts, financing of the operation in future, market demand for its products etc.

As the Deputy will be aware, Athlone has had a designated area since 1988. The original 17 acre designated area was located on the western bank of the Shannon, south of Athlone Castle but, during the six years it was in place, it attracted only a modest level of investment. The new urban renewal tax incentive scheme came into operation on 1 August 1994. The new designated area in Athlone consisted of part of the previously designated area and an adjacent area. A further area at Irishtown on the eastern side was also designated later last year. Between the two areas, there are now at least 30 acres designated, which is well above the average for a town of this size.

I have had many requests for the extension of designated areas and for the designation of new areas in other towns. However, widespread extension of designated areas would be counterproductive. The purpose of the urban renewal scheme is to target small pockets of the most severe dereliction in cities and towns to encourage their regeneration. While problems of Silverlea are extremely serious the urban renewal scheme was not intended to redress these.

In view of the foregoing, I have no proposals to extend the designated areas in Athlone at this stage. The new urban renewal scheme has only been in operation since August 1994 and is to operate for a period of three years. The areas in which the scheme applies must now be given a chance to see their regeneration through to a successful conclusion.