I thank the Minister for Justice for taking this matter. Though it is outside her remit, I am sure she is capable of dealing with it. When I was in Government I also took on many ministerial duties that were not my responsibility.
Adjournment Debates. - Irish Steel Redundancies.
It is good practice.
The issue of Irish Steel has been with us for a long time. We have had protracted Adjournment debates and last year legislation was introduced. The final settlement was welcomed on all sides of the House and involved the deal with ISPAT where by arrangements for Irish Steel were put in order, including the clearance of debts and input of moneys by the Government. We are all conversant with the background.
Today, however, I am talking about 30 more redundancies which have been announced. The workers who had already accepted redundancy packages from Irish Steel have made great sacrifices so that the enterprise could flourish. Prior to the ISPAT redundancy arrangement those workers put their act together in a strong and vibrant way to ensure that the plant would survive and that it would be attractive for purchase which is what occurred. This sacrifice has not been appreciated.
The Minister is short changing the workers in relation to aid provided by the EU. Some £300,000 was provided by Brussels in the form of a readaptation fund so that former Irish Steel workers could adapt to the loss of work. Under the terms of the agreement with Brussels the State has to put up a matching amount. This will result in redundant workers receiving about £3,000 each. The Government, however, is attempting to argue that the minimal redundancy terms given to the Irish Steel workers when the rationalisation took place should count as matching finance. This goes against the spirit of the agreement with the workers and represents a serious breach of faith by the Government. Irish Steel workers are being treated differently to steel workers in other EU states who qualify for the adaptation fund.
The Government also has serious questions to answer about what has happened to training moneys provided by the EU for Irish Steel in December 1994. Part of this money should be available for retaining redundant workers, including the 30 about to be laid off.
When the Irish Steel Bill was brought before the Dáil earlier this year the Government gave a commitment that it would honour agreements made with the workers. Will the Minister for Enterprise and Employment honour those agreements? I have been in consultation with MEPs and officials in Brussels about the matter and understand that a measure of progress has been made. Further work remains to be done however. I wish to ensure that the rights of the workers are fully recognised.
I thank the Deputy for raising this issue. I am replying on behalf of the Minister for Enterprise and Employment, Deputy Richard Bruton.
Irish ISPAT Limited is a private company. The Minister for Enterprise and Employment has no control over the operation of or the decisions made by the company. Under a rationalisation plan produced by Irish Steel Limited in 1994, coinciding with the serious downturn in the international steel market, it was expected that the level of employment in the company would be reduced to 331 workers. Under the sale and purchase agreement signed by the Minister for Enterprise and Employment and ISPAT International on 6 September 1995, ISPAT undertook to maintain employment at this level. Employment in Irish ISPAT currently stands at 364.
Given the decline in steel prices, one would be surprised if the company were not, as part of the normal management process, giving consideration to effecting savings, including savings on staffing costs. That said, however, the Minister for Enterprise and Employment would imagine that reductions in job numbers would be in the context of voluntary redundancies.
The measure known as readaptation aid was formulated by the European Commission to ease the burden of steel workers who have been made redundant under the current restructuring of the steel industry and is administered under Article 56 (2) (b) of the European Coal and Steel Community Treaty. An application was made by the Department of Enterprise and Employment on 29 July 1994 under this measure for readaptation aid for 205 workers in Irish Steel. Since that date I understand that the Department has supplied full details on each of the Irish Steel workers affected to enable the European Commission make a decision as to the eligibility of the workers to receive these payments.
I understand that the Department of Enterprise and Employment has recently received a communication from the EU Commission that 194 Irish Steel workers are eligible under this scheme and that a decision as to the amount of aid to be paid to each worker will be made by mid-November at the latest.
The Dáil adjourned at 5.25 p.m. until 2.30 p.m. on Tuesday, 15 October 1996.