Vol. 472 No. 3
11 Mrs. O'Rourke asked the Minister for Enterprise and Employment the outcome of his recent talks with Continental AG and prospective purchasers in relation to the Semperit Ireland plant; and if Continental AG has given a commitment to leave the equipment at the factory. [23190/96]
I have taken a keen interest in Semperit, Ballyfermot for many months, indeed long before the parent company announced plans on 18 September 1996 to wind down its Irish subsidiary. I believe that was a bad decision. However, given the realities of global commerce, it is one that is not reversible despite our collective endeavours.
My principal focus, and that of IDA Ireland, has been on securing the sale of the Ballyfermot premises and equipment to another international tyre manufacturer. I pursued that objective at my original meeting with senior Continental AG executives on Wednesday, 18 September 1996 in Frankfurt and again at a further meeting with them in Hanover on Sunday, 10 November 1996. On both occasions I sought the full co-operation of Continental AG with the IDA in pursuing a sale. At the November meeting, I specifically sought the fullest co-operation of Continental AG in pursuing a sale to the US tyre manufacturer, Cooper Tire of Ohio. On the following day, 11 November 1996, I was informed that the board of Continental AG had decided to co-operate with IDA in this matter. I had previously met officials of Cooper Tire in Ohio on Friday, 27 September last in a top level promotional drive for the sale of the Ballyfermot facility.
Arising from the outcome of the Hanover meeting, I instructed IDA Ireland to pursue the US company's interest with maximum vigour. To this end, there have been ongoing contacts between IDA, Cooper and Continental-Semperit. To date, the US company has not been in a position to indicate its decision with respect to a possible purchase of assets at Ballyfermot. Cooper had indicated it would communicate its decision to IDA and Continental AG by 18 November 1996. The IDA is in continuing contact with a view to reaching an outcome as soon as possible. IDA personnel are in the USA this week for further discussions with the potential US purchaser. Continental has given no commitment in regard to the equipment at the factory. Obviously the question of equipment is a key issue to be dealt with in the context of IDA's endeavours to sell the plant.
I thank the Minister for the reply in which he detailed the dates of the various meetings. He has identified the two main points, first, that the equipment must be sold with the firm if a purchaser is to be found. Apart from moral compunction is there any other way that can be clearly emphasised? Second, is the Minister aware that in a recent interview in The Sunday Business Post Cooper Tire indicated it was not interested in purchasing Semperit? Has the Minister any comment to make on that?
In respect of the issue of equipment, the position is that this is currently owned by Continental AG. On the other hand, the IDA has certain holds over Continental in respect of outstanding grant liabilities. Continental has indicated its willingness to cooperate with the IDA in the sale and obviously the sale would involve the equipment also. It would be essential to Cooper Tire that the equipment be included. As far as Cooper Tire's plans are concerned, we have been in close contact with the company. It has not yet indicated a decision. It is clear that in the past the company considered the purchase of this plant and at that stage did not go ahead with it. As of now, we hope a meeting will take place this week between the IDA and executives in Cooper Tire on this issue and we await the outcome of that. These are decisions made not by the Irish Government but by commercial investors. We have supported Cooper Tire and we await its final decision.
I hope Cooper Tire considers this a good investment and will take up the offer, but is the Minister aware of the interview in The Sunday Business Post with a person who was described as a high placed executive in Cooper Tire? Has he investigated that matter? Are we going on a wing and a prayer with regard to any further discussions the IDA is having with that company? What follow up did the Minister do when he read the interview in The Sunday Business Post and how true are its contents?
I assure the Deputy I do not bend to every interview or report in the newspapers. I have had high level meetings this week with the IDA in the hope of ascertaining Cooper's plans. On foot of those meetings executives are in the US this week and it is hoped meetings will take place with senior executives in Cooper Tire. We are determined to see this matter through. Good opportunities remain to pursue a tyre manufacturing operation from Semperit Ireland and they will be pursued until we have a final decision one way or the other.
When does the Minister expect Cooper Tire to make that decision? I do not want to be pessimistic — I would rather be optimistic — but my soundings do not indicate optimism in that regard. Are there any other potential purchasers of this plant? In the context of the uncertainty and the fact that the plant is due to close on Friday with the last of the administrative staff leaving, will the Minister consider setting up a task force similar to that set up following the closure of Packard? Will he consider establishing a similar type operation for the areas surrounding the Semperit plant?
I accept that the continuing delay in reaching a decision is not a good omen but the matter must be vigorously pursued. As to other interests, the IDA has made a wide range of contacts, not all of which are finally closed off but I understand Cooper Tire is the most realistic prospect. In regard to following up on this matter now that substantial numbers have been laid off and the plant is closing down, I have already established an inter-agency group to assess the issues in the aftermath of the Semperit closure and to identify the effective follow up action that would be necessary. We already have had meetings to consider those options and examine the type of measures we should put in place to respond to this loss of employment. The group is made up of a wide range of interests including agencies directly under my Department and local interests such as Ballyfermot Partnership and others who have a substantial input to make in this area.
Will the Minister ask the IDA to ask Semperit to discontinue the tasteless advertisement being broadcast on the radio up to last week encouraging people, to the background of a jolly jingle, to buy Semperit because it is good for everybody and good for the country? The advertisement is tasteless in a month which has seen more than 600 people lose their jobs in Semperit. I do not ask this question facetiously; the advertisement was brought to my attention and I subsequently heard it myself. It strikes a most discordant note.
I am sure the company will take note of the Deputy's views on that issue.
