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Dáil Éireann díospóireacht -
Wednesday, 9 Jul 1997

Vol. 480 No. 2

Private Notice Questions. - Asahi (Mayo) Plant.

asked the Tánaiste and Minister for Enterprise and Employment if she will report to the Dáil on the up-to-date position in relation to Asahi; and if she will make a statement on the matter.

asked the Tánaiste and Minister for Enterprise and Employment the measures, if any, she will take to safeguard the continuation of the Asahi chemicals facility, in view of the economic and social importance of this facility to the north Mayo region; the efforts, if any, she is currently making to secure the adoption of a just and equitable management buyout; and if she will make a statement on the matter.

asked the Tánaiste and Minister for Enterprise and Employment the measures, if any, she will take to avert the closure of the Killala plant in County Mayo and the disastrous consequences of the possible loss of 325 jobs; and if she will make a statement on the matter.

asked the Minister for Enterprise and Employment to outline the steps she intends to take to avert the threatened loss of 320 jobs at the Asahi plant in County Mayo, particularly in view of the serious implications of such job losses for the local economy; the plans, if any, she has to meet Asahi management; and if she will make a statement on the matter.

asked the Minister for Enterprise and Employment what efforts she and her Department are making to resolve the situation at the Asahi textile factory in Killala, County Mayo; and if she will make a statement on the matter.

The workforce in Asahi voted yesterday to reject a management buyout proposal which would enable the operations in Killala to continue. The company has incurred significant losses over many years arising from difficult market conditions for its product due to over-capacity and intensive price competition. The parent company in Japan has taken a strategic decision to withdraw some segments of the acrylic manufacturing business, including its Irish operations. It is the parent company's strong preference that its withdrawal from Killala be effected through handing over the operations on favourable terms through a management led investment vehicle.

Significant support was on offer from the industrial development agencies and the company to assist with the restructuring of the business. The management buyout proposal involved substantial commitment from the parent company, local management and the industrial development agencies. However, for the proposed restructuring to work this commitment must be matched by commitment and support from the workforce. Restructuring inevitably means change. Asahi has made it clear it cannot continue to operate in its present structure. Cost reductions dictated by the market are fundamental to the success of the management buyout proposal.

I am fully aware of the importance of Asahi to Killala and the surrounding area. The loss of the company would be a severe blow to the local economy. It is extremely disappointing, therefore, that agreement was not reached on the proposal. I am ensuring the industrial development agencies continue to keep in close contact with the parent company and all the parties involved. The agencies are meeting the vice-president of the parent company today. I fear the Killala operation and the future of the 315 jobs are in serious jeopardy. I urge all concerned to reflect carefully on the strong possibility of the closure of this company.

In view of the rather gloomy scenario which she has outlined, does the Minister plan to meet the management, particularly the Japanese management who, I understand from newspaper reports, are currently in Ireland, and/or the workers about this matter?

I am available to meet the management if that would be helpful. The vice-president is meeting representatives of the Industrial Development Agency today. The Deputy will know from his experience in my position that the difficulties in Asahi have been known for some time. On the day before he left office his Government made a decision on this matter and we intend to honour it. I appeal to the workers and to management to seek to resolve this matter urgently; otherwise, I fear we will not be able to save the Asahi plant.

Is the Minister aware of the economic devastation the loss of more than 300 jobs would wreak on an area such as Killala? She stated that the commitment from the parent company must be matched by a commitment from the workers. Does that mean she believes there has not been sufficient commitment from the workers? She also stated she is seriously concerned about the future of the plant. If that is the case, does she intend to speak to representatives of the parent company to stave off the decision which it stated is irrevocable following the workers decision of 7 June?

When Deputy Bruton was Minister for Enterprise and Employment he travelled to Tokyo to deal with problems in Asahi some years ago. As Minister and Tánaiste, does the Minister intend to speak to representatives of the parent company in Japan to ensure that an irrevocable decision is not made until such time as the MBO can be adopted?

I am available to meet anyone on this matter if it would be helpful. I have made that clear to the Industrial Development Agency, Forbairt and officials in my Department. At present representatives of the IDA are meeting with the vice-president of the company. As the Deputy is aware, 39 per cent of the workers voted in favour of the restructuring plan, so it was a relatively close call. The unions are endeavouring to resolve the difficulties. The labour relations machinery of the State is available if it can be helpful in this matter. However, time is of the essence but I, my Department, the Industrial Development Agency and the labour relations machinery are available.

I welcome the Minister's declaration that she is prepared to meet anybody to avert what would be a catastrophe. Is she prepared to meet the union leadership because the full merits of the MBO do not seem to have been properly appreciated? From the details I have it would seem to be a relatively good deal, given the imminent closure of the factory and the possible loss of 325 jobs. Is the Minister prepared to meet the union leadership to prevail on them in the interests of sanity and the salvation of the jobs to avoid the chaos that will ensue in the event of the factory closing and given there is a tight time frame within which to work? Will she meet the union leadership immediately to impress upon them the merits of the case and the serious and disastrous situation? Given that representatives of the Japanese management are in Dublin, is the Minister prepared to meet them and ask them to allow a longer breathing space so that an irrevocable decision will not be made on the closure until all aspects and possible solutions have been fully explored?

I thank the Deputy for his helpful and responsible comments. I agree that if this plant were to close it would have devastating consequences for Killala and the surrounding area. If those jobs are lost they will not be easily replaced. I am available to meet anyone if that would be helpful, and that includes representatives of the workers, management or the parent company.

The Tánaiste spoke earlier about regional policy. This company, which contributes between £8 million and £10 million to the local economy, is the best example of regional policy in that area. Having said that time is of the essence, will the Minister agree that it is up to her to intervene as distinct from being available because the package approved by the previous Government involves a significant commitment from the State and the parent company, Asahi? As irreparable damage could be done before the weekend, will she agree to intervene and meet the Asahi management and the leadership of the trade union concerned to mediate a speedy settlement before the weekend?

As Deputy Higgins said, the management buyout offer is a very good one. We must realise that. When Deputy Rabbitte was in Government a decision was made on this plant on 25 June. The difficulties were apparent to the previous Government. If direct ministerial intervention would be helpful, it will be forthcoming, but it does not necessarily follow in all cases that it is the right procedure. It may not be right at 4.30 p.m. today, but it may be the correct procedure two hours later. If it is helpful and the right thing to do, I will do it. I will take that course but only on the basis that it is the right thing to do and that it is not simply a public relations exercise. That could be very damaging because there is a short time within which decisions must be made.

Will the Minister agree that the part of the package that has run into difficulties deals with changed working conditions, lower wages and increased productivity guaranteed? The investment part of the package is the least difficulty. As the Minister adverted to the narrowness of the decision when the workers voted for the package and the possible absence of information, is she happy there has been adequate consultation with the workers on the precise changes suggested in the management buyout package? If she is less than satisfied, will she proactively seek to provide that information so there can be a break in the impasse?

I am satisfied there was adequate consultation. That does not mean that all of the workers fully understand what is on offer. Efforts are being made to familiarise all the workers with the package on offer and the consequences of a positive decision not being made. If I can play a role in that regard, I will be delighted to do so. There was extensive consultation in relation to this issue involving the workers and their union representatives.

I thank the Minister for indicating she is willing to intervene should it prove necessary. It seems from the manner in which the process is developing that it may prove necessary. Has the Minister asked the Labour Relations Commission to intervene? It has a great deal of experience in bringing sides together where there is little enough between them. Has she asked the LRC to take an initiative in this dispute?

I have discussed the matter with all the relevant agencies, including the LRC. If it is helpful for the LRC or any of the other bodies to intervene they are available to do so at very short notice. At the moment, the vice president is meeting the IDA. Forbairt and the trade unions are also involved and the labour relations machinery of the State is on standby to resolve the difficulties if necessary.

The Minister has said she is available to intervene and I ask her to do so immediately. This crisis represents the loss of 315 jobs in North Mayo, an area which has been devastated by unemployment for many years and which will find it hard to obtain substitute employment. I know the Minister said she is available to intervene but it may be too late in an hour's time. Now is the time to intervene. Three hundred and fifteen jobs in the west is similar to a thousand jobs in Dublin. I am asking the Minister to intervene immediately. If anything should go wrong, a task force should be set up immediately, as in Dublin and elsewhere when there were job loss emergencies.

I do not know how many times I have to say I am available if it is necessary or desirable. As I said in response to Deputy Michael D. Higgins, ministerial intervention in matters of this kind is not necessarily always right. If it is necessary in the next couple of hours, I am available to intervene and so are the agencies under the auspices of my Department. The entire Government side is concerned about this matter, particularly the Minister of State at the Department of Health, Deputy Moffat, and Deputy Cooper-Flynn who both contacted me in this regard. The matter has taken up some considerable time and will continue to do so. I assure the Deputy we will do everything possible to save these jobs which are vital to Killala, Mayo, the west, and Ireland.

Deputy Harney said it was her understanding that there had been widespread consultation with the workers. In two of today's newspapers, the regional secretary of SIPTU is quoted as saying there was no consultation.

That is not my understanding. However, if it is the case that the workers are not familiar with the package on offer, which as Deputy Michael D. Higgins said is a very attractive one, whatever is necessary to explain the package to the workers and to consult with them will be done and is being done at the moment. Many of the State agencies and the unions have been involved in discussions on this issue.

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