Dáil Éireann díospóireacht -
Tuesday, 30 Sep 1997

Vol. 480 No. 6

Adjournment Debate. - Little Island (Cork) Company Closure.

Mr. Allen:

I raise the important issue of the imminent closure of Sea Ray Boats, Little Island, County Cork. Sea Ray is an American company which set up in Cork some years ago and until recently had been very successful. It employs over 100 people in Little Island, County Cork. Last month the people of the area were shocked on hearing of the possible closure of Sea Ray, especially at a time of economic boom. Oireachtas Members, including the Minister of State, Deputy Wallace, met the IDA and senior management of Sea Ray some weeks ago on site and were informed that, due to a slump in the sale of boats in the European market, the parent company in Florida had decided to close the plant at Little Island.

The loss of 103 jobs to the Cork economy, even at a time of economic expansion, is a severe blow and cannot be explained away — as has been attempted — by saying the workers will get jobs in the US or in other companies around Ireland.

I raise this matter to allow the Tánaiste, Deputy Harney, explain what attempts she has made to prevent the closure, if she has made direct contact with Sea Ray in Florida and, if so, at what level, and the response of Sea Ray management in Florida.

The news of this closure has been softened by statements from Government Deputies who say jobs are readily available for some of the staff in the US and in other companies throughout Ireland. This approach is regrettable. Why should any Irish man or woman have to travel to the US in these good times to find employment? The performance by Deputies — I exempt the Minister of State, Deputy Wallace, who has always been level headed in his approach to issues such as this — was, to say the least, sheepish. They had been tigers in Opposition but are lambs in Government.

Mrs. O'Rourke:

Like the Deputy.

Mr. Allen:

I hope the Minister will set out clearly what her Department proposes to do to deal with the 103 job losses and what support it is offering to the unfortunate displaced workers.

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney):

I thank Deputy Allen for raising this matter on the Adjournment. I share the Deputy's concern regarding Sea Ray Boats' announcement that it is to close its manufacturing facility at Little Island, County Cork. I regret the loss of jobs and the impact on the employees, their families and the local community.

Sea Ray Boats is a subsidiary company of the US Brunswick Corporation, a major sporting goods manufacturer. The plant in Little Island, Cork, was set up ten years ago to manufacture a range of luxury cruisers for the European market. The company had been successfully selling its luxury cruisers against strong European competition but since the mid-1980s the market has reduced throughout Europe, leaving the company dependent on the French and German markets for over 50 per cent of its sales.

The company has operated in a very competitive market and has been at risk for some considerable time. Vigorous efforts have been made to avert the closure. IDA Ireland had been co-operating with the Irish management through R&D and other incentives to encourage diversification into larger and more profitable boats with the co-operation of the parent company. I fully appreciate the efforts of the IDA and the company to reposition. These efforts were continuing when the critical German market for the company's products collapsed. Sales by the company in that market failed to reach the level necessary for break-even and there was no prospect of early replacement sales in other markets to compensate for the shortfall. Despite the efforts of all the parties involved, closure became an inevitable commercial decision. In this context it should be recognised that redundancies and closure decisions are matters for companies themselves.

I am informed that the workers have been offered a redundancy package which they have accepted and that in excess of 50 per cent of the staff have been offered alternative employment in the Cork region.

The IDA is continuing its efforts to find a replacement industry and is confident, given the interest expressed to date, a suitable alternative industry will be found for the excellent facility and site at Little Island.

The IDA and the other development agencies retain a strong commitment to job creation in the Cork region. This year already investments by the IDA have been announced which will lead to the creation of a further 2,000 jobs in Cork city and county. I have asked the IDA to continue to do everything possible to find a replacement industry. They have assured me they are confident, given the level of interest expressed already, that they will find a replacement for this facility.

Mr. Allen:

Did the Minister contact the company?

Miss Harney:

I do not go on this kind of expedition unless it is worthwhile. I do not like to raise false hopes.

Mr. Allen:

The saving of 103 jobs would be very worthwhile.