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Dáil Éireann díospóireacht -
Thursday, 20 Nov 1997

Vol. 483 No. 2

Adjournment Debate. - Rathfarnham (Dublin) Dairy Plant.

As of now my information is that no final decision has been taken about the future of this plant. There is huge concern among its workforce in Rathfarnham that, of its very nature, this plant important not merely to the Rathfarnham area but to the Dublin area generally, is at risk of being closed within the context of a rationalisation programme at present under discussion between the Avonmore-Waterford Group with regard to its future operations.

The Tánaiste should intervene in this issue. I am very anxious to ensure that this plant remains open. It is very much part of the infrastructure of south Dublin and has played an important role in the area, being the old HB dairy. Indeed, as a boy in short trousers living in the area, I can recall it being one of the major plants providing work in the Rathfarnham area. Its workforce is not now confined to that area only and many come from Finglas, Tallaght and other parts of Dublin.

It is essential to the infrastructure of the area that this plant should continue to operate. Within the context of Waterford Foods, a rationalisation programme was put in place prior to the Avonmore-Waterford Group amalgamation, the object being to optimise the output and efficiency of its operations. Workers from the Finglas plant are now operating out of Rathfarnham. In the past two years, an investment project costing in the region of £5 million was put into the Rathfarnham plant. Some workers in the plant have been there all their working lives — ten, 20, 30 or even 40 years — and they are now faced with the worry of a possible closure.

Not only is there in excess of 300 people working in the plant whose livelihoods are dependent on it, there are others conducting milk rounds who are supplied by the plant, who entered into financial arrangements with Premier Dairies and who have depended in good faith on those arrangements in planning their futures.

This is not a special pleading for this plant which has been operating in an efficient and profitable manner in the context of being part of Premier Dairies, the Waterford Group and, now, Avonmore-Waterford Group. I ask the Minister to meet the workers in the plant, to contact those in charge of the Avonmore-Waterford Group and do what can be done at Government level to ensure this plant remains open and operational as the only major dairy plant in the Dublin area. The workers deserve that consideration.

Those in management positions would acknowledge that there are many who have contributed to the success story of the dairy industry. Many people in Dublin are dependent on output from that plant and it would seem an extraordinarily foolish exercise in economics for it not to be maintained in the context of the extraordinary financial investment made in it.

If this plant were to be closed it would be an extraordinary breach of faith on the part of management with the workforce and the unions which have co-operated in ensuring that this company is successful and profitable and that the contribution made by it to the group is of the optimum benefit. I hope we will get an assurance not just from Deputy Brennan, as Chief Whip, but also from the senior Minister with responsibility in this area that an early meeting can be held so that the workforce can convey its concerns which can then be conveyed to management.

I welcome the opportunity to raise this matter. I regret the Minister is not here because I wanted to impress upon her the level of distress that the prospect of job losses at the Premier Dairies factory in Rathfarnham is causing among the 300 people employed there and the 300 to 400 people who have downstream jobs - delivery and distribution personnel — in the area. I wanted to impress upon her the shock being felt by those people.

This plant has operated in Rathfarnham for generations. It was regarded as the jewel in the crown of the Waterford Group. The workforce believed their jobs, and the future of the plant, were totally secure even if some jobs were lost as a result of the merger. There was a major investment in the company recently to the tune of £8 million to provide it with a new chill unit.

This plant is the biggest liquid milk production unit in Ireland and the only one supplying milk to the Dublin market. One can imagine, therefore, the shock felt by workers who believed their jobs were totally secure when they heard the plant was to close.

I wanted to impress on the Minister the anger felt by the workforce which is directed primarily at her because they believe she knew this closure was on the cards. It was the Minister who revealed it inadvertently to a delegation from Dungarvan who came to Dublin to question her about the future of their jobs, only to find that the decision had already been made to close some of the plants and, in particular, Rathfarnham. The workers are wondering when the Minister knew that this closure was on the cards. Did she know it when she sanctioned the merger many months ago with great fanfare?

Avonmore is a large multinational company which probably bases its decisions on criteria that far transcend any local considerations, but the Minister is responsible for jobs in Ireland. She is one of the few Dublin TDs and she represents many of the workers affected in the adjoining constituency of Dublin South West. One would have thought this would have been to the forefront of the Minister's considerations.

Although the Minister said when she sanctioned the merger that she hoped there would not be any abuse of monopoly position, there is a strong feeling that there has been such abuse, that if there was any other supplier operating in the Dublin market now, this plant would not be closed. There is also a belief that Dublin has been let down again by one of the few Dublin Ministers in that this is a farmer-focused company and it is easier for a plant to be closed in Dublin where workers are dispersed and do not have the same muscle that they might have in a small town. The belief is that Dublin was the easy option.

I ask the Minister to meet the workers, satisfy their fears and tell them there is no prospect of this factory closing. If such a prospect exists, what does the Minister intend to do about it? We want action. This is a viable, successful company which is operating at a profit. It has a future and it should not be sacrificed for the sake of rationalisation by a large multinational.

I thank Deputy Shatter and Deputy Mitchell for raising this matter which has also been the subject of discussions with the Tánaiste, the Minister of State, Deputy Brennan, and the Minister of State, Deputy O'Donnell.

As previously indicated to the House, the Tánaiste and Minister for Enterprise, Trade and Employment is taking a strong interest in the employment implications arising from the merger of the Avonmore and Waterford Groups. She has had meetings with the new group's senior management and with the trade unions over the past few weeks about future employment. In this context, the purpose of her discussions with the Avonmore-Waterford Group management was to seek to ensure that job losses arising from the merger were kept to the minimum possible. The merger should create a major global player in the food processing industry and secure employment and growth in the group in the long term.

In her meetings with both sides, management and trade unions, the Tánaiste strongly encouraged them to deal with the restructuring of the group on the basis of dialogue and partnership. Such co-operation is essential in this and other industries if we are to have an industrial base capable of meeting competition at home and abroad.

I understand that the group's decisions on future plans for the Rathfarnham and other plants are expected to be taken shortly. The industrial development agencies are closely monitoring the situation in relation to the Avonmore-Waterford Group plants, including the Premier Dairies facility in Rathfarnham, and everything possible will be done to assist any workers affected by redundancy at the group's plants.

Will the Minister of State confirm that a meeting can be arranged with the Tánaiste and the management in the course of the next 48 hours?

There is no opportunity for supplementary questions on the Adjournment.

I will convey the Deputy's concerns.

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