Vol. 493 No. 3
3 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on her recent trip to the United States of America; the individuals she met there; the discussions, if any, she had with the Motorola and Apple companies; and if she will make a statement on the matter. [16298/98]
I led a delegation of over 20 Irish companies to the US from 21 June to 26 June. The companies involved were mainly electronics and software companies but they also included sub-supply companies to the multinational high technology sector. The purpose of this initiative was twofold. First, it was designed to foster business partnerships between US and Irish companies in the broad electronics and software sectors. Second, it was geared to introducing sub-supply companies to the procurement procedures and executives of leading US multinationals.
The business partnership mission focused mainly on the Boston and Silicon Valley areas. It was organised by Forbairt and the US Small Business Administration under the US Ireland Business Partnership Programme. Three new business partnership agreements were concluded during the course of the week. There is considerable potential for further agreements arising from the week's endeavours. On behalf of the Government, I want to put on record my appreciation of the assistance of the US Small Business Administration and the support during the visit of Senator Edward Kennedy and the city of San Jose.
There is also considerable further potential in exploiting linkages with top US multinationals, many of whom are based in Ireland. During last week, together with executives from six sub-supply companies, I met representatives of Dell, 3 Com and Hewlett Packard. I hope these endeavours will also bear fruit.
As regards Motorola, I met senior management in Motorola on Tuesday, 23 June in Chicago. I strongly represented the case for the Motorola operations in Dublin and Cork and hope that these representations will assist in maximising employment in Ireland arising from Motorola's global restructuring plans. I was assured that both the company's Dublin and Cork operations have a strong future. Motorola will also consider Ireland as a location for further investment projects.
I met Mr. William Farley, chairman and chief executive officer of Fruit of the Loom, on 23 June in Chicago to discuss the US company's plans for its Irish operations. This was my fourth meeting with him since taking office last year.
Additional Information
The clothing and textiles industries world-wide are experiencing severe competitive pressures. Change is constant and in that environment there are no guarantees; that is the reality of the business world. The clothing industry in western Europe has been declining in the face of competition from low cost countries. This, coupled with liberalising world trade, has resulted in clothing companies in Europe and the US seeking cheaper sources of production. For example, Fruit of the Loom has been engaged in the retrenchment of its US-based operations for some time. Mr. Farley indicated to me that he is keeping the business in Donegal under constant review in the light of market forces. He stated that he will be visiting Donegal shortly as part of this review process. He will keep in touch with IDA Ireland and myself as the review progresses.
As regards Apple, I understand that the company began a review of its Cork operation last March, following the appointment of Mr. Tim Cook as the new senior vice-president of world-wide operations. This was followed by indications that Apple planned to relocate its circuit board, PCBA, manufacturing to a location with cheaper labour costs in the Far East, a move that could result in job losses in Cork.
On Friday last, 26 June, with the chief executive of IDA Ireland, I met senior management, including Mr. Tim Cook and Mr. Fred Anderson, chief financial officer, from Apple Computer in San Jose to discuss the company's Cork operations. At the meeting I emphasised the importance of Apple Cork and expressed the hope that employment at the plant would be maximised, with consideration given to locating new activities there. In the circumstances, my meeting with Apple senior management was positive. I am pleased with assurances given to me that Apple Cork will continue to be a core strategic part of Apple Computer.
While a decision regarding the future role of the Cork printed circuit board facility has not yet been finalised, a decision by the company is imminent. In this regard, I have secured a commitment that Apple will engage in direct discussion with its workforce and their representatives and that Mr. Cook will visit Cork, probably as early as this week. Meanwhile, senior officials from my Department are briefing Apple union representatives on my US meeting.
The Minister said she met senior management in Motorola and that she hopes her representations will maximise jobs. Did Motorola indicate that it would have to reduce its workforce in Swords or Cork? As regards further investment in Ireland, did she indicate to Motorola that she wanted to secure existing jobs and investments already made so that people working in Motorola would not lose their jobs? Did the Minister receive confirmation from Apple that there would be no job losses and that it would not move its PCB facility from Cork?
My meeting with Motorola was to ensure that the jobs in both Swords and Cork are secure and also to get new business for Ireland, particularly now that it has restructuring plans. I was happy with my meeting with Motorola. It is impressed with its Irish operation in Swords and Cork and there is a good possibility of more business. However, Motorola, like all companies, does not give assurances. It must compete in a competitive marketplace. The global economy is changing rapidly and with the liberalisation of trade, all companies, whether they are involved in textiles, clothing, electronics or software, must be able to compete and make rapid decisions. As long as Ireland remains competitive, Motorola has a strong future both in Dublin and Cork.
My meeting with Apple went much better than expected. As the Deputy knows, Apple had been losing market share to its competitors over the past number of years. There has been a cloud hanging over the Apple operation in Cork since 1992. The PCB facility is under review. Cork is the only place where Apple makes circuit boards. It made the point to me that it required economies of scale and that the Far East is more competitive for such business. There was speculation in the media that there would be 500 job losses in Apple in Cork. However, I do not think that will happen. The assurances we got, in so far as one can get assurances in this area, were satisfactory. Because of the confidential nature of the meeting, I am precluded from further discussion on that issue.
Since the arrival of Mr. Cook, who is the head of strategic review for Apple and who came from one of its competitor companies, the company has begun to turn its affairs around. He is coming to Ireland tomorrow at my request to meet the unions and staff representatives. The company wants to engage directly with its workers in the first instance and I believe that is the right thing to do. I have also asked the assistant secretary in charge of industry in my Department to go to Cork today to meet the unions and staff representatives so that they can be briefed in so far as I am free to brief them about the outcome of my meeting. It was more positive than anticipated. I believe that for as long as Apple is secure, Apple in Cork is secure. Perhaps this is the first time any Minister could say that in the past five years. My predecessor had as much concern as I had about Apple's operation in Cork because of the performance of the company globally. I believe the decisions Apple is about to make in relation to the Cork operation will secure its future.
Can the Minister say the same about Fruit of the Loom?
