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Dáil Éireann díospóireacht -
Tuesday, 10 Nov 1998

Vol. 496 No. 3

Written Answers. - Company Closures.

Paul McGrath

Ceist:

95 Mr. McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment when her attention was drawn to the possible demise of Tarkett Ireland Limited, Mullingar, County Westmeath; if she contacted the parent company to discuss the proposed closure of this plant; and if she will make a statement on the matter. [22628/98]

I was informed of the decision by the board of Tarkett Sommer AG to close the Mullingar plant during a meeting I had with the management of Tarkett (Ireland) Limited on 21 October 1998. The closure is to start with 50 redundancies on 20 November. A further 40 workers will be made redundant before Christmas, with the remainder being made redundant before the end of January 1999. I asked the Irish company to maintain the plant in operation for a longer period to assist the IDA in its efforts to attract a new project to the area. The company did not give any commitment on this point, but it is co-operating with IDA Ireland in marketing the site and attracting potential purchasers.

The management of Tarkett (Ireland) Limited has made it clear to me that the decision to close was the inevitable and irreversible consequence of the loss of market outlets in Russia and eastern Europe. Once those markets collapsed, they did not have the work to keep the plant open. I have not, therefore, gone on to discuss the matter further with other representatives of Tarkett.

On 21 October 1998 I also requested IDA Ireland to establish an interagency group to formulate an adequate response to the Tarkett closure. I met the members of that group on 29 October 1998.

The fact that Tarkett was such a valued employer in the Mullingar area for over 20 years makes the loss of the company more regrettable. I realise that the loss is much more than the 130 jobs involved and that many local companies which provided services to Tarkett are badly affected also. I consider that the establishment of the Mullingar interagency group is the most effective means of seeking to replace the jobs which will be lost in Tarkett and to assist the workers involved.

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