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Dáil Éireann díospóireacht -
Tuesday, 2 Feb 1999

Vol. 499 No. 3

Adjournment Debate. - Bakery Closure.

(Mayo): The closure of All-Fresh Limited. in Charlestown, County Mayo, is not only a body blow to Charlestown, it is a body blow to the already weak employment and industrial base in County Mayo. The emphasis may be on Cork and the 450 jobs lost in Apple; however, to a jobs devastated county such as Mayo and a jobs starved town such as Charlestown, the closure of All-Fresh is a catastrophe.

It comes in the wake of the loss of 270 jobs in Asahi in Killala last year; the closure of the Claremorris Baking Company, with a loss of 200 jobs, which have not been replaced; the loss of 80 jobs at the Peter Storm rainwear company in Claremorris, which were not replaced; the loss of 150 jobs at Farah Ltd. in Ballyhaunis, which were not replaced; and the 30 jobs lost recently at in Betatherm in Ballinrobe, which have not been replaced.

Charlestown has never got its fair share – or, indeed, any share – of Government created jobs. Any jobs created in Charlestown were hewn from local enterprise. Charlestown finds itself on the edge of the black triangle, an area starved of jobs for years, dependent on a vulnerable small farming structure and which, year in year out, saw its life blood drained away, bled white by emigration. The plight of Charlestown was well encapsulated in Charlestown-born John Healy's book, And Nobody Shouted Stop.

To Charlestown, an enterprise such as All-Fresh is of huge economic importance. It gives real employment. It puts approximately £1 million into the local economy each year. Much of the employment is off-farm – people combining a job with the maintenance of a small family farm.

I feel very sorry for the 450 workers in Cork who have lost their jobs. Their loss is very real, very individual and very personal. However, the devastation to an area such as Charlestown of the loss of 100 jobs is many times more catastrophic. There is no replacement in sight.

The Charlestown jobs dilemma needs to be tackled on two fronts. First, every effort must be made to salvage the jobs in All-Fresh. I appreciate that a receiver is in place. I also understand that a consortium of workers at the plant may be in a position to make a bid to keep it operating as a going concern. I urge the Tánaiste and Minister for Enterprise, Trade and Employment and the Minister of State to encourage, support and do everything possible to ensure this initiative is successful. There are plenty of precedents for it. If this proposition is not successful, the possibility of it being bought by an outside enterprise as a going concern should be encouraged. It should be taken over with the maximum number of jobs retained.

Second, Charlestown also needs to get the focus and attention it has not received up to now. It has not been sold or considered by the IDA for its attractiveness, presentation or location. It is on the border of Mayo and Sligo and the intersection of two national primary roads, the N5 and the N17. It is a stone's throw from Knock Airport. It has an excellent primary and post-primary school and superb community sports halls. It has assets and advantages which have not been marketed.

I am asking for special emphasis and focus to be given to this area. A special enterprise unit should be set up, consisting of the IDA, Enterprise Ireland, the county enterprise board and local interests, to sell Charlestown as the attractive base that it is. The people of Charlestown are rightfully envious when they hear of high profile announcements for here, there and everywhere, yet there is nothing for Charlestown. The rot, drain and devastation must stop – as John Healy said, it has to stop now.

I thank Deputy Higgins for raising this matter. The possible loss of 100 jobs is a serious setback for Charlestown and for the surrounding region of north Mayo. I sympathise with the employees who are facing the strong possibility of being made redundant.

I understand that a receiver has been appointed to the All-Fresh Bakery and is having ongoing discussions with a number of parties for its sale as a going concern. It is particularly sad that such a state of affairs has been reached in a well established company which has a long association with County Mayo. The company has been based in Charlestown since the late 1870s and has been one of the principal employers in the area since then.

Enterprise Ireland is providing advice to those interested in trying to get the plant back into operation as a going concern. The agency will continue to provide as much help as possible, and I sincerely hope it will be possible to overcome the present difficult situation by building on the skills and the market base in the area. I have asked the development agencies to work closely with the local community development bodies in Charlestown, which have already responded to the threatened job losses.

It was in recognition of the special needs of this region that the Tánaiste established the North Mayo Enterprise Initiative in June 1997, in the wake of the closure of the Asahi plant in Ballina. That initiative continues to have a significant beneficial influence on employment prospects in the region and the progress it has already made demonstrates the community resources that can be mobilised in response to job losses.

Enterprise Ireland is heavily involved with the North Mayo Enterprise Initiative. Together with the Mayo county enterprise board, it is represented on the indigenous subcommittee of the initiative, which has a particular focus on identifying and developing enterprise centre space, working with potential start ups and companies at an early stage of development.

The progress made on the job front in the area, since the Tánaiste established the North Mayo Enterprise Initiative on 10 July 1997, has included both business expansions in the indigenous sector and new inward investment. In the course of 1998, Enterprise Ireland/Forbairt approved approximately £1.8 million to companies in County Mayo.

Many new jobs have been announced for the region, including the following: Carrokeel Seafoods, Killala, 85 jobs; Lionbridge Technologies, Ballina, 100 jobs; Coca Cola, Ballina, 150 jobs; and Volex, Castlebar, 200 jobs; Allergan Pharmaceuticals, Westport, 170 jobs. The Coca Cola project alone is a major operation which will create about 650 jobs during its construction phase. The new concentrate plant, costing £160 million, is being built on a 100 acre site off the Killala road in Ballina. The plant is scheduled for completion in July 1999 and recruitment of key staff is expected to begin shortly.

Together, these new projects will make a significant direct contribution to the region's economy as well as creating additional spin-off employment arising from sub-supply opportunities.

I thank the Deputy for raising this important matter and I assure him his suggestions and his contribution tonight will be brought forward by me to the relevant agencies.

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