Dáil Éireann díospóireacht -
Tuesday, 20 Apr 1999

Vol. 503 No. 3

Adjournment Debate. - Factory Closures.

Cecilia Keaveney

I thank the Ceann Comhairle for giving me the opportunity to raise the closure of Fingal Manufacturing Limited and the devastating time Inishowen has had in recent months.

I thank the Tánaiste and the Minister of State at the Department of Enterprise, Trade and Employment for their efforts in 1998 to maintain the jobs in Fruit of the Loom. When the situation appeared to get more serious a task force was immediately set up. I also congratulate Michael McLoone, the chairman of the task force, and the people who are working with him. Over recent months they have done substantial work on skills analysis of the people who are losing their jobs, on forward planning and in taking a proactive role in trying to get employment into the area. Their work has already yielded results.

I also take this opportunity to thank the Department of the Marine and Natural Resources. The Minister, Deputy Woods, has delivered on his commitments regarding infrastructure and the seminar he held on job creation in Donegal. More boats have been provided but a great deal more work is required in terms of increased infrastructure. There is also a need for the expansion of the fishery school which is giving employment and providing an income for the inhabitants of the Greencastle area. I look forward to an opportunity to debate with the Minister the need for more funding for Queensport Harbour to ensure that job creation measures in the marine sector can be expanded.

Fruit of the Loom, Donegal Shirts, Jockey and the Fingal factory are going or have gone from an area which already has an unemployment rate of 28 per cent. I wish to express my sympathy to the workers. They ask simple questions. They want to work. At one time they got Government contracts for Army, An Post and Garda shirts but these contracts are no longer forthcoming. A small number of such contracts would have kept 43 people off the dole. Unfortunately, international competition has made it more difficult to secure the contracts.

The workers cannot understand how it is that, in Dublin, firms are crying out for workers. I regularly receive faxes from Dublin and Galway asking for workers to come to those cities to work. However, Inishowen has one of the best work forces in the country but the work cannot be brought to them.

Statutory redundancy is a major issue in Inishowen. The half week provision does not compare well with the equivalent provision across the Border and it has left workers, some of whom live on the other side of the Border, with the belief that statutory redundancy should be reviewed.

The work ethos of the people in Inishowen cannot be beaten. Unfortunately, there are no oppor tunities for them in terms of job creation, particularly in Moville where there is only one factory, the Fingal factory. The factory is located two fields from my house and is extremely important for the people of Moville given that it is the only factory there. Similarly, in Buncrana, Fruit of the Loom is one of a few employment options for Buncrana's large population. I take this opportunity to congratulate Clubman Omega on their ability to reopen a new factory. That demonstrates that it is possible to make progress if help is given.

I urge the Minister to consider the option of fast tracking industrial development land. Many companies are considering locating in Inishowen. The people have a positive attitude and the area has great access to Belfast and Derry airports and ports. One can get to these cities from Inishowen much quicker than one can cross the city of Dublin. Inishowen has large schools, access to third level education, no traffic chaos, affordable accommodation and a pleasant environment. However, it needs all the support it can get from the various State agencies.

I seek the Government's full support of any recommendations made by the task force and the Donegal employment initiative. Continued priority must be given to the area until the current situation is reversed. I hope to come before the House this time next year and be in a position to commend the State agencies and the Minister on their success.

Minister of State at the Department of the Marine and Natural Resources (Mr. Byrne)

The Tánaiste and I share the Deputy's concern at the recent announcement by Fingal Manufacturing Limited, Moville, County Donegal, that it intends to cease operations with the loss of 43 jobs. The proposed closure has been deferred for some weeks as a result of a number of orders which the company recently received.

I can identify with Deputy Keaveney's difficulty. She and I are probably the only two Deputies in the House who live on peninsulas and I am aware of how difficult it is to attract industry to such areas. However, I have no doubt that the Deputy will succeed through her eloquence and determination.

Fingal Manufacturing Limited has been operating in Moville since 1948 as a CMT – cut, make and trim – manufacturer of shirts and pyjamas. In recent years the company became increasingly dependent on public contracts. In addition to manufacturing CMT orders for a number of clothing companies, it also produced full contracts for Departments and State agencies. During the past couple of years Fingal Manufacturing Limited has been experiencing difficult trading conditions due to the fiercely competitive market conditions in the clothing sector. Following a root and branch evaluation of its position, the company reluctantly decided to wind up its operation.

Following the announcement by the company, the Tánaiste arranged for the Donegal employment initiative to ensure that the workforce at the Moville factory can avail of the immediate inter vention programme devised for workers made redundant at Fruit of the Loom plants in Donegal. The industrial development agencies, in co-operation with Fingal Manufacturing Limited, will work closely in the marketing of the premises for suitable replacement projects. Enterprise Ireland has alerted a number of clothing companies to the proposed closure with a view to identifying possibilities for relocating some production to the Moville factory. In addition, Enterprise Ireland has been active in promoting indigenous enterprise in Moville and in the county as a whole. It has supported the 7,500 sq. ft. food facility built by Greencastle community at Moville and it is working with the community to secure a project for the facility.

In a wider context, Enterprise Ireland, under the European Union's RETEX programme, has approved funding for two special projects. The first of these is being supported through the Donegal employment initiative where assistance will be provided towards a programme on innovation stimulation in companies within the clothing and textiles sector. The overall aim of this programme is to develop a plan for each of the businesses involved to improve its future prospects by focusing on the need for a management led approach. In view of the concentration of clothing and textile companies in Donegal, this initiative is very worthwhile.

In another initiative which has recently commenced under the RETEX programme, Enterprise Ireland and Donegal County Council are collaborating in assisting a number of feasibility studies to identify job opportunities in alternative sectors to the clothing sector, that is, food processing, fish processing, information technology and the natural resource sectors. As part of this package, funds are also provided to help finance an incubator call centre project. Enterprise Ireland is also engaged in promoting other initiatives aimed at generating employment in County Donegal. These include seminars, cross-Border co-operation, pilot partnership programmes for technical graduates and so forth.

IDA Ireland has also placed the entire Donegal region firmly in focus with its overseas marketing staff by arranging visits to the various locations and familiarising them with the resources and facilities available. Over the past six months, IDA Ireland has been bringing companies on first time site visits to County Donegal and a number of these companies have returned for a second visit. Arising out of these site visits, there are currently four companies involved in ongoing detailed discussions with IDA Ireland in relation to potential new investments. I am hopeful there will be a successful outcome to the negotiations.

The question of training is central to job creation. The Donegal Employment Initiative established a special sub-committee to deal with training and support services. FÁS, which is represented on this committee, has undertaken a series of interviews and completed a skills analysis of the workers being made redundant at Fruit of the Loom and the Donegal Shirt Company.

The same re-training opportunities will be made available to the Fingal workers. The regional placement officer, together with personnel from the Letterkenny-based training services division, held quality registration interviews with the workforce. Having completed this exercise, FÁS has compiled a skills analysis report which will enable it to arrange training programmes to match the needs of the workers. The Minister for Enterprise, Trade and Employment and I are very hopeful that the priority actions which have been taken in response to the Fingal closure announcement will be successful in finding new job opportunities for Moville. I can identify with Deputy Keaveney whom I am sure will sustain her attack on all Ministers. I happen to be in the line of fire occasionally in regard to jobs in her area.