Dáil Éireann díospóireacht -
Wednesday, 13 Dec 2000

Vol. 528 No. 2

Written Answers. - Company Closure.

Paul Connaughton

Ceist:

91 Mr. Connaughton asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the closure of a factory (details supplied) in County Galway; if her attention has further been drawn to the fact that the company do not intend to pay any severance pay despite the fact that many of its employees are over 20 years working there; if this company received IDA grants; if her attention has further been drawn to the fact that the company did not give proper advance warning of closure; and if she will make a statement on the matter. [30039/00]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I am aware that, on 4 December 2000, the directors decided to put the company into liquidation because of continued losses. The decision had immediate effect and 100 jobs have been lost. The company's business has been affected by severe competition from Asia and poor conditions in its served markets.

I understand that the company are in the process of appointing a liquidator and it will be for the liquidator to deal with the question of severance pay. In the event of an employee not receiving their statutory lump sum, my Department will ensure payment of the correct statutory sum to that employee from the social insurance fund.

It is a matter of regret that the company did not give advance notice of closure. I understand that the directors considered they had no other option but liquidation because of the adverse trading position of the company.

The company has received £812,729 by way of IDA grant-aid.