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Dáil Éireann díospóireacht -
Thursday, 29 Nov 2001

Vol. 545 No. 3

Adjournment Debate. - Job Losses.

I wish to raise on the Adjournment the closure of Stonearch Limited, Abbeyleix, County Laois. Employees were informed at approximately this time yesterday that their jobs were to be discontinued. Approximately 40 employees have worked in the company and my sympathy is with them and their families at this time. A number of employees were informed that they will leave the workforce next week and the following the week, and there will be a scaled closure of the plant, culminating in all employees being finished in the factory before the end of January 2002.

Stonearch Limited which has been in Abbeyleix for more than 30 years was a good employer. It is involved in making vitamin K for animal feedstuff and it was assisted by the IDA many years ago. It is understood that the American parent company, which is quite small, has had a lot of trading difficulties, of which the plant in Abbeyleix is the main part of the group. People have recently seen the writing on the wall to some extent. From that point of view, I share the sadness of the people of Abbeyleix at the loss of their jobs in the run-up to Christmas. The fact that it was on the cards did not make it easier when people were told the bad news yesterday.

I am raising the issue in the Dáil to try to ensure that the Minister for Enterprise, Trade and Employment will instruct Enterprise Ireland and the IDA to contact directly the owners of the company to ensure there is a fair and substantial redundancy package offered to all employees who are losing their jobs. It was suggested to me that they will only be entitled to statutory redundancy but that should not be the case. The property in Abbeyleix is a very attractive building which includes a large area of land. As Members will be aware, Abbeyleix is on the main Dublin to Cork road, the N8, and the site is of particular attraction from that point of view.

Over the years the workforce has been very loyal and it was a major source of disappointment when they were told yesterday evening that the factory was to close. I believe there is an acceptance of the inevitable that the factory will close. I do not believe there is any possibility of the operation being salvaged. I understand the IDA made contact with the company in recent weeks but found that it had no alternative at this time. When it comes to County Laois it is well documented that the IDA is an absolute, complete and abysmal failure. It has failed the people of County Laois for the last 30 years and has produced very few jobs. Tremendous work in locating jobs in the county has been done at local level through the enterprise board, Enterprise Ireland, Leader, local initiatives and various Government agencies such as the prison services and Departments.

I appeal to Enterprise Ireland and the IDA to try to find a suitable company that will come to Abbeyleix, buy the premises and open a new business as soon as possible. We have a good, loyal workforce and a good tradition. Abbeyleix is a fine heritage town, an excellent area to do business in and an attractive area to live in. The town needs replacement jobs. County Laois is in the BMW region and is the closest county to Dublin of that region. Attractive IDA grants can be availed of by any foreign company that comes into the area.

The jobs task force set up after the job losses in County Laois two years ago when Avon Arlington closed in Portlaoise is now one of 22 such task forces around the country. It has achieved nothing. Many of the other 22 task forces have achieved precisely the same. There is no value in having 22 such task forces competing with each other. I ask the Minister to reassess those immediately as I have seen no concrete evidence of good work being done. I hope replacement jobs for the employees at Stonearch who are losing their jobs in the mouth of Christmas can be found as soon as possible.

I fully support the Deputy's motion. It is very important and I ask the Minister to ensure this is brought to the attention of Enterprise Ireland and the IDA and that they do everything possible to ensure a replacement industry is found and this fine premises is taken over and utilised.

I apologise on behalf of the Tánaiste who is unavoidably absent.

The company in question operates as a branch of Randstone Limited, a Bermuda registered company, which is a wholly owned subsidiary of Heterochemical Corporation, Long Island, New York. Heterochemical Corporation was established in 1953 to take over the private business interests of Mr. William Galler. It was a private company owned and run solely by Mr. Galler until his death several years ago. It is now owned by his daughter Lynne Galler.

Stonearch manufactures vitamin K active substances, which act as a blood-clotting factor and are regarded as an essential dietary requirement for animals. The Stonearch products are sold through Heterochemical Corporation to animal feed formulators. Stonearch has been operating in a niche market area with the vitamin K products. There are few competitors but a new entrant has moved into the market operating in Turkey and is selling to the market below Stonearch's cost price. In addition to this competition Stonearch would have to invest heavily in the Abbeyleix facility in order to comply with environmental and safety requirements in Ireland. The combination of market pressure and additional costs forced Heterochemical Corporation to consider selling the business. Negotiations were at an advanced stage with a company, which has a much stronger competitive advantage in the marketplace than Stonearch-Heterochemical. Unfortunately these negotiations were terminated yesterday.

In reaction to the closure announcement, FÁS proposes to meet with the company and all employees as a group. The full services of FÁS will be outlined to staff members and an immediate training programme of one week duration will be offered to them all. The one week training programme will allow staff to consider the training and employment options available to them and to decide which training programme they would like to pursue. This process will be activated by FÁS immediately staff are available. In addition to one week's training, each employee will have a one-to-one interview with a placement officer. As part of this training process, each employee will be equipped with techniques in developing CVs and in attending for interviews.

IDA Ireland is committed to securing 50% of all new greenfield jobs for the Border midlands and western region of which Abbeyleix is part. This involves doubling the proportion of greenfield jobs negotiated for these regions. In an effort to ensure that this objective will be achieved, IDA Ireland initially reorganised its internal structures. This restructuring included allocation of additional staff to its regional offices and allocation of regional responsibilities to key executives in its headquarters project divisions. Up to one-third of all IDA staff will now be based in the regions. The purpose of these moves is to drive growth from within the regions. Other initiatives include a greater focus on marketing of the regions for specific sectors and improvement of marketing material for the regions. IDA Ireland's incentive package is strongly geared in favour of the Objective One regions which is in line with the new EU state aid limits. IDA Ireland will have 95 staff across all of its regional offices and the underlying purpose is to work in close partnership with the other state and local resources to create a drive from within the regions to pull foreign investment rather than the present approach of pushing for it from its Dublin headquarters.

There have been a number of positive developments in Laois in recent times. IDA proposes to commence work on a 15,000 sq. ft. office facility on its business park in Portlaoise in early 2002. It also proposes to provide two further advance factories in the business park. Consultants have been appointed and planning permission will be sought in the first quarter of next year. In November last year, the Tánaiste announced a new project for Portlaoise. Ebm Industries Limited will locate in the 25,000 sq. ft. advance factory on the IDA's business and technology park in Portlaoise to manufacture cooling systems for the electronics and telecommunications industries. The project will employ 145 people over the next five years.

Enterprise Ireland is working closely with its client companies and regional partners in developing and sustaining businesses in the area, enhancing the business environment in County Laois, encouraging new start-up companies with strong growth potential and in assisting Dublin based companies to locate their business expan sions in this BMW region. I can assure the Deputy Fleming, and indeed Deputy Enright, that the development agencies will continue to market County Laois for further investment and that every effort will be made to secure alternative employment for the workers affected by this unfortunate closure.

Could they not have done anything to provide finance for investment?

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