I am pleased to have this opportunity to respond to my constituency colleague Senator Hussey on this very important matter of the industrial situation in Tuam. I would like to pay tribute to him for raising the issue.
At the outset, may I say that I am deputising for my Government colleagues, the Minister for Industry and Commerce, Deputy O'Malley, the Minister of State for Trade and Marketing in the Department of Industry and Commerce, Deputy Leyden, both of whom are involved in very important and serious internal market discussions in Brussels and are not able to be here this evening and also the Minister of State, Deputy Smith, who is overseas on very urgent Government business.
The Government are very conscious of the devastating effect that the closure of even one factory can have on a rural town. Tuam, unfortunately, has had more than its fair share of setbacks in recent years. The closure of the Sugar Company factory in 1986 which had provided stable employment in the town for many years was a serious blow to the community. More recently, Tuam has had to deal with the closure of Homecare Fabrics, the rationalisation of Coca-Cola and the disappointment over the lack of progress on the proposed meat processing plant for the town. I understand that Homecare Fabrics has now been put into receivership and that efforts are being made to sell it as a going concern. The receiver is, I believe, preparing a profile of the plant which, when completed, will be promoted vigorously by the IDA through their network of overseas offices. The availability of a well-equipped plant together with a skilled local workforce will be of considerable help in achieving a successful outcome to the efforts of the receiver and the IDA.
Coca-Cola have indicated that with effect from 2 April 1990 they will be ceasing their bottling operations at Tuam. Unfortunately, the bottling plant is outdated and is unable to produce at a rate necessary to survive in an increasingly competitive market. I am informed, however, that the company will be retaining a workforce of about 30 people to continue sales and distribution from Tuam for the western region.
I do not intend to go into the Goodman situation again. It has already been well aired. Understandably, the community in Tuam, like the Government, who had set their hopes on a major employment boost from the proposed meat processing facility, are frustrated and upset over the lack of progress. I share that frustration as I know my colleague Senator Hussey does also. Let us hope that the difficulties surrounding the proposed new plant for Tuam can be resolved. As soon as it is the Minister for the Environment will ensure that the large water and sewerage scheme, which he has sanctioned will commence immediately.
I may have painted a somewhat gloomy picture of the industrial situation in Tuam because I do not believe in hiding the facts. Having said that, however, I must also stress that it is not all bad news. Connaught Electronics, the only Irish producer of high-quality ultrasonic remote control alarm systems, is a major success story nationally and for Tuam. In December 1989, the company was named IDA/WANG Company of the Year, one of the most prestigious awards which a company can win. The company is an example of what can be achieved when proper attention is given to developing new products, with quality and service developed and maintained to international standards. The continuing success of the company is evidenced by their intention to move to a larger premises to facilitate an expansion of their activities. The company hope to increase their employment level accordingly. I would like to pay tribute to the directors and staff of the company for their excellent commitment and their continuing contribution to the development of employment opportunities and economic promotion in the Tuam area.
I am also glad to be able to say that the expansion at Pulse Engineering, which was announced some time ago is now proceeding. The company are currently finalising legal arrangements for the purchase of the IDA advance factory at Dunmore Road, Tuam in accordance with the expansion programme.
Looking to the future, the IDA, who are already working hard to develop a solid industrial base in Tuam are, I can confirm, affording the town special attention this year. As a first step in this process, the Authority are currently in discussion with private developers for the provision of a 20,000 sq. ft. advance factory in the town. I understand a suitable site for the factory has been identified on the IDA Industrial Estate and, if all goes according to plan, construction of the advance facility should commence in the near future. The availability of an advance factory will enhance the IDA's ability to attract significant new industry and employment opportunities to the town. I know that the community of Tuam will welcome this development and recognise it as part of the IDA's continuing commitment to attract a major new industry to the town. I can further confirm that the IDA are aggressively marketing Tuam at this time. I am very confident they will be able to attract at least potential investors to consider Tuam in the very near future.
Small industry has always been, and continues to be, very buoyant in Tuam. While not disregarding the necessity of attracting a major new industry to the town, I believe it is important to acknowledge the contribution that small industry has made to employment in the town and its environs. I urge local business people to continue to seek out opportunities for developing small industry on a wider scale.
The IDA are also working with the Tuam Community Development Group which operates under the Chairmanship of Archbishop Joseph Cassidy. Speaking of Dr. Cassidy, I would like on behalf of us all here to wish him a speedy recovery to full health. Specifically, the IDA are involved in three of the group's committees, whose objectives are the development of a community enterprise centre, the production of a marketing brochure for the town and the exploration of joint venture opportunities with Irish Sugar plc. The development group comprise a cross-section of all interests in Tuam and is a commendable example of how local communities can, through their own efforts, make a perceptible contribution to the economic development of their locality.
The group have already made some considerable progress. I understand that, with financial assistance from the IDA, they are converting the former Erin Foods factory at Airglooney into an enterprise centre. The remainder of the finance necessary to develop the centre will be raised through a local fund-raising campaign. I would like to take this opportunity to wish the group and the fund-raising campaign every success in their efforts. It is clear from other areas that a strong community involvement in local development is a major factor in the succes of IDA's efforts to develop new industry.
I would also like to mention the very important contribution that the local county development team network can make to local regional development. I know that the County Galway team have a very close and constructive relationship with the IDA in encouraging the development of small industries in the county. However, the team's role is not confined to industry and they can support developments in other areas, which can make an important contribution to economic development. A notable feature in the recent development of Tuam is the establishment, with financial support from the county development team through the western development fund, of the Westrail Steam Railway and the proposed establishment of a steam train centre in Tuam. This will give a major boost to the development of tourism in the north Galway area.
The west region and Tuam in particular, has many strengths on which future industrial development can be built. High quality graduates in technical disciplines are emerging from University College Galway and Galway Regional Technical College. Such well qualified people are a critical resource for the kind of high-tech industries we wish to attract to Ireland and develop among our own entrepreneurs. Communications are vital to modern industries and the airports now operating at Galway city and Knock provide an important international link for both people and products.
In 1990, the IDA's plans for the west region include a redoubling of their commitment to achieve maximum results in terms of new investment, working in close harmony with local interests. Tuam has, as I mentioned before, been identified as a key priority in this regard. The IDA will also be seeking new start-ups across the many attractive locations throughout the region. In Galway city, the IDA will be endeavouring to develop further the Galway Business Park, particularly for international services projects.
The Government, for their part, will continue their policy of creating a favourable economic environment in which industry can grow and thus create much needed jobs to reduce unemployment. Among the numerous improvements in the business environment have been the achievement of moderate pay increases under the Programme for National Recovery, minimum or no increases in the cost of public utilities and an inflation rate that is below the EC average. I am confident that the ongoing improvements in the business environment, combined with the implementation of the various operational programmes which the EC Structural Funds will support in the period up to 1993, will provide the impetus necessary to substantially upgrade the productive capacity of the economy to the benefit of all regions of the country.
As I said at the outset, I would like to thank Senator Hussey for giving us this opportunity to discuss this very important matter relating to Tuam. As one of three TDs for the constituency of Galway East representing Tuam I pledge and confirm to the people of Tuam, on behalf of the Dáil Deputies and with the support of Senator Hussey, that we will leave no stone unturned, through collective effort, to do what we can, to use all the political muscle at our disposal to alleviate the major industrial vacuum that at present exists in Tuam due to the lack of proper industrial opportunities.
I believe what is needed for Tuam is a modern high tech industry to take account of the very fine number of second level and third level graduates available in a town with five second level schools and over 2,000 young people attending those schools at this time. I know the IDA are giving Tuam maximum priority at this time. I can assure the House and the people of Tuam that the Taoiseach is taking a personal interest in this matter and that he will use all the resources at his disposal, in co-operation with the IDA, Coras Tráchtála, Irish Sugar plc, all the other State agencies and the Department of Industry and Commerce to see that this vacuum in Tuam will be filled and that the employment potential and opportunities that are there will be utilised, sooner rather than later. I say to the people of Tuam that with a collective, united effort, adopting a positive attitude and working together as a team, the voluntary bodies, statutory bodies, and the public representatives can together ensure that these opportunities are created and utilised.
I would like to pay special tribute to the enterprise groups, the chamber of commerce, the town commissioners and to the county council members for all their efforts in this area. I look forward to working with them all to ensure that we can give to the people of Tuam the opportunities they are entitled to. I have no doubt that Tuam will put behind it its past troubles and share fully in the regeneration of the Irish economy.
The Seanad adjourned at 9 p.m. until 10.30 a.m. on Thursday, 22 February 1990.
