Seanad Éireann díospóireacht -
Thursday, 20 Nov 1997

Vol. 152 No. 14

Adjournment Matter. - Tipperary Crystal.

Mr. T. Hayes

I thank the Chair for allowing me to raise this important matter for my constituency. I also thank the Minister of State for coming here this evening to address it. I will try to be as brief as possible because I know he has been waiting for some time.

The matter I raise concerns the ongoing problem in the Tipperary Crystal company. It was set up some years ago by a group of former Waterford Crystal workers and has brought employment to a neglected area of Tipperary, Carrick-on-Suir. The company did well for many years and we all know and have heard of Tipperary Crystal. The company has good business but it has run into difficulties. Since I submitted this matter in the past few days, matters have progressed, and I am delighted to hear that agreement has been reached between the unions and management on redundancies. There are now 50 secure jobs as that is the number of workers left in the company by agreement.

This company badly needs assistance, be this by way of an investor or whatever, and there are ongoing negotiations with Forbairt on this. There is a need for financial investment for many reasons but especially for research, development and the design of new products. I ask the Minister to do what he can for this company which is badly in need of assistance. While I welcome the jobs created by the Celtic tiger, 2,000 announced one week by the Tánaiste, and 1,000 the next, I wonder where south Tipperary fits into this picture? This is an ideal opportunity for the Government to show its commitment to this neglected area. I hope the Minister of State will have something worthwhile to say.

Minister of State at the Department of the Environment and Local Government (Mr. Molloy)

I am grateful to the Senator for raising this matter. Tipperary Crystal was established in 1987 by Mr. Finbar Tymon and former Waterford Crystal employees. The company quickly established itself on the Irish market and the 1990 accounts indicated sales of £1.5 million with net profits of £37l,000. However, over the next two years, high losses were incurred and, in March 1992, BES funds of, approximately, £1 million were raised to overcome a serious cash flow problem. Notwithstanding this large cash injection, the company continued to experience serious cash flow problems and the banks reduced borrowing levels significantly.

In late 1992, ownership of the company changed hands. Over the next four years the new management made substantial progress in returning the company to profitability. However, the company continued to experience cash flow problems and, in October 1996, a receiver was appointed over the company's assets. The receiver sold the business to Asdon Ltd. on the basis that it was the highest bidder.

On 1 October 1997 the company announced a rationalisation of its business including a redundancy programme which will result in a reduction of the workforce from 72 to 43. The Tánaiste has made inquiries in the matter with Forbairt and she has been advised that the management of Tipperary Crystal considered every alternative before deciding to reduce the workforce from 72 to 43, resulting in 29 redundancies. The company has explained that, to remain competitive it is obliged, in keeping with its main competitors, to out-source crystal blanks. I understand this strategic decision was taken as a cost-cutting measure to return Tipperary Crystal to profitability and secure the remaining 43 jobs.

Forbairt has advised there is over capacity in the crystal glass industry. It is an industry subject to increasingly tight competition internationally. Tipperary Crystal is not the only company in the sector which has found it necessary to rationalise its business in recent years.

Forbairt is monitoring the position in Tipperary Crystal and has assured me it will continue to provide any advice or assistance it can towards the future development of the company. Forbairt is actively working to promote industrial development in Tipperary and is a member of the inter-agency group established to seek alternative industries for Tipperary as a result of company closures, namely, Tambrands in Tipperary town and Schiesser in Carrick-on-Suir.

This group was set up in October 1996 and includes Forbairt, IDA Ireland, FÁS, county council and county enterprise board representation. Since then, a replacement industry, Pall Corporation, has been approved by IDA Ireland for Tipperary town as has Hydrotec Engineering for Carrick-on-Suir.

Forbairt is also working closely with the communities in both Tipperary town and Carrick-on-Suir to assist with the establishment of community enterprise centres. A 5,000 sq. ft. building has been donated by Tambrands to the town of Tipperary for the purpose of setting up an enterprise centre.

Mr. T. Hayes

I understand from the management of the company they need a great deal of finance and they have been talking to Forbairt. Will the Minister of State use his good offices to ensure everything possible is done to assist the company? I understand from the Minister of State there is an over supply. However, Tipperary Crystal is a special case and there is a strong argument for keeping the company afloat.

Mr. Molloy

The Senator will understand the Tánaiste was unable to attend. She asked me to deal with this matter and the information is from the Tánaiste. I assure the Senator she will speak again to Forbairt about the difficulties at Tipperary Crystal and ask it to assist to the best of its ability to find ways in which the company can continue to operate through this difficult period and return to a growth pattern.

The House adjourned at 4.30 p.m. until 2.30 p.m. on Wednesday, 26 November 1997.