Seanad Éireann díospóireacht -
Tuesday, 3 Nov 1998

Vol. 156 No. 16

Tarkett (Mullingar) Closure: Statements.

Mr. Glynn

I welcome the Minister of State to the House. Friday, 23 October, could be described as "Black Friday" as far as the people of Mullingar and north County Westmeath are concerned. That would be particularly applicable to the workers of Tarkett. Not only do I speak about the 140 odd jobs involved, but at least 140 more jobs in relation to small contractors who provided a service on a contractual basis to Tarkett and the service outlets in the town. We could be talking in terms of 280 or 300 jobs.

The closure of the Tarkett plant is particularly tragic given that Mullingar was recently successful in securing the major Oxford health plant facility for the town. However, we must be realistic and adopt a positive approach to finding a replacement for the Tarkett factory. All the relevant development agencies are ready and able to help. FÁS will assist in the retraining of the workers and equipping them with new skills, having first carried out a skills audit to ascertain the level of skills and then apply whatever skills are required in the event of a replacement industry being found. The County Enterprise Board and Enterprise Ireland will help with grants and other supports for workers who wish to set up their own businesses.

I ask the Minister to listen to what I have to say in relation to another body which is available to assist in finding a replacement industry. This body has a greater concern than all others in the future of the Tarkett plant — that body is Westmeath County Council. The council has an identity with the Mullingar area and the workers of Tarkett which must compel us all to get our heads down and pull out all the stops to ensure a replacement industry is found without delay.

Mullingar has been very fortunate in the quality of the overseas industries attracted to the town in the past by the IDA. The town has weathered well the recessions of recent years and is now better placed than ever before with the new infrastructure to market the attractions of the town for new industries.

The IDA states that good access is a key factor in making a town an attractive location for investment. On that basis Mullingar is a most attractive location, given its pivotal position in the centre of Ireland, the N4 by-pass road, the planned extension of the M4 motorway from Kilcock to Kinnegad and the proposed dual carriageway from Kinnegad to Mullingar. Westmeath County Council recently announced the development of the N52 western by-pass and the proposed line of the N52 eastern by-pass.

There are other factors which will make Mullingar the ideal location to attract and accommodate new industrial investment. It is the major centre of population on the western route from Dublin; it is the second largest town in the mid-land region; it is regarded by the IDA as airport location because it is within one hour of Dublin Airport. To this list must be added the high quality and experienced Tarkett workforce which is ready and waiting for new incoming industry.

I will now turn to the location of the Tarkett plant in the Newbrook, or Clonmore as it is locally known, Industrial Estate. It may have been true in the past that it was difficult for the IDA to market the Newbrook Industrial Estate because the road serving it was a cul-de-sac. Westmeath County Council is currently spending £3.5 million on the Newbrook-Grange link road and bridge which will open up the whole Newbrook Industrial Estate and make it much more marketable.

There is talk about setting up a task force to seek a replacement industry for Tarkett. I remind this House and the Minister that a county development team to encourage economic growth in the county exists in Westmeath and has been there for a number of years. The whole focus of the development team is to ensure that no opportunity is lost to create employment in the county and will not be lost by neglect on the part of any of the relevant agencies involved.

All the relevant agencies are represented on the county development team. The chairman is the county manager. The other members are the chairman of Westmeath County Council; the chairman and chief executive officer of the vocational education committee; the chief agricultural officer of Teagasc; the regional manager of Enterprise Ireland; the manager of the FÁS training centre and the county engineer. The development team, which is serviced by the county development officer, Christy Kiernan, is the ideal body to liaise with the regional manager of the IDA to plan a strategy for the attraction of new industry to replace Tarkett. Members of this House may not know that once before the county development team played a significant role when the original gas industry developed difficulties in the early 1980s. It was that team which studied the breach and was successful, along with others, in attracting a replacement industry. Recently the team undertook the marketing of a 22 acre site and as a result a 90 bedroom four star hotel will come on stream.

I pay tribute to the management of the Tarkett factory who decided to locate in Mullingar and provided up to 300 jobs at times. The county development team has served Westmeath County Council and the county well. It works quietly, confidently and confidentially and I have every confidence that, given a leading and co-ordinating role with the IDA in finding a replacement for Tarkett, it will be successful.

I ask the Minister to take into account the views of the council aired at a special meeting last Monday. Its wish is that the county development officer, the county manager and the chairman of the county council would be included in the inter-agency task force.

I ask the Minister to convey to the Minister for Finance that a number of the members of the workforce wish to set up their own businesses. It would be a great help if he would consider some tax exemption in their redundancy package. Not charging tax on the first £20,000 would be a valuable incentive for people to make a financial input into their own business or a joint venture.

I thank Senator Cassidy, the Leader of the House, for providing the time for these statements and I thank the Minister for coming into the House to hear my views. A great deal depends on the success of the interagency task force which has been set up. I know it will do its best but I ask that the established expertise of the county development team be employed in finding a replacement industry for Tarkett and the workers thereof.

Mr. Coghlan

I welcome the Minister to the House and trust he will respond favourably to the requests being made in the course of these statements on the loss of Tarkett in Mullingar. I have been made well aware by my colleague, Deputy Paul McGrath, of the major surprise and disappointment which was felt throughout Westmeath, in the Mullingar area in particular, as a result of the closure of the Tarkett (Ireland) Limited plant and the consequent loss of 141 jobs. I appreciate the devastation expressed by Senator Glynn because I have often had cause to mention the loss of the huge Pretty Polly factory.

I understand the shock and worry felt in the ground in Mullingar and the surrounding countryside at the loss of the 141 jobs. One can understand how those workers and their families must feel as Christmas approaches. Tarkett has been manufacturing vinyl floor covering in Mullingar for 21 years and has played a major role in the economic and social life of Mullingar and surrounding areas. At peak capacity the plant employed 300 people and for 21 years the workers at the Tarkett plant in Mullingar, through their work rate and skills, contributed substantially to the profit margins of the parent company and the entire group. Working conditions at the plant were good and average wages were in the £500 per week range. The closure of this plant will have a serious effect on the economic activity of the area. Many spin-off jobs such as transport, stationery, catering and cleaning will also be lost as a result of the closure. These job losses represent 20 per cent of the industrial jobs in the area and come at a time when Tarkett had, only a few months ago, reduced its workforce by 50 to achieve further economies.

I call on the Taoiseach and the Tánaiste through the Minister to establish a task force. Senator Glynn told us that a task force already exists and I support all efforts which will be made to find a replacement industry. I am confident that, given the strategic location of Mullingar, the availability of a dedicated workforce and the necessary road and rail infrastructure, the IDA will be in a good position to find a replacement industry reasonably quickly. It is an important point that there is such a dedicated and skilled workforce ready, willing and able to work. I do not understand why the company, which made £3 million in profit in 1997, is now closed. It is, however, a tremendous asset, comprising ten acres under one roof on a 120 acre site which is very well located. I do not know of the situation with regard to outstanding grants. However, the IDA may be able to take ownership of the plant as it did with the Pretty Polly plant in Killarney. I would welcome the Minister of State's views on this issue. The plant is a fine asset and would be useful to the IDA.

Mullingar is only 50 miles from Dublin and one hour from the airport. It has many advantages. Apart from Tarkett's workforce there are about 1,500 people unemployed in the area. This is the area's first industrial loss and I hope it will not suffer further losses. Some 20 per cent of the workforce in the area will lose their jobs and it behoves us all, particularly the IDA, to work with the agencies and the interagency task force. If this is what the Minister of State thinks will succeed then I welcome the establishment of the task force. I wish the Minister of State and the IDA every success.

Mr. Cassidy

I join with calls on the Minister of State to act swiftly and respond to what has happened in Mullingar. One hundred and forty jobs have been lost in Tarkett and at least another 140 jobs will be lost through cleaners, transport, painters and other services which supply the factory. When one takes families into account, 1,000 people are affected by these redundancies. The workforce faces serious problems. Many have large mortgages and some have only recently married. Others are in their early fifties and are concerned about where they will gain future employment.

The Tarkett plant is a magnificent asset to Mullingar and the midlands. One hundred and twenty acres of prime land are now available, ten of which are under cover. Such an area is twice the size of Croke Park. The plant is close to major roads and seaports. The Minister of State should appoint a representative from the excellent county council and county development team to the interagency task force which has been established. We have an excellent acting county manager, Ciaran McGrath, and I hope he will be added to the task force. He has proved himself with the Belvedere project and the new, state of the art, arts centre in the County Hall, Mullingar, which opens in two weeks. He is a high energy, very experienced individual who would be a great asset to the task force if appointed by the Minister of State.

I appeal to the Minister of State to try to obtain a special tax package for the workforce when they receive their redundancy payments. They do not know where they will be re-employed and there is a distinct possibility that some will wish to use the money to become self-employed. This would be welcomed. A tax package would be a good idea and would soften the blow suffered by the workforce who were told that their jobs would go on 23 November. Such a tax package has been implemented in the case of other factory closures.

The workers at Tarkett had recently acquired new uniforms and were producing a world class product. The company made £3 million profit the previous year and everyone was looking to the future with confidence. However, due to circumstances beyond their control and that of Tarkett International, the Irish plant is closing. I compliment Tarkett for its magnificent contribution to Mullingar.

The Government, FÁS, IDA, the county council and all agencies in the area will do their utmost to ensure that a new company is attracted to Mullingar. However, unlike every other town in the area, Mullingar has not benefited from the decentralisation of any Department or agency over the past 25 years. An opportunity now exists for the Government to do something worthwhile for Mullingar. The town is strategically placed. It is only one hour from Dublin and the infrastructure and skilled workforce are real assets. The Government should make Mullingar an employment priority so that these jobs are replaced. It is not easy to replace jobs. The Government is doing all it can with the Pretty Polly factory in Killarney. However, we are seeking the reassurance of the Minister of State that everything possible will be done by the Government so that Mullingar will be given priority for seeking a replacement for Tarkett.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

Tarkett (Ireland) Limited which has been based in Mullingar for over 21 years, has been a valuable employer and made an excellent contribution to the economic development of Mullingar and its environs. The Government regrets that Tarkett Sommer AG decided to close the Mullingar plant. However, the collapse of the Eastern European market for floor coverings and the company's decision to significantly restructure its operations, has regrettably resulted in the decision to close the Mullingar plant with the loss of 130 jobs.

The Tánaiste, Deputy Harney, has established an interagency group to formulate an adequate response to the closure of the Tarkett plant in Mullingar. The purpose of the interagency group is to examine and respond to the needs of employees of Tarkett (Ireland) Limited and look at ways for priority action on job creation in Mullingar. The interagency group will be chaired by Frank Conlon, area director IDA Ireland, and will comprise representatives of IDA Ireland, Enterprise Ireland, FÁS and the Westmeath County Enterprise Board along with representatives of Tarkett (Ireland) Limited.

It is clear from recent experience that speedy progress can be made by ensuring that agency representatives make face to face contact and identify their respective tasks in the follow up to significant plant closures. The interagency group had its first meeting on 29 October 1998. The terms of reference for the group are: to secure alternative job creating enterprise, both from overseas and indigenous investors to Mullingar, with particular regard to the location of a new industry in Tarkett's existing facility; to provide an immediate skills assessment and suitable training opportunities for the affected workers; and to provide the necessary information and assistance to employees who may wish to establish their own enterprises.

The chairman of the interagency group will brief public representatives, public bodies, local business interests, the Westmeath Partnership and other community bodies on the group's approach to its work. It is important that the group and individual agencies co-operate with the appropriate trade unions representing the workforce and with the Department of Social, Family and Community Affairs and local business and community interests in providing advice and support to redundant workers and promoting Mullingar as a location for new investment.

The Tánaiste has asked the chairman of the inter-agency group to liaise with public and private sector and community bodies which can assist in promoting the area for investment and job creation. Action in this regard will be facilitated by the designation of Westmeath as one of the four areas in the country covered by a territorial employment pact which ensures close co-ordination of all development agencies and community interests.

During the Tánaiste's recent visit to Mullingar she met with representatives of company management, SIPTU and workers as well as members of the interagency group. The regional managers of the industrial development agencies have informed the Government of plans to put in place a focused marketing programme to highlight the availability of Tarkett's existing facility and the attractiveness of Mullingar as an industrial base.

We have arranged for FÁS, in conjunction with union representatives and the Westmeath County Enterprise Board, to commence an immediate intervention programme. The programme will provide assistance to employees through the provision of job seeking skills, interview techniques, early retirement advice, investment opportunities, CV services and counselling. It will also establish the skills pool which is available to new investment, assess skills of workers to be laid off and assist employees with training and retraining, identification of job opportunities, job skills requirements and opportunities for selfemployment.

The inter-agency group will have some immediate and more medium-term activities to oversee. Neither the sourcing of a new replacement industry — or more practically the sourcing of a mix of new small industries to occupy the available facilities — nor the provision of a tailor made programme to address the retraining and alternative employment options for the Tarkett workforce can be delivered rapidly. On previous experience, it takes 18 months to see this kind of agenda to completion.

While the full delivery on the terms of reference of the group may take some time, the inter-agency group will keep both the Minister for Enterprise, Trade and Employment and the Department informed of progress and identify activity which can be delivered in phases. I expect, for instance, that an interim report on the organisation and delivery of the FÁS intervention programme will be submitted in early 1999. We confidently anticipate that the work of the inter-agency group will be concluded in a successful and satisfactory manner.

I commend the Senators for the forthright and formidable manner in which they have made the case on behalf of the people of Mullingar and the unfortunate employees of the Tarkett plant. I assure them I will be communicating with the Minister for Enterprise, Trade and Employment to ensure that the members of the county council, county development team and other eminent officials referred to will be recommended for participation in the inter-agency group. It is vitally important that we use all the resources, experience and expertise contained in these organisations to maximise our response to this issue in order to minimise the delay in locating a replacement industry in Mullingar.

I assure Senator Coghlan that the Department is totally committed to finding a replacement industry for the Pretty Polly factory in Killarney. State agencies are using all their resources to maximise efforts to bring investment to Killarney and various other locations throughout the country. We will respond to that situation as quickly as possible.

The Department regrets the closure of Tarkett at what is otherwise a very good time for the economy. Advantages and disadvantages are experienced at all times, irrespective of location and opportunity. We will endeavour to ensure that neither Mullingar nor Killarney is left without adequate investment.