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Dáil Éireann - Volume 250 - 16 December, 1970

Ceisteanna—Questions. Oral Answers. - Clara (Offaly) Redundancy.

156. Mr. Enright asked the Minister for Industry and Commerce the date his Department first received notice of the dismissal of the 278 employees of a firm (name supplied) in Clara, County Offaly; whether his Department had prior knowledge of impending dismissals by this firm; why his Department did not take steps at an earlier date to safeguard the employment of the workers in this firm in view of the fact that his Department have been in close touch with the firm for at least two years in connection with the long-term plans for the industry.

157. Mr. Enright asked' the Minister for Industry and Commerce what steps his Department have taken to provide alternative employment for the 278 employees of a firm (name supplied) in Clara, County Offaly, who have been given notice of dismissal by the management.

158. Mr. Cowen and Mr. Connolly asked the Minister for Industry and Commerce what progress has been made in the efforts to attract new industry to Clara following the designation of the area for industrial grant purposes; and if he will make a statement as to when the proposed factory will be constructed by the IDA.

159. Mr. O.J. Flanagan asked the Minister for Industry and Commerce the date on which he was informed by the directors of a firm (names supplied) in Clara, Co. Offaly, that some hundreds of workers were about to lose their jobs; if this redundancy is caused by free trade conditions and entry to the EEC; and if he will make a statement in regard to this aspect of the matter.

160. Mr. O.J. Flanagan asked the Minister for Industry and Commerce if he will make a further public statement in connection with the proposed advance factory to be erected in Clara, County Offaly; if he will give the floor area and location of this factory; if it will be capable of accommodating in [1310] profitable employment at least 300 persons; when work will commence; and when it is likely that a suitable firm can be found to provide such employment with the least possible delay.

161. Mr. Enright asked the Minister for Industry and Commerce if his attention has been drawn to a reported statement by a person (details supplied); if this statement is accurate; if so, the date in the new year on which the industry is expected to be in operation; whether this industry will absorb the total number of employees who have been dismissed by the firm (name supplied); the date on which building will commence on the new factory; the type of industry the person who made the statement was referring to; and the total number likely to be employed by this new industry.

Mr. Lalor: With the permission of the Ceann Comhairle, I propose to take Questions Nos. 156 to 161 together.

The firm in question made an announcement on 8th December, 1970, to the effect that, because of the market situation for their products, they had been forced to decide upon a major curtailment of manufacturing activities in one of their factories. It was implicit in the statement which I issued on the same date that I had prior information about this matter. It was, of course, desirable that I should be in a position to take appropriate action as early as possible with the object of alleviating the situation for the workers affected. As I indicated in the statement to which I have referred, I have declared Clara to be a designated area for the purposes of the Industrial Development Act, 1969. The effect of this is that any new industrial projects locating in that area will be eligible for the maximum rate of grant allowable. In addition, the Industrial Development Authority have decided to construct an advance factory and steps to that end have already been taken. I am not in a position to state the amount of employment which may be given in this factory. In any case all the new employment is unlikely to be provided in one factory. While I am not at liberty to go into detail I can say that a number of proposals for new [1311] industrial projects for Clara are already under urgent examination by the Industrial Development Authority and there are expectations of an early and favourable decision concerning one of them at least.

It is correct that my Department has maintained close contact with the firm in question in recent years. This was done because jute was recognised to be a problem industry and the aim was to safeguard, as far as possible, the position of the industry and the workers. As I indicated in reply to a parliamentary question on 18th June, 1970, the steps taken in that connection included special arrangements negotiated for jute products under the Anglo-Irish Free Trade Area Agreement, grants by the Industrial Development Authority towards the cost of adaptation and diversification projects carried out by the firm concerned, financial assistance under the technical assistance scheme administered by my Department, facilities for the importation of materials where necessary, and assistance in the field of marketing.

I should point out that this particular factory was operating at a high level of production and employment up to recently. Although special attention was being paid to the industry the fall in demand for its products recently has been more rapid than could have been anticipated. The redundancy which is arising in the industry has not been caused by free trade conditions or entry to the EEC. Jute goods have not been subject to a reduction of protection under the Anglo-lrish Free Trade Area Agreement and we are not yet members of the EEC.

Mr. Enright: I am certain that on both sides of this House we are all sorry to see a situation arising whereby there are 278 people losing their jobs, but will the Minister not agree that his Department have been slow in taking the initiative in regard to this industry? As far back as April of this year, Deputy Colley, then Minister for Industry and Commerce, said he was in close touch with the situation in Clara. He went on to say that he had been in touch with this firm for at least two years in connection with the long term plans for the industry. Surely the [1312] Minister will agree that if his Department have been in close touch with this firm for the last two years in connection with their long term plans they should have been in a position to have known that this firm was in difficulties. I am certain the Minister will agree that long before now this advance factory should have been built and that this is a case of closing the stable door after the norse has gone. These people will lose their jobs for a period and this will cause unemployment and——

Acting Chairman: The Deputy should not develop his argument.

Mr. Enright: The Minister will agree that steps should have been taken long before now and it would have saved this desperate situation.

Mr. Lalor: I have already heard the Deputy say this when I received a deputation of a number of workers and people from Clara accompanied by him. I replied to him indicating that the information with regard to the closure of Clara was conveyed to me at the end of October. The actual date was 26th October. The jute industry operates in Clara and in Waterford. There was a question of the closing of one of those factories and up to that particular date, when I was told of the closure of the Clara factory, there was a possibility of Clara being maintained. If I, or the IDA, went ahead with an advance factory previous to that date the complaint now by the Deputy would be that Clara was closed because I or the IDA had already put the seal on it by encouraging people to get out by putting an advance factory there. The Deputy cannot have it both ways.

Mr. Enright: I am not trying to have it both ways. I felt I was fair in my criticism. The Minister will agree that this town is completely dependent on this industry?

Mr. Lalor: I have had to fight the Deputy's colleague on this already.

Mr. Enright: All the parishes around it are also dependent on it. If the Department had been in touch with this [1313] industry they would have realised there was a likelihood that these people would be laid off. The employees of this firm have been on three days a week for a considerable period, and if the Minister was aware of that situation he should have known there was a likelihood of redundancy. He should have known that the jute industry all over the world is very sensitive and he should have taken steps——

Acting Chairman: The Deputy cannot make a speech.

Mr. Cowen: The workers who will become redundant in Clara are satisfied that the Minister did everything possible——

Acting Chairman: Has the Deputy a question to ask?

Mr. Cowen: Is the Minister taking all the questions together?

Acting Chairman: The Minister is dealing with Question No. 161.

Mr. Lalor: It was agreed to take Nos. 156 to 161 together.

Mr. Cowen: The workers who will become redundant are satisfied that the Minister did everything possible to endeavour that there would be no lay-off in Clara. The firm made a definite decision in opting for Waterford. Deputy Enright was a member of a deputation of TDs from Laois-Offaly who, with the unions representing the workers, met the Minister last week. He will recall that the secretary of the union, Mr. Garmon, stated that the Minister had done everything possible from his point of view to ensure that no lay-off would take place.

Acting Chairman: The Deputy must ask a question. If he has not a question to ask he may not proceed.

Mr. Cowen: Is the Minister aware that Clara is very confident indeed, considering the statement the Minister has made in declaring Clara a designated area, that the workers who have been let go will be facilitated? There is no use in Deputy Enright coming in [1314] and casting a gloom on the town. I come from the town myself——

Mr. Enright: The Deputy has not done much for it.

(Interruptions.)

Acting Chairman: This debate cannot continue. I am calling Question No. 162.

(Interruptions.)

Acting Chairman: Deputy Connolly must sit down and allow Questions to proceed.

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