Cecilia Keaveney (Donegal North East, Fianna Fail)

I remember the days when I was preparing for my leaving certificate, which is a fair while ago but not as long as some other Members. My brother was two years ahead of me and he was studying German. In a recent discussion about the leaving certificate the question arose as to why so many students study Spanish while in the past they studied German. I was fascinated by the answer which was that a few years ago everybody needed to learn German because they had to go to Germany to get a job, whereas nowadays they learn Spanish because they own Spanish holiday homes and have to understand the natives. That reflects the general trend in employment in Ireland. We have moved from a situation where there was no hope of being employed here, to a situation where Irish employment trends have tended to be far better than in many other countries.

My constituency, however, has not benefited from that great gain in employment. Textiles used to be a key area in Donegal, which had the three "F's"— Fruit of the Loom, farming and fishing. One of those, Fruit of the Loom, has gone.

In last night's debate, the Minister of State concentrated on one aspect of the matter and, due to time constraints, I will concentrate on redundancy payments. I understand the exceptional success that our economy is currently experiencing. Of all Deputies, I know we are vulnerable to global pressures, particularly in the manufacturing sector. I also know many companies, particularly in my area, have found they cannot survive in the current environment and have moved on. They have tried market diversification, changing their technology, downsizing or other methods but, ultimately, many of them have decided to move elsewhere.

Our improved redundancy legislation goes some way towards alleviating the immediate impact on such workers. I commend the Department on the intervention of FÁS and other agencies, including the Inishowen partnership, in providing training. They try to ensure people who are being laid off will immediately receive an opportunity to retrain and become employable as opposed to being unemployed.

The Redundancy Payments Act 2003, enacted in May 2003, represented a radical change to the redundancy payments scheme as it existed under the previous 1967 Act. The 2003 Act provided the legislative framework for a significantly enhanced level of statutory redundancy payments of two weeks per year of service, plus a bonus week, which was agreed by Government and the social partners under Sustaining Progress. The old redundancy payment system was restricted to half a week's pay per year of service up to the age of 41 and a week for every year over 41, together with a bonus week.

Of all constituencies, mine has understood this concept very well. Unfortunately, we have probably availed of redundancy payments more than most other constituencies. In as much as we have done so, however, we have also availed of the Department's life-long learning schemes and have thus benefited from the impact of such training schemes. I commend the Government for having introduced such schemes.

I wish to cite two examples of many concerning losses in the textile industry. Fruit of the Loom paid 3.5 weeks on top of the statutory redundancy requirement until that requirement was changed in the 2003 Act to which I referred. Since that change, the redundancy payment amounts to two weeks per year of service but Fruit of the Loom had given 2.9 weeks as an ex gratia payment. The company willingly extended and entered negotiations with the unions to ensure a fair deal would be achieved for all staff following the change in statutory requirements, so that current staff were treated as fairly as those who went before. There has been a gradual reduction of staff at the company from several thousand to several hundred, and most employees will be gone by 26 May. The company's approach to redundancy was based on fairness and respect for those who served it so well.

As regards the 67 staff who are being paid off by Clubman Omega, there is currently no obligation beyond the statutory one. However, given that most of these workers have worked at the company since they were 13, the management and board of directors should look to the example of Fruit of the Loom. They should recognise the wonderful work their staff have done and ensure the 67 workers get the Labour Court's recommendation. The staff produced a quality product whose value was recognised by everyone. Recognition of the staff is very important and the company should rise to the challenge, as did the neighbouring Fruit of the Loom factory. They should respect the workers who have been loyal, dedicated and competent.

In most of the situations I am dealing with, the companies have not closed. They have moved elsewhere and the companies are still trading. People will be familiar with situations where workers come from outside Ireland to take over our jobs but in Donegal our jobs are going elsewhere for others to do. I call on Clubman Omega's board of management to listen to people on the ground and respect the wonderful work their employees did. That respect should be reflected in their financial settlement.

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