Dáil debates

Wednesday, 1 March 2006

 

Company Closures.

8:00 pm

Photo of Jimmy DevinsJimmy Devins (Sligo-Leitrim, Fianna Fail)

I thank the Ceann Comhairle for allowing me raise this important issue. As no doubt the House will be aware, Saehan Media recently announced that it is to cease manufacturing capability in Sligo in the near future. This will result in the loss of approximately 90 jobs and will bring to an end the company's involvement in Sligo dating back to the mid-1980s. In its heyday the factory employed more than 400 people. Unfortunately, for the past number of years there has been a steady decline in the number employed in Saehan Media.

The factory manufactures video cassettes and following the introduction of DVDs there has been a considerable decrease in the world-wide market for video cassettes. It could be argued, with some justification, that the company should have seen the threat posed by DVDs and responded accordingly. However, the company did not do so and all these arguments are now academic because the workers are losing their jobs.

Our thoughts must be with those workers. I understand that if a worker leaves the factory between the announcement of the closure and the actual closure he or she may not be entitled to full redundancy, yet the natural inclination of any worker is to look for alternative employment once he or she has been informed of the job loss. I ask the Minister of State to consider putting in place some mechanism whereby workers can avail of redundancy in such a situation.

These job losses in Saehan Media follow previous job losses in Tractec Limited and Platters Food. While there are different reasons for the closures of the three factories and I acknowledge that the overall unemployment rate in Sligo is still low, it constitutes a worrying trend. I am delighted that the Minister of State has responded to my request and the requests of my Oireachtas colleagues from Sligo-Leitrim to meet us. We look forward to proposals from him on how the situation can be resolved in the future.

I mentioned the closure of Platters Food. The excuse offered by the company concerned, Kerry Group plc, was that there was not enough room for expansion of its operation in Sligo. Instead, the company is moving its manufacturing to Dublin. I have been in touch with the local employment agencies and I am assured that there is plenty of room for expansion, yet here is an Irish multinational moving an indigenous Sligo industry to the over-populated and over-resourced east coast. This is contrary to the national spatial strategy and Government policy in this area. It is a move I deplore. I ask Kerry Group plc, even at this stage, to reconsider the decision to move. I know that all the local agencies such as Enterprise Ireland and FÁS will be very supportive.

I mentioned previously the closure of Tractec Limited. This factory, although successful, was taken over by the Eaton Corporation of America a short while before its closure. The same company has a factory in Manorhamilton in north Leitrim. I have been in touch with IDA Ireland and am assured that it has every confidence in the long-term viability of Eaton in Manorhamilton. The importance of Eaton, not just to Manorhamilton but to north Leitrim, cannot be underestimated. I ask the Minister of State to use his good offices to ensure that IDA Ireland and all other State agencies actively continue to work with Eaton so that this vitally important industry remains in Manorhamilton.

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