Micheál Martin (Cork South Central, Fianna Fail)

I propose to take Questions Nos. 7 and 58 together.

On Monday, 12 April Iralco issued a press statement to the effect that liquidators had been appointed to the company. The company had indicated previously to the IDA that jobs were at risk if specific industrial relations issues in respect of pay increases could not be resolved. Extra funding was also needed to proceed with the investment the company had planned in the Ukraine, which was crucial to the future of the Irish operation.

Prior to the company announcement, IDA had been engaging with the company and had offered to assist by lending its support to resolve the industrial relations situation through discussions with the union and shareholders. IDA had also confirmed to the company that it would look at support for training, consultancy and research and development based on its future business plan in Collinstown. IDA offered to assist if the company decided to seek investment from equity or industrial partners and to work with Enterprise Ireland in the case of an indigenous shareholding investment.

I have been in direct contact with the company and the trade union and have reiterated that the Government agencies remain available and willing to provide any assistance or to take any steps possible to ensure the company remains in production on terms satisfactory to the management, unions and employees. Following talks between Iralco workers, management and the liquidators which concluded on 20 April, staff returned to work on Monday, 21 April on the basis of an order book for the next six months.

The efforts of the agencies have and will continue to be geared towards saving as many jobs as possible including providing any possible assistance in the event of a take-over or management buy-out option. I assure the Deputy that IDA Ireland is in ongoing contact with the company and will continue to work very closely with its representatives during this challenging period.

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