Damien English (Meath West, Fine Gael)
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Question 7: To ask the Minister for Enterprise, Trade and Employment the nature of the negotiations between his Department and the parties involved in the Iralco factory difficulties; and if he will make a statement on the matter. [16707/08]

Joe Costello (Dublin Central, Labour)
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Question 58: To ask the Minister for Enterprise, Trade and Employment the contacts his Department has had with the receiver (details supplied) in County Westmeath; if he has satisfied himself that all appropriate steps are being taken to ensure the retention of the maximum possible number of jobs at the plant; and if he will make a statement on the matter. [16550/08]

Micheál Martin (Cork South Central, Fianna Fail)
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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.

Damien English (Meath West, Fine Gael)
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I thank the Minister for his reply. The Minister of State, Deputy Kelleher, in response to a Private Notice Question on this matter gave us a great deal of information in respect of what was being done by Government through the IDA. I am happy with the efforts made in this regard.

The announcement by the company of its intention to close was very sudden. Despite offers of assistance and ongoing negotiations, the company opted to close. Previous to this the company was predicting a bright future despite staff issues. Were any of the offers made accepted? The IDA was brought in in respect of employment negotiations. Did these negotiations take place? I accept every effort was made on the Government side. Did the company tap into any of the offers made? Does the Minister believe it will engage in negotiations to save the company?

Micheál Martin (Cork South Central, Fianna Fail)
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I am always reluctant to go into the detail of discussions between companies, agencies and so on.

Damien English (Meath West, Fine Gael)
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I accept that.

Micheál Martin (Cork South Central, Fianna Fail)
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There is a key issue involved in respect of industrial relations. The Deputy is correct that the decision to go into liquidation was sudden and not anticipated. The one general observation I would make in situations like this — I have had experience of a few such situations where we have managed to intervene — is that there are challenges involved for all parties concerned. The ultimate consideration of preserving and protecting jobs should reign supreme. All efforts of mediation should be exhausted in finding a resolution.

People on all sides have perhaps learned from this scenario. I hope we can put together the wherewithal to ensure the continued survival of the company and its capacity to provide employment in the midlands, an area which does not enjoy huge employment opportunities. Iralco is a significant employer in this area. The offers which seek to form part of the resolution remain on the table.

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister for his reply and thank also the Minister of State, Deputy Billy Kelleher, who was helpful and forthcoming during our discussions on the Private Notice Question.

I compliment the liquidators, Mr. McStay, Mr. Rogers, Mr. Bolger, Mr. Kenny and all involved in this matter. Everybody has put their shoulder to the wheel and we now have a window of opportunity of six months. I accept it was a matter for the company to opt to go into liquidation rather than examinership. I was surprised by this decision as were some of the workforce. Thankfully, the situation has been unscrambled and an opportunity now exists for the company to be sold as a going concern to ensure the maximum number of jobs, if not all, are protected.

Did the IDA, which I know was working closely with this company, receive from the company in the 48 to 72 hours prior to its announcement any signal it was going to close bearing in mind the far-reaching effects this would have on employees? The company had a full order book which would have ensured its operation for some time. There may be industrial relations issues to be resolved but employees have not received a pay increase since 2005. It is hoped all of these matters can be addressed now.

In the experience of the Department, was it unusual that this company announced its intention to close without providing it with 48 hours notice in this regard?

Micheál Martin (Cork South Central, Fianna Fail)
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Obviously, I have had discussions with the IDA officials directly involved in the case.

Willie Penrose (Longford-Westmeath, Labour)
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They worked hard.

Micheál Martin (Cork South Central, Fianna Fail)
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The Deputy's assessment is fair. We would have preferred a further opportunity to explore avenues to resolve the issues prior to the company going into liquidation. However, now is not the time to be judgmental. We must try to move forward and create a new atmosphere.

In regard to companies in the manufacturing sector, I have come across a number of cases during the past few years wherein the overall industrial relations background — this reflects the position on both sides — was difficult in terms of communication and understanding. This type of situation allows problems to build up to an extent wherein an eleventh hour scenario is reached, trust breaks down and the situation becomes adversarial. We intervened in a number of cases because we received prior notice of the situation. Senior trade union officials often seek to resolve issues with management and owners of companies.

I have asked the manufacturing forum to consider such issues. We face enough global challenges without shooting ourselves in the foot. I hope we can move forward in terms of assisting and supporting the ongoing development of the company concerned. The company is in a competitive space globally and has a bright future which we are anxious to support.