Dáil debates

Thursday, 6 October 2016

4:05 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I thank the Ceann Comhairle's office for selecting this matter. It is with great sadness and regret that I must raise this issue on the floor of the Dáil, as the devastating news was confirmed yesterday for the workers and their families that significant job losses will be incurred in Longford. These are good, high-quality jobs. Cameron Willis established its Longford base in 1978 and from that time onwards, the relationship has been mutually beneficial. The company has benefitted from a loyal, committed and dedicated workforce which at its peak was responsible for a turnover of €150 million per annum. At its lowest point, turnover fell to €100 million with margins of 33%. It was a highly profitable company that did very well and needless to say, County Longford benefitted immensely from having a company of that magnitude located in Longford town.

The manner in which this was handled leaves much to be desired. Rumours were circulating for a number of weeks, which left staff members extremely anxious and concerned with regard to their future. I make the point that now the news of 170 potential job losses has been confirmed, this is not simply a statistic. These are real families for whom there are real consequences leading up to Christmas. While 170 jobs may seem like a small number in the general scheme of things, it certainly is not small for a small county such as Longford. One should not think merely of the 170 jobs but also of the indirect employment consequences to which this will give rise.

Were the Minister or her officials made aware of this decision? If so, when were they made aware of it? Has the Minister sought a meeting with the relevant personnel from Cameron Willis? I note that in its press releases, the company refers to potential job losses. Has Enterprise Ireland met the senior management to ascertain whether State supports could be made available to try to reduce the number of job losses on the table? This is not a decision that can be blamed on the Government; it is a commercial decision I believe to be based on the cost of labour. I am of the view that the company is seeking to move to a cheaper economy. However, one must consider Ireland's own base. In terms of competitiveness, Ireland has dropped from being the ninth best country in which to do business in 2010 to the 17th best in 2016. Government is responsible for the lack of priority that has been given to promote regional development. I refer, in particular, to the previous Administration in this regard. Between 2011 and 2015, only two IDA Ireland site visits were made to Longford. The investment in the necessary infrastructure has been absolutely slashed and these job losses serve as a reminder that only three months ago, 87 jobs were lost in the region in Mullingar.

At a local level, the chairman of Longford County Council has called together the corporate policy group, the relevant stakeholders, Government bodies and Oireachtas Members and I invite the Minister, if she cannot come to the meeting at 1 o'clock on Monday next, to send a senior official from the Department to see what can be done.

At a broader level, we need to ascertain whether these jobs are gone. Is "potential" merely a sugar-coated word that the company is using in its press releases? If they are gone, how can we access the globalisation adjustment fund?

I ask the Minister to give serious consideration to the establishment of a special task force of persons with relevant experience, captains of industry with a clear implementation plan and a timeline, something similar to what was established in Limerick in 2009 when Dell looked to relocate from Limerick to Poland. That is now necessary, not only for Longford but for the midland region that has been left behind over the past number of years.

4:15 pm

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I thank Deputy Troy for raising this issue. It has also been raised with me by Deputy Peter Burke and Senator Gabrielle McFadden.

I was very sorry to hear about the decision announced yesterday by Cameron Industries. These employees in Cameron Willis have played a key role in the company's success over recent years and it is distressing for them now to be losing their jobs. My thoughts are with the workers and their families at this difficult time.

Unfortunately global circumstances in the oil business have meant that orders for the products manufactured in the Longford factory have fallen dramatically, therefore it is solely global commercial pressures that have led to this decision. The company is shedding a significant number of jobs worldwide and it has significant excess capacity.

While manufacturing is expected to cease, it is heartening that 50 high quality jobs will remain at the plant, on research and development projects and other specialist production functions. IDA Ireland, the enterprise agency working with Cameron Willis, will continue to work with the company. I have asked that the other relevant State bodies will work to ensure that the workers concerned will be assisted regarding entitlements and retraining opportunities.

The Deputy has raised the issue of possibly setting up a task force to deal with these redundancies. I do not favour such a course. The staff of the various development agencies will continue to pursue job creation projects as part of their daily work. It has been our experience in the past that when task forces were established in multiple locations following closures, this diluted the effectiveness of the various State bodies and meant they were diverted from their core day-to-day work. Having a multiplicity of new structures is not an effective or efficient mechanism. Experience has shown us that this is definitely the case.

The Government will strive to ensure that new investment and job creation projects will be pursued for Longford. This week's confirmation of the new Centre Parc holiday project in Ballymahon, County Longford, is a great boost for the county.

In the wider context, as a Government, we have put in place strategies for job creation that are starting to bear fruit. Unemployment has now come down to 8% nationally and while the rate in the midlands is slightly higher at 10.7%, that is a terrific improvement on the rate in that region of 19.6% in 2011.

The Government will continue to deliver on its commitments in the new regional action plans for jobs, which are a truly innovative mechanism to deliver job growth. The core objective of the plan is to support the creation of an extra 14,000 jobs across the region through the delivery of 119 collaborative actions focusing on increasing the number of entrepreneur start-ups, developing the capacity of existing enterprises, with further actions targeted at sectors of potential competitive advantage such as manufacturing, tourism, food and energy. I look forward to that process delivering for us and especially in bringing benefits to Longford.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I asked when was the Minister made aware of this. What level of engagement has she or her officials had with the company to ascertain whether or not these jobs are gone? They state "potential" job losses. It is in no one's interest that they camouflage the true reality of what is going on here. The minimum the staff deserve is openness and honesty from this company that they have worked so loyally for over the years.

Will the Minister make an application to the globalisation adjustment fund?

The Minister referred in her reply to a decrease in unemployment. That is to be welcomed, but my region's unemployment rate is still almost three percentage points higher than the national average. In fact, in quarter 1 of 2016 we saw an increase in unemployment in this region and since then we have had two announcements of significant job losses of which I am aware: 87 job losses in Mullingar and this one of 170 job losses in Longford. This region has been left behind over the past number of years and the figures confirm this. The Government and its predecessor have focused on the greater Dublin area from which 51% of GDP comes.

Longford and the midlands is a fantastic place to look at relocating business, given its proximity to Dublin and the amenities there. One need not queue up overnight to gain access to schools and there is affordable housing in the area.

The Minister might look at two businesses. Abbott Diagnostics, located in Longford, is looking to expand because it is one of the most efficient diagnostic plants worldwide. The Minister referred to Centre Parc in her reply. When Mr. Martin Dalby was in Ballymahon this week, he was amazed at the efficiency with which the Longford local authority dealt with the company's planning application, the turnaround time and its pro-business attitude to that application.

We need a special task force for this area. We need to prioritise this area. I want to have published a plan with an implementation timeline setting out what this Government will do to bring about replacement jobs for this area.

Finally, can the Minister answer the question? Will she or her representative be present at the meeting in Longford County Council at 1 o'clock on Monday?

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I will certainly see if somebody can go to Longford. We are announcing jobs in Limerick early that morning and I will see if I can get someone to go to that meeting.

Deputy Troy asked me when I heard. Actually, I got a voicemail from him. That was the first indication that I had of trouble in this company.

The Deputy mentioned Abbott Diagnostics and Centre Parc. I have had Centre Parc representatives in my office to ensure that we can hurry up this project and to remove any barriers, and a number of them were mentioned on Monday last in Longford and I will be working on that. I answered the task force question.

Deputy Troy also asked are these jobs gone. I believe they are. The falling price of oil on the global market has impacted and Longford employees are victims of that. My understanding is they have cut significant numbers in Leeds and in other companies around the world that they own because they have over capacity.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Unfortunately, they are investing in an eastern European plant.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Anyway, that is the case and that decision has been made.

4 o’clock

I received a letter from Mr. Quigley, the regional officer of the Unite Union, today to which I have replied. We will work hard together. It is unfair for the Deputy to say we are not doing anything. We have started the implementation of the regional action plans for jobs and they are working. The number unemployed is decreasing but I accept we cannot be complacent. There is a good deal of work still to be done. We are working with industry in the region, with the local authorities, the local enterprise offices, Enterprise Ireland and the IDA and we will continue to do that. I have met the Deputy at many of the functions held in counties Longford and Westmeath and I assure him that my focus is to deliver jobs in rural and regional Ireland.