Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 85: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the serious implications for the Waterford area in general and for Dungarvan of the announcement by Waterford Wedgewood that it is to close its Dungarvan plant and reduce its workforce at Kilbarry with a total loss of almost 500 jobs; if the proposed redundancies have been formally notified to his Department; the discussions he has had with the company on the matter, in particular on the prospects of keeping the Dungarvan plant in production; the action he intends to take arising from the announcement; if he will ask the industrial development agencies to give this area priority in terms of a search for replacement industry; and if he will make a statement on the matter. [18003/05]

Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context

On 4 May 2005, the company in question notified my Department of its decision to make 485 of its 1,456 employees redundant. Unfortunately, cost saving measures, including short-time working for the majority of its employees, which were taken last September, have proved insufficient for the company's needs. The company has indicated that its current sales volume does not justify maintaining two manufacturing plants in Waterford and Dungarvan and has decided to close the Dungarvan plant.

Enterprise Ireland has been working very closely with the company, particularly over the last number of months, regarding the company's strategy. In recent discussions, the company made it quite clear that there was a need to consolidate manufacturing operations into one plant. The agency will continue to work with the company in implementing its restructuring programme.

On 11 May last, I met the Waterford county manager to discuss the situation. An inter-agency forum, under the chairmanship of the county manager, has been established to deal with the job losses in the company. Enterprise Ireland, IDA Ireland and FÁS are participating in the forum together with all other relevant bodies, which have been brought into the process by the county manager. The first meeting of the forum took place on 13 May last and a second on 24 May. It is proposed that the forum will meet every two weeks for the present.

The industrial development agencies will continue to promote Waterford, and the south east region generally, as an attractive location for the development of employment and investment opportunities. As well as attracting new knowledge-based industries to Waterford, there is a strong indigenous presence in the area. As regards Dungarvan in particular, the first phase of site development has been completed on IDA Ireland's industrial park and the first client, Biopin, has been secured.