Harney promises caution on Cork plan by Seagate

Great caution would be exercised over Seagate's plans to establish an operation in Cork, the Tanaiste, Ms Mary Harney, told the…

Great caution would be exercised over Seagate's plans to establish an operation in Cork, the Tanaiste, Ms Mary Harney, told the House.

"If Seagate comes back next April, when the review of Cork is completed, and tells us they want to proceed, we will be very cautious indeed before we could recommend that any more taxpayers' money would be given to this company. I do not want to see workers in Cork face what the workers in Clonmel have to face tonight."

She would find it very difficult to recommend to the Industrial Development Authority and the Government, without a very serious re-evaluation, that they should proceed with the Cork project. While she was not closing off any option, they would have to move forward very cautiously.

The company had told her that Cork was still "on" because of the kind of products it made, which were of much higher value and more capital-intensive than what had been produced in Clonmel.

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The Minister was opening an emergency debate on the closure of Seagate. She said she had been shocked to learn of the decision.

Sounding a more hopeful note, Ms Harney said there was a dynamic, enthusiastic and highly-motivated workforce in the town. This would be of great assistance in the search for a replacement industry by the task force which was being established.

She had received an assurance from Seagate that it would make its Clonmel facility available to any new investor at a very reasonable price.

"We have a number of projects in the pipeline for next year and a number of companies are currently looking at sites around the country. The IDA will take them to look at the Clonmel site."

Mr Tom Hayes (FG) said the Government should show solidarity with the worst-affected county in the country by relocating a Government Department to south Tipperary. He urged that something be done, in terms of redundancy payments, for the 300 part-time workers who had been "thrown to the wolves."

Mr Brendan Ryan (Ind) called for an investigation. There was something very suspect about the announcement of 1,000 new jobs when a company was obviously on its way down, he maintained.

Mr Shane Ross (Ind) said fundamental questions would have to be answered so that we would not make this kind of mistake again.

Mr John Dardis (PD) praised the Tanaiste for going to Clonmel. It was unusual to find a Minister willing to turn up when a plant was closing, to explain to the workers.