HC Deb 13 May 1998 vol 312 c357
1. Mr. John D. Taylor (Strangford)

When she was advised by Killyleagh Yarns that it had financial difficulties; when the Industrial Development Board offered a rescue package to Killyleagh Yarns; when she was told of the decision to close the factory in Killyleagh; and what proposals she has made to attract new jobs to Killyleagh. [40679]

The Minister of State, Northern Ireland Office (Mr. Adam Ingram)

Herdmans, the company that owns Killyleagh Yarns, has kept the Industrial Development Board informed of the developing international market conditions that led to the decision on 27 April to announce the closure of Killyleagh and Mossley mills. No financial rescue package was offered to the company, as it was considered that that would not have stopped or averted the closure decision. Killyleagh will continue to be marketed as a suitable location for new IDB investment opportunities when they arise.

Mr. Taylor

Over the past 10 days, I have been to Killyleagh twice. As the Minister will appreciate, the village and its people are devastated by the decision. It is a rural village in the southern part of County Down, although it is in the Strangford constituency.

Will the Minister confirm that the closure took place without any prior consultation with trade unions? Will he also confirm that his Department will make every effort to claw back any grants that are due to it for plant and equipment provided for the factory? Will he further confirm that he will make every effort—on the international scene and through the IDB—to attract another company to the premises in Killyleagh, as the present owners are obviously making no effort whatever?

Mr. Ingram

Of course we recognise the impact of the closure on Killyleagh and the surrounding area. It is an important employer, and the loss of any employer of that size clearly has an impact on such a community. Consultation with trade unions is a matter for the company, but I suggest to the company that it is important to consult the work force and the unions. As for grant clawback, if there has been any breach of conditions relating to support given to the company in relation to the closure, we will consider it.

The right hon. Gentleman's last question—an important question—concerned how we would continue to market the area, and try to attract new investment. The initiative announced by the Chancellor yesterday begins the search for new ways to encourage growth in the Northern Ireland economy. If we achieve the right result on 22 May, peace and prosperity can go hand in hand, as the Chancellor said. I am sure that that will offer the best future for areas such as Killyleagh.

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