§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement outlining what steps he has taken to monitor the performance of the new cutting room at Desmond and Sons Ltd, Drumahoe, factory since his visit; and what assessment he has made of the company's progress towards achieving the goals outlined to him on that visit.
§ Mr. ViggersMy right hon. Friend visited the Drumahoe factory on 2 July 1986 to attend the official opening of the company's computerised warehouse and distribution centre. He was taken on a tour of the total facility at Drumahoe, including the cutting room, which had been opened in early 1985. No discussion took place during that visit regarding the performance of the cutting room and no goals for it were outlined to him.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement outlining what information was made available to him prior to the closure of the cutting room at Desmond and Sons Ltd., Drumahoe, regarding the company's decision.
§ Mr. ViggersThe company informed the Industrial Development Board in early Februry 1987 that it had excess cutting capacity and was starting consultations with the trade union representatives to discuss this problem.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement detailing what grants or loans from public funds and through public agencies were made to Desmond and Sons Ltd, in respect of the new technology introduced to the cutting room at its Drumahoe plant, indicating the specific items for which each element of aid was given; and what considerations particularly regarding employment levels determined the decision to give such aid.
§ Mr. ViggersIn November 1984 Desmond and Sons Ltd. accepted an offer of selective financial assistance from the Industrial Development Board towards the renewal of employment at the company's undertaking at Drumahoe
Location 1982–83 £
1983–84 £
1984–85 £
1985–86 £
11986–87 £
Total £
Omagh 65,828.98 28,267.22 53,886.47 33,977.50 — 181,960.17 Drumahoe 23,356.00 8,784.84 — — — 32,140.84 Irvinestown 5,671.40 39,732.00 16,230.74 36,953.00 1,332.00 99,919.14 Swatragh 8,868.00 3,252.00 11,237.60 17,344.76 — 40,702.36 Dungiven 16,808.06 1,370.00 21,046.39 30,520.74 2,340.00 72,085.19 Brittania Sportswear 9,552.00 9,306.00 2,501.00 15,208.69 6,622.20 43,189.89 Enniskillen — 11,441.58 46,336.87 73,566.30 912.00 132,256.75 Claudy — 14,037.00 5,455.80 10,703.00 11,654.00 41,849.80 Newbuildings — — — 11,555.00 — 11,555.00 Springtown — — — 20,985.00 — 20,985.00 130,084.44 116,190.64 156,694.87 250,813.99 22,860.020 676,644.14 1 To date Standard capital grant payment related to machinery and/or equipment at the various sites.
116Wfor administration, warehousing and manufacture of light clothing. The total package of assistance offered amounted to £2,525,500, consisting of building; machinery and equipment and employment grants. The offer was not broken down over the various departments at Drumahoe. However, based on the expenditure to be incurred in the cutting room and the number of people employed there, it is estimated that £355,000 of grants could be attributed to that facility.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement outlining what assistance from public funds and public agencies has been given to each plant in Desmond and Sons Ltd. over the past five years, or is currently earmarked for the coming financial year, and detailing also all the equipment or development for which such aid has been granted.
§ Mr. ViggersDuring the last five financial years assistance totalling £973,005 has been given by the Department of Economic Development and the Clothing Industry Training Board and selective financial assistance of £9,700,000 offered by the Industrial Development Board to Desmond and Sons Ltd.
The following amounts represent assistance from the youth training programme, formally the youth opportunities programme; key training activity and industrial placement support through the Clothing Industry Training Board; key workers scheme; young workers scheme; job introduction scheme and management development programme. These figures cannot however be broken down to identify assistance given to individual factories.
£ 1982–83 22,247 1983–84 12,720 1984–85 12,574 1985–86 74,536 11986–87 174,284 Total 296,361 1 To date. In addition standard capital grants and grants under the training on employers premises scheme have been paid to individual factories as follows:
Since March 1982 the Industrial Development Board has offered the company the following selective financial assistance.
117W
Location Total amount offered (£) Purpose New buildings, Springtown Omagh and Dungiven (Outwear Division) 3,087,500 Expansion of jackets trousers and jeans manufacture Drumahoe, Claudy and Swatragh (Nightwear Division) 4,815,000 Re-equipment of pyjama and dressing gown operation plus new centralised warehouse Enniskillen and Irvinestown (Leisurewear Division) 1,797,500 Establishment of operation for leisurewear manufacture At present it is estimated that approximately £180,000 of grant will be given to the company, in respect of the youth training programme and the YTP work scheme, and approximately £15,000 in respect of the training and employers premises scheme, but estimates for payments under other schemes are not available.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he plans to take any action in the light of the closure of the Desmond and Sons Ltd. cutting room at Drumahoe following the installation of new technology with assistance from public funds; what information he has about the likely scale of redundancies; and if he will make a statement.
§ Mr. ViggersUnder the terms of the IDB offer of assistance if, within four years of installation, the company does not use any item of machinery or equipment for a period exceeding six months, the IDB has the right to demand repayment of the grant paid on that machinery.
Desmond and Sons Ltd. has informed the IDB that the cutting room at Drumahoe was closed on 27 February 1987, resulting in 16 redundancies. This was a commercial decision, for which the company was responsible.
IDB will monitor the situation to ensure that all terms and conditions relating to the payment of grant are met.