Harney denies she didn’t do enough to save plant

TÁNAISTE Mary Harney insisted yesterday that the IDA was close to finding a replacement plant for more than 300 Donegal workers who have lost their jobs.

US textile firm Unifi has announced the 311 workers at its Letterkenny plant would lose their jobs in October as it cannot continue to sustain its losses.

This prompted SIPTU to accuse the Tánaiste and Enterprise and Employment Minister Mary Harney of failing to do enough to save the jobs.

General secretary Joe O’Flynn said: “this announcement was greeted by dismay and shock by the Tánaiste and this indicates that insufficient attention was given to a company that had clearly flagged difficulties earlier in the year.”

Mr O’Flynn accused the Tánaiste and IDA of concentrating too much on attracting hi-tech industries and ignoring traditional industries. The Government had seen more than 4,000 jobs lost in the manufacturing sector in Donegal in the past four years, he added.

“A further 311 are joining the dole queues and it is a terrible blow when you consider there is a 14% unemployment rate in Donegal,” said Mr O’Flynn. But Ms Harney’s spokesman rejected the claim that she had not done enough to save the plant. “The fact that the Tánaiste said she was surprised at the decision to close the plant indicates that she was making every effort to save it,” he said.

Ms Harney said that both her department and the IDA had worked with the company to put together a reconstruction package in March. “We felt the reconstruction package had a longer lifetime than four months - we worked with them to cut energy costs that we felt might help turn the corner and keep the company open for a couple of more years - that is why I was surprised.”

The IDA is in the US this week trying to get a replacement medical sector industry for Donegal and the Border counties. “We hope we will be successful in clinching an industry for Donegal which will replace the one just lost,” she said.

Two other companies, Prumerica and Pacific Care, are also recruiting in Donegal and FÁS will make retraining services available to the Unifi workers.

Union TEEU said it was time for the Tánaiste to stop concentrating on high-profile job targets in the hi-tech sector for political advantage and knuckled down to prioritising jobs black spots.

Meanwhile, Unifi chief operating and financial officer Bill Lowe told workers they had to close because of operating losses over a number of years.

Mr Lowe said the shutdown will cost between €20m and €24m in redundancies and write-offs, and they will transfer to Asia.

Businesses estimate the loss of the plant will cost the economy up to €25m.