Merger undercutting other joinery firms
Deputy Collins alleges the merged company is using public funds to undercut competitors, threatening firms and jobs, and asks the Minister to meet concerned parties. The Minister says State agencies must balance rescue efforts and offers to meet them if given evidence; Connolly also fears GWI will squeeze out competitors.
I gather the new company are in receipt of £4 million from Fóir Teoranta. Will the Minister assure the House that the moneys they have received from the taxpayers will not be used to undercut other joinery works as they are doing already? Has he been made aware of the fact that this undercutting is going on, that other firms from Waterford, Meath and Limerick are in danger of going to the wall with resultant redundancies and unemployment for hundreds of people because of the practice of undercutting by these groups that have merged?
Comment on this
The Deputy will be aware that there has been surplus capacity in these industries in recent years and that the level of competition between all firms and at periods when these firms were competing with each other, because the merger is just going through, was very sharp and margins were pared very fine indeed. It is the continuous desire of the State agencies, the rescue agencies—the IDA, Fóir Teoranta and others—to ensure the survival of firms but it would obviously be self-defeating if it secured the destruction of other firms. They are expert enough and prudent enough to balance the rescue of one with guaranteeing the survival of another.
Comment on this
Would the Minister, because of the circumstances we are now facing with the Dáil being dissolved, be prepared to meet a number of people who were really worried because of the merger? Would he be prepared to meet them in the hope that none of those firms will be pushed out as a result of the £4 million made available by Fóir Teoranta to Cappincur and the GWI combine? I want to impress on the Minister that this is a matter of very great importance to the country.