Minister denies he was told of Dell plan to shut plant
Monday October 06 2008
DEFENCE Minister Willie O'Dea last night vehemently denied reports that Dell has told the Government that it is to wind down its massive Limerick facility from January.
Speculation has mounted over the US firm's intentions since it was reported it was trying to sell off factories in an effort to cut costs and improve profitability.
Dell has admitted it wants to reduce expenses so that in 2010 its costs are $3bn (€2.2bn) a year lower than they were in 2007.
The firm currently employs 3,000 people at its manufacturing facility in Limerick and a further 1,350 people at its sales and marketing operation in Dublin and Wicklow.
The current speculation centres on the future of the Limerick site at Raheen amid fears Dell will downscale the site to cut costs.
The 'Wall Street Journal' revealed last month Dell was considering closing its Irish plant and yesterday it was claimed Dell told the Government and the IDA it plans to wind down operations in January 2009.
Former Fine Gael leader and Limerick East TD Michael Noonan urged ministers to make a statement. "The Dell workforce are very worried and concerned about their future employment and they deserve to know what is going on," Mr Noonan insisted.
But Mr O'Dea last night said reports he had been privately informed of such a move was "totally untrue".
"That's just a total untruth, a total lie," the minister said.
"I haven't spoken to a Dell executive in I'd say about three years, and I know the Tanaiste hasn't been informed about any decision by Dell either because I'm keeping in close touch with her about the situation."
Speculation
A spokesperson for the Department of Enterprise, Trade and Employment last night insisted no decision had been made regarding the plant.
"No decision has been made regarding the plant in Limerick. Anything else is pure speculation."
Fine Gael TD Kieran O'Donnell and Labour TD Jan O'Sullivan urged the Government to pull out all the stops to save Dell jobs.
A spokesman for Dell said a report yesterday of a January closure was "completely untrue and without foundation".
- Patricia McDonagh and Kathryn Hayes
