Strong criticism follows AST redundancy announcement

Shock, disappointment and puzzlement were amongst the reactions expressed in Limerick yesterday at the major redundancy announcement at the £13 million AST computer plant, which was opened with a flourish three years ago by the then Taoiseach, Mr Reynolds.

The Minister of State, Mr Willie O'Dea, who is an East Limerick deputy, said the statement issued by the company was "very ambiguous and disappointing". He added: "It raises one fundamental question - what exactly are AST's future intentions in regard to their commitment in the region?".

He said that, while he welcomed the "hands on" approach adopted by the Tanaiste, Ms Harney, to date, "nevertheless, I will urgently request that the Tanaiste immediately seeks clarification from the parent company on this vitally important matter. I think the treatment meted out to AST's loyal workforce in the past few weeks has been contemptible."

"I am not," added the Minister, "prepared to tolerate a situation where this redundancy is going to be allowed to hang like a sword of Damocles over the heads of several hundred of my constituents." He said he was demanding that AST clarify its intentions immediately and declare publicly that it is committed to maintaining its production facilities at the Plassey Technological Park. Mr O'Dea recalled that the president and chief operating officer of the company, Mr Jim Schraith, said in September 1994 at the opening that the company had moved to Limerick because of "its geographic location, well educated and skilled workforce, access to component sources as well as air, sea and ground transport infrastructures". Mr O'Dea added : "If that was the case in 1994, it is even more attractive today."

The Mayor of Limerick, Mr Frank Leddin, said he was shocked at the announcement and even more shocked at the suggestion that the company might even decide to relocate in the United Kingdom. He expressed disappointment that 140 of the 430 workforce might be immediately declared redundant but had not been identified. "This leads to confusion among so many at this side of the Christmas season."

Councillor Jan O'Sullivan, a former Mayor of Limerick and leader of the Labour Party in the City Council, expressed her "disappointment and dismay" at the announcement.

"This is bad news for the workers and for Limerick within Christmas week and it will cast a shadow over so many homes of workers involved at the most festive time of the year."

The previous managing director, Mr Sean Corkery, who was appointed senior vice-president in charge of world-wide manufacturing, planning and procurement in October, has since left to join Esat Digital.