Fruit of the Loom's bitter harvest
Job losses highlight multinational dependency
| |
Sinn Féin's position, though not articulated often enough, is
clear - local communities must play a central role in any form of
planned economic development
|
Hundreds of jobs are on the line at Fruit of the Loom this week.
The 3,500 workers, the Dublin Government and IDA Ireland all
await detailed news from the group's chairperson Bill Farley on
the future of the company's Irish plants in Donegal and Derry.
Already 48 jobs are to be lost at the Dungloe sewing plant. For
the last two years Fruit of the Loom has faced difficult global
trading conditions with company sales falling. Decreasing demand
for its t-shirt and sweat shirt products has led to Fruit of the
Loom's lower costs plants in Morocco and the Far East having a
competitive advantage over their Irish compatriots.
Jobs Limbo
Donegal and Derry's economic policy is formulated in Dublin and
Belfast and now hangs on the input of an American company
| |
Now the workforce are in a limbo fearing the worst and being made
to wait for clarification from their US employers. The success or
failure of Fruit of the Loom cuts to the heart of economic
development in Ireland. It highlights important issues about
industrial development policies of successive Dublin Governments
and their dependency on foreign multinationals as the engine of
economic growth.
It also cuts to the core of a debate that has been brewing in the
letter pages of An Phoblacht in recent weeks. What is the
republican stance on multinationals? More importantly though what
is the Sinn Féin alternative to multinational dependency?
The impact of Fruit of the Loom over the past 12 years on the
local economy in the North West and particularly in the Inishowen
peninsula has been enormous. An area of perennially high
emigration was given effectively a 12 year respite. The wages of
the workers brought millions of punts into the economy and
tangibly boosted the local economy.
Downside
Now however we must contemplate the other side of the coin - the
loss of such a big employer to the local economy of North West
Ireland. The position of IDA Ireland is clear. A spokesperson
told An Phoblacht that the IDA has found it difficult to attract
foreign industry to Donegal. He imagined that ``the IDB have the
same problems''.
The IDA does have a plan to encourage new industrial development
in Donegal both in terms of encouraging infrastructural
development and pitching Donegal in terms of its links with
Derry, Belfast and Larne Port.
The IDA's approach is relatively straightforward. They want to
seek alternative high technology based companies to the North
West. It seems to be accepted that there will be job losses at
Fruit of the Loom and that the local economy got 12 years of good
return from the company. This was preferable to the McCarter
family plant closing down and leaving Inishowen without the
benefits given over the last 12 years.
The Alternatives?
Now the process begins again. So what is the alternative? Sinn
Féin's position, though not articulated often enough, is clear -
local communities must play a central role in any form of planned
economic development. The current structure of the IDA, Forbairt
and Enterprise Ireland does not offer an adequate role for local
communities to have an impact on the development of their local
economies.
For years we have witnessed the efforts made and funding
allocated for attracting multinationals to Ireland. It is
fundamentally wrong that such funding and such efforts are not
made for indigenous projects, whether they be led by the private
sector or local communities.
Fundamental Rethink
It is well documented that most multinationals are only here to
take advantage of low tax rates and that the concentrated nature
of foreign companies - the IDA are now targeting only services,
electronics and medical companies - means that they are highly
vulnerable to global economic changes such as the consequences of
the current turmoil in Asia and Russia.
There must be a fundamental rethink of the role transnational
companies play in Ireland. Fruit of the Loom has brought benefits
to Donegal but it is wrong that the local economy should be held
hostage to the company.
The orthodox approach that only multinational companies can be
the engine of economic growth in Ireland needs to be challenged.
There are alternatives. Below we outline the summary of the Sinn
Féin position outlined in its policy document Putting People
First. More importantly we offer an interpretation of its
relevance for the local economy in the North West. As it says in
Putting People First ``Economic activity and policy must start
with the community, not bypass it''.
Four themes for a people's economy
Sinn Féin believes there are four key themes that must underpin
any economic programme. First the community must be the starting
point of any economic policy. This is the basic building block of
the economy. Donegal and Derry's economic policy is formulated in
Dublin and Belfast and now hangs on the input of an American
company. The people of the North West have been clearly left out
of the equation.
Secondly there must be decentralised political and economic
structures. If Donegal and Derry people were in control of their
local economy the current scenario of underdevelopment and lack
of proper structures would not the stifling problem it is today.
Donegal and Derry would probably have adequate road networks,
with proper telecommunications facilities and other
infrastructure.
Thirdly, there needs to be a vibrant public sector. The state has
a key role to play in an efficient equitable economy. In the
North West the public sector is not part of the economic
development equation except in the provision of basic services.
In Ireland the state has successfully started and run businesses
which the private sector spurned. There is plenty of scope in the
North West for vibrant public enterprise.
Fourthly, there is the social economy, the recognition of the
role local communities can play in economic development. This is
a vital part of any economic development programme. Yet in the
Fruit of the Loom issue their focus is entirely on the
relationship between the foreign multinational and the Dublin
Government. The local community is relegated out of the process
which will determine its own future.
![[An Phoblacht]](http://republican-news.org/graphics/title_gifs/aprn.gif)