94 jobs at risk following doubling of energy costs
As the future of Drogheda’s Premier Periclase factory and its 94 employees hangs in the balance following the appointment of an interim examiner, the Unite Trade Union has said the Government must intervene urgently to protect jobs at the plant.
Pointing out that the company’s financial difficulties are largely due to the doubling of energy costs over the past year, Unite’s Willie Quigley said that the situation should spur the government to impose an energy price cap to protect households, business and jobs.
“Premier Periclase is a specialist magnesia plant which has been operating in Drogheda since 1977 “Mr. Quigley said. “The manufacturing process is energy-intensive, and the company has been faced with a doubling of energy costs from 2020 to 2021.
“The situation has been worsened by the intransigence of Bord Gais which is threatening to turn off the gas tap in weeks unless the company makes a substantial payment to defray a €2.5 million gas bill.
“Premier Periclase is a viable plant facing an energy price crisis due to factors beyond its control. In the short term, I am calling on the Government to provide assistance to the company to avert it becoming insolvent.
“While immediate assistance is needed, however, it will not address the longer-term impact of spiralling energy costs on households, businesses and jobs. These costs are socially and economically unsustainable.
“The Commission for the Regulation of Utilities is tasked with regulating energy in the public interest, and the government must instruct the CRU to impose an energy price cap to ensure that energy users are no longer at the mercy of fluctuations on the global energy wholesale market.
“The situation currently facing Premier Periclase should act as a wake-up call to Government”, Mr Quigley concluded.
