Michael Lowry (Tipperary North, Independent)
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I thank the Ceann Comhairle for allowing me the opportunity to raise a serious matter on C&C Group and its existing operations in Tipperary and Dublin. Since the takeover of M&J Gleeson, I have made efforts to seek clarification from C&C on its future intentions. Its responses were particularly guarded and rather coy, leading me to be suspicious of their forward planning and its implications. My publicly expressed concerns at the time are now unfortunately proving well founded. In recent weeks several employees of M&J Gleeson in Borrisoleigh and Bulmer's in Clonmel have contacted me directly expressing frustration at the lack of information and mixed messages coming from a so-called consultative process. Employees are understandably worried, anxious and fearful for their future. The company is hiding behind the review process and keeping most of its staff in the dark.

M&J Gleeson was taken over by C&C in late November 2012. This was approved by the Competition Authority and sanctioned on 6 March of this year. A new CEO of Bulmer's and M&J Gleeson was appointed.

In May it was announced that Bulmers was to be subsumed into M&J Gleeson. Critically, it was indicated that this would include proposals to introduce all-Ireland structures. In recent months there have been a large number of redundancies in Bulmers in Clonmel. It was announced internally that the C&C Group intends to move the administration, accountancy and marketing functions to Belfast. This represents a carving up of administrative functions and will mean the loss of 50 jobs, including ten administrative jobs in Borrisoleigh, 15 administrative jobs in Clonmel and 25 administrative jobs in Dublin. The C&C Group rationale for this move is that it would make a cost saving of 20% by moving these functions to Belfast. I find it staggering that administration costs could be run 20% cheaper from a small office in Belfast. I question the motivation for the move to Belfast given that the C&C Group has significant corporate bases at Park West and Cherry Orchard in Dublin as well as a headquarters at Borrisoleigh, County Tipperary. The company has also stated that it will announce the results of its manufacturing review in April next year and that it is reviewing the requirements for its depots in southern Ireland. The company is engaged in a crude cost-cutting exercise which has a major human impact.

The Minister of State and the Department should note that pay and general terms and conditions are far more favourable at Bulmers than at M&J Gleeson in Borrisoleigh. For example, the redundancy terms for M&J Gleeson employees stands at two weeks per year of service in contrast to six and a half weeks at Bulmers. Instead of actively trying to force lesser pay and redundancy terms on Bulmers workers, the C&C Group should agree to equalise redundancy terms for the Gleeson employees at the higher rate of six and a half weeks.

Due to a combination of these actions, there is widespread trepidation about the future potential impact on the existing operations and its employees. The Gleeson Group in Tipperary is a steadfast, major employer and a major contributor to the local economy. It is vital that its current operations are protected to the maximum extent. There are consequences for employment should the C&C Group employ a policy to centralise any element of its manufacturing. The C&C Group has a duty to its workforce to be open and transparent in respect of its decisions. It is fair and reasonable to demand that the C&C Group should explain the motivation behind its commercial strategy and decisions.

John Perry (Sligo-North Leitrim, Fine Gael)
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I thank Deputy Lowry for raising this matter. I am mindful of the anxiety that possible redundancies in the group's operations in County Tipperary would create for the workers involved and their families as well as the local communities.

The rationalisation plan of the company concerned is a commercial matter for that company. I understand that the C&C Group completed the acquisition of the Gleeson Group in March 2013. The acquisition demonstrates the group's commitment to invest in Ireland. The Gleeson business is now being combined with the group's existing cider and beer business and will provide the company with a platform to drive growth throughout the market.

I understand from Enterprise Ireland that the company concerned is not an Enterprise Ireland client because its activities are mainly in the distribution of drinks. In addition, Enterprise Ireland has not grant aided the company's mineral water bottling operations in Borrisoleigh because it does not export. Enterprise Ireland does, however, have an active relationship with other companies in the group, mainly on research and development support programmes. Redundancies were announced in one of these companies recently relating to the sales and administration functions in Dublin. This company is a key client for Enterprise Ireland and has been provided with research and development and other supports. Enterprise Ireland continues to have ongoing discussions with this company.

I understand that the company concerned has initiated a consultation process, under the Protection of Employment Acts 1977 to 2007, with its employees and their representatives who are affected by the associated rationalisation plan that the Deputy referred to at the plants in Borrisoleigh and Clonmel. In this regard, I should point out that the services of the Labour Relations Commission are available to assist the parties concerned, if requested.

Employment retention and creation continues to be our primary objective and we have been working hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. A robust economy capable of capturing new opportunities and sustaining jobs requires a medium to long-term vision. Action Plan for Jobs is a key pillar in the delivery of that goal. This year's action plan for jobs will build on the success of the 2012 action plan. It includes 333 actions for delivery throughout all Departments and 46 agencies or offices. The enterprise development agencies under the aegis of my Department have been to the fore in delivering on the commitments set out in Action Plan for Jobs and continue to ensure businesses can maximise their contribution to economic recovery and employment growth.

I assure the House that we consider it important that the impact of redundancies from any source on employment in Clonmel and Borrisoleigh is minimised and the State enterprise agencies and the county enterprise boards will continue to make every effort to develop new employment opportunities for County Tipperary.

Enterprise Ireland activity is focused on the creation of new jobs through continuing to work with established companies in its portfolio. The agency is also supporting entrepreneurs in manufacturing and internationally trading services companies that are setting up high potential start­up companies. The agency works toward enhancing the innovation capability in its client companies through the support of research both in companies and through continuing work to assist commercialisation of research in third level establishments.

The county enterprise boards have responsibility for the delivery of State support to the indigenous microenterprise sector. The current priorities for the CEBs include assisting owner-managers to enhance the survival and sustainability of their businesses in these difficult economic times and to assist people wishing to start their own businesses, including those who have been made redundant. The CEBs provide a valuable resource for those starting a business. Anyone who has been made redundant or who is facing redundancy in Borrisoleigh or Clonmel and who is interested in exploring options for setting up their own business should contact the appropriate enterprise board, either Tipperary South Riding County Enterprise Board or Tipperary North Riding County Enterprise Board, for advice and assistance.

In addition to marketing County Tipperary for new investment, IDA Ireland works with its existing client companies in the county with a view to encouraging them to grow and embed their business in the county. The primary opportunity for regional locations is in respect of the existing client base and potential further investment opportunities from that base. In this context, it is notable that approximately 70% of all foreign direct investment won by IDA Ireland are from its existing client base.

My colleague, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, is determined to ensure Ireland can continue to compete globally for foreign direct investment. In winning such investments, we are mindful of the need to address the concerns that have been expressed by Deputies on all sides of the House about the relatively low level of site visits to certain regional locations. The Minister, Deputy Bruton, has accordingly requested IDA Ireland and Enterprise Ireland to work with the Department of Jobs, Enterprise and Innovation to explore what further initiatives we can take to ensure a better approach to enterprise development in regional locations. This exercise will complement the in-depth analysis of our foreign direct investment strategy currently being undertaken. The analysis will take account of factors, including key trends emerging in foreign direct investment, best practice internationally, Ireland's strengths in attracting foreign direct investment and changes to the EU's state aid rules that will be introduced in 2014. Our approach to regional development will inform the formulation of an appropriate foreign direct investment strategy for the period post 2014.

I am confident the measures outlined in Action Plan for Jobs, together with other policies and initiatives being pursued by the State agencies and the county enterprise boards in County Tipperary, will continue to support enterprise development and provide employment opportunities. The State agencies will continue to work closely with each other and with local interests to support an integrated approach to job creation in Borrisoleigh and Clonmel.

Michael Lowry (Tipperary North, Independent)
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I thank the Minister of State for his response. I call on him and his Department to convey our genuine concerns and fears to the C&C Group and its head personnel. The C&C Group management should be told to be upfront and honest with its loyal and dedicated workforce. The management should participate in meaningful dialogue and share information with the people working for them. The C&C Group needs to understand that rather than simply number crunching, it is dealing with real people who have jobs and careers.

It is dealing with the livelihood of families and their futures. Staff at Borrisoleigh and Clonmel must be treated with the dignity and respect they deserve and have earned over the years of service. The Minister and all State agencies must convey Members' concerns at the highest level. One aspect of this development about which the Minister of State's Department should be concerned and of which it should be conscious is that a private corporation, C&C Group, is stating it is easier and cheaper to provide administrative services from Belfast and that it proposes to move administrative jobs from Borrisoleigh, Clonmel and Dublin to Belfast. This surely must set alarm bells ringing throughout the Department and, if nothing else, should raise a serious question about the motivation behind this move by C&C Group.

John Perry (Sligo-North Leitrim, Fine Gael)
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I appreciate fully Deputy Lowry's remarks and I believe it is very important that the due diligence being carried out by C&C Group will be open and upfront. The Labour Relations Commission is available for consultations on this issue and it is all about livelihood as for every action, there is a reaction. It is important for the livelihood of everyone concerned that meaningful negotiations are taking place. The Department is very much aware of this issue and the availability of the Labour Relations Commission for consultations means I am confident that meaningful negotiations will take place in the interests of integrity and transparency, as the Deputy noted.