Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I thank the Chairman, Deputy Deasy and Senator Cullinane for raising this matter. This is an exceptionally difficult situation for the workers affected. This started back in August 2013 when Valeant took over Bausch and Lomb. It was signalled in the media at the time that Valeant was undertaking a root-and-branch examination of costs and that there would be pressure on different plants to show how they could deliver on costs. Obviously, threats to employment were implied in that. That is why we have been actively engaged with this company over a long period. I know there has been some criticism in this House and elsewhere that this should have been shared with other public figures. That is not the way one can work in an early-warning situation. We have worked hard to minimise the impact on Waterford throughout that period.

The package the IDA has put forward seeks to minimise the impact of job losses. The company made a decision that it needed to regain cost competitiveness if it were to retain its operation and re-win its market share. After acquisitions of this nature, there are always difficulties. To take up Deputy Calleary’s point, we are very alert to mergers and takeovers and their effects. There is much change in the pharmaceutical sector. As well as recognising areas of growth as well as of difficulty, we have managed to maintain our employment levels in this sector, a sector in which there has been much downsizing internationally.

I do not wish to comment further on this as it is at the Labour Relations Commission. Both sides are participating in an open and constructive way. I hope an outcome will allow us save the 900 jobs, invest as we plan and, hopefully, win new opportunities.

High unemployment in the south east is a continuing issue, of which I am acutely aware. The closure of TalkTalk was a particular catalyst for me. I have put a decisive spotlight on the south east through all our agencies. I did deliver the regional aid package for the south east which will now put it on a four-square with all other disadvantaged regions in the country, something which had not been the case in the past. The issue of the technological university does not fall into my bailiwick.

I know that the legislative process through which the technological university can be won for the south east is being developed. I am looking at a regional enterprise strategy and I believe we need to put more thinking into where regions' competitive advantages lie and how we develop them and get greater collaboration to deliver that. I am devoting further study to this area and the south east will certainly be a major priority for me in that context.

The issue of the IDA manager in Waterford is undoubtedly an operational matter for the IDA. I take the point that there is much criticism. In terms of where one puts new staff, clearly we are in a very competitive international world and are seeking to build new opportunities in new geographies to win new staff. All of those 35 people are being put into overseas locations to try to win new investment. Obviously, the IDA is undergoing reviews of its overall and regional strategies in conjunction with my Department. We will look at issues raised here in terms of staffing at that level. I would make the point that the person with designated regional responsibility moved from Waterford in 2011. I just noticed that if one takes site visits as a measure, in the period before that person moved from Waterford, there were an average of ten site visits per year. Since that person left, which coincides with my action in putting a spotlight on the south east, the number of site visits has doubled. I see this as being about delivering to the region and am confident that the IDA, under my direction, is giving this the necessary attention it deserves.

I would like to see more wins, but we have had Nypro and Enterprise Ireland had a number of wins, including Eishtec in the south east in Wexford and Waterford. We continue to put major emphasis on this and it is an area in which we need to work together to deliver a successful strategy. The site visits are being increased and I believe that, given time, those site visits and that enhanced effort will deliver results. This year, I again funded through the IDA an advanced facility in Waterford, precisely because I feel that we need something different in the regions to respond to the challenges that IDA has had in getting the necessary regional spread. I am open to whatever is seen to work and we will be taking a tough look at our regions, how we are doing things and how we can do things better. That will be part of both the IDA regional strategy and my work with it, which will embrace the wider enterprise family. I have probably visited the south east more than any other region and have consistently focused on this in all my dealings with the outgoing chief executive, as I will with the incoming chief executive. It is a high priority for me because it reflects a need that is obvious to me.

That document is being reviewed by the south east task force and many of the actions dovetail with ones we are acting upon. As the Deputy outlined, the regional aid is something that I already acted upon last month. We will continue to work with the committee in this area.