Dáil debates

Tuesday, 25 April 2006

8:00 pm

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)

In the not too distant past, north Tipperary was home to some of the world's largest industrial companies such as Aventis Pharma, Antigen, Procter and Gamble, Tubex, BSN Medical and large Irish-owned companies such as Irish Sugar.

In the past two weeks a shattering and demoralising blow has been inflicted on the people of Thurles. BSN Medical, which had employed more than 120 people in Thurles before Christmas, announced that it would close by the end of this year with the loss of the remaining 80 jobs. Erin Foods, owned by Campbells, was also put on the market recently. It is hoped that this world renowned brand can be sold as a going concern. However, the intention to sell the company has cast doubt and uncertainty on the future of the plant. Greenvale Animal Feeds, a subsidiary of Irish Sugar, employs more than 60 people in Thurles and now with the closure of Irish Sugar, these jobs are also in doubt.

BSN Medical is a global medical device company and was created as a 50:50 joint venture between Beiersdorf and Smith & Nephew in April 2001. BSN Medical specialises in bandaging and wound care, especially for burn victims. Another US company, Jobst, was the previous owner of the BSN Thurles operation until it was taken over in 1990. The manufacture of medical bandages has been carried out in Thurles for many years and many of the staff at the plant have spent their entire working lives in this factory and have been a very loyal and dedicated workforce. The news that the entire operation will cease by the end of the year is dreadful news for the staff, their families, the town and the economy of Thurles.

I call on the Minister of State to ensure that the US management of BSN Medical offers the current staff facing redundancy the same terms and conditions as their colleagues who opted for voluntary redundancy before Christmas and that every support and resource of the State is made available to these 80 people to assist them in seeking new employment.

It is an outrage that almost all of the companies I have mentioned closed in the past seven years under this Fianna Fáil-Progressive Democrats Government. Ineffective Government policy has forced hundreds of workers across north Tipperary to search for alternative employment or the nearest dole office.

North Tipperary has not benefited in any way from foreign direct investment since 1997 when this Government first took office. The only semblance of foreign investment is the welcome replacement for the former Antigen by Taro Pharmaceuticals in Roscrea. This Government has presided over the most substantial job losses in Nenagh, Roscrea, and Thurles in living memory. Throughout north Tipperary there are five international industries compared with more than 11 companies five years ago. The number of indigenous Irish industries has dropped from almost 90 in 1993 to fewer than 70 in 2003. When Aventis Pharma in Nenagh closed with the loss of 230 jobs in April 2002, I referred to north Tipperary as an "unemployment blackspot created in the midst of the greatest period of prosperity the nation has known". The Government has done nothing since, in four years, to reverse this. We have had no investment, no research and development funding and no new jobs. This Government has failed the people of north Tipperary.

This Government meddled with existing administrative structures which had a proven track record of success and had delivered to north Tipperary. In recent years misguided ministerial initiatives have left State agencies with responsibility for industrial development and job creation in north Tipperary confused, demoralised and lacking any sense of cohesion or direction.

The number of entrepreneurs and business people visiting north Tipperary has declined dramatically. In a recent parliamentary question, I was astounded when it was revealed that not a single industrialist has visited north Tipperary since 2003. Shannon Development, Enterprise Ireland and IDA Ireland have not organised a single visit for any potential investor to north Tipperary in three years. At a time when investment is locating to other parts of the country, it is inexcusable that the Minister and the employment creation agencies have continuously overlooked north Tipperary.

I am calling on the Minister for Enterprise, Trade and Employment to respond to the emerging employment crisis now facing Thurles and north Tipperary. The Minister must take immediate steps to encourage industrialists and investors to locate in north Tipperary.

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