Micheál Martin (Cork South Central, Fianna Fail)

I thank Deputy Tom Hayes for raising this matter. I am aware of the situation in Clonmel and am concerned about the job losses at the company. The company has experienced a reduction in sales in a key market in the United Kingdom, primarily due to the impact of bad weather during the summer and increased competition from its main competitors. The company's sales in the UK are significantly below target. The company considers that the redundancies are necessary to reduce its costs and bring them in line with a revised business plan devised to ensure the competitiveness of its brands. Governments and Ministers cannot be held responsible for market trends. I respect the company's decision, which is aimed to ensure the long-term viability of the company and to protect the remaining 460 jobs in Clonmel.

Employment in the company increased rapidly from 330 people in 2004 to 600 employees this year, a dramatic increase by any standards. As the Deputy said, the company was planning additional expansion but market trends have impacted on that plan. The company has had to rein in its ambitions, regroup and move forward. We wish the company ongoing success.

While I am conscious of the effect any job losses will have on the workers involved and their families as well as on the local community, I assure any people affected that the State agencies will give every support they can to develop new employment opportunities. Enterprise Ireland is in regular contact with the company and is discussing how the agency can be of assistance with its research and development programme. To date, Enterprise Ireland has approved almost €300,000 in funding under its research technology and innovation scheme for the company and the agency expects all of this funding to be drawn down. The agency will continue to work very closely with the company during this challenging period.

The role of FÁS is particularly important in assisting those people who will lose their jobs. The agency has been in contact with the company and has offered its full range of services to support the employees. I understand from FÁS that the company is currently reviewing the redundancy situation with its employees and their union representatives. The company will contact FÁS to avail of the services that have been outlined in initial discussions.

When job losses happen, the Government, through the State development agencies and other interested parties, adopts a co-ordinated approach in dealing with the situation. All work together in making the employees, who are initially the most affected and need immediate assistance, aware of the supports available to assist in finding new employment, starting their own businesses or participating in appropriate training programmes.

The strategy of IDA Ireland for Clonmel and south Tipperary is to progress the development of a knowledge economy so that they can compete both nationally and internationally for foreign direct investment. The agency also works with its existing client base to help them develop their businesses further.

A substantial programme of activity is under way with existing overseas companies in the region. The success of these activities is demonstrated by the presence of 11 IDA Ireland-supported companies in south Tipperary, employing approximately 2,500 people. In marketing south Tipperary for new foreign direct investment, the agency is focused on attracting overseas companies in the services and knowledge-based industries, including advanced manufacturing. Recent successes in attracting foreign direct investment include Cordis and Alza in Cashel.

Cordis is expected to be operational in the second quarter of 2008. The future development of the Ballingarrane estate in Clonmel, incorporating an IDA business park and the Tipperary institute, will be a key asset in the quest for further overseas investment in the county. The key industry sector for south Tipperary is life sciences. The largest employers are Abbott and Boston Scientific, followed by Merck Sharp & Dohme, Pinewood Laboratories and Clonmel Healthcare. Abbott and Boston Scientific are companies of world-class calibre and reputation and it is very good that south Tipperary has the presence across the board of household names in FDI. It is a very healthy situation from a foreign direct investment perspective. Interestingly in today's announcement of 170 jobs in Carlow, mention was made of how successful the Clonmel plant was and is for Merck Sharp & Dohme. This fact was significant in the decision to locate another plant in the Carlow area.

A significant number of Enterprise Ireland client companies in south Tipperary are actively developing their businesses. Since 2006, Enterprise Ireland has made payments of more than €1.5 million to its client companies in south Tipperary.

According to figures for October 2007, the number of people on the live register in Clonmel is 849, an increase of 16 people on a year earlier. However, the live register is not specifically designed to measure unemployment as it includes part-time, seasonal and casual workers. Unemployment is measured by the quarterly national household survey, and the latest figure issued on 15 November for the south-east region, which is for the third quarter of 2007, is 4.8%. This is a welcome reduction from the 5.8% recorded for the third quarter of 2006.

I am confident that the strategies and policies being pursued by the State development agencies in Clonmel will continue to support investment and job creation in the area. I want to reiterate that the State agencies will continue to work closely with each other, with local interests and with all the Deputies representing Tipperary South to facilitate an integrated approach to enterprise development in both Clonmel and south Tipperary.

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