Billy Kelleher (Cork North Central, Fianna Fail)

I thank the Deputies opposite for raising this matter on the Adjournment. The decision by Allergan to close its facility on a phased basis by mid-2009 with the loss of 360 jobs is very disappointing, particularly for the workers and families involved. I understand that the company has entered into a consultation process with its employees and their trade unions on its proposal to close the site over an 18-month period.

The Arklow plant, which produces breast implants for the global market, has been a very good employer in Arklow for a number of years and has received approximately €3.7 million in grant assistance from IDA Ireland since 1989. The decision was taken as a result of an internal global business review and the company has decided to relocate the manufacture of all products produced in Arklow to its manufacturing facility in Costa Rica, which has spare capacity.

It is envisaged that employment at the Arklow site will be phased out primarily between December 2008 and the first six months of 2009. However, I am pleased to say that the company in question remains strongly committed to its other Irish-based operations in Mayo and Dublin where several hundred people are employed. While I am conscious of the effect that any job losses will have on the workers involved and their families, as well as on the local community, I assure people affected that the State agencies will give every support they can to assist the workers who will lose their jobs and to develop new employment opportunities in the area.

The role of FÁS will be particularly important in assisting those people who will lose their jobs. I understand that in response to a request from the company for assistance from FÁS, the agency will be arranging a meeting to discuss its full range of services. This will include training and other supports. The company has decided to phase out the operation over the timeframe set out in order to allow the employees to seek alternative employment. In addition, the company has committed itself to finding suitable positions for workers in its other facilities, if this is possible.

I assure Deputies that IDA Ireland is in ongoing contact with the company and will continue to work very closely with its representatives during this challenging period. In recent times, IDA Ireland has been meeting with the company in an effort to have it invest more heavily in technical process development and in significant process automation.

In its ongoing drive to attract investment opportunities to Arklow and County Wicklow generally, I am pleased to say that IDA Ireland is currently in negotiations with two investors with regard to relocating and expanding in IDA Ireland Arklow Business Park. In addition, IDA Ireland has recently participated in a number of Wicklow enterprise days, which are aimed at promoting Wicklow as an attractive business location for Dublin companies. I was very encouraged to learn, particularly in light of today's announcement, that Servier Ireland Industries Limited, which is based in Arklow, is actively recruiting at present and employment figures have consistently increased over the last number of years.

The high-end medical technology sector in Ireland remains strong and will continue to be a focus for new investment, as witnessed by recent announcements in the sector. I am confident that further investment announcements will be made in the sector in the near future. According to the latest quarterly national household survey, published by the Central Statistics Office, the unemployment rate in the mid-east area, which includes Arklow, is 3.9%. This is one of the lowest unemployment rates in the country. Hopefully, this will increase the chances of the 360 workers who will be laid off in seeking other forms of employment. I assure Deputies that the Government, through the offices of the State agencies, will continue to promote Arklow and County Wicklow in general as attractive locations for employment and investment opportunities. I sympathise with the workers and their families. Obviously, it is a big loss to the area but I assure Deputies that the State agencies will do everything possible to find alternative forms of employment or assist in training.

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