Dáil debates

Thursday, 15 May 2008

4:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)

I thank the Ceann Comhairle and his office for allowing me to raise this important issue, namely, the closure of Smithwicks Brewery in Kilkenny city. Smithwicks has been brewed in Kilkenny city since 1710. In recent years, Budweiser has used that facility for generating products for this market and the European market. It was more than just a brewery. It was synonymous with Kilkenny city but it was also a very important tourism incentive around the world in respect of Kilkenny beer, which was brewed in that location for export. It was a very important and potent instrument of tourism potential for Kilkenny city.

I was very disappointed that the Tánaiste and new Minister for Enterprise, Trade and Employment welcomed the rationalisation of the brewing industry in this country by not referring to the closure and the loss of jobs in Kilkenny or Dundalk. I hope this does not give any indication of the attitude the Minister will take to job losses in any other firm around the country in the future because it is a rather dismissive and callous approach.

I was also perplexed by the announcement by Diageo that talked about commissioning a new brewery on the edge of Dublin and rejuvenating part of the St. James's Gate site in Dublin when it had other sites in Kilkenny and Dundalk that could be made available for that purpose. We know Diageo's real reason for closing the brewery is to capitalise on a very valuable asset in the centre of the city of Kilkenny that can be sold for millions of euro. The same thing happened at Carlow when Greencore decided to cash in its valuable site by closing the sugar factory with the demise of the sugar industry.

A number of matters are worrying people in the city of Kilkenny. Not only will this news contribute to 120 direct and indirect job losses at the brewery, but 90 other workers at NN Euroball have been placed on protective notice in the past few days. The idea put forward by the Minister of State at the Department of Enterprise, Trade and Employment, Deputy John McGuinness, one of the local Deputies, that a Norman museum should be established on the brewery site is no substitute for much needed manufacturing employment at this location. That suggestion is ridiculous and out of touch with the real needs of people. Deputy McGuinness must be the first Minister of State for trade and commerce to suggest that workplaces be turned into museums. Manufacturing employment is the lifeblood of every community. Kilkenny city and its environs are now facing the threat of 170 job losses in that category of employment.

This comes on top of a 37% increase in the level of unemployment in Kilkenny in the past two years. The closure of Smithwicks Brewery is a sad day for the workers and people of Kilkenny. However, it was not just the employment it generated that was important. It also gave a huge tourism spin-off to the brewery and the export of Kilkenny beer. It is the end of a long manufacturing tradition in my native city. Regrettably, it need not have happened if warnings about the rapid deterioration of our national competitiveness had been heeded by the Government as far back as 2001 when it received several reports from the National Competitiveness Council dealing with these matters.

I ask the Minister for Enterprise, Trade and Employment to intervene rather than being dismissive about the loss of employment in Kilkenny, co-ordinate the State agencies to ensure that replacement manufacturing jobs are brought to the Kilkenny area as soon as possible and ensure that we will not continue to experience the haemorrhage of manufacturing employment in our area, as we have seen over the past two years.

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