Phil Hogan (Carlow-Kilkenny, Fine Gael)

I thank the Minister of State, Deputy John McGuinness, for attending this important debate. As a Kilkenny man, I am glad the Minister of State will be able to give me the necessary information in the important context of saving as many jobs as possible in the Diageo review process that is taking place at present to ascertain the potential of retaining the production potential at Smithwick's brewery in Kilkenny.

As the Minister of State is aware, this facility has existed for almost 300 years. There are currently 93 jobs at the facility and 153 contractors make a large part of their living from it. It makes a contribution to the local economy of between €10 million and €15 million. It could be a site with considerable development potential if the economic situation recovered to the level of some years ago. However, Diageo has decided to review the value of those sites and their development potential.

Some time ago, the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Mary Coughlan, welcomed the announcement of the new site at Leixlip. There is now a unique opportunity to retain the facility in Kilkenny. The Leixlip idea was a good one according to the Minister, Deputy Coughlan. She was prepared to invest a substantial amount of money in assisting Diageo to build a new green field facility at grounds owned by Lord Iveagh. The facilities in Dundalk and Kilkenny were to be subsumed into that facility along with a part of St James's Gate.

The current economic climate has brought about a rethink in Diageo concerning the value of those sites, especially in Kilkenny and Dundalk, but also the value of the site in Leixlip and the amount the company would be expected to pay for that site. This is an opportunity to revisit the issue. I welcome that Diageo is prepared to revisit the matter. I am aware that meetings have taken place between senior people in Diageo and workers to establish what can be done to reduce costs, to save as many jobs as possible and to allow the facility in Kilkenny to operate for longer than originally planned.

I need not remind the Minister of State of the level of unemployment and job losses in Kilkenny. There is a very serious situation with some 10,144 people in Carlow-Kilkenny unemployed. It is critical that we retain as many manufacturing jobs as possible. There have been several blows in recent times, including job losses at NN Euroball and the announcement of 250 job losses at Glanbia. In addition to the contractor jobs, these 93 well paid jobs are important to the economic development of the city. The site is strategically placed adjacent to the central business district of Kilkenny city. I do not expect that the company will be able to replace the good employment which has been provided on the site for a considerable period of time. There is no planned retail activity or any master plan to replace lost jobs in the area.

However, there is an opportunity in this situation. I hope the Department will use its good offices in the context of the financial outlay that it was prepared to make to Diageo, through Enterprise Ireland, in the past year to consolidate the company's operations in Leixlip. I also hope the Department will now be prepared to put the resources allocated at that time into Kilkenny to maintain jobs, rather that starting afresh at a green field site that may or may not come to profitable fruition in four or five year's time.

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