John McGuinness (Carlow-Kilkenny, Fianna Fail)

I thank the Deputy for raising this matter and I am pleased to be able to take it. I sympathise will all those who have lost jobs throughout the country and we must make an extra special effort to find replacement jobs and training where necessary. Deputy Hogan referred to the 10,400 unemployed people in the region and I sympathise with those people. We will work with them to improve matters. However, we must also acknowledge the positive developments in the economy, such as the creation of 100 jobs, which I announced last week, at the Kilkenny company taxback.com.

The Smithwicks brewery in Kilkenny was last discussed in the House on 15 May 2008. Diageo's operations in Ireland have been under review for some time. On 9 May the company outlined its decision for the future of its plants at Dublin, Dundalk, Waterford and Kilkenny. While the company indicated there would be job losses, it said it would invest €650 million in the Guinness brewery at St. James's Gate. A new brewery was due to be built on a suitable site close to Dublin and its location was to be Leixlip, County Kildare. It would use leading edge brewing technologies to deliver the best international standards in scale, efficiency, quality and environmental performance. On completion in 2013, it was to be the company's biggest brewery and the largest in Ireland. The opening of the new brewery would be subject to planning permission from Kildare County Council. When the new brewery was commissioned, all production from the existing brewery in Kilkenny was to be transferred, resulting in the closure of the Kilkenny facility, as the Deputy stated.

As we are now aware, the current economic climate is considerably different from when Diageo announced its plan last May. The company recently announced that it was putting its plans for a new brewery on hold. The Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Coughlan, has been and continues to be very active in communicating with Diageo as the situation unfolds. The Tánaiste was recently in London where she met Mr. Paul Walsh, chief executive of Diageo. While I am not in a position to say what is likely to happen at this stage with the Smithwicks brewery in Kilkenny in light of the changed circumstances, every effort will be made to secure the best possible outcome for Ireland as far as brewing is concerned.

I am aware of the circumstances of the 93 employees and the 150 contract workers involved. Smithwicks will celebrate 300 years in Kilkenny in 2010. I have met with the three unions involved in the brewery. I have also met with the decision makers in Diageo and discussed the process now being undertaken by them. The unions concerned expressed the view that they have put forward a business plan for Smithwicks and the brewery site, which will be considered in the context of the evaluation. I assure the Deputy I take a keen interest in this matter and I realise he does also. I will keep in touch with those making the decisions in the coming months to establish what we can bring to bear on decision process and plans for the future development of the site. I realise we have previously disagreed on this matter, but I am prepared to further examine it with the local authority and Diageo and to have a local debate as to the best use for the site.

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