Dara Calleary (Mayo, Fianna Fail)

I thank Deputy Fleming for raising this matter on the Adjournment.

I am aware of the situation in Rathdowney and am concerned about the situation at the plant in question. I understand jobs are being transferred to Grannagh, County Waterford, as part of the company's rationalisation strategy to bring scale to its boning activities. I am aware of the effect the transferring of these jobs will have on the workers involved and their families, as well as on the local community.

The company is rationalising its existing facilities to yield significant savings. It submitted a business plan under the beef and sheep meat fund, administered by the Department of Agriculture, Fisheries and Food. This business plan was approved by Enterprise Ireland, the Department of Agriculture, Fisheries and Food and the Government. It is being undertaken to increase capacity utilisation, cut costs, enhance scale and international competitiveness and it is in line with the sectorial strategy for the beef sector.

As part of the company's rationalisation strategy, it is amalgamating boning activities in Rathdowney and at its site in Grannagh in County Waterford. Up to 100 operative jobs will be transferred to Grannagh by the end of August 2009. While 100 members of staff in the Rathdowney facility are being offered positions at the Grannagh facility, the remaining 100 employees will be retained in slaughtering on the current site in County Laois. Employment in the Waterford plant is expected to exceed 300 by 2011.

With the implementation of this business plan, the company forecasts it will increase employment from 1,400 to almost 1,500 between 2009 and 2012 across three plants. Sales at the company are forecast to rise significantly with exports expected to increase significantly. The gross investment planned by the company in Ireland over this time is also very significant.

To ensure job creation and job retention, the Government, through the State development agencies and other interested parties, adopts a co-ordinated approach in dealing with the particular situation. All the agencies work together in making people aware of the supports available to assist in finding new employment or to start their own businesses.

While there has been a decline in the multinational sector in County Laois in recent years, IDA Ireland is marketing Portlaoise as a key location for investment in the globally traded services sector. A significant investment has been made in a quality flagship business park in Portlaoise. This is now an integral part of the agency's international marketing programme.

In addition, the State development agency Enterprise Ireland, responsible for the promotion of indigenous industry, is continuing to address enterprise development in County Laois with several of its client companies developing their businesses there. The agency works intensively with companies, both individually and in sectorial groups, to help them exploit market opportunities and to promote innovation and enhance their international capabilities.

The Laois County Enterprise Board continues to provide support for the micro-enterprise sector in the county. This year, it will continue to be actively involved in the county's economic development, ensuring that available funds are targeted to maximise entrepreneurial development throughout the locality.

The strategies and policies being pursued by the State development agencies in Rathdowney and County Laois will continue to support enterprise development and job creation in the area. The State agencies will continue to work closely with each other and with local interests to assist in maintaining an integrated approach to investment and enterprise development. This will be particularly important for workers who are not in a position to relocate to County Waterford and want to remain in County Laois.

See this speech in context