Fergus O'Dowd (Louth, Fine Gael)

On Wednesday, 9 September, the vice president of Irish Flavours and Fragrances came to Drogheda to announce the proposed closure of the plant, with the possible loss of up to 95 jobs, effective from 30 September 2010. This was a serious blow to the workforce and the town. We have lost over 2,000 jobs in manufacturing industries in County Louth in recent years. In Drogheda the famous Coca Cola factory closed, something we thought would be in place forever. There is a really serious problem in the town. The unemployment figure in the county stands at 16,562, and over 8,000 in Drogheda. There are about 6,000 unemployed in Dundalk and about 2,300 in Ardee.

Irish Cement announced this week that it is to cease production for a significant period to allow the economy to recover. This will have a serious effect on those who work in that industry. Workers are getting together in IFF. They are fighting this by meeting the company and IDA Ireland. I acknowledge the help the IDA has provided for both the workers and the company. The workers have put together a document encompassing a significant offer to cut their wages and benefits which would deliver savings in excess of €5 million in the next three years. Cost cutting measures already implemented this year will deliver a further €2 million in savings in the next three years. Substantive but less readily identifiable changes to work practices are also being examined. These will yield significant reductions in the cost of running the Drogheda operation in the coming years. The company is due to respond to this document on Monday, 12 October, but time is running out.

There are 95 people employed at the company in Drogheda, many of whom are in their early to mid-50s and too young to retire but too old to secure new jobs. More worrying is the number of young people in the short service range who may find it difficult to find alternative employment for a significant period. In the absence of any indication from the company that their jobs were in danger, many took on considerable financial burdens such as mortgages and so on in the past few years. They are now very worried about their ability to service these commitments.

Salaries and wages come to about €5.8 million annually, while locally sourced services and supplies bring €4.7 million into the local economy. Therefore, this industry accounts for a figure of €10.5 million locally; therefore, it is very important. On the cost to the State, the estimated cost to the redundancy fund is €1.1 million, the estimated social welfare costs in the first year are €1.85 million, while the total loss to the Exchequer in PAYE and PRSI contributions will be €5.2 million. If the factory closes, the actual cost to the taxpayer will be €8.2 million, something nobody in IFF or Drogheda can accept.

We want constructive dialogue with the Minister and IDA Ireland. We welcome the support the IDA is giving to the workers and the fact that the county manager, the mayor and local community are coming together. There is still time to save the company. It is not closing tomorrow, as the deadline is September 2010. We await the Minister's reply with concern.

See this speech in context