Batt O'Keeffe (Cork North West, Fianna Fail)

I thank Deputy Michael McGrath for raising an issue on the Adjournment that is of serious concern to all of us. I want to begin by expressing my regret at the announcement by GlaxoSmithKline of the loss of 121 jobs at its Currabinny facility.

GSK currently employs over 1,500 people in Ireland at its various sites in Cork, Dublin, Dungarvan and Sligo. The current job losses are a result of market conditions resulting in a fall in demand for the drugs GSK manufactures in Cork. I am aware that the IDA consistently engages with the company at both local and corporate level in an effort to secure further new investment to maintain and increase the company's base in Ireland. I met representatives of the company last week.

I am acutely aware of the impact of the job losses on employees and their families and share the concern outlined by Deputy McGrath. I have asked the State development agencies to make their full resources and services available to the employees affected by the company's decision. FÁS Employment Services Management, South West Region, will meet with management and staff representatives at GSK to formulate a plan of action to deliver FÁS services and supports to the staff being made redundant in 2010 and 2011. The Cork county enterprise boards, together with Enterprise Ireland, will provide a range of supports and services to anyone wishing to start their own business.

Cork has been particularly successful in attracting foreign direct investment over the years. In the past ten years direct employment in IDA supported companies in Cork city and county has grown from just under 16,000 in 1999 to 20,000 now. In 2009, foreign direct investment, FDI, decreased globally by 30% and the average scale of investment was smaller than in previous years. Despite these trends, since 2009 the IDA has announced nine projects for Cork, with a job potential of approximately 1,070.

The strategic challenge now facing IDA Ireland is to be proactive in identifying future FDI trends and the associated employment opportunities. Every year, an average of between 7% and 8% of jobs within the IDA Ireland portfolio are lost as part of the normal business life-cycle. The reasons for this include competitiveness, market downturn, global economic trends and business model restructuring, particularly as a result of merger and acquisition activity. I assure Deputy McGrath that my priority is to ensure that the business environment is supportive of Irish enterprise and export growth and that we attract high value foreign investment. By selling on international markets, we will create jobs and prosperity at home. While it is clear that we are operating in a difficult economic environment, there are still investment opportunities in global markets and IDA Ireland will continue to compete vigorously for projects for Ireland. I am to accompany IDA Ireland on a visit to North America over the next number of weeks.

In addition, since 2008, Enterprise Ireland has approved approximately €50 million to client companies in Cork city and county. Enterprise Ireland has a client base of over 700 companies in County Cork, employing approximately 18,000 people. I again assure the Deputy that the State development agencies will provide every possible support they can to GlaxoSmithKline employees affected by the company's decision.

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