Michael Ahern (Cork East, Fianna Fail)

I am delighted to have this opportunity to say a few words on the Bill and on the industry and sector in particular.

In 2011 the International Year of Chemistry will be celebrated but because of its diversity and the fact that most of its products are not sold directly to the ordinary consumer, the importance of the chemical industry is frequently not widely appreciated. The chemical sector in Ireland directly employs approximately 25,000 people and is one of the major sectors in the economy.

Unemployment, especially among honours chemistry graduates, is currently virtually unknown, even in these times. Within the industry chemists are employed in production, research and development, quality control, environmental monitoring and chemical analysis. However, with their strong technical background, chemists frequently move into other areas, for example, food and drink manufacturing and power stations as well as electronics and material science industries. Despite the economic recession and the loss of traditional industries, chemistry and the chemical industry remain vigorous and dynamic areas of growth, especially in the Cork area. The skills involved will always remain essential.

The following are some of the companies that employ graduates and manufacture a wide range of chemical and pharmaceutical intermediates in the east Cork area. They are Alkem Chemicals, Biocel Limited, Cara Partners, Cascade Biochem, Henkel, Irish Refining Company in Whitegate, Irotec Laboratories, Janssen Pharmaceuticals, all of which are located in Little Island, Millipore and GE Healthcare in Carrigtowhill, Pepsi-Cola in Little Island, Pfizer is located both in Little Island and Ringaskiddy, Novartis in Ringaskiddy and other chemical and pharmaceutical businesses, especially around the Cork Harbour area.

Ireland remains one of the leading global locations for the manufacture and development of pharmaceutical and chemical products and the sector is and will remain an excellent employer. As it starts to move up the value chain, the demand for graduates of chemistry and life sciences is likely to increase. In recent years, even in these times, there has been major capital investment by many companies in this sector and of great significance is the fact that most of these investments are in biotech and research and development at the cutting edge of the sector. This bodes well for the long-term future of the industry in the country.

Currently, even in these times, it is well to remember that eight of the top ten companies - eight of the top world leaders - have operations in Ireland. Companies have spent significant capital investment during 2009. Ten of the top selling drugs are manufactured in Irish sites. The sector's exported products in 2009 up to a value of €44 billion, which represents 51% of the national total. It is also important to note that Ireland is the largest net exporter of medicines in the world.

The Irish pharmaceutical chemical industry directly employs approximately 25,000 people and upwards of 25,000 people are employed in the provision of services to the sector - more than half of these employees are third level graduates. This emphasises the importance of this sector to our economy.

The Irish pharmaceutical and chemical industry remains a strong contributor to the economy and it is continuing to growth. The sector has flourished because of deep-seated economic strengths, an innovative and resourceful young workforce, a proven level of manufacturing and compliance experience and an inherent ability to comply with tough and demanding international regulations and competitive corporation tax rates. We have high education standards which have underpinned this performance.

Chemicals have proved to be of benefit to humans in many ways. A substantial use of chemicals is essential to meet the social and economic goals of the world community. Today's best practice demonstrates chemicals can be used in a cost-effective manner and with a high degree of safety. Positive examples include the use of pesticides to reduce the spread of malaria and other diseases and the development of herbicides as a part of the 20th century's green revolution which led to massive increases in crop yield and food production.

However, many chemicals can be harmful to human health and to the environment. Several international agreements aim to control these associated risks. One goal of the world summit on sustainable development, held in Johannesburg 2002, was that by 2020 chemicals will be used and produced in ways that lead to the minimisation of significant adverse effects to human health and development.

The Bill's main purpose is to meet certain EU obligations and implement and enforce certain EU regulations in this area. These will protect human health and the environment by determining which properties of substances and mixtures will lead to classification as hazardous, by correctly identifying hazards and communicating them. To protect and ensure continued growth in this vital sector which employs over 50,000 people and contributes to 50% of exports, it is essential the regulatory framework is up to date. This Bill builds on the enforcement system of the Chemicals Act 2008. It aims to provide a clear regulatory framework for business and ensure high levels of compliance and increased co-operation between the various competent authorities while optimising the use of State resources and alleviating any unnecessary administrative costs to business.

I commend the Bill to the House.

See this speech in context