Seán Sherlock (Cork East, Labour) | Oireachtas source

I am responding on behalf of the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, who is out of the country on Government business.

I thank the Deputies for raising this issue and share their concern about the 570 jobs lost at the Merck Sharp and Dohme, MSD, site at Swords and the 150 jobs lost at the Pfizer site in Newbridge, County Kildare. I express my sympathy on the loss of the jobs and the impact on individuals and their families. Pfizer, like so many companies competing internationally, undertook a review of its operations with a view to reducing costs to ensure the future viability of the plant. This has resulted in 150 jobs losses in Newbridge. The global pharmaceutical industry is experiencing a number of challenges owing to patent expiry and over-capacity within manufacturing and, in this context, Pfizer is no exception. Greater efficiencies and competitiveness are continually being sought across all Pfizer sites in order to compete on the changing landscape. Pfizer is a leading pharmaceutical employer, with 3,200 employees across seven operations in Ireland. The company's capital investment in Ireland since its inception exceeds $7 billion. Pfizer has a key manufacturing presence here in active pharmaceutical ingredients, solid dose pharmaceuticals and biopharmaceuticals. It also has shared services and commercial operations here. The Irish operations manufacture some of its best selling medicines for arthritis, infectious disease, high cholesterol and cancer.

Pfizer has indicated that its other operations in Ireland will not be affected by the decision. In the past two years the company has made two significant investments in Ireland, most recently of €130 million in the Clondalkin and Ringaskiddy sites. Over 600 staff will still be employed in Newbridge. IDA Ireland is working closely with the company to ensure the best result for the site.

With regard to the MSD site at Swords, the company is a valued pharmaceutical investor in Ireland. While it announced some time ago the closure of the Rathdrum plant by 2015 - there is now this news about the site at Swords - it continues to employ over 1,100 staff in its other facilities in Ireland, located in Carlow, Cork, Tipperary and Leopardstown in Dublin. Significant investments have been made in these plants. Unfortunately, the company has had to undertake a review of its worldwide manufacturing capabilities to improve overall operational effectiveness. Following the merger of MSD with Schering Plough, the combined operation has excess manufacturing capacity worldwide. Accordingly, the company decided to close the Swords operation by 2017 and transfer production to other factories in the group located in countries abroad. The gradual shutdown of the plant gives a valuable space to seek a new operation for the factory. It is not anticipated that any staff will have to leave before mid-2014 at the earliest and that 130 jobs will be lost in the second half of 2014. The remaining positions will be phased out in the following three years up to the end of 2017.

The ultimate decision in both cases is made by the parent company on strictly commercial grounds and what is seen by the companies as being in the best interests of the group as a whole. We keep in close contact with key foreign companies about their operations in Ireland. My colleague, the Minister for Jobs, Enterprise and Innovation, met senior US-based management in MSD last month. The Government has strategies for job creation that are now starting to bear fruit. Unemployment levels have started to reduce and we have had a number of good wins for the country in recent months. While it is of little immediate consolation to the employees of Pfizer and MSD, the macroeconomic indicators show jobs growth. In terms of foreign direct investment, Ireland continues to be attractive because of our corporation tax and research and development tax rates. Over 1,000 multinational corporations have chosen Ireland and they employ 146,000 people directly.

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