Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

I thank the Deputies for raising the matter. I am very conscious that the announcement of a possible transfer of the operation in Clonmel by the company creates problems for the workers there, and my first thoughts are with those workers and their families, as well as the members of the local community, who have received this very difficult news.

I understand the company concerned was started in 1886 in Scotland and is still family owned. The company is the third largest producer of Scotch whisky. The company made a strategic decision to broaden its spirits portfolio beyond Scotch and, in 2010, bought the Clonmel based spirits business of C&C. This comprised the brands of Tullamore Dew, Carolan's Irish Cream liquor and Irish Mist. It subsequently sold the last two to Campari. This gave the company the Tullamore Dew brand and production, and it is enabled by long-term agreements with other whiskey suppliers. This was always going to be a temporary arrangement as, long-term, the company would not rely on direct competitors for whiskey. The company continued to bottle Tullamore Dew on the C&C site in Clonmel. In addition, a co-packing arrangement was included on the Clonmel site bottling Carolan's Irish Cream liquor and Irish Mist liquor.

The company subsequently decided to set up its own distillery. The first phase, completed in late 2014, is for a malt and unmalted distillery at a total investment of €35 million. I am aware that the second phase to build a grain distillery is currently under way. I understand that the activities concerning Tullamore Dew, which historically have been located in Clonmel, will now be transferred to Tullamore and integrated into the new distillery facility.

The co-packing arrangement was reviewed in September 2014 and the company lost the contract. The notice to terminate will take effect from September 2015. There are 50 jobs concerned and redeployment to Tullamore, as well as the timing of the relocation of businesses, is now subject to discussions with employees. On completion of the distillery and supporting service in Tullamore, it is estimated that the employment will grow on that site from a base of 66 in 2014 to 107 by 2019.

I should point out that the company reiterates that it has consistently communicated with its employees about the long-term future of the business.

In regard to any possible job losses, Ireland has a robust suite of employment rights legislation which offers extensive protections to employees. The National Employment Rights Authority, NERA, is mandated to ensure compliance with employment rights and it will be available to assist workers. The Workplace Relations Commission can be contacted as well in terms of assistance and any workers who need support will have access to the State agencies concerned.

I can assure the Deputies that on the wider front employment in the county and the region has been very much to the fore. As they know, I decided earlier this year that we would develop regional action plans in all of our eight regions. I will be working on an action plan, both for the mid-west and the south east, as a part of that. We have put significant resources into that, and we are working with all stakeholders on the ground - chambers of commerce, agencies and education bodies - to ensure we get the very best ideas. The Deputies will be aware that competitive calls have been made, and the local enterprise office is an area from which competitive calls can be made.

In respect of the issue raised by Deputy Lowry, I am aware of reports in the media that the former J&J factory in Clonmel has been sold to a United States pharmaceutical company. As the Deputy knows, this was not an IDA site. It was owned by J&J, and there have been a series of deals. IDA has been actively involved with all of the owners seeking to ensure that the best outcome would be secured for the prospect of bringing jobs to the site after the J&J closure. That continues to be the case. The IDA will work with the new owners but for reasons of commercial confidentiality, I am not at liberty to give any details of discussions that may be going on with the new owners. This is a very competitive business. No deal is ever done until it is finalised, and the IDA will work with the new owner to try to secure a good outcome for the area.

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