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

I thank the Deputies for raising this important issue.

Like all Deputies, our thoughts are with the workers who were affected by this announcement. I am conscious of the impact of this announcement on the workers and their families, and the community in Borrisoleigh. As Deputies have said, the way in which this emerged through leaks in the press was not the way it should have been handled or the way, I understand, the company ever intended that it should be handled.

Since the purchase of M.J. Gleeson and Company a number of years ago, C&C has been engaged in restructuring of certain elements of its business. The decision announced yesterday is part of a company-wide restructuring, particularly of its manufacturing base, which the company has undertaken following the loss of material contracts for private label water which has led to serious underutilisation of capacity in both the Irish and the United Kingdom plants and undermined their competitiveness.

I have spoken to senior management at the company in the past couple of days since this surfaced and urged them to see if the decision could be reconsidered but, unfortunately, this is not possible given the commercial realities they face.

The C&C Group announced yesterday that, following a detailed review of its manufacturing and operational footprint, it intends to consolidate production from sites in Shepton Mallet in England and in Borrisoleigh in its manufacturing site in Clonmel. Under this proposal, production and packaging will be transferred on a phased basis from the facility in Borrisoleigh. Consequently, Clonmel will become the core manufacturing site for Bulmers and Magners cider, Tipperary Water and the company's range of niche premium beers and ciders. In support of the proposal, the company is committed to invest in excess of €10 million in enhancing the packaging and logistics capability in Clonmel and the creation of 80 additional jobs. This is designed to put Irish-based employment in the company on a secure and competitive footing. The company has indicated that Borrisoleigh will remain as a key transport hub and both logistics and warehousing operations will be maintained in the town.

The company has also indicated that where possible the workers at Borrisoleigh will be offered alternative employment at the expansion in Clonmel. Regrettably, net roles lost in Ireland across the company's operational network are estimated to be 54 jobs.

I note the company's statement that it will provide support and training for the workers affected, which was raised by Deputy Coonan. In addition, all the supports of the State will be made available. Enterprise Ireland will continue to engage with the company as it undertakes its restructuring. The agency will continue to monitor the situation at the company and will continue to communicate with the group and will offer any assistance that it can within Enterprise Ireland's remit.

I understand that the company has initiated the consultation process with its employees and their representatives who are impacted by the announcement, and the company plans to meet employee and union representatives over the coming days.

Enterprise Ireland has been in close touch with the company over the past year, and on a number of occasions in recent weeks, to seek to support it. A decision of this nature, where the company has lost a large part of its business, is obviously a commercial one. The company has made its decision. Enterprise Ireland will continue to work with the workers. We will be actively seeking alternative investment in Borrisoleigh. The plant is an asset that we hope will be available to attract new investors and Enterprise Ireland will work with the company in that respect.

Obviously, there will be support for training of workers, as committed to by the company. In addition, the resources of the State to assist workers will be available. In particular, the Workplace Relations Commission, WRC, will be available to support workers in respect of their rights and access to other supports.

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