Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

I thank Deputy Mattie McGrath and Deputy Seamus Healy for giving me the opportunity to speak on this matter. I am very conscious of the impact of this on the affected workers at the Suir Pharma plant in Clonmel and on their families as they now face an uncertain future. The Government regrets very much that these jobs will be lost. It will be a significant blow for Clonmel and the surrounding area. Unfortunately for long-standing centres of pharmaceutical production like Clonmel, the wider pharmaceutical industry is undergoing significant upheaval in terms of changing trends and technological developments. There has been a significant incidence of mergers and takeovers which has contributed to surplus capacity internationally. In addition, the advent of bio-pharmaceutical products and a move away from large volume production of some traditional medicine types which are being replaced by lower volume niche products with more specialised applications has led to disruption in the industry.

This contract manufacturing company in Clonmel has gone through several changes of ownership over recent years. Hopes were high for a stable future when the previous German owners sold it to Sanika Pharmaceuticals, a Slovakian based company, last summer. Unfortunately, the new owners have faced significant financial challenges in recent times and decided they cannot continue to support the operations any longer. In all such cases and despite our best efforts, the ultimate decision rests with the company which will make such a strategic decision in the best interests of wider company objectives. Through the IDA, my Department has engaged intensively with the company to seek a plan for a sustainable future. Just last month, my predecessor, Deputy Richard Bruton, discussed the issue with a senior executive of the company. However, the owners maintained they could not keep the operation going.

I have asked the IDA to pursue identifying a new buyer for the plant actively and the agency will work proactively with the liquidator in that regard. The IDA will highlight the attractions of this facility for its existing client companies and potential new investors. It is encouraging that several companies have already visited the facility and we hope further interest will be generated. In addition to the IDA's efforts, I have arranged that Enterprise Ireland will assess whether the facility would be of interest to any of its client companies. I am keen to ensure that the resources of the State are put at the disposal of the employees to ensure that they are easily able to avail of relevant services. I have therefore arranged that the inter-agency group which was established following the Ranbaxy closure in Cashel will now work to assist the Suir Pharma employees regarding entitlements and training opportunities. It will also help them to pursue new employment opportunities.

I appreciate fully that it has been a mixed time for the pharmaceutical sector in south Tipperary. Regrettably, the Ranbaxy plant in Cashel closed some time ago, but we have had notable success with the IDA to deliver a new investor for the former Johnson and Johnson plant in Cashel with the arrival of Amneal. That company is now building up its workforce and hopes to employ approximately 300 staff when full production is reached in due course. That has been a very positive development in the region. It is particularly notable that the medical technology sector has a very strong presence in south Tipperary thanks to the work of the IDA with both Abbot Ireland, which employs more than 1,100 staff, and Boston Scientific, which employs over 800, having a very positive economic impact. The Government is only too well aware of the discrepancy in growth between the major urban areas and the less populated regions. As a result, we launched last year a regional Action Plan for Jobs. The purpose of the initiative is to identify a range of actions aimed at facilitating each region to achieve its economic potential. The Government will pursue job creation initiatives in Cashel and the IDA will continue to seek and attract other investors.

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