Dáil debates

Thursday, 19 May 2016

Adjournment Debate

Job Retention

6:15 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for selecting this important matter. I welcome the new Minister for Jobs, Enterprise and Innovation to the House.

Last Tuesday, the workforce of the Roche plant in Clarecastle received confirmation from representatives of its corporate headquarters that talks with a prospective purchaser that had been ongoing for nearly six months had ended without agreement. The breakdown in the protracted talks leaves an uncertain future for the plant and the 240 people directly employed there as well as the large number of contractors who also work there.

The news was unexpected. All indications from the negotiations were positive and it was widely understood that a deal would be concluded and, in turn, the plant's future and the valuable employment it had provided for more than four decades would be secured. More than two months ago, Roche Ireland signed a letter of intent with the prospective purchasers that tied the two parties into a period of sole negotiation. The two commercial companies also signed confidentiality clauses around the negotiations. Given the ramifications of a failure to close the deal when it seemed done, many questions must be asked. Since they have not been answered by Roche, the company has an obligation to come clean to the workers and explain why the deal failed, but that has not happened. At the very least, Roche must inform the Department and the IDA of why the deal collapsed. This information is critical and its disclosure could be vital in providing a way forward for the plant.

Since the news broke, I have spoken with many workers, their families and people in the community. There is shock and despair. I have spoken at length with Roche's managing director in Clarecastle, I have met the Minister and her Department's officials, and I met the IDA today. It is critical that every effort be made by the IDA, in conjunction with Roche, to identify a new buyer for the plant. It is critical that every resource be available by the Department to help in finding a solution.

A great deal of change has occurred in the pharma sector in recent years and there has been a move away from the traditional method of manufacturing, with a focus on producing lower volumes with higher potencies. This transition has resulted in Roche's decision to divest itself of its interests in four plants in Clarecastle, South Carolina, Spain and Italy.

I call on the Minister to direct the IDA to redouble its efforts and to seek a new buyer for the plant relentlessly. Every option should be explored, including the possibility of reopening negotiations with the contract manufacturer that had been engaging with Roche in recent months. Will the Minister travel to Roche's headquarters in Basel with the IDA to impress upon it the need to re-engage fully in the process of seeking a buyer? If Roche is not 100% behind that process, a buyer will not be found.

The importance of this manufacturing plant to the economy of Ennis, Clarecastle, County Clare and the mid-west region cannot be overstated. It is the largest single employer in the greater Ennis area, contributing €20 million to the local economy in salaries alone. Roche has also been a major supporter of community development and is the main sponsor of Clarecastle GAA, the Clarecastle day care centre and many other clubs and voluntary organisations across the county.

I call on the Minister to do everything in her power to ensure that as many jobs as possible are saved at the plant. I look forward to working with her, her officials, the IDA and all public representatives in County Clare to achieve this goal.

I also congratulate my constituency colleague, Deputy Breen, on his elevation to the role of Minister of State with special responsibility for employment and small business. I look forward to working with him in his new role in trying to resolve this important issue.

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