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

I thank the Deputy for raising this issue. He has contacted me numerous times in recent days. My first thoughts are with the affected workers at the Roche plant in Clarecastle and their families as they face an uncertain future. We regret the job losses that may arise. Yesterday's announcement that negotiations for the transfer of the Clarecastle facility to a global pharma company had ended without agreement was disappointing. The factory has been in operation since 1974, providing substantial levels of employment. The company is proposing a gradual wind-down of the operation. Unfortunately, if no buyer is found for the plant, it will be closed fully in 2019.

The pharmaceutical industry is going through a significant upheaval in terms of changing trends and technological developments. The advent of biopharmaceutical products and the move away from large-volume production of some traditional medicine types, to be replaced by lower-volume niche products for more specialised applications, has led to some over-capacity in the industry. Unfortunately, the factory in question was configured and equipped for large-volume production. The company has made a strategic decision to close it, as well as three similar plants in other countries. In all such cases, the ultimate decision rests with the company, which makes a policy decision in the best interests of its objectives.

Since the original decision on divesting the Clarecastle facility was announced in 2015, and availing of the significant wind-down period, IDA Ireland has worked closely with the company to introduce potential buyers. A strong contender was identified and intensive negotiations took place between it and Roche, but just this week the discussions ended without agreement. Unless a new buyer can be found, the factory will close. IDA Ireland will continue to market the facility's attractions to its client companies and potential new investors. The gradual wind-down period will provide a welcome window in which to redouble efforts to pursue this objective.

Despite some localised job losses in the pharma sector in recent years, it is worth pointing out that the sector has adapted well to a fast-changing landscape. Between 2000 and 2015, employment numbers in agency-supported companies in the pharmaceutical and chemical sector increased by 11.5%. In addition, the profile of the Irish industry has changed significantly, with considerable levels of investment by companies. We now have an impressive footprint in the growing pharamaceutical-biopharmaceutical sector. The IDA has achieved considerable successes in the recent past. These include the former Pfizer factory in Cork, now operated by Hovione; another former Pfizer plant in Dún Laoghaire in my constituency, now operated by Amgen; and a further plant in Ringaskiddy that has been taken over by BioMarin. There have also been successes with companies in Athlone and Tullamore. It is of local interest that the former Dell factory in Limerick city was taken over by the pharma company Regeneron, which has been actively recruiting recently.

The Government is only too well aware of the discrepancy in growth between the capital and the regions. As a result, we have developed the regional action plans for jobs, a development that was driven by my predecessor, the current Minister for Education and Skills, Deputy Bruton.

Yesterday and today, I undertook a trade and investment mission to Athlone, Sligo and Limerick that was organised by Enterprise Ireland as part of its global sourcing initiatives. The objective is to maximise sale opportunities for Irish small to medium-sized enterprises, SMEs, with multinational companies based in Ireland. The Government's job creation efforts were illustrated in the latest CSO employment data, which show that unemployment rates have fallen to 8.4%.

I met Deputy Carey and the new Minister of State, Deputy Breen, in the Department on Tuesday and I facilitated a meeting between them and the IDA. I also extended an invitation to Deputies Dooley and Harty. That meeting was held in my Department this afternoon and I understand that the four Deputies and the IDA had a useful and detailed exchange of views. The IDA will redouble its efforts to ensure that another buyer is found.

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