Dáil debates

Thursday, 13 May 2004

Adjournment Debate.

Industrial Development.

4:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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The announcement by Galen Pharmaceuticals that it is not now going to develop a factory in Ardee is not a surprise to me. The company's financial position has been less than inspiring of late and there are rumours that its plant in Coleraine is in financial trouble. Nevertheless, the announcement is a blow to the people of Ardee and that is why I am raising the issue.

The Tánaiste should outline what is being done to bring employment to the County Louth town of Ardee. What efforts has she, her Department or its agencies been making? Can we expect success in this regard in the near future? Ardee has no substantial industrial base and has been neglected for decades by successive Governments. Will the Tánaiste visit Ardee and by doing so demonstrate to the people of the area that she at least knows where it is located? The town council has issued an invitation to the Tánaiste on three occasions without even a reply, much less a visit.

It is important to set the record straight about the issues of planning permission which arose for Galen Pharmaceuticals in Ardee. Concerns arose about emissions from the proposed factory and local residents rightly expressed concern about how such emissions would be monitored. It was their legal right and, arguably, their obligation to protect the environment, their health and the health of their children. These citizens are in no way responsible for the decision taken by Galen Pharmaceuticals and to say otherwise is to undermine our appeals process and excuse a pharmaceutical company from its obligations to the entire community. The judicial review was due to be heard on 6 May but was postponed until 26 May because An Bord Pleanála was not in a position to proceed. Does anyone believe that a decision due in less than two weeks would cause a company to pull out? I certainly do not.

Now that Galen Pharmaceuticals has left, it is the urgent responsibility of the Tánaiste to attract jobs to Ardee. These need not be from the transnational companies sector. Greater assistance to indigenous companies and business might yield greater and longer lasting results for the town which so badly needs increased employment opportunities for its residents.

Photo of Ivor CallelyIvor Callely (Dublin North Central, Fianna Fail)
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I thank Deputy Morgan for raising this matter. I would like to clarify some issues for him and he may be able to assist in finding a satisfactory conclusion.

In April 2001, IDA Ireland approved grant support towards a new project from Galen Pharmaceuticals for approximately 200 jobs in Ardee, which involved a €45.7 million investment and the construction of a 153,000 sq. ft. facility on a 52 acre green field site at Ardee, County Louth. The facility was planned to produce a range of female health care products and would require a 21 month construction and fit out-validation timeframe. The company planned to be in production and delivering products to the market by October 2003.

In making its planning application for the construction of the new facility, there were a number of objections which continue to be heard in the High Court. Deputy Morgan could perhaps help to resolve some of these issues.

Meanwhile, Galen Pharmaceuticals continued to be under pressure to deliver products to the marketplace in line with the growth in demand. To facilitate this, a suitable facility became available in Puerto Rico and, to enable the company meet its market objectives, Galen has now acquired this facility. I note that Deputy Morgan said that there had been an announcement by Galen not to proceed. That strikes me as news, unless Deputy Morgan has information not available to me. My information, which I am sure Deputy Morgan will welcome, is that Galen has not decided to abandon its plans for Ardee.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Deputy Kirk said that.

Photo of Ivor CallelyIvor Callely (Dublin North Central, Fianna Fail)
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I am only trying to be helpful.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Allow the Minister to speak without interruption.

Photo of Ivor CallelyIvor Callely (Dublin North Central, Fianna Fail)
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Galen is continuing with the planning process through the High Court, and further discussions with IDA Ireland and the company will take place on the outcome of the High Court decision. IDA Ireland has maintained close contact with Galen management. In the past few years, conditions in the global economy have been difficult, and Irish firms have had to win business against a backdrop of declining external demand, pricing pressures and an increasingly competitive international environment. However, the labour market is strong and unemployment has remained low at 4.7% by European standards. An improvement in the global economy now seems likely. Since our economy is so open to world trade flows, we are likely to benefit more from accelerating global growth than from indications that more positions have been advertised in the media.

IDA Ireland is currently developing a new business and technology park adjacent to the south Drogheda intersection. In addition, it has received planning permission for three office blocks on the new park. The agency is also actively marketing several units provided by private developers at Dunore, Newgrange and other business parks. In Dundalk, IDA Ireland has engaged consultants to prepare a plan in conjunction with other State and private partners for its considerable land holdings to the south-west of the town. It is hoped that it will become a significant campus for new investment, once again capitalising on Dundalk's status as a gateway under the national spatial strategy, with which my good friend and colleague, the Minister, Deputy Dermot Ahern, has been closely associated.

IDA Ireland has received planning permission for five buildings in total at Finnabair Business Park. The agency is also marketing units at the Science Services Centre at Finnabair and at Blackthorn Business Park. Enterprise Ireland's activity is focused on the creation of new jobs through supporting entrepreneurs with high potential start-up companies, the creation and retention of new jobs in existing companies and enhancing the innovation capability of Ireland at national and regional level through support and research in companies and third level institutions.

In September 2003, the Tánaiste announced that Ardee Community Development Company Limited had been approved a capital grant of €250,000 towards phase 2 of its enterprise centre under the Enterprise Ireland community enterprise centre programme 2002, with which I understand Deputy Kirk has been closely associated. Work on the extension of the existing centre is expected to commence shortly. Enterprise Ireland supports the third level college in the region to foster links with industry, thereby encouraging it to increase its use of technology.

Under the Government's major decentralisation programme announced in the budget, 300 jobs are to be relocated to County Louth. That move demonstrates the Government's commitment to balanced regional development and will provide a further boost to enterprise development in the County Louth area. I assure Deputy Morgan that the State development agencies under the aegis of the Department of Enterprise, Trade and Employment in co-operation with local interests and public representatives will continue actively to promote Ardee town and County Louth for investment and job creation. I hope that I have been of help.