Michael Lowry (Tipperary North, Independent)
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In the not too distant past, north Tipperary was home to some of the world's largest industrial companies such as Aventis Pharma, Antigen, Procter and Gamble, Tubex, BSN Medical and large Irish-owned companies such as Irish Sugar.

In the past two weeks a shattering and demoralising blow has been inflicted on the people of Thurles. BSN Medical, which had employed more than 120 people in Thurles before Christmas, announced that it would close by the end of this year with the loss of the remaining 80 jobs. Erin Foods, owned by Campbells, was also put on the market recently. It is hoped that this world renowned brand can be sold as a going concern. However, the intention to sell the company has cast doubt and uncertainty on the future of the plant. Greenvale Animal Feeds, a subsidiary of Irish Sugar, employs more than 60 people in Thurles and now with the closure of Irish Sugar, these jobs are also in doubt.

BSN Medical is a global medical device company and was created as a 50:50 joint venture between Beiersdorf and Smith & Nephew in April 2001. BSN Medical specialises in bandaging and wound care, especially for burn victims. Another US company, Jobst, was the previous owner of the BSN Thurles operation until it was taken over in 1990. The manufacture of medical bandages has been carried out in Thurles for many years and many of the staff at the plant have spent their entire working lives in this factory and have been a very loyal and dedicated workforce. The news that the entire operation will cease by the end of the year is dreadful news for the staff, their families, the town and the economy of Thurles.

I call on the Minister of State to ensure that the US management of BSN Medical offers the current staff facing redundancy the same terms and conditions as their colleagues who opted for voluntary redundancy before Christmas and that every support and resource of the State is made available to these 80 people to assist them in seeking new employment.

It is an outrage that almost all of the companies I have mentioned closed in the past seven years under this Fianna Fáil-Progressive Democrats Government. Ineffective Government policy has forced hundreds of workers across north Tipperary to search for alternative employment or the nearest dole office.

North Tipperary has not benefited in any way from foreign direct investment since 1997 when this Government first took office. The only semblance of foreign investment is the welcome replacement for the former Antigen by Taro Pharmaceuticals in Roscrea. This Government has presided over the most substantial job losses in Nenagh, Roscrea, and Thurles in living memory. Throughout north Tipperary there are five international industries compared with more than 11 companies five years ago. The number of indigenous Irish industries has dropped from almost 90 in 1993 to fewer than 70 in 2003. When Aventis Pharma in Nenagh closed with the loss of 230 jobs in April 2002, I referred to north Tipperary as an "unemployment blackspot created in the midst of the greatest period of prosperity the nation has known". The Government has done nothing since, in four years, to reverse this. We have had no investment, no research and development funding and no new jobs. This Government has failed the people of north Tipperary.

This Government meddled with existing administrative structures which had a proven track record of success and had delivered to north Tipperary. In recent years misguided ministerial initiatives have left State agencies with responsibility for industrial development and job creation in north Tipperary confused, demoralised and lacking any sense of cohesion or direction.

The number of entrepreneurs and business people visiting north Tipperary has declined dramatically. In a recent parliamentary question, I was astounded when it was revealed that not a single industrialist has visited north Tipperary since 2003. Shannon Development, Enterprise Ireland and IDA Ireland have not organised a single visit for any potential investor to north Tipperary in three years. At a time when investment is locating to other parts of the country, it is inexcusable that the Minister and the employment creation agencies have continuously overlooked north Tipperary.

I am calling on the Minister for Enterprise, Trade and Employment to respond to the emerging employment crisis now facing Thurles and north Tipperary. The Minister must take immediate steps to encourage industrialists and investors to locate in north Tipperary.

Brian O'Shea (Waterford, Labour)
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The Deputy's time has expired.

Michael Lowry (Tipperary North, Independent)
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I remind the Minister and the Government that the unemployment and job creation problems of north Tipperary are serious and require a specific co-ordinated response. The Minister must radically reverse the current scenario where no investors have visited north Tipperary for three years by implementing pro-active measures to encourage and attract indigenous and foreign investment to north Tipperary.

Tony Killeen (Clare, Fianna Fail)
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I thank Deputy Lowry for raising this matter.

I was very concerned to hear that BSN Medical had announced it was to cease manufacturing. I am very conscious of the implications of these job losses for the workers involved and their families, as well as the community in the surrounding area.

The company was established in Thurles in 2001, having initially established operations under a different name in 1976. The operation in Thurles produces custom made orthopaedic garments on a subcontract basis and ships the garments to 28 countries.

In July 2005 the company announced it was to reduce its workforce by 40 people with a voluntary redundancy offer. Then, in December 2005 it was announced the company was being sold.

Earlier this month, IDA Ireland was informed that the company in Thurles was to close with the loss of all remaining jobs and that all production was being consolidated in China. The managing director of the company wrote to the Minister for Enterprise, Trade and Employment on 13 April last stating that, following a major manufacturing review, the company had informed its 80 employees that it would be ceasing the manufacture of orthopaedic soft goods at its Thurles plant by the end of 2006. The decision was due to excess manufacturing capacity and the need to maintain cost competitiveness resulting in a change of manufacturing strategy.

The priority will be to find alternative employment for those involved. The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. The full range of FÁS services will be made available to the employees concerned, if they wish to avail of these services.

The industrial development agencies are making every effort to secure alternative employment for Thurles and north Tipperary. A central goal for the agencies is the achievement of balanced regional development. Statutory responsibility for the attraction of foreign direct investment to north Tipperary, including the town of Thurles, rests with IDA Ireland. Shannon Development has responsibility for the provision of industrial property solutions in the area. Its role in supporting indigenous enterprise will transfer to Enterprise Ireland under the new mandate granted by the Minister for Enterprise, Trade and Employment to Shannon Development last year.

Initiatives undertaken by Shannon Development in the provision of property solutions include the development of the Tipperary Technology Park in Thurles and the acquisition of a 29 acre site in Roscrea with a view to developing a business park. These facilities are being actively marketed by IDA Ireland to potential clients through its network of overseas offices. That agency's sectoral emphasis in the mid-west region is on attracting new knowledge intensive projects in information communications and technology, globally traded businesses, medical technologies and life sciences.

Shannon Development, in association with local authorities in the area, is also spearheading a drive to bring high speed Internet access to the region. The Department of Communications, Marine and Natural Resources has recently approved funding for metropolitan area networks to be installed in a number of towns, which should assist in attracting foreign direct investment and indigenous industry.

The Tipperary North County Enterprise Board is a source of support, specifically for the micro-businesses sector. The role of the board is to develop indigenous enterprise potential and to stimulate economic activity and an enterprise culture within north Tipperary. This is done through both direct financial assistance and non-financial assistance. Subject to certain eligibility criteria, enterprises may qualify for support from the CEB primarily in the form of feasibility, employment and capital grants, while there is a broad range of non-financial supports available such as mentoring, business advice, information, management development and training.

I am confident the strategies and policies being pursued by the development agencies in furtherance of their statutory functions, together with the ongoing commitment of Government to regional development, will bear fruit in terms of additional sustainable investment and jobs for the people of Thurles and the wider north Tipperary area.