Dáil debates
Wednesday, 4 July 2007
Other Questions
Job Creation.
3:00 pm
Seán Sherlock (Cork East, Labour)
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Question 6: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the enterprise element of the special local area plan for Mallow recently agreed; if he will be seeking assurances or commitments from Greencore, or if he will be targeting particular resources from his Department or its agencies, to ensure employment opportunities are created on the site of the former sugar factory in Mallow; and if he will make a statement on the matter. [18611/07]
Micheál Martin (Cork South Central, Fianna Fail)
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The industrial development agencies work closely with local interests in Mallow for the purpose of advancing the attractiveness of Mallow as a location for both indigenous industry and foreign direct investment. In this regard, Enterprise Ireland was involved with the Mallow development partnership and contributed to a commissioned plan on an integrated development strategy for the town undertaken by outside consultants. The plan took an overall view of the town's potential, particularly in the areas of industrial development, retailing, housing, education and sport. The agencies will work closely with the local area plan for the town.
On 21 March 2006 the Taoiseach, the Minister for Agriculture and Food, the Minister of State at the Department of Enterpise, Trade and Employment, Deputy Michael Ahern, and I met a delegation of various interests and concerned parties in regard to the sugar factory site in Mallow. At the time I indicated my intention to ensure possible alternative uses of the company's facility would be explored. There is now a €500 million development plan for the site. This includes enterprise space of 800,000 sq. ft., a hotel, recreational facilities and plans to create up to 2,000 jobs. This is without doubt a very significant initiative for the Mallow area. The development will add greatly to the ongoing development of the town. In addition, Enterprise Ireland has had discussions with the company about the development of land in Mallow. The agency is prepared to consider supporting any suitable projects that might emerge.
IDA Ireland is marketing six hectares of remaining land at Mallow Business Park. There are now eight companies located on the park, employing approximately 120 people. A new office block of 2,000 sq. m is also nearing completion. As a means of improving the attractiveness of Mallow for further investment, the IDA has engaged in a programme of works at its business park consisting of road repairs, the upgrade of water mains and sewers and the construction of a new entrance. The agency has also appointed a landscaping consultant to design complementary landscaping works for the park which will be completed in 2007. There are five IDA supported companies in Mallow employing approximately 540 people, including more than 450 employed at the Kostal facility outside the town.
The development of indigenous industry in Mallow continues to be supported by Enterprise Ireland. The pumping equipment company, EPS, employs more than 200 people in the town. I am satisfied the combined efforts of the industrial development agencies and local area interests will continue to bring new investment and job opportunities to the Mallow area.
Seán Sherlock (Cork East, Labour)
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I join other Members in congratulating the Leas-Cheann Comhairle on his elevation and wish him well for the future.
Brendan Howlin (Wexford, Labour)
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After that, the Deputy will be.
Seán Sherlock (Cork East, Labour)
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I thank sincerely the people of Cork East for the privilege they have afforded me by electing me to the House. I look forward to working for them and on their behalf.
To be blunt, the Minister's reply has been heard many times before. He did not answer the question as I posed it and as it pertained to the Greencore site specifically. Although he met the Taoiseach and others in March 2006, much progress has been made since, in so far as a special local area plan has been adopted for Mallow. I was glad to participate in drawing up the plan, in which we designated 30 acres within the site to be used as a high environmental, quality enterprise and employment zone. The question on everyone's lips in Mallow and north Cork is whether an enterprise will be located on the site. The north Cork and wider east Cork region has been dealt a savage blow in terms of job losses and the people of Mallow have high expectations for the site. The Minister should state whether there is a specific proposal because before the general election a Government backbencher made an announcement to the effect that an American company would make an announcement on job creation. Was the Minister aware of this so-called announcement? If such negotiations took place, did they bear fruit?
Micheál Martin (Cork South Central, Fianna Fail)
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First, I replied to the question tabled. It asked whether my attention was drawn to the enterprise element of the special local area plan for Mallow. The answer is yes. My Department has been party to it, as have the enterprise agencies. The question continued by asking whether I had sought assurances or commitments from Greencore. When I met representatives from the company more than a year ago, I made it clear that I considered the site to have potential for the regeneration and economic development of Mallow. This is the reason I backed the workers strongly in respect of the redundancy issue which I considered to have the potential to clear the pitch, so to speak, in terms of a clear road map ahead. Sometimes the closure of something facilitates the birth of something new. In that context, I asked the agencies to work with the various interests in Mallow.
I was greatly struck by the professionalism of the urban council, of which the Deputy was a member prior to his election to Dáil Éireann — I congratulate him on his election. In particular, while I am not supposed to mention names in the House, the manager, Mr. Tim Lucey, had a clear focus. The agencies will work with county and urban councils, particularly in attracting investment to an area in which there are property solutions and business parks of high quality. There is the opportunity to so do in Mallow, to this site in particular.
I never discuss negotiations the IDA may be having with any company. I was delighted to be in Fermoy last week with the news in respect of Sanmina. This involved a €30 million investment in a contract manufacturer that has moved the company up the value chain and secured more than 400 jobs. There are 450 full-time and 250 temporary jobs. There would have been challenges had this not been achieved.
Enterprise Ireland will also work with indigenous companies. I was in Charleville relatively recently to open a company which had relocated from Cork city. People sometime fail to focus on such developments. They continue to think of major plants from overseas but much happens indigenously.
Seán Sherlock (Cork East, Labour)
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As for the Government's support for the workers when the redundancy argument was ongoing, it washed its hands of the issue.
Michael Ahern (Cork East, Fianna Fail)
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The Deputy's contention is wrong.
Seán Sherlock (Cork East, Labour)
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Were it not for the intervention of Mallow Town Council and the members of Cork County Council, I believe strongly they would not have received their redundancy payments.
Brendan Howlin (Wexford, Labour)
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Does the Deputy have a question?
Seán Sherlock (Cork East, Labour)
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A statement was made by a Government backbencher prior to the election to the effect that an announcement on job creation at that site was imminent. The Minister has not answered this question adequately.
Micheál Martin (Cork South Central, Fianna Fail)
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I do not accept the Deputy's statement regarding the Government's position on the workers. We had a number of meetings in that respect and I articulated my position clearly and publicly to the company, as did the Minister of State, Deputy Michael Ahern.
Micheál Martin (Cork South Central, Fianna Fail)
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Thankfully. The labour relations machinery of the State kicked in to bring about a satisfactory outcome. Regarding the backbencher's statement, I suggest that Deputy Sherlock ask the Deputy about the announcement.
Arthur Morgan
Ruairi Quinn (Dublin South East, Labour)
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Perhaps the Minister should ask the backbencher.
Micheál Martin (Cork South Central, Fianna Fail)
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It is a long-standing precedent that the Minister does not comment or speculate on a potential investment in any way.
Seán Sherlock (Cork East, Labour)
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The people of Mallow would like to know whether the jobs are coming.
Brendan Howlin (Wexford, Labour)
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While I am obliged to call the next question, I will call Deputy Hogan for a brief supplementary question because I did not catch his eye a minute ago.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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In the context of the development of Greencore's sites in Mallow, what is the up-to-date situation in Carlow?
Micheál Martin (Cork South Central, Fianna Fail)
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The Deputy would know more than I.
Brendan Howlin (Wexford, Labour)
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It is a stretch on the question, but the Minister should reply briefly.
Micheál Martin (Cork South Central, Fianna Fail)
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It is a matter for the public representatives on Carlow County Council.
Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister ought to know a thing or two about Greencore.
Micheál Martin (Cork South Central, Fianna Fail)
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I am anxious to see development everywhere.