Dáil debates

Thursday, 27 September 2007

5:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Coca-Cola has operated in Drogheda for over 30 years. It employs 256 people in the manufacturing process and also has a very significant service industry employing approximately 120 people. So it is a critical industry. It provides the best standard of employment anywhere in the country. Coca-Cola is the best employer with a very dedicated workforce that has had a tremendous relationship with the town of Drogheda, the community and the workers.

All of this is changing with the proposal by the company to close the manufacturing facility with the loss of 256 jobs. I want to address this issue from the perspective of the workers and how the effect of this appalling closure on their lives and the entire community can be mitigated. What steps will the Minister take? The workers believe that parts of the operation can be saved and that manufacturing jobs in some sections can continue.

The workers are willing to look at current work practices. Will the Minister facilitate an effort to save these jobs and, if so, how? In particular, will he ask the IDA in the north east and the US to work with the unions and workers to progress this issue? Such a commitment is required immediately. I welcome the planned meeting between the trade unions and the Minister on 11 October but I fear it may be too late. We must act now.

The loss of these jobs in Drogheda, coupled with other job losses in the local manufacturing and industrial sector, will be significant. While I welcome the establishment of a task force, a strategic plan to acquire more manufacturing bases in counties Louth and Meath is needed. Drogheda has a population of 35,000 people, but the area will have about 70,000 people in ten years. Will the Minister raise with the Minister for Finance the introduction of tax incentives for the planned development of the dockland area in Drogheda?

Coca-Cola is a welcome employer in Drogheda and all concerned wish to see it continue in the town. We need to see action from the Minister and others, including the Minister for Foreign Affairs, Deputy Dermot Ahern, to ensure further job creation in Drogheda.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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On 29 August last, the company in question announced all manufacturing and distribution operations in Drogheda, County Louth would close in September 2008. The company had decided it no longer needed three operations in Ireland. The reason given for closing the Drogheda plant was that the high-capacity plant in Ballina, County Mayo and the specialised plant in Athy, County Kildare had sufficient capacity to meet future demand. A number of employees affected will have the option of moving to either Athy or Ballina, where job numbers will be increased by 90 between the two plants, thereby reducing the overall number of job losses.

Shared services jobs will remain in Drogheda where the company will continue to employ 112 people. The company has been keen to stress it is committed to supporting its employees through a generous redundancy package, re-training and business start-up assistance where appropriate. The services of the Government training agency, FÁS, are also available to those workers who wish to avail of the agency's services.

The Government is determined to provide every assistance possible to the redundant workers so they can seek alternative employment. The company identified that future concentrate requirements can be met by consolidating its current number of plants. However, the company will continue to employ over 500 people in Ireland. Over the years, the company has enjoyed a warm relationship with the people of Drogheda and other businesses in the town and the company will continue to play an active role in the community.

While the Minister for Enterprise, Trade and Employment, Deputy Martin, is abroad on an Enterprise Ireland trade mission, he has already agreed to meet with Drogheda Borough Council on 11 October. The industrial development agencies have been promoting Drogheda and County Louth for industrial development as per Government policy. There have been several significant developments recently both in the town and the county. In January 2007, Daiwa Securities Global Asset Services opened a hedge fund administration operation for Daiwa Securities Group Inc. in Dundalk. The Dundalk operation will create 300 high calibre financial services jobs. In April 2006, it was announced that Becton, Dickinson and Company will invest €52 million, with the support of Government funding through IDA Ireland, in the development and expansion of its medical devices global manufacturing centre in Drogheda. This is expected to create an additional 125 new jobs over and above the current employment in Drogheda of 95 people.

In March 2006, it was announced that Pillar Data Systems Inc., of San Jose, California, supported by IDA Ireland, is to establish its European, Middle East and Africa headquarters in Drogheda. Pillar Data Systems designs and builds computer data storage systems. The new operation for Drogheda will have sole management responsibility for sales and marketing, technical support, finance, operations, IT management and business analysis in the European, Middle East and Africa regions. It will create 200 high calibre jobs across these business areas. In February 2006, it was announced the Vesta Corporation, a leader in virtual commerce solutions, is to establish a European operations centre in Dundalk. This centre will create 350 high quality jobs over three years.

IDA Ireland recently completed the €6 million site development programme at its Drogheda business park. The first building on the park comprising 23,000 square feet has been occupied by International Funds Services which employs 125 people. In addition to these recent positive developments which I have outlined, the industrial development agencies will continue to promote Drogheda and the surrounding area for further industrial development.