Dáil debates

Tuesday, 13 November 2007

8:00 pm

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
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In the past week a shattering and demoralising blow has been inflicted on the diligent and committed workforce at Premier Foods, Thurles, County Tipperary. This company and the Erin brand, synonymous with Thurles, announced that it was to cease production, resulting in the loss of 95 jobs.

The workforce and their dependent families have endured prolonged uncertainty and fear of the unknown. Arising from this decision, they face the prospect of coping with the daily pressures of life without a job and financial security. We have an obligation and responsibility to provide alternative job opportunities.

Will the Minister ensure the UK management of Premier Foods, the parent company of Erin, offers the current staff facing lay-off the maximum terms and conditions for redundancy? Will he also ensure every support and resource is made available by the State to these 95 people to assist them in seeking new employment?

I question the role of the Competition Authority in the demise of the Thurles Erin plant. The authority's decision that Premier Foods had to divest from the Erin brand at the beginning of the year cast a long shadow over the future of the Thurles plant and its viability. It is outrageous that the Competition Authority, operating autonomously, could make a decision which sounded the death knell of the Thurles plant.

The plant's closure concludes the gradual obliteration of the manufacturing base in Thurles. In the not too distant past, north Tipperary was home to some of the world's largest industrial companies such as Aventis Pharma, Antiger, Procter and Gamble, Tubex, BSN Medical and Irish-owned companies such as Irish Sugar.

North Tipperary has not benefited from significant foreign direct investment for many years. Throughout north Tipperary there are four international industries compared with 11 six years ago. It is critical that a large scale positive action campaign is initiated to secure industry for the region. To achieve this, it is vital that all parties concerned, from Government to development bodies and local business groups, embark on a cohesive, focused and coordinated course of action that will result in sustainable high quality industry locating in north Tipperary. It is crucial that the full services of the investment promotion unit of Shannon Development, Enterprise Ireland and IDA Ireland are brought to bear in an attempt to attract the type of investment that Thurles and its hinterland deserve.

The Government must address the urgent need to create and attract high-tech, high-end jobs to Thurles and north Tipperary. To this end, it is imperative the Minster initiates a concerted and effective positive action campaign for the town and region. North Tipperary and Thurles are ideal locations for new business enterprises. Thurles is an excellent town which is well located and connected. The town enjoys an educated, vibrant and skilled workforce. It has many attributes that give it an advantage. It is time these were harnessed to provide the industries that the town and its people require.

The employment and job creation problems of north Tipperary are serious and require a specific coordinated response. I call on the Minister to act quickly with the aim of implementing proactive and positive measures to encourage and attract foreign investment to north Tipperary. It is imperative that sustainable, modern replacement industries be secured for Thurles as a matter of urgency.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The company in question informed me last Thursday that redundancies would be taking place at its Thurles operation on a phased basis until June 2008. I am concerned about the consequences for the workers involved and their families. I wish to assure the people concerned that the Government, through the State development agencies, will provide every assistance it can. The priorities will be the workers in the company and to increase employment opportunities for Thurles and north Tipperary.

The role of FÁS, the State training agency, will be particularly important in offering assistance to the workers. The agency made contact with the company today and the full range of its services will be made available to the employees if they wish to avail of them. The company has decided to consolidate manufacturing in the parent company in the United Kingdom. This decision follows an operational review of the Thurles factory.

The development agencies will instigate a strong response. The IDA Ireland strategy for Thurles and north Tipperary involves developing the knowledge economy by winning new foreign direct investment in innovation-driven, high skills sectors. The agency is also working with its existing company base to expand their presence in Ireland by the addition of new functions of scale and by deepening their strategic functions.

Another of the agency's strategies is to influence the provision of property solutions and the supporting infrastructure to meet the requirements of inward investors. The agency recognises the need to achieve high value employment in Thurles and is committed to marketing the area as part of its national goal of achieving balanced regional development. It has five supported companies in north Tipperary, employing some 680 people, one of which, a pharmaceutical distributor, is in Thurles. In addition, investments by two companies in Roscrea and Templemore will result in significant additional employment for the whole area including the surrounding towns.

The agency also works closely with Shannon Development in the development, promotion and marketing of tailored property solutions to potential investors throughout the mid-west, including the development of Tipperary Technology Park in Thurles. Shannon Development has completed the first stage development of Tipperary Technology Park, which includes 25,000 sq. ft. state-of-the-art accommodation, to facilitate the attraction and development of knowledge-based enterprises. The park is a component of IDA Ireland's international marketing programme.

Enterprise Ireland activity in Thurles and north Tipperary is focused on the creation of new jobs through supporting entrepreneurs setting up new high potential start-up companies and the retention and creation of jobs in existing companies. The agency also works with its clients to enhance the innovation capability of Irish companies at both national and regional levels. A significant number of Enterprise Ireland client companies in the county are actively developing their businesses.

During 2006, North Tipperary County Enterprise Board approved a total of €295,389 to 16 projects and paid out €238,850 in grant assistance to 18 projects, which resulted in the creation of 21 net jobs in CEB assisted companies throughout north Tipperary. North Tipperary CEB also organised 56 different types of training interventions during 2006, based on meeting the wide and varied needs of the small business owner-managers of north Tipperary. Some 629 participants attended training programmes run by the CEB during 2006.

The most recent data available, which is for October 2007, shows a figure of 963 on the live register, which is down from the September 2007 figure of 1,000 people. The strategies and policies pursued by the State development agencies, in partnership with other key players, are designed to ensure new employment opportunities in the Thurles and north Tipperary area. The aim is to replace the companies referred to by Deputy Lowry with the companies of tomorrow. There has been a significant churn in the economy which has been reflected in the north Tipperary area. I am conscious of the need to work with the agencies in tackling this situation. I will get back to the Deputy in the coming days to develop the coordinated and cohesive response he demanded.