Charlie O'Connor (Dublin South West, Fianna Fail)
Link to this: Individually | In context

I thank the Ceann Comhairle and the Leas-Cheann Comhairle for allowing me the opportunity to raise this issue. After listening to the previous speaker, I could easily spend some time discussing Tallaght Hospital, but I wish to discuss jobs. I express solidarity with my colleagues in Wicklow, Deputies Doyle and Timmins, who are experiencing the same trauma we in Tallaght suffered last Friday.

The Minister of State, Deputy Kelleher, told me today that he shares my concern. On Friday and today, I raised these matters with the Minister, Deputy Martin, and I made clear to the Taoiseach how upset I am when I spoke with him today. It happens to every community, but we in Tallaght were shocked by what occurred last week. In fairness to the main political parties, we worked with the workers and management of Jacob's a number of years ago to create a situation in which proper investment would take place. I am glad that representatives of the workers are present because I not only have an opportunity to welcome them but to congratulate them on their positive response in recent days. They have been reasonable and should not be taken advantage of.

Like many of my generation, I remember Jacob's moving from Bishop Street in the inner city to Tallaght. I moved with an employer nearly 40 years ago and Jacob's came to Tallaght approximately 30 years ago. Over the years, it created good jobs and was a good employer, but I would not stand over what has occurred in recent years and days. I want to send a clear message through the Minister that what is occurring in Tallaght is not good enough. Management should have been more faithful to the loyal staff, many of whom went home last Thursday night believing there were no problems. They heard rumours overnight and on Friday and were then faced by the dreadful news that 220 production jobs and 40 seasonal jobs are to be shed in the next year or so. It is a big blow to Tallaght, the third largest population centre in the country where there is a young population. We need job creation, not job losses. The loss of this number of jobs at Jacob's on Belgard Road upsets the community in a considerable way.

I welcome the presence of the Minister of State, Deputy Kelleher. He will be supportive of my efforts in this regard. Tallaght needs job creation. These jobs must be replaced by equally good jobs, but we must also give special consideration to the plight of the workers at Jacob's who have been shocked by what has occurred in recent days. This morning, I explained to workers that I bring my life experiences to my politics. I apologise for telling the House, but I have been made redundant three times in my life, including twice in Tallaght. I am not ashamed of my background or my experiences. I know what it is like for those family members who woke up last Friday morning believing they were in good jobs, but who find themselves in a situation in which they need help. It is a blow to those people.

On Friday, I was critical of the company. The €10 million it is promising for redundancies and retraining is not enough and should have been used to modernise the plant. The company claims that the reason for the job losses is the plant. It should have been modernising the plant over the years and preserving the jobs. It needs to come up with more money. I read in The Sunday Times that the site is worth at least €100 million. If The Sunday Times states that, it must be right. It is good to see Deputy Brian Hayes is present to support me. He is also supportive of the workers.

I hope the Department's officials will make contact with the company as quickly as possible to make my concerns clear, namely, that the workers should be protected, properly retrained and get all of the facilities and resources they need to seek further jobs, which will not be easy. The company must ensure that proper redundancy payments are paid. I look forward not only to the Minister of State's reply, but to working with him to ensure these deals are kept.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I thank Deputy O'Connor for raising this issue. Given the way he raises matters on behalf of Tallaght, he will not be made redundant from the House.

I was disappointed to hear about the job losses at the company. I am particularly aware of the significance of the job losses in such a long-established company and every effort will be made to assist the employees in seeking alternative employment. I understand that a restructuring of the manufacturing activities of the company will lead to a cessation of production at its biscuit factory in Tallaght by early 2009. The planned restructuring will include an investment programme and the company expects to employ at that stage approximately 120 people in Ireland. The redundancies at the company will take place on a phased basis from September 2008 through to early 2009. The role of FÁS, the industrial training agency, will be particularly important. The agency has already written to the company and is prepared to offer its full range of services to any employees who wish to avail of them. I understand the company is entering into talks with employees and unions immediately.

Enterprise Ireland has had a number of discussions with the company in the past months regarding the latter's development plans and assistance has been given to its innovation agenda. Having reviewed a number of options, the company has taken the strategic decision to outsource its biscuit manufacturing operation. However, the company has also indicated its commitment to undertaking new product development in Ireland by deciding to establish an innovation centre of excellence in biscuit manufacturing. The agency will seek to continue working with the company to assist it in developing new products and processes and in enhancing its famous range of brands.

A decision by the company to establish an in-house research and development unit and new product development centre is in keeping with Enterprise Ireland's strategy for innovation with the agency's client companies, as innovation is accepted as the key to gaining a competitive advantage in the fast moving consumer goods sector. A number of added value food processing companies have already established dedicated NPD centres, a move that will serve to strengthen Ireland's most important indigenous industrial sector and copperfasten our reputation as a producer of safe, premium quality and innovative food products.

In the longer term, the future of the company's food and drinks sector will depend on a knowledge-based high added value operation with new product development. This will be necessary to maintain the sector's competitiveness in a competitive global food market. To this end, Enterprise Ireland has identified a number of growth areas, such as the fast growing functional foods market, organic products and convenience and specialty foods.

South-west Dublin continues to be actively marketed by IDA Ireland to potential investors and is well equipped to compete with other areas for potential foreign direct investment, with a third level institute and excellent infrastructural facilities at Citywest and Grangecastle. The announcement in November 2007 that Microsoft Corporation had selected Grangecastle as the location for its new European data centre was a further indication of Ireland's standing internationally as a global knowledge-based economy. It was also testament to IDA Ireland and south-west Dublin's commitment to growing next generation businesses in the area. Also in Grangecastle, the pharmaceutical company Wyeth Biopharma has established the world's largest biopharma campus facility, investing €1.8 billion and currently employing more than 1,300 highly skilled people. Recently, Wyeth announced that it is investing a further €24 million in the creation of additional dedicated research and development and process development facilities at its Grangecastle campus.

The State development agencies will continue to work together and with local interests to promote employment opportunities for Tallaght. I am confident that the strategies and policies being pursued in the area by the agencies will maximise the flow of potential investors and convert these into job opportunities. I thank the Deputy, who has a strong commitment to the area. I express my sympathies to the workers. Everything that can be done to ensure they find alternative employment or training facilities will be done.

Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

I wish to share time with Deputies Doyle and D'Arcy.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Is that agreed? Agreed.

Billy Timmins (Wicklow, Fine Gael)
Link to this: Individually | In context

I sympathise with the 350 workers at Allergan and their families who received this morning the devastating news that the company will wind down in June 2009. This is a terrible blow to an area that has suffered several blows previously in terms of Arklow Pottery and Euro Connex. The latter was supposed to employ approximately 600 people, but has bottomed out at 150 and will not expand. People in the area are resilient and will bounce back.

I must state on the record that, in 2002, the forerunner of this company stated that it would consolidate its production in Arklow and a grant of approximately €7 million over five years was committed by the Minister for Enterprise, Trade and Employment in 2003. I would like to be as magnanimous as Deputy O'Connor but I cannot, because the Government has failed Arklow. It gave a commitment to decentralise a State agency, the National Standards Authority of Ireland, to Arklow but that has not taken place to date. The agency is in the process of securing a new headquarters in Dublin with a 20-year lease and a ten-year break clause. It does not look like it will move to Arklow any time soon. I wish the Government would come clean in this respect.

Did the Minister for Enterprise, Trade and Employment have any forewarning of this closure? If so, what did he do about it? I ask him to use all of the departmental and State agencies at his disposal to get replacement work for the area. IDA Ireland did not visit the site in Wicklow for two years. I do not know if it has visited one recently. It is a sad day for Arklow. The town can bounce back but it needs assistance from State agencies.

Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context

Allergan has been established in Arklow since 1980. It was first known as McGhan Limited and later Inamed Aesthetics. For the past 18 months it has been under the international company, Allergan. It was announced today that 350 people or thereabouts will lose their jobs over the next 18 months. On television this morning, we saw young couples with mortgages where both partners work in this company. This will have a huge effect on such people. The closure of other companies has shown us that it is not just the people who work there who suffer; the larger community is also affected. The larger economic sector of Arklow and its surroundings across the border into Wexford will suffer.

Arklow was a flagship town for many years as regards employment, but it has been left in the wilderness. I am mindful of the fact that five years ago, IFI, a semi-State company, closed a unit in Arklow that traded profitably. It was other parts of the IFI group that were not profitable. The then Minister committed to paying all the creditors of the company. To date, this has not happened. A total of 22 pence in the pound has been paid.

During a debate this morning on the Government's infrastructural spending, I heard it said that broadband is the new infrastructure. Five years ago, we were the leading country in Europe in IT. We are losing fast because we do not have the infrastructure and we will pay the price. I call on the Government immediately to put in place an action plan for Arklow.

Michael D'Arcy (Wexford, Fine Gael)
Link to this: Individually | In context

I assume the Leas-Cheann Comhairle will be interested in the news relating to Allergan as up to one third of the workforce live in north County Wexford, which is his constituency. It is a huge blow to north Wexford, as well as south Wicklow. My colleagues have spoken about the amount of work IDA Ireland has done in the Arklow area. However, it has done nothing in Gorey and the rest of north Wexford. There is a plot of land that has been left idle for many years and IDA Ireland does not equivocate about it. It will not be built upon and there will be no jobs there.

Why is Allergan moving? The answer, quite simply, is loss of competitiveness. If one speaks to anybody working there, one discovers that according to senior management in Allergan, it costs in the region of $30 per hour to employ a person in Ireland. In Costa Rica, where Allergan is moving, it costs in the region of $2 per hour. That is a multiple of 15. We face a huge problem in respect of our competitiveness in the future. We simply will not be able to keep going. Costs are spiralling, including local authority levies, rates, electricity prices and many other issues. This is just one of many and there will be many more.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I thank the Deputies opposite for raising this matter on the Adjournment. The decision by Allergan to close its facility on a phased basis by mid-2009 with the loss of 360 jobs is very disappointing, particularly for the workers and families involved. I understand that the company has entered into a consultation process with its employees and their trade unions on its proposal to close the site over an 18-month period.

The Arklow plant, which produces breast implants for the global market, has been a very good employer in Arklow for a number of years and has received approximately €3.7 million in grant assistance from IDA Ireland since 1989. The decision was taken as a result of an internal global business review and the company has decided to relocate the manufacture of all products produced in Arklow to its manufacturing facility in Costa Rica, which has spare capacity.

It is envisaged that employment at the Arklow site will be phased out primarily between December 2008 and the first six months of 2009. However, I am pleased to say that the company in question remains strongly committed to its other Irish-based operations in Mayo and Dublin where several hundred people are employed. While I am conscious of the effect that any job losses will have on the workers involved and their families, as well as on the local community, I assure people affected that the State agencies will give every support they can to assist the workers who will lose their jobs and to develop new employment opportunities in the area.

The role of FÁS will be particularly important in assisting those people who will lose their jobs. I understand that in response to a request from the company for assistance from FÁS, the agency will be arranging a meeting to discuss its full range of services. This will include training and other supports. The company has decided to phase out the operation over the timeframe set out in order to allow the employees to seek alternative employment. In addition, the company has committed itself to finding suitable positions for workers in its other facilities, if this is possible.

I assure Deputies that IDA Ireland is in ongoing contact with the company and will continue to work very closely with its representatives during this challenging period. In recent times, IDA Ireland has been meeting with the company in an effort to have it invest more heavily in technical process development and in significant process automation.

In its ongoing drive to attract investment opportunities to Arklow and County Wicklow generally, I am pleased to say that IDA Ireland is currently in negotiations with two investors with regard to relocating and expanding in IDA Ireland Arklow Business Park. In addition, IDA Ireland has recently participated in a number of Wicklow enterprise days, which are aimed at promoting Wicklow as an attractive business location for Dublin companies. I was very encouraged to learn, particularly in light of today's announcement, that Servier Ireland Industries Limited, which is based in Arklow, is actively recruiting at present and employment figures have consistently increased over the last number of years.

The high-end medical technology sector in Ireland remains strong and will continue to be a focus for new investment, as witnessed by recent announcements in the sector. I am confident that further investment announcements will be made in the sector in the near future. According to the latest quarterly national household survey, published by the Central Statistics Office, the unemployment rate in the mid-east area, which includes Arklow, is 3.9%. This is one of the lowest unemployment rates in the country. Hopefully, this will increase the chances of the 360 workers who will be laid off in seeking other forms of employment. I assure Deputies that the Government, through the offices of the State agencies, will continue to promote Arklow and County Wicklow in general as attractive locations for employment and investment opportunities. I sympathise with the workers and their families. Obviously, it is a big loss to the area but I assure Deputies that the State agencies will do everything possible to find alternative forms of employment or assist in training.