Dáil debates

Tuesday, 21 October 2008

8:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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I thank the Ceann Comhairle for allowing this matter and the Minister of State at the Department of Enterprise, Trade and Employment for taking it. The shocking news that a major employer in County Kildare, Wyeth Medica in Newbridge, was seeking 250 redundancies by December 2009 and that another major industry, Tegral Building Products Limited in Athy, would follow suit was shocking. They are the county's largest industrial employers due to the significant haemorrhaging of employment elsewhere in the area for some time, including at Donnelly Mirrors, Black and Decker, Wallboard, IVI, Shuttlework Europe Limited, Pyma, Batchelors Limited, Monoject, Peerless Rug, Leinster Foundries, Polaroid and, in adjacent counties, Lappel, Irish Sugar and a reduction of staff at Braun Oral B. Industry used to be at the forefront of employment in the area, but it has reduced.

To add to the problems is the lack of drive on the part of IDA Ireland in providing alternatives. I have resided in the area for more than 60 years and in that time only one replacement industry was acquired and that was in respect of Irish Board Mills where I was an employee. That replacement has since gone by the wayside and the haemorrhaging has continued across the board.

To add insult to injury, a number of IDA Ireland sites in Kildare South have been disgracefully neglected. In five years, only two industries have visited the area. I sought to determine whether IDA Ireland would sell the sites to the local authority to provide incubation units for indigenous industries in different towns. Due to IDA Ireland's greed — it wanted to sell the sites to the local authority at today's prices instead of at the prices of the 1970s when they were first purchased — the deal fell through.

When I pressed this issue in recent weeks, IDA Ireland admitted in local newspapers that it cannot attract industries to south County Kildare. How could it do so when it does not bring industries to the county? The newspaper headlines were incredible, as IDA Ireland conceded that it could not attract industry to the area despite how it used to be filled with industries. The situation has worsened and IDA Ireland must return to the local authority to try to sell the three sites after being unable to conclude a deal in 2003.

How can this occur? Given the economic downturn, should we not consider how to promote indigenous industries? This is an ideal opportunity for IDA Ireland to work with State agencies in starting up incubation units and ensuring the protection of jobs at Tegral Building Products Limited and Wyeth Medica. Will the Minister of State examine the issue of the sites and tell IDA Ireland to forget about getting modern prices for lands bought cheaply in the 1970s and to work with the local authority in creating alternative employment in an agricultural area that has experienced significant employment losses through the closure of Irish Sugar? Will he also ask the State agencies to work with Wyeth Medica and Tegral Building Products Limited to ensure that they are given every assistance in overcoming their considerable problems? They should continue to be beacons of hope to the people of the area. The work and dedication of their staff should be underpinned to ensure the companies' continued success. Will the Minister of State ask IDA Ireland to remodel what has been one of that body's worst performances to date?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I apologise as I was late for the start of the debate.

Photo of Jack WallJack Wall (Kildare South, Labour)
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It is not a problem.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I will address some of the Deputy's points. The recent increase in the numbers on the live register is unwelcome and traumatic for the communities involved. It is an indication of the challenges facing the labour market and the economy as a whole. The Government is taking specific measures to address the challenge and ensure that job losses are minimal and last for as short a time as possible. Our priority is to create an environment that will allow those who have lost their jobs to quickly return to the labour market.

The enterprise development agencies, with FÁS, the employment and training authority, are actively engaged in facilitating job opportunities in Kildare South. Specifically, IDA Ireland's current strategy seeks to progress the development of a knowledge economy so that County Kildare can compete nationally and internationally for foreign direct investment to encourage increased co-operation between foreign direct investment companies and third level institutions in Kildare, such as NUI Maynooth, to work with the existing client base in the county and expand their presence — for example, in 2006 Curragh Carpets relocated to a new facility in Newbridge, maintaining employee levels — to provide modern property solutions with supporting infrastructure, including the recent site infrastructure developments with Braun Oral B in Newbridge, and to work with local authorities and relevant infrastructure providers to influence the delivery of appropriate infrastructure to Kildare.

There are 25 IDA Ireland-supported companies in Kildare employing approximately 10,356 people. The reduction in job numbers in Wyeth Medica, while disappointing, was not unexpected. This is a challenge facing us all, given how multinational companies are conducting global reviews. We must ensure that we remain competitive and that we market Ireland as well as possible. Unfortunately, companies' sister sites are also competing with Ireland. We will ensure that Ireland remains seen as a place to do business.

Wyeth Medica announced the prospect of job cuts in March 2006, which are now being processed because of the significant reduction in the throughput and product volume of new products. However, it is important to note that in October 2007 the company announced an investment of €7.47 million in its research and development facility in Newbridge. The new centre will be at the forefront of Wyeth Medica's development pipeline and will assist Newbridge in attracting a significant number of the new products coming out of the corporate research and development pipeline.

In recent years, Kildare South has attracted world-class manufacturing companies, including Wyeth Medica and Braun Oral B, in addition to Intel and Hewlett Packard, which are also located in the county.

Photo of Jack WallJack Wall (Kildare South, Labour)
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At the wrong end of it.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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In the present competitive global markets, it is increasingly difficult to continue to attract such facilities as manufacturing companies in particular are going to low cost destinations such as China and central Europe. Central American countries, including Brazil and Singapore among others have low corporation tax levels, good infrastructures and good legal systems. Many companies are considering them is a sizable challenge and we must continue to address that.

To address this market shift, IDA Ireland is refocusing to areas such as international services, software, financial services and pharmaceuticals. In 2005, IFS established a facility in the Millennium Park in County Kildare. The requirements of these types of project mean that they are increasingly attracted to larger populations, such as Kildare or Naas. To support this strategy, IDA Ireland is also working closely with educational institutions in County Kildare, such as NUI Maynooth, in developing the skill sets necessary to attract high value added employment. The agency is also working with FÁS to provide guidance in developing the skill sets needed by those already in the workforce who are interested in upskilling.

The Millennium Park in Naas, within the environs of Kildare South, has three modern 40,000 sq. ft. advance office buildings that are now available for marketing to inward investors, with all the necessary infrastructure, including ducting for broadband. New indigenous companies have been established and have created new employment in the county, which will benefit the people of Kildare South. It is expected that the consumer foods sector will continue to expand, reflecting significant changes in eating habits and an increase in demand for convenience foods.

Photo of Jack WallJack Wall (Kildare South, Labour)
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Every one of those is in north County Kildare.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Were it a five-seater, the Deputy would be glad.

Photo of Jack WallJack Wall (Kildare South, Labour)
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It is not.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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The major €22.6 million expansion investment, supported by Enterprise Ireland, is under way and on target in Green Isle Foods. Enterprise Ireland has supported the development of community enterprise centres in Kildare South, at Allenwood and Athy, which are contributing significantly to job creation. However, I take the Deputy's points on boards and will convey his concerns to IDA Ireland when its representatives return from the overseas trade mission in which it is currently engaged.