Dáil debates

Tuesday, 24 February 2009

3:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Question 48: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps she has taken be satisfied that employment in the pharmaceutical industry is secure; if she has met with representatives in the industry in the past six months; and if she will make a statement on the matter. [7746/09]

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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I will take that question.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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It will give the Minister a chance to recover.

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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Pharmaceutical exports from Ireland are valued at €34 billion annually, achieved by 80 companies employing 20,000 people. The pharma and biopharma sectors are extremely important for Ireland and have experienced significant growth in recent years. The outlook for Ireland in terms of development and manufacturing is that in spite of intense competition, we will still secure investment in both the small molecule or pharma area and also in the large molecule or biopharma sector. Ireland has a long history in the sector and eight of the top ten major pharmaceutical companies now have a major presence here.

Much of IDA Ireland's engagement with the companies is around securing additional investment and business functions from the established client base. With over 40 years of investment in Ireland, the operating environment is recognised as world class, with excellent infrastructure and specialist services and a regulatory record that is second to none. IDA Ireland is continuing to win development projects from the pharma sector.

The single most effective strategy of securing the future of manufacturing at the Irish sites is giving the Irish companies a role in new product development. Major investment projects currently under way include Merck in Carlow, Teva in Waterford, Eli Lilly in Kinsale, Genzyme in Waterford, Gilead Sciences in Cork and Hovione in Cork. These projects, which are mainly at an advanced construction stage, will lead to the creation of 800 jobs and involve substantial capital investment of over €800 million.

The key objectives of Enterprise Ireland's three-year strategy for the development of this sector are to accelerate indigenous export growth by €175 million; build a platform for longer-term growth in the sector; build client innovation capability; and drive improved leadership and management competencies. These are all positive developments. However, in international markets the traditional pharma sector has been experiencing somewhat slower growth. This is due to a combination of factors including patent expiries, a decline in product pipelines, increased costs of clinical and pre-clinical research, pressure on pharmaceutical prices, increased costs of marketing and sales and greater intensity of competition. There has been a decline in research and development productivity and generic drugs have been achieving greater market share. Given these developments, it is more important than ever to concentrate in Ireland on building the infrastructure to support a healthy, vibrant pharmaceutical industry, an industry firmly rooted in the sciences.

The Government has strongly committed to this. Over the last decade or so we have put in place the programme for research in third level institutions which focused on building world class research facilities and capability under the National Development Plan 2000-2006. Science Foundation Ireland was established to attract world-class researchers to Ireland and promote world-class research activity, focusing mainly on life sciences and ICT. With these foundations in place, the Government is committed to further developing the sector. We have a clear vision in place, which is being carried out through the implementation of our national strategy for science, technology and innovation for 2006 to 2013.

With regard to dialogue with the sector, the Tánaiste and her Ministers frequently meet individual companies from the whole range of sectors. For example, on a recent IDA Ireland investment promotion mission in the US last November, the Tánaiste met a range of companies including four from the pharmaceutical sector.

On the question of manufacturing, the 2008 report of the high level group on Manufacturing identified the actions to be taken by all stakeholders to respond to challenges and take advantage of opportunities to further develop the sector in Ireland. The report sets out a number of recommendations directed at innovation, productivity leading to transformational change and reskilling and management development. It also identifies a need to increase awareness and take-up of existing supports. In the recent review of Towards 2016, the social partners agreed that a manufacturing forum should be established to monitor and ensure the implementation of the report's recommendations. The members of the forum are now being appointed.

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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I asked a question on the security of existing employment in the pharmaceutical industry and the Minister of State referred to the additional investment o which IDA Ireland is focused. I would like if the Minister of State could answer me on two issues that have come into the media recently. These are GlaxoSmithKline, GSK, which is reported to plan to cut back 6,000 to 10,000 jobs internationally. What steps has the Department of Enterprise, Trade and Employment taken to address that or to contact GSK to see if any jobs in this country will be affected? Pfizer and Wyeth employ 5,500 people in this country and Lipitor, one of the drugs that Pfizer manufactures in Cork, will go off the market in 2011. What steps has the Department taken in those two areas to ensure there will be no job losses in those areas in this country?

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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The Tánaiste has met with GSK and there may be new opportunities available there. The takeover of Wyeth by Pfizer is undergoing due diligence in the international arena. US and EU competition law must be examined. It is believed that it will proceed around September or October and the IDA estimates there will not be any great implications for this country but we must wait and see what happens.

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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What about Lipitor, the drug that will go off patent in 2011? What steps is the Department taking to address that? This is coming down the tracks. We do not want another Dell situation where the change is well signalled in advance, yet we are fumbling when the job announcement happens. There are serious questions around these companies and people working in them are concerned about their futures. They want to see that the Government is proactive in addressing potential job losses.

Photo of Jimmy DevinsJimmy Devins (Sligo-North Leitrim, Fianna Fail)
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One of the reasons Pfizer purchased Wyeth was to get the intellectual property on that drug. When a product goes off licence many proprietary drug companies manufacture it as a generic.