Eamon Scanlon (Sligo-North Leitrim, Independent)
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I welcome the opportunity to raise this matter on the Adjournment.

Last week, GlaxoSmithKline announced it was ceasing its operations in Sligo and would be making redundant 250 employees redundant over the next three years. Stiefel which commenced operations in Sligo in 1975, some 34 years ago, has been a reputable company and has provided great employment down through the years but is now proposing to make 250 employees redundant.

The announcement of the closure of Stiefel and the resultant redundancies came as a hammer blow. At the same time Abbott Ireland in Sligo announced it proposed to make 40 employees redundant. Abbott Ireland is also an excellent employer, employing 1,100 people. The Stiefel plant was purchased in July 2009. It would be wrong if multinational companies were allowed to buy out the opposition and later close those factories. I acknowledge that GlaxoSmithKline employs approximately 1,500 people in this country at their Dublin and Cork plants. However, this type of trend should not be permitted. I am not suggesting that that is what happened in this case but, that a company bought out in July 2009 has now announced its intention to cease operations at that plant is, to me, suspicious.

I call on the Minister to bring together the IDA, Enterprise Ireland, Sligo Chamber of Commerce and Sligo Enterprise Board to work to ensure this excellent and modern factory is reopened. All that can be done should be done to attract into Sligo a new manufacturing company which could provide employment for the excellent staff of Stiefel. I call on the Minister to ensure this is done as soon as possible. There are a number of empty factories in the IDA business park in Sligo. There is no doubt but that Sligo is suffering like every other region in the country. The immediate availability of these factories must make the task of attracting business into the area a lot easier.

The temporary employment subsidy scheme was established to support manufacturing companies which employ more than ten people. I ask that this scheme be extended to cover small indigenous companies who employ more than ten people, such as in the hotel and motor business. These businesses need support in the current climate. It would be better for us to support these people in their current employment rather than have to support them through social welfare and so on. I know the people concerned would prefer to be working. I call on the Minister to consider introducing a scheme to support indigenous companies.

Dara Calleary (Mayo, Fianna Fail)
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I thank the Deputy for raising this matter on the Adjournment and for his contact on the Stiefel and Abbott Ireland issues since the announcements were made last week.

As the House will be aware, on 11 November GlaxoSmithKline announced that it intends to cease its operations at its Stiefel plant in Sligo. However, this will not happen for another four years. The eventual planned closure will result in the loss of 220 permanent and 30 temporary positions. The proposal, as set out by Deputy Scanlon, has been made as part of an overall global review of the Stiefel business following its acquisition by GSK in July 2009. GSK has stated that this in no way affects its other operations in Ireland, to which the company remains fully committed.

The company states that the proposal is the result of under-utilised capacity not alone across the Stiefel network but across the network of GSK sites. Production will continue at the Sligo site until all products are transferred to alternative facilities within the GSK manufacturing network. FÁS will be in contact with the company to discuss the services available to meet the potential needs of employees. Each response will be tailored on a case by case basis. The FÁS services to business unit will be also involved in these consultations. Sligo County Enterprise Board and Enterprise Ireland will also offer their full range of services to assist any workers considering business start-ups.

As the House will be aware, Sligo has traditionally been a centre of manufacturing. However, over recent years it has proved challenging to maintain and attract foreign direct investment, particularly in manufacturing, as much of this investment is now going to low-cost destinations such as eastern and central Europe and China.

At present there are 19 IDA Ireland-supported companies in Sligo, with 2,273 people in full-time employment. IDA Ireland's current strategy for County Sligo and the north west includes the development of a knowledge economy so that the region can compete both nationally and internationally for foreign direct investment, in particular as a key location for investment in globally traded business and financial services. There have recently been some positive announcements in this regard. The strategy also involves working with and expanding the existing client base in the region and providing modern property solutions with supporting infrastructure, as mentioned by Deputy Scanlon.

The Minister met representatives of IDA Ireland this week and discussed the matter in detail. She has asked the agency to increase its efforts to attract and retain industry in the region. The Minister has also asked the State development agencies to work closely with the county development board in assisting with the local response to the planned job losses. She will also meet representatives of GSK to discuss the matter further. I will consider Deputy Scanlon's comments and suggestions with regard to the employee subsidy scheme and report back to the House.