Deirdre Clune (Cork South Central, Fine Gael)
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I am grateful for the opportunity to raise yesterday's disturbing and upsetting announcement of the loss of 785 jobs at Pfizer Ireland. Behind that figure are individuals and their families who are devastated by this announcement. It is a day the employees hoped would never come. A commitment must be given that something will be done to ensure replacement jobs are found in the relevant areas. I am pleased the Minister for Enterprise, Trade and Innovation, Deputy Batt O'Keeffe, is in the Chamber to respond to this matter.

Yesterday's announcement did not come out of the blue for Pfizer employees despite their hope that their jobs would not be affected. I am particularly concerned by the impact on the Cork area of the loss of approximately 300 jobs between the two facilities there. At the Loughbeg drug product plant, 225 jobs will be lost by the end of 2012, only 18 months away. The Loughbeg facility produces the drug LIPITOR which, as has been known for some time, will go off patent next year. I questioned the Minister's predecessor on many occasions about this and about recent changes at Pfizer particularly following its takeover of Wyeth in January 2009. In addition, it has been repeatedly pointed out, including by Pfizer Ireland itself, that it is expensive to do business in this country and that competitiveness continues to be an issue for companies here. The concerns raised by Mr. Paul Duffy, head of manufacturing at Pfizer and president of the American Chamber of Commerce in Ireland, in the presence of the Taoiseach, regarding competitiveness and the cost of doing business here were raised yesterday in the House.

While wage costs have fallen in some sectors, energy costs in Ireland are among the highest in Europe. Local authority charges and waste and water charges also contribute to the high costs of doing business here for companies such as Pfizer. When company boards meet in New York to review their worldwide operations they find that Ireland is an expensive country in which to operate. We are competing against countries such as Singapore, India and other locations in which Pfizer has operations.

The other Cork plant mentioned yesterday is a biotechnology facility employing 75 people which opened in 2009 following investment of €195 million. The jobs affected involve high level research on behalf of Pfizer's global manufacturing operations. The facility was hailed as an important investment at the time and a signal of the company's commitment to Ireland. I believe Pfizer remains committed to Ireland as it continues to employ 5,000 people here.

I ask the Minister to address the future of pharmaceuticals on this island. The pharmaceutical sector is experiencing difficulties worldwide getting products to market and many products are due to come off patent. What will this mean for Ireland?

The IDA recently launched its Horizon 2020 strategy. Deputies have received only a Powerpoint presentation on the strategy and do not have much information on where precisely the anticipated 62,000 new jobs will be generated. The strategy refers to regional economic development, emerging growth markets, greenfield investments, research, development and innovation. The IDA estimates that Ireland will benefit from 640 investments. What will be the nature of these investments? Will they replace the jobs being lost in Cork?

Pfizer is confident it will be able to sell the plants it will vacate in Cork and Dún Laoghaire. I ask the Minister to give a commitment that the IDA will work with the company to ensure potential buyers are identified and alternative jobs are found for the areas in which jobs will be lost. Given the concerns about the future of the pharmaceutical industry on this island, I ask the Minister to provide some reassurance.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I thank Deputy Clune for raising this pertinent matter of concern to all of us on the Adjournment. I reiterate my deep regret at the job losses announced on Tuesday in Pfizer Global Manufacturing.

Pfizer's plan to cut its worldwide workforce by 6,000 in 14 sites over the next four years is aimed at integrating the Pfizer and Wyeth manufacturing and supply organisations, which have significant over-capacity following the Pfizer takeover of Wyeth late last year. I have asked the State agencies to do everything possible to provide training and re-employment services to the 275 workers losing their jobs in Newbridge, County Kildare, and to work with Pfizer to save the other 510 jobs at risk due to the planned future sale or closure of plants in Cork and Dublin.

Although the company plans to cut its global headcount by 6,000, Pfizer remains a major multinational employer in Ireland, with more than 4,200 workers in seven locations involved in the manufacture of high-end life science products for world markets. The loss of 275 jobs in Newbridge is not immediate. Between the end of this year and 2011, 135 jobs will be lost, with the remainder to be lost in 2013. Likewise, any impact on jobs at the facilities in Loughbeg and Shanbally in Cork, and in Dún Laoghaire in County Dublin, would occur in 2012 to 2014.

The IDA is confident that a buyer will be found for at least some of these facilities and the agency will work closely with Pfizer to achieve this end. In the recent past, the IDA and Pfizer have been successful with the sale of Pfizer's animal health plant in Sligo and its Loughbeg API plant, preserving jobs at both locations.

Pfizer is planning further capital investments and new positions in its biotechnology operations in Ireland. The Government will do all it can to support the company's growth plans. Although the 275 job losses in Newbridge are devastating for the workers in question, their families and communities, it should be acknowledged that the company is retaining a workforce of 770 in the plant.

I assure the Deputy that my priority is to ensure that the business environment is supportive of Irish enterprise and export growth and that we continue to attract high value foreign investment. By selling on international markets, we will create jobs and prosperity at home.

State supported indigenous companies currently employ 133,000 people. Enterprise Ireland's objective is to create a further 40,000 new jobs over the next five years. State supported foreign companies currently employ 124,000 people. The IDA's objective is to create a further 62,000 new jobs over the next five years. The IDA and Enterprise Ireland targets for job creation could lead to an additional 70,000 jobs elsewhere in the economy.

Our thoughts are with the workers affected by yesterday's announcement. I am acutely aware of the distress the job losses are causing to employees and their families. I assure everyone that the State agencies will give every support they can to Pfizer employees.