Dáil debates

Wednesday, 22 May 2013

Ceisteanna - Questions - Priority Questions

Job Creation Issues

1:40 pm

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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3. To ask the Minister for Jobs, Enterprise and Innovation the number of visits his Department and the employment agencies have arranged to a vacant plant (details supplied) in County Tipperary; the possibilities of finding an industry for the plant; and if he will make a statement on the matter. [24519/13]

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I have been informed by IDA Ireland that in the period from January 2012 to date, five of the six site visits by potential investors to south Tipperary visited the vacant Cordis facility in Cashel. These visits were from new companies visiting the location and region for the first time and from senior executives of existing client companies.

IDA Ireland has confirmed that it is actively promoting the vacant Cordis facility as a modern biopharmaceutical-medical technology facility. I understand that the building is an IMB-audited facility, with fully equipped analytical quality control and development laboratories, as well as office-administration space. It has high specification clean room space and flexible production space. It is a large facility - 16,600 sq m - with ample expansion space. It is a modern facility that is readily adaptable for use as a medical technology and-or biopharmaceutical facility, in particular a convergent technology development and manufacturing facility.

This specification serves to align it with current requirements in the life sciences sector, for example, clinical trial production and commercial process development of next generation medical devices or biologics taking place in a location that has the competencies required to scale up to commercial manufacturing and to meet exacting regulatory authorisation requirements. IDA Ireland has confirmed that in addition, Johnson and Johnson corporate real estate services division is marketing the building. It has appointed an agent in Ireland with a view to seeking alternative users from within the Johnson and Johnson group of companies, in particular, from other business units with no prior presence in Ireland.

The pharmaceutical-biopharmaceutical sector today employs in the region of 25,000 people in Ireland and is a very significant contributor to the economy as measured by exports, corporate tax and Irish economy expenditure, in addition to direct employment. Internationally the industry is undergoing significant transformation from traditional pharmaceutical drugs based on small molecules to biopharmaceutical drugs based on large molecules. It is forecast that by 2016, seven of the top ten blockbuster drugs will be biologics.

Additional information not given on the floor of the House

In recent years, IDA Ireland has had a sustained marketing focus on the biotechnology sector and as a result the agency has successfully attracted and developed globally leading programmes from companies such as Allergan, Amgen, Centocor, Eli Lilly, Genzyme, Merck, Biomarin and Pfizer as examples. Ireland now has a globally leading biopharmaceutical cluster in the next generation of pharmaceutical products. Over the past ten years Ireland has seen 15 major investments in biopharma manufacturing. Based on some recent announcements an average investment of€400 million is not untypicaland the average per project is of the order of 200 high-value manufacturing jobs. These investments have mitigated Ireland's exposure to the patent cliff on older products.

From across its existing companies, IDA continues to win large scale investments in product development and capability building to take on new product mandates. Ireland already has successful generic manufacturers such as Clonmel Healthcare, Ranbaxy, Wockhardt, Teva and Rowa as examples. These companies have operated successfully from Ireland competing with low cost competition for many years. Some of these investments also have a big construction impact.

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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I welcome the reply from the Minister of State. I note there has been a number of visits to this site and Johnson and Johnson is helping in the search for a new tenant for this facility. Foreign direct investment has resulted in the creation of new jobs and the availability of a modern state of the art plant at Cashel, the former Cordis plant, must make the search easier. Jobs are very badly needed in south Tipperary. IDA Ireland produced only ten new jobs in south Tipperary last year. Other plants in the county have seen significant job losses. The current unemployment statistics for the county are horrendous. In the town of Cashel, unemployment has increased from just under 400 in 2008 to 1,200 currently. The situation is the same in other towns around the county.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I wish to assure the Deputy that IDA Ireland is working very hard to find an occupier.

This is a fantastic facility in a cluster that is recognised for life sciences. In south Tipperary alone, eight IDA client companies employ 3,500 people. It is important to emphasise that aspect. The fact that it is a fantastic cluster will enhance the opportunity to find an occupier for the facility as will the fact that 3,500 people are working in IDA companies in the region. This is about the promotion of the region which has a major regional advantage given the existence of the cluster. The IDA is actively bringing people to see the facility, with five of the six companies having visited it. The Minister, Deputy Bruton, is actively discussing the matter with the IDA every chance he gets. There is a great opportunity here. The Minister sits on the south east forum and employment in the region is very much a critical focus of Government. I am very confident about this facility given the emphasis of the Government on the south east, the location of the life science cluster and the fact that 3,500 people are already employed in eight IDA client companies in the region.

1:50 pm

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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I stress the fact that there are a number of flagship industries in the area, including medical device and pharmaceutical companies. These companies are prepared to liaise and partner with incoming foreign direct investment companies at the state-of-the-art site at Cashel. I appeal to the Minister and Minister of State to make every effort to ensure that a tenant is obtained for the facility as soon as possible and, in any event, before the end of the year.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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On the success of the IDA, we have been very fortunate in terms of foreign direct investment in Ireland. The IDA does an outstanding job on behalf of the economy to bring in top-calibre, high-tech companies, especially in the life sciences. Johnson & Johnson is a huge organisation which is working actively with the IDA and has appointed personnel. I emphasise to Deputy Healy the clear message that the Government and the IDA is prioritising the facility in every way possible. It is a state-of-the-art facility, at which five companies have looked. The intention of Government is to ensure that getting an occupier for this fantastic facility is an IDA priority in the south east. We are doing everything we can to make that happen.

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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I welcome that and hope it comes to fruition very quickly.