Dáil debates

Tuesday, 24 June 2014

6:35 pm

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

Ba maith liom buíchas a gabháil leis an Ceann Comhairle. I thank him for allowing me to raise this important issue. Bulmers which is owned by C&C Group has a proud heritage, history and association with Clonmel, south Tipperary and west Waterford.

It is a wonderful company, which employed 600 people at its peak. I have fond memories of travelling to the vats in Clonmel as a buachaill óg with loads of apples, hand picked by men and children, and the wonderful aroma that descended on Clonmel from those vats during September and October. Production moved out to the present site outside the town and the company was doing fine and gave wonderful employment and had a superbl workforce and legacy over the years. Every summer it provided hundreds of summer jobs.

The situation has, unfortunately, taken a major turn for the worse. Since the takeover by C&C Group, a cloud has descended on Bulmers. There was major expansion, which frightened people who drove by, but, unfortunately, it has all gone wrong. Major corrections have been made by a sterling workforce from 2007 until now, but the workers are continually being asked for more. There has been a complete lack of engagement with public representatives by the company's managing director and others. Despite the fact that we were previously brought down for tours, meetings and trips and kept abreast of issues to be dealt with, we cannot get access. What are they hiding?

I will quote some very worrying figures. Sales of Hornsby's, Magners and Woodchuck are down 40%, 17% and 1%, respectively. Although Bulmers in Clonmel contributed almost €40 million to the company's profits of €126.7 million, the workers are being asked for another €1 million in cuts. The company is trying to introduce a standardised hours system, whereby people would have to work all their hours during the summer months, when they have to be away from their families and neglect them, and then may be be idle during the winter. The union is fighting this, but is not getting much support.

Bulmers has made wonderful profits and when it took over Gleesons some years ago my colleague, Deputy Michael Lowry, raised the issue here and we received all kinds of assurances. However, 30 jobs from that plant have been moved to Belfast and the equivalent of the IDA in Northern Ireland gave handsome grants to C&C to move jobs from Dublin and Tipperary in the Republic of Ireland to Northern Ireland. It is a crying shame and it is time to wake up and smell the coffee and demand meetings with the company, which wants a further €1 million in cuts, despite the many sacrifices the workers have made.

The American market has collapsed. The market in Great Britain is collapsing. UK cider sales have fallen by 13% and profits have fallen by 29% for the last year. Magners are still sponsoring Celtic Football Club, which I have no problem with. Bulmers was always good about sponsoring local causes, but it has been dwindling and the goodwill is disappearing. I question the ability of the CEO and management to do the job. On 13 May, production moved from Clonmel to Shepton Mallet in the United Kingdom. Nothing has gone through that plant but water for a test and it lies idle with nothing being made. There are pictures on the company's website to prove this. Although I am not against the counties north of the Border, why should Northern Ireland offer grants to companies to take jobs from the Republic and go there?

There is uncertainty, but Borrisoleigh is playing its part with a good, indigenous company, Gleeson Group. Two indigenous companies that have served Tipperary well for generations are being taken over by this all-encompassing C&C Group and we are carrying the other plants and the failures in America. It will take 46 years for the company to turn a profit from the investments it has made there. Why should Clonmel be forced to support it? I ask the Minister of State and the Minister, Deputy Richard Bruton, to visit Clonmel - and the United Kingdom, if necessary, as the company will not meet on our turf - to meet the company management, get reassurances and demand answers because the workers are not getting fair play, and neither are the public representatives of south Tipperary.

6:45 pm

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for raising the matter. I am very conscious of the anxiety that any threat to the workforce in C&C Group's operations in Clonmel would create for the workers, their families and the local community. In terms of safeguarding the rights of the employees, Ireland has a robust suite of employment rights legislation. For employees who are concerned about the safety of their jobs, Ireland's body of employment rights offers extensive protections to employees, including the Protections of Employment Act 1977, which provides for a process of information and consultation between the employer and the employee representatives; the Minimum Notice and Terms of Employment Acts 1973 to 2005, which give employees entitlements to specified notice periods or payment in lieu of notice; the Unfair Dismissals Acts 1977 to 2007; and the Redundancy Payments Act which is administered by the Minister for Social Protection.

While the plan of the company concerned is a commercial matter for the company, the group's commitment to invest has been demonstrated by its acquisitions in Ireland in recent years. It has just released results for the year ending 28 February 2014, with profits up 30%, of which 75% is represented by Ireland and Scotland, mainly by Bulmers in Ireland and Tennants in Scotland. The company is launching a new craft beer, with the plant currently being commissioned, and is nearing production in Clonmel. The group is a key client for Enterprise Ireland and has been provided with research and development and other supports. Enterprise Ireland visited the company last month.

Employment retention and creation continues to be our primary objective and we have been working hard to create the improved economic conditions which will support the maintenance of existing jobs and the creation of new ones. While Ireland's competitiveness has improved in recent years, we must continue to do more, to ensure these competitiveness gains are not eroded as the economy begins to recover and that we continue to address the structural imbalances which had built up over the lifetime of the previous Government. Through An Action Plan for Jobs 2012 and 2013, the Government has focused on measures aimed at restoring our competitiveness and creating a supportive environment for businesses operating in Ireland.

The Government recently launched An Action Plan for Jobs 2014 which contains a range of specific measures which will build on the progress made in recent years. These measures include a review of the key competitiveness issues for business, particularly cost competitiveness, and taking actions on key challenges identified; a review of key challenges in terms of ease of doing business in Ireland and taking action on the issues identified; and quarterly reporting to Government on competitiveness issues and progress in addressing these issues. The implementation of these actions, combined with the Government's exit from the troika programme and its return to international funding markets, will play a key role in improving our competitiveness further and realising our ambition of making Ireland the best small country in which to do business. The enterprise development agencies, under the aegis of my Department, have been to the fore in delivering on the commitments set out in the action plans for jobs and continue to ensure businesses can maximise their contribution to economic recovery and employment growth.

It is very important that any adverse impact on employment creation and maintenance from any source in Clonmel is minimised and the State enterprise agencies and the local enterprise office, LEO, will continue to make every effort they can to develop new employment opportunities for County Tipperary. In terms of new initiatives for job creation, Enterprise Ireland's activity is focused on the creation of new jobs through continuing to work with established companies in its portfolio. The agency is also supporting entrepreneurs in manufacturing and internationally traded services companies. The agency works toward enhancing the innovation capability in its client companies through the support of research. The new LEO structure promotes entrepreneurship and self-help, and LEOs are now the first-stop-shops for those starting a new business. The Tipperary LEO is the local hub for enterprise support, delivering a comprehensive service. Anyone in Clonmel seeking assistance with a small or start-up business should contact it.

IDA Ireland works with its existing client companies in the county with a view to encouraging them to grow and embed their business in the county. The primary opportunity for regional locations is in respect of the existing client base and potential further investment opportunities from that base. My colleague, the Minister, Deputy Richard Bruton, is determined to ensure that Ireland can continue and he is on a trade mission this week. I listened very actively to the Deputy's concerns. I am confident that the measures outlined in An Action Plan for Jobs 2014, together with other policies and initiatives being pursued by the State agencies and the County Tipperary LEO, will continue to support enterprise development and provide employment opportunities. The State agencies will continue to work closely with each other, and with local interests, to support an integrated approach to job creation in Clonmel.

6:55 pm

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

I am very disappointed with the answer. The best the Minister of State can do, given that he is a small businessman himself, is come here and read out facts and figures on a policy we know that is failing. This is an indigenous company with a proud record. The Minister of State is coming to Tipperary next month - beidh fáilte is fiche roimhe - and I ask him to visit the plant to see it for himself. He mentioned craft beer and the new promotion. There are two people employed there, which is a sham and a scam. The figures are there for all to see. The profits are measured per HL. Bulmers makes €69 per HL; Gleesons, €2; UK cider, €19; UK Tennants, €27; and international, €29. At €69, it is a non-argument.

It is awful to have to listen to the official reply written for the Minister of State. Shame on him. This is a wonderful company which is disappearing before our eyes. Workers are being bullied. Annualised hours is what the company wants them to have, which means working all the hours of the summer, in spite of the four shifts they have to work. The workers have been top class and given great commitment, but they are not being engaged with. In fact, there are confidentiality clauses and they are being bullied and intimidated, which never happened before. I ask the Minister of State to talk to the group CEO, Mr. Glancey, as he will not talk to us.

The Minister of State mentioned the new beer, which is to be called the 1650 beer. Does he know what happened in that year? It was the year Oliver Cromwell came to Clonmel and, thank God, he was run out of it, but now we have worse. The company has the cheek and audacity to celebrate it as the "1650 beer". It shows the respect it has for Clonmel, south Tipperary, the Department of Jobs, Enterprise and Innovation and everybody else. It has called the beer after the events of the unfortunate day on which Oliver Cromwell laid siege to Clonmel. He was resisted and now we must try to resist the C&C moguls who have no interest in a good company.

The Minister of State mentioned the profit figures. Of the €127 million, €40 million was made in Clonmel. The book should be opened and closed at that figure. It is just milking the company with two employees in the craft brewery when there were 600 before. There are now 150, while 50 jobs are under threat if the line is moved to Scotland. The company has invested in moving the line and has pictures of it on a website, notwithstanding the fact that nothing has gone through it but air and water as a test. It is trying make itself popular again.

I call in the House and through the media for talks with the shareholders in the company to communicate the wreckage the CEO is making of it. He is trying to emulate Oliver Cromwell and must be resisted. To call it the 1650 beer is the ultimate insult. I hope the Minister of State will talk to the Minister, Deputy Richard Bruton, and immediately seek talks.

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy cannot refer to people outside the House.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

I mentioned the CEO. In that case I withdraw his name, but it is public knowledge on the website and in the company's accounts. I am merely saying-----

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Not in the House. The Deputy has withdrawn it.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

I have withdrawn his name, but, unfortunately, I have not got rid of the man. We could not get rid of the beast of Cromwell.

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy has also run out of time.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

I know, but I am shocked by the Minister of State's reply which is gobbledegook and political speak by PR people.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is all about cordiality and a certain level of business dialogue that should take place at any company.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

It is not happening.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The reference made to the CEO is appalling.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

It is not appalling.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

To call it the 1650 beer is appalling.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The investment by the company in Clonmel is substantial, as demonstrated by acquisitions in Ireland. The company has just released a figure of 30% for the Irish representation, mainly Bulmers. I am a great believer in discussions, dialogue and contact, but with that attack on the CEO, it does not surprise me that he would not meet the Deputy.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

I have never met him.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

That is my clear observation.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

Will the Minister of State visit the plant next week?

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is all about showing cordiality in how one does business, not the attack the Deputy made.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

It is a two-way street.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am not impressed at all. One cannot argue with the figures. They are up 30% and a figure of 75% is represented by Ireland and Scotland. I understand the company is launching a new craft beer.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

That is an insult; 1650 - Cromwell beer.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Never mind the reference to Cromwell. The Deputy is based in Clonmel and should deal with that history appropriately and without referring to the present. I understand the company is launching a new craft beer and that a plant is being commissioned. The Deputy should be assured that IDA Ireland, Enterprise Ireland and other State agencies will do everything they can to work with the company.