Dáil debates

Wednesday, 3 December 2014

1:25 pm

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
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I thank the Ceann Comhairle for affording me the opportunity to raise an issue of paramount concern to the 360 employees of Lisheen Mine, County Tipperary, the entire community of Moyne and the wider region, and for allowing me to discuss what stands to be one of the most devastating losses of employment ever seen in the premier county.

Lisheen Mine is a lead and zinc mine located in Moyne-Templetuohy outside of Thurles. It is in its second decade of operations and is one of the largest producers of zinc concentrates in Europe. Since its opening, it has proved to be the lifeblood of the small rural economy, providing quality employment, state-of-the-art infrastructure, invaluable community supports and delivering a degree of security in an area that is otherwise devoid of industry. After 17 years of employment and income for countless families, Lisheen Mine has confirmed it is progressing with its phased wind-down of operations with a voluntary redundancy programme that will facilitate the exit of almost 40 employees by March 2015. Further scaling back of operations is expected in the new year with the remaining 300 jobs being lost by October 2015. A small number of staff will be maintained after October for the final closure and site remediation.

While it was always known this was a finite resource and a fully funded mine closure and redundancy plan has been agreed, the commencement of the wind-down has sent alarm bells ringing across the entire region. The reality is that with less than a year to go until the complete shutdown of operations on the site, the Government is woefully unprepared for the imminent redundancy of 360 individuals, as no alternative company or industry has been identified for the Lisheen site.

The impact of the loss of Lisheen Mine, not just to the Moyne-Templetuohy area but to Thurles and the surrounding areas, is unquantifiable both in monetary and other terms. The mine is a key local employer and provides much of the employment in the wider area, being one of the largest employers in Tipperary. While the company has taken considerable steps to provide training and education to its employees, we are now facing a situation whereby 360 people are becoming unemployed with 70% of these being from the local area. This will have a devastating impact on the countless families who relied totally on Lisheen for employment and whose income will now be decimated.

This loss of income in turn will have a potentially ruinous effect on the local economy. Lisheen Mine puts a huge amount of money into the local economy in the form of wages to staff and expenditure on goods and services. Once the facility ceases operations there will be a mammoth reduction in income to the region and an unimaginable loss of spending power in the villages and towns. Lisheen's employees support the local businesses and services, whether it is only in buying milk or the newspaper on the way home, dropping into the local pub for a drink, having a car serviced or even having children enrolled in the local national school. Aside from direct employment, Lisheen Mine has also supported many secondary and support jobs in the local communities through the supply of transport, mining supplies, security and catering. The consequences of the closure of Lisheen are far-reaching and touch on every aspect of day-to-day life.

Lisheen Mine is not alone an employer but has put itself at the heart of the local community through its support for sporting, educational and cultural initiatives. The site's contribution to the economic and social life of the area is greatly valued and appreciated and the Lisheen management team developed excellent relationships with the local community. Since 2008, Lisheen Mine has donated close to €2 million towards sustainable projects for the area including donations to various organisations in the fields of arts, sports, health and education.

Where do we go from here? This is a strategically placed, turnkey condition development with unrivalled infrastructure and facilities. It offers enormous potential for additional or alternative industrial development boasting a land bank of 1,125 acres, on-site 110 kV substation grid connection, 30 wind turbines, and an on-site fresh water supply of 50 million litres per day along with a water treatment plant.

It is conveniently located close to the M8 motorway, almost equidistant from Dublin and Cork and the port and airport facilities they offer, not to mention the fact that there is a highly skilled and experienced local work force.

While a task force has been established to identify opportunities for alternative employment creation, I feel there must be a more concerted, visible effort by the Government and the IDA to attract an alternative industry. At present the future of Lisheen is shrouded in uncertainty and doubt and a concerned community is being left in the dark. We are entering the 11th hour and the time to save these jobs or provide alternatives is running out. In the next four months the first casualties will be felt and I am urging the Minister of State to step up efforts to ensure that Moyne is not forgotten.

1:35 pm

Photo of Gerald NashGerald Nash (Louth, Labour)
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I thank Deputy Lowry for raising this issue.

The confirmation by Vendata that Lisheen Mine is progressing its phased wind-down of operations at the lead and zinc mines outside Thurles, in accordance with plans agreed with employees in 2009, is of course to be regretted. I appreciate that the closure, although planned well in advance and not unexpected, will have a devastating impact on the 360 employees and their families.

Since 1997, the company has provided valuable employment in the area. As everybody involved in mining knows, each mine is a finite resource that eventually becomes exhausted. In the case of Lisheen it was expected to be exhausted by 2013 but the success of mineral recovery at the mine has extended its life by two years to October 2015. The company, in the exercise of its corporate social responsibility, has initiated a comprehensive out-placement programme for all staff members to provide them with a competitive edge in the jobs market.

In 2012 the Tipperary county manager approached Lisheen to initiate a task force to look at replacement industries post-closure. That task force was made up of representatives of Tipperary County Council, IDA Ireland, Enterprise Ireland and Lisheen Mine. The task force was sidelined when BEET Ireland approached Lisheen with a view to setting up its beet processing and ethanol plant at the site. Unfortunately, despite lengthy discussions, this project did not proceed. The task force has been re-activated under the chairmanship of Liz O'Donnell, with the full support of the Minister for the Environment, Community and Local Government, Deputy Alan Kelly. It now includes the head of the Tipperary local enterprise office, LEO, in addition to representatives from IDA Ireland, Enterprise Ireland and Tipperary County Council. The enterprise development agencies under the aegis of my Department, IDA Ireland, Enterprise Ireland and the Tipperary local enterprise office, are working closely with one another and with local stakeholders, including Lisheen Mine management, with a view to finding a replacement industry for the area.

As the Deputy said, the Lisheen site is comprised of 1,125 acres and is strategically located adjacent to the M8 motorway. The site is well placed for both national distribution and export. It has its own electrical substation, ample water supply, a water treatment plant and other logistical and infrastructural benefits that make it attractive for investment. The nearby town of Thurles is on the main Dublin to Cork intercity railway line. I know from speaking to him that the Minister, Deputy Kelly, engaged with the IDA, officials in my Department, interested parties and the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, prior to my appointment, to scope out opportunities for potential investors.

IDA Ireland is actively marketing the Lisheen Mine site to potential clients and I am glad to be able to inform the Deputy that, following a presentation made by IDA Ireland to a potential client in the United States, the potential client made a preliminary site visit to the Lisheen site in recent weeks. Of course, it is very early days and the Deputy will appreciate that I am unable to elaborate further at this time but it is very positive news that illustrates the Government's commitment to ensuring we identify investors for the site.

Meanwhile, the Tipperary local enterprise office has delivered start your own business boot camps and held mentor clinics on site to assist employees contemplating starting their own businesses. This type of intervention will continue up to and after the closure of the mine. I am hopeful that the area will attract the sort of industry its location merits.

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
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I must remind the Minister of State that the creation of a task force does not absolve the Government of responsibility in this matter. It is barely credible that we still do not have an alternative four months from the first termination of employment in this matter. I appreciate that the task force is very committed, has worked hard and is using its best endeavours to attract alternatives but we need more input from IDA Ireland, led by the Government. This is an exceptional site with all of the attributes, services and facilities required by major manufacturing industries. We must ensure we do not give up on the idea of attracting a major industry and settle for small industries instead, just so we can say the site is still open.

I appreciate the response of the Minister of State but I ask that he and the Government be conscious of the fact that this issue has enormous consequences for the economy and the lives of many people in the Tipperary area. We need a positive and active response.

Photo of Gerald NashGerald Nash (Louth, Labour)
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I appreciate Deputy Lowry's remarks and reiterate the Government's commitment to working with the task force, IDA Ireland, Enterprise Ireland and other relevant agencies to ensure we can continue to attract employment and industry to the area. The aim is to address the issues that will emerge after the closure of the Lisheen site. It is an attractive site and I have learned more about it in recent days. The site has huge potential and the IDA recognises this - that is why the area has been marketed to potential US clients. There was a site visit in recent weeks and this is a significant development upon which I hope the IDA will build.

Ireland has had success in recent months in continuing to attract the sort of foreign direct investment, FDI, we seek. A day does not pass without a significant jobs announcement made by the Minister, Deputy Bruton, and me. The IDA has contributed in terms of FDI and Enterprise Ireland helps indigenous exporting businesses. We are in a positive place and I am passionate about the need for balanced regional development. It is very important that the economic revival we are experiencing is felt across the country and we must ensure there is significant investment in areas like Tipperary, my constituency and across the country. People must have access to the opportunities to which they are entitled. I assure the Deputy that the Government will continue to work with the IDA on this site as it is significant. It is important that we create opportunities for the people currently working in Lisheen.