Dáil debates

Wednesday, 18 November 2015

1:05 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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I thank the Ceann Comhairle for selecting this matter. Last Thursday evening, the village of Clarecastle and County Clare were rocked by the news that Roche Ireland is to withdraw from manufacturing in its plant in Clarecastle. The site was opened by a company called Syntex in 1974 and was subsequently taken over by Roche in 1994. As a native of Clarecastle and having been raised in the shadow of the plant, I am acutely aware of the enormous contribution this manufacturing facility has made to the community of Clarecastle, to County Clare and to the mid-west region for the past four decades. The importance of the plant to the economy of Ennis, Clarecastle and County Clare cannot be overstated. It is worth in the region of €20 million in salaries alone. It is the biggest single employer in Ennis, with 240 direct employees and another 200 contractors working on site.

This shock decision was made in the headquarters of Roche in Basel and results from a review of Roche's worldwide manufacturing network. Roche intends to move away from the traditional method of manufacturing its product to a system focused on producing less volume with higher potency, which is not compatible with the way its four manufacturing plants in Clarecastle, South Carolina, Spain and in Italy work, therefore, the Roche Corporation has moved to divest from its interests in these plants. It must be noted that Roche has invested heavily in its site in Clarecastle over the past four years. Some €100 million has been pumped into the plant, making it a most attractive prospect for a potential investor. As well as the state of the art infrastructure, there is a very talented and dedicated workforce at Roche who are highly skilled and committed.

Since this news broke in recent days I have engaged directly with the managing director of the plant. I have met with him and the members of the management team. I have spoken with many workers and their families. I have met with the Minister for Jobs, Enterprise and Innovation, Deputy Bruton. I have also met with the Taoiseach and on a daily basis I have spoken to the IDA.

It is critical that every effort is made to identify an investor for the plant. It is critical also that the Department of Jobs, Enterprise and Innovation dedicates every resource available to finding a solution to securing the future of this immensely important site. It is my understanding that the IDA is to meet with Roche Corporation in its headquarters in Basel this week, and I also understand that the IDA is to visit the plant in Clarecastle tomorrow. It is encouraging that a potential investor has already visited the site, and I look forward to that investor engaging further in the weeks ahead.

While there is a three year lead-in period, the next six to nine months are critically important for the future of the plant and to the workforce in Clarecastle. Our economy has moved to a different space over the past four and a half years. We now have the fastest growing economy in Europe. There is a sense of optimism in our country and a growing environment of investment. For this reason, and because of the talented, well thought of workforce, coupled with the significant investment made in the plant over the past four years, the ease of access through Shannon Airport and a top class road network, I am confident that an investor will move to acquire the site in Clarecastle.

Last Thursday evening when this story broke I immediately met with the Minister, Deputy Bruton. I welcome his interest and determination to find a solution for this plant. The Minister has a track record in delivering solutions to manufacturing plants in similar predicaments. I ask him to outline to the House his plans to encourage an investor to the site in Clarecastle. I ask him also to outline his work to date and his future plans, and those of the Government agencies, to bring about a solution for the plant in Clarecastle.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I thank Deputy Joe Carey for raising this issue. His portrayal of the situation is accurate and balanced. Our first thoughts are with the workers in Roche in terms of the uncertainty they face. However, we have a good track-record in working on difficult issues like this one and I am confident for the future.

Last week's announcement of the company's intention to exit the plant was very disappointing. This factory has been in operation there since 1974, providing substantial employment since then, with the workforce now standing at 240 employees. The company is proposing to seek a buyer for the site.

The announcement by Roche that it is planning to exit the site and market it to alternative investors arises from a global review undertaken by the company, which has resulted in its focus for the future being on a pipeline of new products that are smaller scale rather than the large, blockbusting products that have been the pattern. That has given rise to substantial restructuring within the group, which as the Deputy indicated has resulted in the proposed exit from a number of Roche facilities in the USA, Spain and Italy.

The State agencies have a strong record in finding alternative employment in facilities earmarked for closure, in particular where there is a long lead-in time which allows the site to be marketed effectively. It is of note in this case that the company has not planned any redundancies and plans to continue operation for a considerable period. I have directed the agencies that no effort be spared in the search for an alternative investor for this facility.

I have also spoken to senior executives at the company on these issues. IDA Ireland has been engaging with the company for some time and will continue to engage with the company as it seeks to find a buyer for the plant. It is encouraging that in a number of similar situations where closures have been announced, the State enterprises have been able to find alternative investors, including the GSK-Stiefel case in Sligo, Pfizer-Amgen in Dún Laoghaire and J & J-Amneal in Tipperary. It is important also to remember the situation in Waterford where we had both the closure of TalkTalk, which resulted in the emergence of Eishtec, and the restructuring that was successfully negotiated in Bausch and Lomb.

I have directed the IDA to actively pursue a new buyer for the plant and it will work actively with the company, which is also committed to seeking a buyer. The IDA will draw up a detailed prospectus with the company. It will highlight the attractions of this facility for both its existing client companies and potential new investors who may be interested in such a facility. It will use its wide international network to highlight this opportunity. The gradual wind-down period will give a welcome window in which to pursue this objective.

Despite some challenges in the pharma sector in recent years in Ireland, it is worth pointing out that the sector has adapted very well to a fast-changing landscape. Between 2011 and 2014, employment numbers in the pharmaceutical and chemical sector have actually increased by 7%. In addition, the profile of the Irish industry has changed significantly with huge levels of investment having taken place by companies, and we now have a very impressive footprint in the growing biopharmaceutical sector in particular.

Since the launch of the National Action Plan for Jobs, we are seeing encouraging recovery in the mid-west region. There are 7,000 additional people at work in the region, which contrasts with the previous period of 20,000 job losses. We have also seen the start of a strong recovery in Clare. In 2014, an additional 700 people were at work in enterprises supported by the agencies of my Department: the IDA, Enterprise lreland and the local enterprise office. The live register in Clare also fell by 10% in the past 12 months. However, we recognise that there are opportunities to build on that and that is the reason we have developed the Mid-West Regional Action Plan, which includes counties Clare and Limerick. That was launched last month and has a comprehensive set of proposals both to increase the attraction of foreign direct investment but also to build on the strong employment base within the region already.

As the Deputy said, we have had a very strong flow of foreign investment and this plant represents an opportunity to attract new investors. I can assure the Deputy that no effort will be spared in my Department or through the agencies of my Department in pursuing new opportunities for the workforce and supporting the company in its plan to sell the plant as a going concern.

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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I thank the Minister for his reply. The next six to nine months are critically important for the future of the plant and its workforce. It is encouraging to hear the Minister say that no effort will be spared to find a solution but I want to hear that every resource will be used in his office and by the agencies under the Minister's control. This is too big an issue and we have to get a solution. People's livelihoods are on the line.

The economy of County Clare and Ennis are on the line. It is so important that we find a solution. It is encouraging to hear the Minister's words today. I look forward to working closely with him and Government agencies, as well as the workforce, management and unions at Roche to find a solution. The next six to nine months will be critical, but I am confident we can find a solution with the Minister's help. It is encouraging to hear his words today.

1:15 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I thank the Deputy. The period of the crash has sharpened the agencies. IDA Ireland is to be complimented on its enhanced regional focus and the stronger connections it has built between its regional presence and its offices on the front line in various countries. It has also build a particularly strong network around the pharmaceutical and life sciences sector, where it has unrivalled international access to companies that are significant players and would have the capacity to look at this opportunity. IDA Ireland has put itself in a good position. I assure the Deputy that no efforts will be spared and the resources of the Department and agencies will be used.

The Deputy is right in saying that the next six to nine months will be a very important period because volumes will be high in the Roche plant, which gives an incoming investor a bedrock of supply to which it could subsequently add. We are conscious of the time sensitivity of the work that needs to be done on the project. I assure the Deputy of continuing contact with him and other Deputies in the region to ensure we respond in every way possible.