Mattie McGrath (Tipperary South, Independent)
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I thank the Ceann Comhairle for allowing us to raise this very serious issue and I thank the Minister for coming into the Chamber to answer. This is a very serious situation. What makes it more serious is the way it came about. Just days into the new year, when the workforce had returned to work and were working hard, as they always do at the C&C Group all over Ireland, in the Borrisoleigh plant and in Clonmel, a supposed leak of coming job losses was reported in The Irish Times. First, I do not believe it was a leak. I believe it was deliberate policy on the part of the company itself, which will not engage.

The Gleeson plant in Borrisoleigh and Bulmers in Clonmel have a huge heritage and a very dedicated and diligent workforce. I salute the workforce there and sympathise with them and their families in their plight, having heard this news in the way they did, through Tipp FM or The Irish Times website. They were told today that the group CEO, Mr. Glancey, was flying in from England, but he is not flying anywhere. I have an e-mail here from Tom McCusker, who says there is no one coming into the country today and he is dealing with it. Here we are with a merry-go-round. There is no accountability, no responsibility and no goodwill shown to the workers and their families. It is despicable.

It is a sad state of affairs that these two small, productive companies - there were up to 700 jobs in Bulmers in Clonmel at one stage and up to 300 in Gleesons of Borrisoleigh - could be taken over by C&C and laid to waste. They were plundered and - I do not like using this parlance here - they were raped and pillaged. Every action the company takes and every promise it gives to us and to the workers is not worth the paper it is written on. It now says it is going to relocate 80 jobs to Clonmel, which is an hour's journey away. The assurances I have got about the Clonmel plant over the last four years - I have raised it here several times - have not been honoured. How can we believe or trust this? Are they going to pipe the water from Borrisoleigh to Clonmel, or are they going to find a spring underneath the factory in Clonmel in order to bottle the water in Clonmel-----

Mattie McGrath (Tipperary South, Independent)
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We are playing games. I am appealing to the Minister to call this company and try to get some accountability for this and respect for the diligent workforce in Tipperary.

Noel Coonan (Tipperary North, Fine Gael)
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I acknowledge the Ceann Comhairle's choice of this topic and I thank the Minister for coming in personally to deal with this very serious issue, which has a potentially disastrous outcome for the people of mid- and north Tipperary. I am not going to go back over many things that have been said, but perhaps I could ask the Minister a few questions on the 80 jobs that are being approved in Clonmel and the €10 million investment, which is welcome. Will the workers in Borrisoleigh who are losing their jobs have priority for those jobs?

Could the Minister outline to the House and the general public the extent to which efforts were made by the Minister and his Department to dissuade C&C from closing its plant in Borrisoleigh? What carrots were given that might have kept that plant open, which seems to the general public to be very economical and which has provided magnificent employment for more than 200 people down through the years? What is going to happen to the plant now? Is any effort being made to find a new owner and will the company make available the plant and the machinery so that it is possible for an alternative owner to come in?

The extent to which redundancy, compensation and retraining will be given to the workforce in Borrisoleigh is critical. We ask that this be maximised. What efforts are the Government and State bodies making to bring new industry into mid- and north Tipperary? I caution that C&C still exists in the county. It is fragile. We want it to prosper in the county and to continue giving employment. We have to be very careful with the language we use regarding the company. Threatening them is of no help.

Noel Coonan (Tipperary North, Fine Gael)
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I ask the Minister to give special attention to mid- and north Tipperary, which have suffered seriously from unemployment over the years. Replacement industry is very slow in being sought for that area.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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The decision by C&C to close the plant in Borrisoleigh and the manner in which that became public are absolutely deplorable. I can only describe as shameful the fact that workers and their families learned of the closure from the pages of The Irish Timesand local radio. It is a disgraceful way to treat workers who have given loyal service at Gleesons for many years - some for as many as 30 years - and their families. The closure is a hammer blow to workers and their families and to the town of Borrisoleigh, which has depended on this business for generations.

When C&C acquired Bulmers in Clonmel and Gleesons, we were told of a bright future with expansion plans, but in fact the opposite happened and the company shredded jobs, in both Clonmel and Borrisoleigh, and slashed wages and conditions of employment. The closure of the Borrisoleigh plant is completely unnecessary and is being done solely in the pursuit of more profit. It is about greed. This company is already very profitable. Its latest half-year accounts, to the end of September of last year, show a profit of €62.5 million. It has become obvious that the acquisition by C&C of Gleesons was done with the clear intention of closing the plant by stealth.

It is clear from a reply to the Dáil in November of last year, just short of three months ago, that the Minister was aware of the situation with C&C and he had directed his officials to enter discussions with it. What discussions took place, when did the Minister become aware of the proposed closure, what actions has he taken to try to prevent that closure and what actions does he now intend to take to prevent that closure?

Michael Lowry (Tipperary North, Independent)
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We are the best little country in the world in which to do business. Does the Minister condone the management of the decision to close the Borrisoleigh plant? Does he intend to or has he already contacted C&C to express his condemnation of the company, the way it has dealt with its affairs and the way it has treated the workforce with such disrespect in Borrisoleigh? Will he publicly sanction the company for the manner in which it has conducted its affairs in that respect? I have raised this issue here on a number of occasions because, from the time C&C took over M&J Gleeson, it had one purpose and one purpose only, namely, to run it down, take its brands and close the factory. The Minister, all his officials and everybody in the Department were aware that there were problems with this company.

4 o’clock

There were problems in that it would not communicate. It would not recognise the workers in terms of having a group forum. Eventually, it reluctantly accepted having a union represent them. Therefore, the motivation of the company was always questionable in terms of what it would do with Gleeson's of Borrisoleigh.

After they announced the takeover, the then Competition Authority looked at this. I want to ask the Minister what is the role of a competition authority. Why did the Competition Authority not put conditions on a takeover? Effectively, the Competition Authority rubber-stamped this takeover with no protection whatsoever for the workforce. The Competition Authority could not have allowed this to go ahead unless it had a business plan and projections from the company. Did that forward plan that was put before the Competition Authority include the possible closure of this plant? The Competition and Consumer Protection Commission must be questioned on that decision.

Finally, I recognise that the Minister, Deputy Richard Bruton, is making determined efforts to create jobs but we also need to remember that we must sustain the jobs we have. We have lost 140 jobs in Borrisoleigh and I am sure that the Minister and the officials in IDA Ireland and Enterprise Ireland are out there trying to encourage new jobs to come in. In this instance, we saw the warning signs and we did not do anything about it. Today, senior management in C&C told me that the jobs will be on offer to the workers from Borrisoleigh who are being displaced. They will be offered those jobs as a priority and under the same terms and conditions as C&C operated. They also told me - I ask the Minister how much of this he is aware of - that a party is interested in purchasing the plant as a going concern. For how long did the discussions take place? Was the Department involved and did the Minister give them enough support and encouragement to make that final decision?

Richard Bruton (Dublin North Central, Fine Gael)
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I thank the Deputies for raising this important issue.

Like all Deputies, our thoughts are with the workers who were affected by this announcement. I am conscious of the impact of this announcement on the workers and their families, and the community in Borrisoleigh. As Deputies have said, the way in which this emerged through leaks in the press was not the way it should have been handled or the way, I understand, the company ever intended that it should be handled.

Since the purchase of M.J. Gleeson and Company a number of years ago, C&C has been engaged in restructuring of certain elements of its business. The decision announced yesterday is part of a company-wide restructuring, particularly of its manufacturing base, which the company has undertaken following the loss of material contracts for private label water which has led to serious underutilisation of capacity in both the Irish and the United Kingdom plants and undermined their competitiveness.

I have spoken to senior management at the company in the past couple of days since this surfaced and urged them to see if the decision could be reconsidered but, unfortunately, this is not possible given the commercial realities they face.

The C&C Group announced yesterday that, following a detailed review of its manufacturing and operational footprint, it intends to consolidate production from sites in Shepton Mallet in England and in Borrisoleigh in its manufacturing site in Clonmel. Under this proposal, production and packaging will be transferred on a phased basis from the facility in Borrisoleigh. Consequently, Clonmel will become the core manufacturing site for Bulmers and Magners cider, Tipperary Water and the company's range of niche premium beers and ciders. In support of the proposal, the company is committed to invest in excess of €10 million in enhancing the packaging and logistics capability in Clonmel and the creation of 80 additional jobs. This is designed to put Irish-based employment in the company on a secure and competitive footing. The company has indicated that Borrisoleigh will remain as a key transport hub and both logistics and warehousing operations will be maintained in the town.

The company has also indicated that where possible the workers at Borrisoleigh will be offered alternative employment at the expansion in Clonmel. Regrettably, net roles lost in Ireland across the company's operational network are estimated to be 54 jobs.

I note the company's statement that it will provide support and training for the workers affected, which was raised by Deputy Coonan. In addition, all the supports of the State will be made available. Enterprise Ireland will continue to engage with the company as it undertakes its restructuring. The agency will continue to monitor the situation at the company and will continue to communicate with the group and will offer any assistance that it can within Enterprise Ireland's remit.

I understand that the company has initiated the consultation process with its employees and their representatives who are impacted by the announcement, and the company plans to meet employee and union representatives over the coming days.

Enterprise Ireland has been in close touch with the company over the past year, and on a number of occasions in recent weeks, to seek to support it. A decision of this nature, where the company has lost a large part of its business, is obviously a commercial one. The company has made its decision. Enterprise Ireland will continue to work with the workers. We will be actively seeking alternative investment in Borrisoleigh. The plant is an asset that we hope will be available to attract new investors and Enterprise Ireland will work with the company in that respect.

Obviously, there will be support for training of workers, as committed to by the company. In addition, the resources of the State to assist workers will be available. In particular, the Workplace Relations Commission, WRC, will be available to support workers in respect of their rights and access to other supports.

Mattie McGrath (Tipperary South, Independent)
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I also thank the Minister who is making efforts. One of the problems with C&C, the then Competition Authority and others is that they waltzed in and took over a good company, and they have laid it to waste. This is a hammer blow for Tipperary. I am being told that I should be welcoming them, because it is an ill wind that blows no good and it will blow the jobs to Clonmel. A storm is blowing, however, and the jobs will blow to Scotland because the workforce in Clonmel, as well as Borrisoleigh, have been treated disgustingly over the past number of years under C&C.

I attended the past two AGMs of C&C in Dublin. At the first one, I was not allowed in because my vote was wrong. At the second one, I got in and met management, but I was an embarrassment to them. That is why they let me in. They did not want to answer any questions from anybody, let alone at the AGM. Shareholders have major concerns.

If one walks into any bar in Dublin or around the country, one will see that Orchard Thieves is the new cider that is displacing Bulmers. The real thieves are C&C itself. There is an aggressive campaign to exit Bulmers, Magners and all the others, and we will have a wasted plant in Tipperary as well. That is my worry going into the future.

I would like to be positive if I could but I cannot because there is no meaningful engagement with the Minister, the Competition and Consumer Protection Commission or anybody else; they just did this. The same happened with the Barlow family in Clonmel when the Quinn Group bought the radiator plant. They bought with one intention, which was to close it down. This is happening too often in Ireland where multinationals and conglomerates are buying up good indigenous companies and laying them to waste. We must wake up here, smell the coffee and see what is going on under our noses.

Noel Coonan (Tipperary North, Fine Gael)
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I thank the Minister for his response and for his commitment that he will make a serious effort to address the imbalance in north Tipperary and mid-Tipperary. I look forward to working with the Minister and with the agencies to replace that industry in Borrisoleigh.

On a general point, does the Department or the Government have any plans to deal with larger companies, such as C&C, which come in, buy up smaller companies with which they compete and then, literally, close them down? That is the major problem. Everybody concerned in Borrisoleigh believes that M.J. Gleeson and Company was a viable company and providing employment to the local people which, in turn, was a significant source of economic activity for the neighbourhood. That issue needs to be addressed so that we can prevent that happening.

The Minister did not respond on what will happen to the plant and machinery that is in Borrisoleigh, and whether the company is willing to make that available for sale or if somebody has an interest in it. Perhaps he will respond now. What will happen in that regard because there are alternatives, particularly in micro-brewing? Every effort should be made to avail of that plant and machinery.

The Minister might come to Borrisoleigh and meet the people. He might convene a meeting of the State agencies, Enterprise Ireland, IDA Ireland and Tipperary County Council to see what we can do to address this horrible crisis that has befallen us.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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The decision to close Borrisoleigh makes me angry because it is quite obvious to everybody that C&C acquired Gleeson's with the sole intention of closing it down. It had a number of goes at that, including 40 redundancies not too long ago.

The Minister referred to commercial realities. The commercial realities are that this company is very profitable, making in the region of €120 million profit every year. This is an unnecessary closure.

To suggest that workers in Borrisoleigh will transfer to Clonmel is probably unrealistic. It is 58 minutes to an hour from Borrisoleigh to Clonmel and it is very unlikely that many of those workers would be able to take up offers of jobs in Clonmel. The priority must be to try to save these jobs. Will the Minister intervene directly with the company, which is to a large degree supported by Enterprise Ireland, to stop this closure and save these jobs?

Michael Lowry (Tipperary North, Independent)
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Does the Minister intend to reprimand the company for the manner in which it treated the workforce in Borrisoleigh and the way it made the announcement? Can the Minister put himself in the place of a worker who woke up to hear on the local radio that his or her factory was being closed, without any advance notice or warning? Such conduct should not be tolerated or condoned by any Department, particularly not the Minister's Department.

When the Competition and Consumer Protection Commission agreed to the takeover, it must have received some indication from the company as to its future and forward plan. Does the Minister see a role for the Competition and Consumer Protection Commission in protecting workers in such takeover situations? C&C purchased M&J Gleeson in Borrisoleigh and gradually ran it down and undermined it to reach the stage at which it could close it. Even with the lack of investment, M&J Gleeson still managed to make a substantial profit out of its day-to-day running in 2015, and would have made a profit in 2013 were it not for the exceptional items that were factored in. We must send a very strong and clear signal to such companies that this type of conduct is unacceptable to the Minister, his Department, the Irish people, the workforce in Borrisoleigh, the people of Tipperary and the local community.

Richard Bruton (Dublin North Central, Fine Gael)
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Again, I express my sympathy with the workers. Job losses are always to be regretted. Job losses in Irish-owned companies are at their lowest level since Enterprise Ireland was established. We are doing more work with companies to sustain them through a difficult trading environment than has been done before. Much of what we are doing is right, and there are more wins than losses.

Deputy Mattie McGrath raised the issue of Clonmel's future. The company's commitment is to invest in enhancing the facilities in Clonmel.

Mattie McGrath (Tipperary South, Independent)
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We heard the same promises for Borrisoleigh.

Richard Bruton (Dublin North Central, Fine Gael)
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It has made a clear commitment to invest more than €10 million in the company and provide additional jobs in a more efficient and higher-utilisation plant.

While the Competition and Consumer Protection Commission has a role in examining any merger and acquisition proposal, it is solely to ascertain whether the merger would create excessive concentration in the market. Its role is to examine the share and the impact on competition and whether it would be bad for the marketplace. It has a limited role. It does not work with development plans.

There are valuable assets in Borrisoleigh, and Enterprise Ireland will work with the company to make them available and seek alternative investors, which the company supports. As Deputy Coonan said, we have been putting a very strong emphasis on regional growth. In Tipperary, Eishtec has created additional jobs, Amneal Pharmaceuticals has recently invested through the IDA, and ABP Food Group has invested in Cahir. These three companies have provided more than 600 jobs. Our regional enterprise strategy is designed to strengthen our regions, and I am encouraged by the progress in both the south east and the mid-west, which has shown that we have a strategy that can work.

Deputies have raised concerns about whether this was wrongly motivated. The company's statement showed that utilisation in its manufacturing plants had decreased to 34% and that it had lost significant business.

Mattie McGrath (Tipperary South, Independent)
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In America.

Richard Bruton (Dublin North Central, Fine Gael)
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Unfortunately, no level of grant aid can reverse such commercial realities. Restructuring results in difficult times and we must ensure we support the company. As others have said, the company continues to provide good employment in Tipperary, and we are determined to support it. It is encouraging to see that unemployment in Tipperary has decreased by 23% during the past four years. We are making headway and we need to build on this progress.

Mattie McGrath (Tipperary South, Independent)
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Australia.

Richard Bruton (Dublin North Central, Fine Gael)
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That is what I am determined to do.