Dáil debates

Thursday, 19 May 2016

6:05 pm

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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I thank the Ceann Comhairle, sa chéad dul síos, for allowing Deputy Healy and I to raise this matter on the Adjournment. The risk of job losses in Suir Pharma is a body blow for the workers concerned. The workers in Clonmel have been aware that things are not going well for a number of weeks. I was contacted by them approximately three weeks ago but I could get no engagement from the company. There are 134 jobs at stake and the High Court appointed a liquidator this week. That is a big blow.

This company has been in Clonmel for more than 40 years. It started off in Old Bridge. I salute the entrepreneurs who set it up, the visionaries and the different companies - of which there were many - that owned it over the years. Suir Pharma has had several owners since it came into existence. Last year it was sold to a Slovakian group, Saneca Pharmaceuticals, by Munich restructuring company Mutares for an undisclosed amount. That is the where I believe the kernel of the problem lies. That company is not engaged in pharmaceuticals; it is involved in speculation, as it were, because it is an investment company.

We do not know where or what. The competition authority is toothless and negligent here and I will be bringing forward a Private Members' Bill on that. Companies like this, with a fantastic workforce for over 40 years, cannot treat their workers like this. It is shameful and downright wrong. I salute the pharmaceutical and other industries in Clonmel, which we are fortunate to have. They have provided good employment over the years and good business for Clonmel and Tipperary and County Waterford, but an attack on and plundering of a viable and valuable company by vulture companies and funds is happening. The workers are being treated appallingly and we need stronger legislation to ensure that they cannot just be told on a Monday night having had their wages paid 24 hours early that the company is running for cover, going to the High Court, seeking a winding up and turfing the workers out on the road. The valuable service they have given, their families and their communities deserve better than that. It must not be allowed. I appeal to the Minister to get her departmental agencies, the IDA and Enterprise Ireland, involved to deal with the company. There are still 30 jobs on the site at Clonmel Chemicals which has a planning application in for a new warehouse. There is a viable industry here. We must bring in legislation to stop this ransacking. It has happened in other areas in Tipperary and other parts of the country. Companies are not interested and are treating people and communities appallingly.

6:15 pm

Photo of Séamus HealySéamus Healy (Tipperary, Workers and Unemployed Action Group)
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The staff at Suir Pharma in Clonmel were treated appallingly by this company. I met some of them at lunchtime on Tuesday and they were shocked at the difficulties which had arisen and the fact that the company had gone to the High Court at 11 o'clock that morning, appointed a provisional liquidator and had that person on the site with his security people before lunchtime. Many of the workers have been with the company since it was founded 43 years ago at the Gashouse Bridge in Clonmel and they have given huge and loyal service. The manner in which they have been treated is appalling. In effect, this was done behind their backs and they now face the loss of their jobs and of being paid only statutory redundancy.

There is a huge problem in relation to the takeover of this company by Sanika less than 12 months ago. I ask the Minister to investigate the situation whereby this purchase of the company appears to be of a predatory nature and with the sole purpose of closing Suir Pharma. I ask the Minister not only to look into that but to tell the House whether the company notified the State agencies as to the difficulties it said were there. If so, when did it do that and what action did the State agencies take? Did the company avail of grants from the State agencies and the Department and, if so, will those grants be repaid? Will the Minister ensure that this type of predatory purchasing by foreign companies will be stopped and that the workers will get reasonable redundancy terms? They are only being offered statutory redundancy and, indeed, it appears the State will have to pay it. The workers are entitled to decent and fair redundancy payments having provided service over the years.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I thank Deputy Mattie McGrath and Deputy Seamus Healy for giving me the opportunity to speak on this matter. I am very conscious of the impact of this on the affected workers at the Suir Pharma plant in Clonmel and on their families as they now face an uncertain future. The Government regrets very much that these jobs will be lost. It will be a significant blow for Clonmel and the surrounding area. Unfortunately for long-standing centres of pharmaceutical production like Clonmel, the wider pharmaceutical industry is undergoing significant upheaval in terms of changing trends and technological developments. There has been a significant incidence of mergers and takeovers which has contributed to surplus capacity internationally. In addition, the advent of bio-pharmaceutical products and a move away from large volume production of some traditional medicine types which are being replaced by lower volume niche products with more specialised applications has led to disruption in the industry.

This contract manufacturing company in Clonmel has gone through several changes of ownership over recent years. Hopes were high for a stable future when the previous German owners sold it to Sanika Pharmaceuticals, a Slovakian based company, last summer. Unfortunately, the new owners have faced significant financial challenges in recent times and decided they cannot continue to support the operations any longer. In all such cases and despite our best efforts, the ultimate decision rests with the company which will make such a strategic decision in the best interests of wider company objectives. Through the IDA, my Department has engaged intensively with the company to seek a plan for a sustainable future. Just last month, my predecessor, Deputy Richard Bruton, discussed the issue with a senior executive of the company. However, the owners maintained they could not keep the operation going.

I have asked the IDA to pursue identifying a new buyer for the plant actively and the agency will work proactively with the liquidator in that regard. The IDA will highlight the attractions of this facility for its existing client companies and potential new investors. It is encouraging that several companies have already visited the facility and we hope further interest will be generated. In addition to the IDA's efforts, I have arranged that Enterprise Ireland will assess whether the facility would be of interest to any of its client companies. I am keen to ensure that the resources of the State are put at the disposal of the employees to ensure that they are easily able to avail of relevant services. I have therefore arranged that the inter-agency group which was established following the Ranbaxy closure in Cashel will now work to assist the Suir Pharma employees regarding entitlements and training opportunities. It will also help them to pursue new employment opportunities.

I appreciate fully that it has been a mixed time for the pharmaceutical sector in south Tipperary. Regrettably, the Ranbaxy plant in Cashel closed some time ago, but we have had notable success with the IDA to deliver a new investor for the former Johnson and Johnson plant in Cashel with the arrival of Amneal. That company is now building up its workforce and hopes to employ approximately 300 staff when full production is reached in due course. That has been a very positive development in the region. It is particularly notable that the medical technology sector has a very strong presence in south Tipperary thanks to the work of the IDA with both Abbot Ireland, which employs more than 1,100 staff, and Boston Scientific, which employs over 800, having a very positive economic impact. The Government is only too well aware of the discrepancy in growth between the major urban areas and the less populated regions. As a result, we launched last year a regional Action Plan for Jobs. The purpose of the initiative is to identify a range of actions aimed at facilitating each region to achieve its economic potential. The Government will pursue job creation initiatives in Cashel and the IDA will continue to seek and attract other investors.