Joe Carey (Clare, Fine Gael)
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I thank the Ceann Comhairle for selecting this important matter. I welcome the new Minister for Jobs, Enterprise and Innovation to the House.

Last Tuesday, the workforce of the Roche plant in Clarecastle received confirmation from representatives of its corporate headquarters that talks with a prospective purchaser that had been ongoing for nearly six months had ended without agreement. The breakdown in the protracted talks leaves an uncertain future for the plant and the 240 people directly employed there as well as the large number of contractors who also work there.

The news was unexpected. All indications from the negotiations were positive and it was widely understood that a deal would be concluded and, in turn, the plant's future and the valuable employment it had provided for more than four decades would be secured. More than two months ago, Roche Ireland signed a letter of intent with the prospective purchasers that tied the two parties into a period of sole negotiation. The two commercial companies also signed confidentiality clauses around the negotiations. Given the ramifications of a failure to close the deal when it seemed done, many questions must be asked. Since they have not been answered by Roche, the company has an obligation to come clean to the workers and explain why the deal failed, but that has not happened. At the very least, Roche must inform the Department and the IDA of why the deal collapsed. This information is critical and its disclosure could be vital in providing a way forward for the plant.

Since the news broke, I have spoken with many workers, their families and people in the community. There is shock and despair. I have spoken at length with Roche's managing director in Clarecastle, I have met the Minister and her Department's officials, and I met the IDA today. It is critical that every effort be made by the IDA, in conjunction with Roche, to identify a new buyer for the plant. It is critical that every resource be available by the Department to help in finding a solution.

A great deal of change has occurred in the pharma sector in recent years and there has been a move away from the traditional method of manufacturing, with a focus on producing lower volumes with higher potencies. This transition has resulted in Roche's decision to divest itself of its interests in four plants in Clarecastle, South Carolina, Spain and Italy.

I call on the Minister to direct the IDA to redouble its efforts and to seek a new buyer for the plant relentlessly. Every option should be explored, including the possibility of reopening negotiations with the contract manufacturer that had been engaging with Roche in recent months. Will the Minister travel to Roche's headquarters in Basel with the IDA to impress upon it the need to re-engage fully in the process of seeking a buyer? If Roche is not 100% behind that process, a buyer will not be found.

The importance of this manufacturing plant to the economy of Ennis, Clarecastle, County Clare and the mid-west region cannot be overstated. It is the largest single employer in the greater Ennis area, contributing €20 million to the local economy in salaries alone. Roche has also been a major supporter of community development and is the main sponsor of Clarecastle GAA, the Clarecastle day care centre and many other clubs and voluntary organisations across the county.

I call on the Minister to do everything in her power to ensure that as many jobs as possible are saved at the plant. I look forward to working with her, her officials, the IDA and all public representatives in County Clare to achieve this goal.

I also congratulate my constituency colleague, Deputy Breen, on his elevation to the role of Minister of State with special responsibility for employment and small business. I look forward to working with him in his new role in trying to resolve this important issue.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I thank the Deputy for raising this issue. He has contacted me numerous times in recent days. My first thoughts are with the affected workers at the Roche plant in Clarecastle and their families as they face an uncertain future. We regret the job losses that may arise. Yesterday's announcement that negotiations for the transfer of the Clarecastle facility to a global pharma company had ended without agreement was disappointing. The factory has been in operation since 1974, providing substantial levels of employment. The company is proposing a gradual wind-down of the operation. Unfortunately, if no buyer is found for the plant, it will be closed fully in 2019.

The pharmaceutical industry is going through a significant upheaval in terms of changing trends and technological developments. The advent of biopharmaceutical products and the move away from large-volume production of some traditional medicine types, to be replaced by lower-volume niche products for more specialised applications, has led to some over-capacity in the industry. Unfortunately, the factory in question was configured and equipped for large-volume production. The company has made a strategic decision to close it, as well as three similar plants in other countries. In all such cases, the ultimate decision rests with the company, which makes a policy decision in the best interests of its objectives.

Since the original decision on divesting the Clarecastle facility was announced in 2015, and availing of the significant wind-down period, IDA Ireland has worked closely with the company to introduce potential buyers. A strong contender was identified and intensive negotiations took place between it and Roche, but just this week the discussions ended without agreement. Unless a new buyer can be found, the factory will close. IDA Ireland will continue to market the facility's attractions to its client companies and potential new investors. The gradual wind-down period will provide a welcome window in which to redouble efforts to pursue this objective.

Despite some localised job losses in the pharma sector in recent years, it is worth pointing out that the sector has adapted well to a fast-changing landscape. Between 2000 and 2015, employment numbers in agency-supported companies in the pharmaceutical and chemical sector increased by 11.5%. In addition, the profile of the Irish industry has changed significantly, with considerable levels of investment by companies. We now have an impressive footprint in the growing pharamaceutical-biopharmaceutical sector. The IDA has achieved considerable successes in the recent past. These include the former Pfizer factory in Cork, now operated by Hovione; another former Pfizer plant in Dún Laoghaire in my constituency, now operated by Amgen; and a further plant in Ringaskiddy that has been taken over by BioMarin. There have also been successes with companies in Athlone and Tullamore. It is of local interest that the former Dell factory in Limerick city was taken over by the pharma company Regeneron, which has been actively recruiting recently.

The Government is only too well aware of the discrepancy in growth between the capital and the regions. As a result, we have developed the regional action plans for jobs, a development that was driven by my predecessor, the current Minister for Education and Skills, Deputy Bruton.

Yesterday and today, I undertook a trade and investment mission to Athlone, Sligo and Limerick that was organised by Enterprise Ireland as part of its global sourcing initiatives. The objective is to maximise sale opportunities for Irish small to medium-sized enterprises, SMEs, with multinational companies based in Ireland. The Government's job creation efforts were illustrated in the latest CSO employment data, which show that unemployment rates have fallen to 8.4%.

I met Deputy Carey and the new Minister of State, Deputy Breen, in the Department on Tuesday and I facilitated a meeting between them and the IDA. I also extended an invitation to Deputies Dooley and Harty. That meeting was held in my Department this afternoon and I understand that the four Deputies and the IDA had a useful and detailed exchange of views. The IDA will redouble its efforts to ensure that another buyer is found.