Mick Barry (Cork North Central, Solidarity)
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Three hundred and twenty jobs were axed at Novartis in Ringaskiddy, Cork, this morning when the workers were called in. Many of those workers rely on the wage packet to pay their mortgage. Many households have not one Novartis wage packet coming into the house but two. Sometimes this involves two generations. Retailers, garages and restaurants will be hit, particularly in the harbour area but not just there. This will reverberate right throughout the city and the region.

The announcement was a scandal. Yesterday, 24 hours ago, Novartis announced worldwide operating profits had increased by 15%. That is the name of the game for modern capitalism. Profit-hungry sharks record massive profits one day and lay off hundreds of workers the next. Novartis is a company whose market capitalisation is more than $200 billion. The company has been built up by workers the likes of whose jobs were axed this morning.

There is now a question over the industrial model the State uses, which involves relying first and foremost on foreign direct investment. We saw what happened at Molex yesterday. Increasingly, there is a stronger case to base the State's industrial jobs policy on directly State-run investment, including directly State-run investment in the pharmaceuticals and drugs sector. We need cheap generic drugs, not least in the context of Brexit. The State should step in and do as I propose.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Ceann Comhairle for selecting this Topical Issue matter and I thank the Minister for attending in person. Today's announcement by Novartis represents a really significant blow to Cork, not only to the harbour area and the Carrigaline area, where I live. The workers come from all parts of Cork. That 320 employees, out of a total of 550, are affected is a measure of the scale of the reduction to the workforce that is to happen over the coming years. It is my understanding that there are a significant number of contractors on the site. The figure I have been given is between 150 and 200. If one of the two production buildings is to be shut down over the next two years or so, inevitably those contractors will lose their jobs also. Can the Minister provide any clarity on this? It is a key issue.

I spoke directly today to representatives of IDA Ireland and the company. I implore the Minister to make every effort to save the jobs. This happened before when Pfizer announced the closure of a plan in Loughbeg, Ringaskiddy. It was bought by a Portuguese company, Hovione, which continues to operate successfully there. More recently, GSK in Ringaskiddy, Cork, was acquired by Thermo Fisher, which prevented potential significant job losses also. There may well be a solution within the pharmaceutical industry. I ask the Minister to become directly involved with the company and IDA Ireland to ascertain whether a solution can be found. While 2022 is mentioned in the context of the losses at Novartis, 80 of the jobs affected are in the global service centre. Those redundancies will occur in the middle of next year. That is only six or seven months away for many of the workers. The redundancies will start next year and will conclude in 2022. This is not something that is way out in the distance; it affects individuals here and now. I ask the Minister to become directly involved. My party and I will do whatever we can to help her to achieve a resolution.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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I thank the Deputies for raising this matter. It is extremely disappointing to hear 320 jobs will be lost across two sites operated by Novartis in Ringaskiddy, particularly following the announcement yesterday that Molex is to close its facility in Shannon, resulting in 500 jobs losses there by the end of 2020.

As I have said before, our immediate concern, whenever jobs are lost or are under threat at any firm in the country, is for the employees who will be directly affected. I assure the House that every form of State assistance and support will be made available to them. These supports will include assisting the workers in getting alternative employment and helping them to re-skill to ensure that they do so.

Novartis has informed IDA Ireland that the decision to make these redundancies is part of a company global restructuring and consolidation strategy. We understand that the firm will be relocating some manufacturing roles to contract sites and some business services positions elsewhere in Europe and to Asia. While it does not change the fact that valuable jobs will be lost, it is important to recognise that the redundancies at the Novartis firm will take place over the next three years: 60 in 2020, 80 in 2021 and 180 in 2022. That does, at least, provide time in which intensive efforts can be made to offset some of these future job losses through the creation of new employment opportunities in the Ringaskiddy and Carrigaline areas. We should remember also that both of the companies will continue operating in Ireland, with at least 210 employees once all the planned redundancies have taken effect. We are optimistic that, in time, the firms will be able to scale back up to their current employment footprint in Ringaskiddy.

Novartis has assured IDA Ireland that its other operations in Dublin will not be impacted by its restructuring plan.

Ireland has a strong biopharmaceutical industry, with virtually all of the world's leading firms having a presence here. As Deputy McGrath will be aware, a number of those companies are also present in Ringaskiddy and the wider Cork area, for example, Pfizer, GE Healthcare, Janssen Sciences and BioMarin. This means that we can be confident that we will be able to find new job opportunities for the impacted workers.

Every effort will be made to work with the company to see whether there are new opportunities. Sometimes when things change, one finds that there are opportunities for companies to create more investment and jobs in a region. I assure the Deputies that IDA Ireland will do everything it can to engage with the company on examining options and maximising what is available in Ringaskiddy. My door is always open and I am happy to work with Deputies and hear their views or new ideas on what we can do to help.

When it comes to job losses, we all know what it is like for workers. One cannot imagine what is going through their heads when they hear about it or the uncertainty they are facing, especially coming up to Christmas. They are worried about how they will pay their bills and mortgages. It is difficult for them, and it takes time for them to come to terms with it. Every public representative in the House supports the workers and we will all do what we can to ensure that there are more opportunities and jobs for them.

Mick Barry (Cork North Central, Solidarity)
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The workers should hold the Minister to that promise. This morning's meeting was organised by the company, so it will be important for the workers themselves to meet to discuss how to push back on this issue. Something that they can, and should, consider is the fact that, with a general election coming in the next six months or sooner, there is an opportunity to put pressure on the Government to match the fine words we have heard with action in the form of alternative jobs. The workers' union, SIPTU, has stated that its focus is on saving the jobs. That is a positive comment, but one that will need to be backed with action.

There are 124,000 Novartis workers in 60 plants across the world. There needs to be a conversation between them, aided by social media, about how to push back collectively against a company that moves them like pawns on a chess board.

There is an idea of an industry-wide meeting of pharmaceutical workers in the Cork Harbour region to discuss this crisis and an appropriate response by workers and trade unionists to push back. With a global recession coming, what is happening is unlikely to be the final example of this, and it is important that workers get organised to face the threat.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Minister for her reply. The company has provided valued employment in Cork for the past quarter of a century or more. It started out as Sandoz in Ringaskiddy. That was the name it operated under for a number of years before becoming Novartis. The workers have valuable skills and experience, so there will be a market for them. First and foremost, however, the priority must be to work towards protecting the production capacity at the Novartis plant and keeping it operational. That is achievable and may well be done through some form of collaboration within the industry, for example, contract manufacturing. There is production capacity at the site, with a building that should now be used and marketed internationally. The IDA needs to do that.

I do not expect the Minister to have the answer to the contractors question now, but will she make inquiries and write to me? My understanding is that there are up to 200 contractors on site. Some have been there for between ten and 15 years. Their jobs are likely to be lost as well. Will the Minister please revert with details on this matter?

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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We will find out about the contractors. Two hundred is a lot of people and families to be impacted. We will make contact with them in some format, be it through the local enterprise office or Enterprise Ireland.

Michael McGrath (Cork South Central, Fianna Fail)
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Will the Minister revert when she gets the details?

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Yes. I share the Deputies' deep sense of concern and disappointment regarding this morning's announcement. There is no denying that it has been a bad week for Cork, Clare and the wider Munster region. However, I assure the Deputies that the Government is treating this as a priority and will make every State support available to the impacted employees. The redundancies will take place on a phased basis over the next three years. Intensive efforts will be made in that time to offset these losses through the creation of new employment opportunities in the Ringaskiddy-Carrigaline area. IDA Ireland will work closely with Novartis to determine its plans. As someone stated at this morning's meeting, there is no reason opportunities cannot arise further down the road while operations at the plant continue. We will capitalise on any that do. IDA Ireland will also consider the plant's production capacity to see if other companies are interested in going to the area. There is a rich pool of talent there. I have visited Pfizer in Ringaskiddy, for example. The area is a hive of activity for the pharmaceutical sector and is an attractive place for any investor.