Frank Fahey (Galway West, Fianna Fail)

I apologise for the absence of the Tánaiste and Minister for Enterprise, Trade and Employment, who wants me to thank Senators for raising this matter on the Adjournment.

Since the fire at Glanbia Meat's plant at Rooskey, County Roscommon in May 2002, the company had been examining the possibility of rebuilding its pig slaughtering plant. Unfortunately, the outcome was the announcement by the company last week that the rebuilding of the Rooskey plant was not going to proceed. The company had indicated, subsequent to the fire, that it was its intention to re-build the plant. However, despite extensive exploration of options by the company, it proved to be uneconomic to do so.

According to Glanbia, the restoration of lost capacity into the existing facilities at Roscrea and Edenderry was seen as a better long-term solution for the company and its producers. Senators will appreciate that the re-building of any plant is a matter for the individual company itself. While the Glanbia decision, based on commercial considerations, is not to rebuild the Rooskey facility, it will develop the existing Roscrea and Edenderry plants. Decisions on the future configuration of its operations are entirely a commercial matter for the company itself. As part of a proposed €27 million investment in the rationalisation of slaughtering facilities with a view to improving competitiveness, an additional 150 jobs will be created between the Roscrea and Edenderry plants.

In effect, plans are now being developed to reshape the business, using the fire as a catalyst for change. Glanbia Meats has been in detailed discussions with Enterprise Ireland, seeking support for the proposed investment with a view to maximising the level of value addition that will take place in Ireland. This proposed investment is seen as critical in order to establish a sustainable strategic position for the Irish pig meat industry, matching international competitive and best practice standards. The plant in Rooskey has received grants of €3.4 million from Enterprise Ireland. In addition, it also received financial assistance under the EU FEOGA programme.

A voluntary redundancy scheme has been agreed with the workers at Rooskey and 290 people have already left the company on that basis. Most of the redundant workers have registered with FÁS, which is offering them the full range of services available, including skills analysis, job placement, guidance and counselling interviews, identification of training needs and suitable courses. The existing Glanbia Meats cannery at Rooskey, employing some 95 people, will be developed and a number of growth initiatives are being explored.

The State development agencies are fully committed to addressing the adverse situation arising from the job losses in Rooskey. IDA Ireland is committed to playing its part in the development of the Midlands by maintaining the maximum number of existing jobs in overseas industry and by attracting new foreign direct investment into the region. The agency has strengthened its commitment to the midlands by establishing its health care division, together with part of its property and regions divisions, in Athlone. Enterprise Ireland will work with the management of Glanbia Meats to assist any staff members who wish to pursue starting up their own businesses. This will be done in co-operation with FÁS and the county enterprise board.

The State development agencies are fully committed to the promotion of employment creation in County Roscommon. The agencies work closely with each other and with the development bodies in the area, including the Roscommon County Development Board and Roscommon County Council, as well as other local bodies and interests, in facilitating an integrated approach to enterprise development. This existing co-operative framework can be used effectively to deal with job losses and job creation in County Roscommon.