Kathleen O'Meara (Labour)

I am pleased to be able to raise this important issue. There is an urgent need to ensure that the result of the Competition Authority's ruling on Premier Foods' recent merger with RHM does not result in job losses in Thurles. I will briefly review the background to this matter. Thurles and other north Tipperary towns have been hit by significant job losses in recent years. Premier Foods is considered to be one of the backbone industries in Thurles. Like Erin Foods, Premier has evolved from the original Irish Sugar Company whose closure some years ago was a major local and national story. Last August, Premier acquired Erin Foods as part of its takeover of Campbells, which itself had acquired Erin Foods in 2002. Therefore, Erin Foods' operation in Thurles forms part a series of branded food products currently being produced in the town.

Last Friday, the Competition Authority ruled on the merger and there was a similar ruling by the authority's British equivalent. The impact of the Competition Authority's ruling is that Premier has been told to dispose of Erin Foods. This is a source of considerable anxiety in Thurles because Erin Foods forms a huge part of the lines being produced in Premier Foods plant there. The situation is best set out in an e-mail from a woman in Thurles — I will not reveal her name as I do not have permission to do so. She settled in Thurles ten years ago when her husband was offered a position with GMX, which is one of the plants that has since closed. They settled very successfully in the town but have watched with disbelief and dismay as industry after industry has closed, with no replacement — all during our supposed boom years.

The woman's e-mail states "last month came great news", when Premier Foods, which last year acquired Erin Foods, announced an increased investment in the plant, particularly in the next two years. There was obviously a positive reaction to this news as it was felt to be a vote of confidence in the operation, and would mean it would move forward. The Competition Authority's ruling last Friday was met with great dismay.

The number of jobs at Premier Foods is approximately 150 to 160, which includes sales staff and so on. There is a concern that these jobs are at risk because of the need to dispose of Erin Foods. Senator Coonan and I, and the Deputies from north Tipperary, had a meeting today with senior management of the company. We voiced our concerns and put it to them that the best possible outcome would be that the entire operation in Thurles would be sold as a going concern, and as a single unit rather than breaking it up into its separate component parts, which we feel would be difficult and dangerous. We do not know if that will happen but Premier Foods is a very successful commercial company which offers much in employment and economic terms to the town of Thurles.

There is great bewilderment that the ruling of the Competition Authority, which seeks to protect the consumer in the overall, could have the impact of undermining and possibly endangering jobs in a town which has already seen considerable job losses and needs jobs like these maintained. The woman who wrote to me, and who has possibly written to others also, beseeches me to at the very least investigate this decision and use the resources available to do everything I can to avoid the loss of yet another 130 jobs. I do not consider the jobs are lost, by any means. I have every confidence that this situation can been resolved. It is a matter of considerable importance. I thank the House and the Cathaoirleach for allowing me to raise it.