Phil Prendergast (Labour)

I thank the Minister of State for coming to the House. I raise a matter causing grave concern to the people of south Tipperary, namely, job losses. I am sure it is a concern to people throughout the country.

As the Minister of State is aware, Tipperary has suffered very significant job losses in the past year and unemployment has almost doubled in the past 12 months. The closure of Moy Isover and Quinn Merriott, as well as job losses at Waterford Crystal and Dell which have not yet been factored into the unemployment figures of south Tipperary, and redundancies at Bulmers, have impacted severely on my constituents in south Tipperary.

In recent weeks, we have started to hear more worrying news from Bulmers in Clonmel. Some 24 permanent staff were laid off last week and a review is taking place currently. Three men were recently appointed to the top positions at the parent company, C&C, who have been awarded a pay package in the region of €18 million, or equating to 5% of the company, which is linked to a share price. That is performance related. It is a worry when directors' pay is devised in this way, especially when the break-up and sale of C&C is mooted for the future. This leads to short term thinking where shareholders' interests are put ahead of the sustainability of the company. The companies are benefiting from lower interest rates and energy prices and are likely to do so for the foreseeable future, which is welcome.

I assume the Minister of State shares my views that any move to reduce staffing at Bulmers can only be seen as an unwarranted attempt to increase an already healthy profit base. There is no crisis and there is no cashflow issue. Bulmers is a premium Irish brand and it is very much linked to Clonmel and its economy. It has international recognition and it holds a very special place both in Irish culture and in its home area of Clonmel, and no amount of slick advertising will cover up the damage which could be done to the brand if there are unwarranted job cuts. The lack of information about the ongoing review in Bulmers is adding to the concern of workers, local businesses and families.

I would be grateful if the Minister of State could provide some clarity on this situation and the jobs issue generally by answering the following questions. Is he being kept informed of the review taking place in Bulmers in Clonmel and, if so, can he provide us with an update? As I said, it has provided major employment in the area for over 60 years. This is of major concern to south Tipperary and the south east generally because of the impact of recent announcements.

What is the Minister of State's view on the €18 million remuneration package for the directors who, I understand, are managing the review? What is his view on share price related pay packages generally? What specifically are State agencies, such as the IDA and Enterprise Ireland, doing to replace jobs lost in south Tipperary and when can we expect an announcement on investment in the area?

What specific measures are being taken to assist those who have lost their jobs in south Tipperary in terms of advice on retraining and finding a new job? Does the Minister of State accept the need for an employment task force for Tipperary which has traditionally been an unemployment blackspot and is heading that way again?