David Cullinane (Sinn Fein) | Oireachtas source

I welcome the Minister of State back to the House. He will be aware that, unfortunately, Diageo has announced that it is ceasing its operations at the Waterford facility. That news came as a shock to the workforce. Some 35 direct and indirect jobs will go if this closure goes ahead. It also came as a shock to the people of Waterford, a city with 25% unemployment, which is facing an unemployment crisis in a region with 19%. We need to be creating jobs, not losing them. Any announcement such as this one is bad news both for those being made redundant but also for the economy in the Waterford region.

The Diageo plant in Waterford produces the essence concentrate for Guinness which is exported around the world. It is a top class, state-of-the-art facility. In 2004, the company invested €40 million capital funding in its Waterford facility. That was at a time when the company had downsized its operations in Waterford. This was seen as its stake in the area to which it was committed, yet a short number of years later Diageo has decided to cease production despite the fact that €40 million was put into the facility. Less than €1 million of that sum came from Enterprise Ireland but nonetheless it was a significant capital investment by the company.

I ask the Minister of State to raise this matter with the Minister for Jobs, Enterprise and Innovation, Deputy Bruton. What steps have been taken by the Minister or his Department to safeguard jobs at the Waterford facility? Has there been any dialogue or communication between the company, the Minister and his Department? Has the company been asked to offer any rationale for its decision, given that it made such a big capital investment? Can the Minister of State detail the total investment of public moneys which has been put into this site over many years? Do any clawback clauses exist if the site is to be closed?

The trade union involved, SIPTU, is working hard to secure the jobs and is in discussions with the company. We wish them all well and hope that the Minister and his Department will also become involved. Hopefully that effort will be successful. If it is not, however, and the company sticks to its plan to close the Waterford plant and move the operation to the St. James's Gate facility in Dublin, it is vital for Enterprise Ireland and the Department to consider some sort of replacement on that site in Waterford. It is an iconic building at the entrance to Waterford city, containing a state-of-the-art facility that cannot be left unused. It would be a travesty to abandon it. We must find some sort of replacement industry that can retain jobs and keep production going in some shape or form, if Diageo cannot be convinced to keep the facility open. For example, we could examine micro-brewing along with other options.

Is Enterprise Ireland alert to this matter? Is it working with stakeholders or individuals who may have ideas on how to protect and maintain jobs? I have raised this Adjournment matter to try to safeguard jobs. We want to support SIPTU's efforts to protect the existing employment and hopefully change Diageo's mind. If that does not prove possible, what steps can the Department and State agencies - especially Enterprise Ireland - take to ensure some level of continuing production and jobs on that site? The building must not be left unused and vacant. It must be utilised, so I appeal to the Minister of State to do what he can to make that a reality.