John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

I thank Senator Cullinane for raising this important matter. The operations of the company referred to by the Senator have been under review for some time. The company is expanding in St. James's Gate with a €153 million investment which will secure the future of brewing in Ireland. In this regard, €16 million is being invested in concentrate technology. While the expansion at St. James's Gate will have a spin-off effect of increasing barley purchases - all of which the company sources in Ireland, which I welcome - I was disappointed to hear of the proposed closure of the Waterford site at the end of this year with the possible loss of 21 jobs.

I am conscious of the anxiety that the proposed closure will create for the workers involved and their families, as well as for the local community. As the Senator said, it is an iconic building in Waterford carrying on a traditional business. It is important that the impact of the site's closure on employment in Waterford is minimised. The State's enterprise agencies will make every effort to develop new employment opportunities for Waterford and to support the retention of existing jobs there.

While the decision on plant closure is a matter for the company, I understand that Enterprise Ireland is working with Diageo to find a replacement industry for the site. It is important to work on that opportunity. Clearly, while this is a real difficulty for Waterford, there could still be opportunities in this situation, such as micro-brewing to which the Senator referred. In addition, other possibilities can be considered. It is all about consultation between Diageo and Enterprise Ireland. In this respect, I understand that a number of potential investments are being actively considered and I am hopeful that any new investment will safeguard employment at the site. It is positive news that such investments are being considered.

I note the commitment of Enterprise Ireland. Last week, Enterprise Ireland announced the highest exports ever from Ireland of €16 billion. The agency is doing an extraordinary job and the potential for new opportunities is there, given that the Enterprise Ireland management team is talking to Diageo.

The Government's top priority is to get Ireland working again. The Action Plan for Jobs, published on 22 February, is the next step in the Government's plan to rebuild the economy and accelerate the transition to a sustainable, jobs-rich economy based on enterprise, innovation and exports.

This is all about innovation, enterprise and exports. Ultimately, it is entirely Diageo's decision what to do but we must also consider community involvement in the region, along with the county enterprise board and local government. As well as being part of the city's history, this iconic building presents an opportunity for Waterford and must be enshrined in the current discussions.

The Action Plan for Jobs, which contains 333 actions to be implemented this year by 16 Government Departments and 46 agencies, will build on the progress made in 2012. It will continue to improve supports for job-creating businesses and remove the barriers to employment creation across the economy. Support will be given to every opportunity for expansion of any business idea.

These actions are additional to the 249 actions already implemented under Action Plan 2012, which have helped to support a net growth of almost 12,000 in private sector employment in the past year.

On foot of the job losses announced by TalkTalk in Waterford in September 2011, the Minister, Deputy Bruton, tasked agencies and stakeholders in the south-east region to come up with a set of actions to address the long-standing unemployment problem in Waterford and the region generally.

The specific recommendations contained in the south-east employment action plan, produced by Forfás, are being progressed by a forum representing the agencies and key stakeholders in the region. I strongly advise Senator Cullinane to participate in that forum, which is where this matter should be discussed.

I can assure the Senator that the full range of State supports will be deployed to support those Waterford workers at the appropriate time. The company and unions concerned availed of the industrial relations machinery of the State in the context of the company's earlier decision to close the Kilkenny and Dundalk breweries. The services of the Labour Relations Commission and the Labour Court will, of course, remain available to assist the parties if requested.

State agencies will continue to work closely with each other and with local interests to support an integrated approach to job creation in Waterford. Enterprise Ireland's activity is focussed on the creation of new jobs through continuing to work with established companies in its portfolio. The agency is also supporting entrepreneurs in manufacturing and internationally-traded services companies which are setting up high potential start-up companies.

Enterprise Ireland's approach in response to job losses is directed at assisting any relevant employees affected. It seeks to enhance and facilitate the future employment prospects of the workforce concerned and to identify and support any individuals who wish to start their own business.

In addition, anyone who has been made redundant or who is facing redundancy in Waterford and is interested in exploring options for setting up a business should contact the Waterford county and city enterprise boards for appropriate advice and assistance. The boards are a valuable resource for those starting a new business. In 2012, the boards funded a range of grant applications and softer supports such as training and mentoring of clients in the micro-enterprise sector. These investments resulted in a net increase of 53 jobs in the Waterford area during the year. IDA Ireland continues to actively promote Waterford for new investment and is actively engaged with its existing client base to encourage their transition to higher value activities and their continued commitment to Ireland.

Diageo Waterford received one grant package from Enterprise Ireland for capital equipment, totalling €800,000, which was approved in 2002. There is no grant liability and no clawback clause relating to this grant.

I am confident that the measures outlined in the Action Plan for Jobs 2013, together with the activities being pursued by the State enterprise agencies in Waterford, will continue to support business investment and help to create employment opportunities both in Waterford city and the surrounding area.