Seanad debates

Wednesday, 14 February 2018

Job Losses at Kerry Foods, Carrickmacross, County Monaghan: Statements

 

10:30 am

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I am disappointed by the announced redundancies at Rye Valley. Although the country as a whole is moving towards full employment, that does not make it easier for any person faced with redundancy. It also underlines that although the economy is performing well overall, there are challenges that require every company to make sure it is competitive and capable of satisfying the needs of its customers.

Kerry Group is Ireland’s largest food company and a world leader in ingredients and flavour technologies. It has 132 manufacturing facilities across five continents and provides food and ingredient products to a wide customer base in 140 countries. With its headquarters in Tralee, the Group employs over 23,000 people worldwide. It operates two consumer food production facilities in Ireland, one of which is Rye Valley in Carrickmacross. Rye Valley is a major employer in the north east region. The facility at Carrickmacross currently employs 420 people and most of its sales are to the UK.

According to the company, the objective of the announcement is to improve the overall competitiveness of the site and to future proof it such that it can continue to operate effectively in Monaghan. The company envisages that after this process the site will be better prepared to continue to supply and sustain its commercial opportunities in the marketplace, where it currently has a strong position. The ongoing formal consultation process began a month ago. The company envisages that the redundancies will be achieved on a voluntary basis. I strongly urge the parties to continue their extensive engagement locally with a view to reaching a resolution to the satisfaction of employees and the company. I will work with my colleague, the Minister for Employment and Social Protection, Deputy Regina Doherty, to ensure that redundant workers are given the support they need to find alternative employment. I hope that having worked for the Kerry Group, which places emphasis on the professional development of its employees, they can quickly find alternative employment in the region.

My objective as Minister for Business, Enterprise and Innovation and as a local representative is to ensure that new job opportunities are created in the local area. As I said, the national economic picture is strong and, in fact, the number on the live register in Monaghan is down by 53% since 2012. However, I am very conscious that more needs to be done. One of the first things I did following my appointment as Minister was to meet with the CEOs from counties Monaghan, Cavan, Louth and Meath along with senior officials from Enterprise Ireland, the IDA and my Department to discuss how we can drive job creation in the region. I will be working with my Department and agencies to ensure there is an even greater focus on the Border and, in particular, on counties such as Monaghan and Cavan.

The north east-north west regional action plan for jobs is the key policy response for supporting employment growth in the region. The core objective of the plan is to have a further 28,000 people at work in the region by 2020. Sectors targeted as part of the Border plan include traditionally strong sectors for the region such as agrifood, manufacturing, engineering and tourism. Importantly, the plan has been embraced by public and private sector bodies in the region and over 90% of its actions are on track for delivery. In terms of impact, over 12,000 more people are in employment in the Border region since the plan commenced.

At agency level, Enterprise Ireland recently announced a 4% employment growth in its client companies for the Border region, which now employ almost 11,500 people. Knowing the considerable challenges that companies in the region are facing, Enterprise Ireland continues to engage on a one-to-one basis with established clients in County Monaghan. Across the period 2014-17, it has invested approximately €18 million in client companies in the county. Through partnership between Enterprise Ireland and local authorities, local enterprise offices supported 1,152 small and micro-businesses employing over 5,720 people in the Border region during 2016.

To keep this momentum going, in December last year I announced an allocation of €30.5 million in funding to support enterprise capability in the regions, with 21 projects from all over the country receiving funding. Three projects from the Border region were successful: a regional food centre of excellence at Ballybay in County Monaghan, a network of three digital and innovation hubs, including one in County Cavan, and a new digital innovation hub and enterprise capacity building programme in County Donegal. In order to pursue this policy of growing new and exciting businesses across the regions, I look forward to launching a second call under the regional enterprise development fund in late March to allocate the balance of the €60 million earmarked for the scheme. If quality applications come in from the Border region for that scheme, they will be supported.

The period ahead will be a very challenging one for the employees who may lose their jobs. As I have outlined, all State relevant supports will be made available to them. The best response is to continue to invest in programmes and policies that generate new jobs and to assist those seeking work to be able to take up the available opportunities.

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