James Bannon (Fine Gael)
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With no disrespect to the Minister of State, I would have preferred if the Tánaiste had been here for the Adjournment. I know the Minister of State has connections with Longford. I believe his grandfather stood for election in the constituency of Longford-Westmeath at one time. I am sure he will put his shoulder to the wheel to get additional industry for my county of Longford.

I emphasise in the strongest terms possible the urgent need for the Tánaiste to make a comprehensive statement on Cardinal Health's decision not to proceed to build a pharmaceutical facility in Longford, which was announced in 2000, and to outline what intervention, if any was made by her to avert this action and save the 1,300 jobs promised to Longford. The withdrawal by Cardinal Health is a massive letdown and disappointment for all Longford people. It calls into question the bona fides of the Tánaiste and the Government in making the original announcement regarding Cardinal Health in the run-up to the last general election.

The Tánaiste promised 1,300 jobs for Longford, which were to come on stream this year. Her party colleague, Deputy Mae Sexton, stated in the strongest possible terms during her election campaign that the project would be delivered. As we now see the only thing that was delivered was a seat for the Progressive Democrats in Longford. We are very disappointed in Longford. Deputy Sexton's response is flawed. Yesterday she failed to turn up at a county council meeting.

Rory Kiely (Fianna Fail)
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What happened at a county council meeting is not relevant.

James Bannon (Fine Gael)
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It is factual.

Rory Kiely (Fianna Fail)
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We must stick to the subject matter of the debate.

James Bannon (Fine Gael)
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The general public are deeply suspicious of Deputy Sexton's delivery for the county. Longford was not alone in being conned. Right across the country phantom jobs were announced prior to the general election in Birr, Limerick and Galway, as well as Longford, to name but a few of the affected counties.

Rory Kiely (Fianna Fail)
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We are dealing with the pharmaceutical facility in Longford.

James Bannon (Fine Gael)
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While 1,300 jobs may represent nothing but numbers to the Tánaiste to achieve her purpose, these jobs were more than empty words to County Longford. Their loss is a major blow to the economy of the county and the entire midlands. Cardinal Health was expected to become the largest employer in the area. Longford County Council was put in considerable debt since the announcement in 2000. It had to foot a huge interest bill on an overdraft to buy the land for Cardinal Health. It cost the council up to €200,000 in services etc. to keep the site on stream for the past four years. There is no need to ask the Minister of State what Cardinal Health lost over this deal, as it lost absolutely nothing. Longford County Council and the people of the county have lost out greatly by Cardinal Health's decision. Ultimately, Longford County Council and the Longford area must not be left to carry the can. The Government must pick up the tab for not honouring its commitment to County Longford.

Hope springs eternal and this hope or perhaps desperation leads us to turn a blind eye to the obvious. We smelt a rat when Cardinal Health did not apply for planning permission in 2001 or 2002. There was no way that the original timeframe would be met. Following the subsequent deferral, we should have been told the truth. When the task force was set up we were informed at a county council meeting that its target was to create 4,000 jobs by 2005.

With less than a year to go, the number of jobs created is not a quarter of that figure. In light of this abandonment of 1,300 jobs for Longford, there is clearly something wrong with the Minister's job creation policy. Despite the recent setting up of the Abbott plant, the county has had the worst unemployment figures in the country over the years. Unemployment in Longford currently stands at twice the national average. The jobs crisis is set to spiral out of control.

I plead with the Tánaiste to meet with Longford County Council and others with an interest in the development of our county and try to deliver a substantial number of jobs, because Longford and the surrounding area has suffered a blow with the loss of Cardinal Health. Much development throughout the region was dependent on Cardinal Health and much hope was invested in it. I would appreciate if the Minister of State would convey to the Tánaiste that we are not happy with her performance or that of her Deputy in County Longford.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am replying on behalf of the Tánaiste and Minister for Enterprise, Trade and Employment and thank Senator Bannon for raising this important matter on the Adjournment.

The Tánaiste is very disappointed that this important investment for the Longford area has been cancelled. Cardinal Health Incorporated has decided not to proceed with its proposed investment in a new pharmaceuticals facility in Longford due to a significant change in its business priorities following a series of corporate acquisitions over recent times. The company had taken an option on land for the project in Longford from Longford County Council.

At the time of the announcement in December 2000 of Cardinal Health's intention to build a pharmaceutical facility in Longford, this project was seen as an important part of the company's strategy for Europe. Cardinal Health decided in October 2002 to postpone its proposed investment in Longford for up to two years due to changing business priorities. Since 2000, Cardinal Health has grown by acquisition and has acquired additional manufacturing capacity in the USA and Puerto Rico. In December 2003, Cardinal Health acquired the UK Intercare Group plc, a contract manufacturing and distribution business with six manufacturing facilities in the UK, Belgium and France. This acquisition satisfied Cardinal Health's manufacturing capacity needs in Europe.

Since the approval of the Longford project in 2000, the IDA has maintained continuing contact with Cardinal Health and stressed that a greenfield project in Longford would augment the company's existing strategy. This included regular meetings in Ireland and the US with senior corporate management on advancing the project. However, the recent Intercare acquisition changed the position. The decision not to proceed in Longford was communicated by Cardinal Health to IDA Ireland and Longford County Council at a recent meeting in London.

IDA Ireland remains committed to the development of the Longford area. There is a degree of confidence arising from the on-site progress in Longford of Abbott, which plans to provide up to 600 jobs there, with related sub-supply opportunities for indigenous companies. Enterprise Ireland continues to work with its strong base of client companies in County Longford. Examples of recent positive developments by EI-supported companies in Longford include expansions by Green Isle Limited, Century Homes and Fenelon Engineering Limited. Green Isle Longford grew strongly in 2003, more than doubling its full-time employment to 160 people. Century Homes, the innovative manufacturer of timber-frame housing, is expanding and doubling its workforce from 40 to 80 people. Fenelon Engineering, employing 129 people, has completed the consolidation of its operations from three locations to the 90,000 sq. ft. former Barbour Threads premises.

Under Enterprise Ireland's 2002 community enterprise scheme, the Longford County Enterprise Board, as a lead partner, was approved €330,500 in capital and management grants for the provision of a community enterprise centre in Longford. The board is seeking full planning permission for this development, which will support new start-up enterprises. Under the Government's major decentralisation programme announced in the budget, 130 jobs are to be relocated to Longford. This move demonstrates the Government's commitment to balanced regional development and will provide a further boost to enterprise development in the county. The Tánaiste is satisfied that the combined efforts of the State development agencies under the aegis of her Department, in co-operation with local interests, should provide an adequate framework to ensure continued job creation and investment in the Longford area.

James Bannon (Fine Gael)
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There is evidence in the Minister of State's statement that the Tánaiste took her eye off the ball. The rug was pulled from under her by Puerto Rico, Belgium, France and the UK.