Paul Bradford (Fine Gael)
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I thank the Cathaoirleach for allowing me to raise this matter. This is probably the Minister's first engagement in the Houses as the new Minister for Enterprise, Trade and Employment. I congratulate him on his appointment to a position of great importance and wish him well during his tenure. Over the next two years or so the Minister will probably drive through the town of Mitchelstown hundreds of times as he travels between Dublin and Cork. He is familiar with the town and the community and he is aware of the current difficulties in the town.

This afternoon I wish to address the urgent need for Government intervention with regard to job losses in the Mitchelstown area and to appeal to the Minister to ensure that his Department and officials work in a strong and proactive fashion with the State and local job creation agencies, the local authorities and others to ensure that the jobs crisis in Mitchelstown is dealt with. On many occasions pleas have been made in the House for industrial development for different towns throughout the country. However, Mitchelstown is one of the few towns, if not the only town, which, since the foundation of the State, has never received any type of inward industrial development.

For the past 50 or 60 years employment provision in Mitchelstown has arisen from a single source and a single industry, namely, what was formerly Mitchelstown Co-operative and is now Dairygold. No major industry providing more than 30 or 40 jobs has located in Mitchelstown. The town and the community, therefore, have been almost entirely dependent on one industry. That industry is now under pressure. Unfortunately, a commercial decision was made for which the Government cannot be blamed. However, as a result hundreds of jobs have been lost in the Dairygold group. A significant number of redundancies are planned for the Galtee Meats division. Obviously, this is a cause of grave distress and concern for the Mitchelstown community.

I appeal to the Minister to work with Dairygold to ensure that the assistance the company is seeking for research development and technological advances is provided through the State agencies and to give whatever assistance the company requires to ensure its long-term viability and expansion. That must be done. I also ask the Minister to meet the local community, business groups and local people who are aware of the problems that exist. They will discuss various possible solutions with the Minister. There was a helpful meeting some months ago with the Tánaiste when she held the Minister's portfolio.

I do not expect overnight miracles. It is not possible for the Minister to open his briefcase and produce two factories for Mitchelstown. However, our goal must be to ensure that new industry is brought to the area. It must also be to ensure that Dairygold gets whatever help and support it requires to progress and develop in the future. We now have a Cork-based Minister with responsibility for employment. While he has to look after other counties, I hope his personal knowledge of the town and community of Mitchelstown will lead him to ensure that they get the attention they deserve.

There is a great community in Mitchelstown and a fantastic workforce has been available to the main employer in the town. Everybody must work together. There has been anger in Mitchelstown in recent times but that is understandable. However, we must move on to phase 2, which means everybody working in a positive and progressive fashion to stem the tide in the area. I thank the Minister for coming to the House this afternoon. I hope it is a first positive step and that the Minister will be willing to work with the community council, the Mitchelstown business association, Cork County Council, the Leader groups and so forth. If everybody pulls together, we can turn the situation around.

Micheál Martin (Cork South Central, Fianna Fail)
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I thank Senator Bradford for raising this matter and for his constructive contribution. Other public representatives, including the Minister of State at my Department, Deputy Michael Ahern, and Deputy Ned O'Keeffe, who lives in Mitchelstown, have also expressed their concerns about developments there.

Mitchelstown has been to the forefront of considerations since a meeting last April between the then Minister for Enterprise, Trade and Employment and a delegation from Mitchelstown, which included the Senator. On 26 November 2003, Dairygold announced 500 jobs losses across a range of its operations. These were sought on a voluntary basis. On 10 August 2004, the group announced its plans to terminate slaughtering at its Galtee Meats operation in Mitchelstown, with the loss of 170 jobs at the end of October 2004. Galtee Meats, which is the pig division of Dairygold, employs 500 people across a number of locations.

Slaughtering as well as value added processing is carried out in Mitchelstown. This action has been taken following a comprehensive review of its pigmeat division's cost competitiveness. Galtee will now focus on growing its added value, branded category business which has been profitable.

Enterprise Ireland is keeping in close contact with Dairygold Co-operative Society Limited about recent announcements on job losses and is monitoring the development of rationalisation at the company, including Galtee Meats. Enterprise Ireland is continuing to work with the company on the development of its business. The importance of Dairygold as an employer in Mitchelstown and the entire north Cork area is fully understood, as are the implications of the job cuts announced recently by the company in line with its restructuring plans.

At present, FÁS is in the process of registering the 150 employees of Galtee Meats in Mitchelstown who are about to be made redundant. The full range of FÁS services are being offered to the employees, including CV preparation and interview skills and re-skilling in line with labour market conditions. FÁS has also increased activity across north Cork, offering the business community and the general public additional courses and support.

Dairygold has been approached for assistance with regard to industrial development in Mitchelstown. A socio-economic study of the Mitchelstown area has been commissioned and a proposal will be presented to the company shortly with a view to securing funding for the study. The industrial development agencies are continuing to promote Mitchelstown for industrial development. Last year, Enterprise Ireland approved a grant of €200,000 for a food enterprise centre in the town. Approval for business expansion scheme relief is awaited pending the outcome of certain EU state aid issues regarding BES relief in general. However, in the meantime, a food forum committee, of which Enterprise lreland is a member, has been arranged to drive the project forward. The first meeting of this committee is scheduled for today.

A substantial new facility has also been funded under the BES and this is being marketed by IDA Ireland to potential clients. There have been two site visits to date, the most recent in August 2004. However, no client interest has been expressed in the facility as yet. Four small advance industrial units are being provided following a joint initiative involving the county enterprise board, the local credit union and Cork County Council.

Cork County Council has designated Mitchelstown as an important growth and development centre. The council has acquired lands for industrial purposes and new industrial sites are also being sought. Mitchelstown is also to be included in the roll out of broadband infrastructure. In addition, Mallow has been designated as a hub location under the national spatial strategy and this has the potential to benefit Mitchelstown and the broader north Cork area. Future employment opportunities generated at the business and technology park in Fermoy will also benefit Mitchelstown. While there are no IDA supported companies in Mitchelstown at present, companies such as Sanmina SCI and FCI in Fermoy and Kostal in Mallow are significant employers in the area.

I am satisfied that the combined efforts of agency and local interests will address the ongoing needs of Mitchelstown. However, in addition to increased global competition for investment and as a result of the slowdown in the global economy in the last few years, there have been fewer companies seeking investment locations than in the past. This has resulted in both fewer companies visiting Ireland and fewer companies choosing to locate in Ireland. The final decision on where to locate a project rests with the promoter of that project. Mitchelstown continues to be marketed by the development agencies for new investment as actively and vigorously as possible.

I assure the Deputy that I intend to closely monitor the situation and give whatever assistance I can. I am familiar with the Mitchelstown story for a range of reasons and from my connections there. I will continue to ensure the efforts being made will maintain the same level of momentum.

Paul Bradford (Fine Gael)
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Will the Minister consider meeting the local community and business interests at the earliest possible date? It is important at local level for people to see that from the top down, the Government, politicians and those who make decisions are interested in their problem. We are not expecting solutions to flow immediately but a meeting of the various interested parties would be of assistance. I ask the Minister to consider such a meeting at his convenience.