Kieran Phelan (Fianna Fail)
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I thank the Minister of State for coming to the House to take this Adjournment matter. Last Friday my town of Rathdowney received the devastating news of the loss of 120 jobs at Meadow Meats. The factory has served our town well for many years. I recall in 1973 my late father was involved in a committee with the Golden Vale marts group to form a meat factory in Rathdowney and in 1974 this took place. Some years later Guinness came in and took over the meat factory which continued to serve our town for many years. Some years ago Dawn Meats came and took over from Guinness when it exited the meat factory business. Last Friday, word came through that we would lose the boning section of the factory. After this takes place, some 80 killing jobs will remain in the factory but these are vulnerable because of the proposed new super killing line in Kilbeggan in the near future. No funding has come through for the killing line in Meadow Meats in Rathdowney and it remains vulnerable.

Arcon Mines, some four miles outside Rathdowney, closed in recent weeks with the loss of 200 jobs. This and Meadow Meats were the two major employers in south County Laois, providing employment for the towns of Durrow, Ballacolla, Borris-in-Ossory and Rathdowney. With the loss of these two companies there is no industry in the area. I call on the Minister of State to form a task force to try to help to bring employment to the area, now classed as a blackspot. There is now no industry in south County Laois, a huge rural area.

I am not complaining about Meadow Meats which has served the farming business in the area well throughout the years and its staff has carried out trojan work to help the factory at all times. I am saddened that some people who have worked there for up to 40 years will walk out next month with nowhere else to go. I call on the Minister of State to relay to the Tánaiste and Minister for Enterprise, Trade and Employment the urgent need for a task force and any other necessary measures to help the local people and to try to bring employment back to the area. I have no doubt the local community will do all in its power to help the relevant bodies to see whether labour can be secured for the area. I look forward to hearing the reply of the Minister of State.

Conor Lenihan (Dublin South West, Fianna Fail)
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I thank Senator Kieran Phelan for raising this matter on the Adjournment. He is a good Senator who is very focused on his constituency and I have a certain sympathy for him in this case. I am aware of the situation in Meadow Meats, a client of Enterprise Ireland. I understand jobs are being transferred to Grannagh, County Waterford, as part of the company's rationalisation strategy to bring scale to its boning activities and I am conscious of the effect of the transfer of these jobs on the workers involved and their families as well as on the local community.

I understand the company is rationalising its existing facilities to yield significant savings. I understand the company submitted a business plan under the beef and sheepmeat fund which is under the aegis of the Department of Agriculture, Fisheries and Food. The business plan was approved by Enterprise Ireland, the Department of Agriculture, Fisheries and Food and the Government. I understand this plan is being undertaken to increase capacity utilisation, cut costs, enhance scale and international competitiveness and is in line with the sectoral strategy for the Irish beef sector.

I understand that as part of the company's rationalisation strategy, it is amalgamating the boning activities in Rathdowney with those at its site in Grannagh in County Waterford. I understand 100 operative jobs will be transferred to Grannagh by the end of August 2009. While 100 members of staff in the Rathdowney facility are being offered positions at the Grannagh facility, the remaining 100 people will be retained in slaughtering on the current site in County Laois. With the implementation of this business plan, the company forecasts it will increase employment from approximately 1,400 to 1,500 people between 2009 and 2012 in the three plants. Sales at the company are forecast to rise significantly and exports are also expected to increase significantly during same period. The gross investment planned by the company in Ireland during this period is very significant.

In regard to Arcon Mines, I understand from my colleague, the Minister for Communications, Marine and Natural Resources, that the Galmoy mine is owned by Galmoy Mines Limited, formerly Arcon Mines Limited. The mine operates under a number of State mining licences issued by the Minister for Communications, Energy and Natural Resources under the Minerals Development Act 1979. These licences are due to expire in 2016. The mine commenced operations in 1997 and is coming to the end of its economic life. The company announced in early 2008 that it would close the mine in April 2011 owing to exhaustion of reserves and had agreed the phasing of closure arrangements with the trade unions. However, due to changes in economic circumstances and especially the substantial fall in zinc prices between 2008 and 2009, the Lundin Mining Corporation announced in January 2009 that it would cease mining operations on 29 May 2009.

To ensure job creation and job retention, the Government, through the State development agencies and other interested parties, adopts a co-ordinated approach in dealing with the particular situation. All the agencies work together in making people aware of the supports available to assist in finding new employment or to start their own businesses. While there has been a decline in the multinational sector in County Laois in recent years, IDA Ireland is now marketing Portlaoise as a key location for investment in the globally traded services sector. A significant investment has been made in a quality flagship business park in Portlaoise and this is now an integral part of the agency's international marketing programme. In addition, the State development agency, Enterprise Ireland, which is responsible for the promotion of indigenous industry, continues to address enterprise development in County Laois. Several of the agency's client companies in County Laois are actively developing their businesses. The agency works intensively with companies, both individually and in sectoral groups, to help them exploit market opportunities and to promote innovation and enhance their international capabilities.

The Laois County Enterprise Board continues to provide support for the micro-enterprise sector in the county. This year, the county enterprise board will continue to be actively involved in the economic development of County Laois. The county enterprise board will ensure available funds are targeted to maximise entrepreneurial development throughout the locality. The strategies and policies being pursued by the State development agencies in County Laois will continue to support enterprise development and job creation in the area. I reaffirm that the State agencies will continue to work closely with each other and with local interests to assist in maintaining an integrated approach to investment and enterprise development. If further initiatives are needed over and above the work of the enterprise development agencies and local interests, the county enterprise board is in a position to assist. I thank Senator Phelan for this timely intervention on behalf of his constituents.

Kieran Phelan (Fianna Fail)
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I thank the Minister of State for his reply. However, I appeal to him to call on the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Coughlan, to get the State agencies involved. I realise he referred to IDA Ireland, which is in Portlaoise. However, my town of Rathdowney is 25 miles from Portlaoise and I am keen for Enterprise Ireland and such companies to be contacted directly. Our local community is prepared to become actively involved, with some assistance, to determine whether it is possible to bring in someone else to replace these very important businesses.

Conor Lenihan (Dublin South West, Fianna Fail)
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I assure the Senator we will do everything we can and I will speak directly to the Tánaiste about this matter in the morning.