David Cullinane (Sinn Fein)
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I welcome the Minister of State back to the House. He will be aware that, unfortunately, Diageo has announced that it is ceasing its operations at the Waterford facility. That news came as a shock to the workforce. Some 35 direct and indirect jobs will go if this closure goes ahead. It also came as a shock to the people of Waterford, a city with 25% unemployment, which is facing an unemployment crisis in a region with 19%. We need to be creating jobs, not losing them. Any announcement such as this one is bad news both for those being made redundant but also for the economy in the Waterford region.

The Diageo plant in Waterford produces the essence concentrate for Guinness which is exported around the world. It is a top class, state-of-the-art facility. In 2004, the company invested €40 million capital funding in its Waterford facility. That was at a time when the company had downsized its operations in Waterford. This was seen as its stake in the area to which it was committed, yet a short number of years later Diageo has decided to cease production despite the fact that €40 million was put into the facility. Less than €1 million of that sum came from Enterprise Ireland but nonetheless it was a significant capital investment by the company.

I ask the Minister of State to raise this matter with the Minister for Jobs, Enterprise and Innovation, Deputy Bruton. What steps have been taken by the Minister or his Department to safeguard jobs at the Waterford facility? Has there been any dialogue or communication between the company, the Minister and his Department? Has the company been asked to offer any rationale for its decision, given that it made such a big capital investment? Can the Minister of State detail the total investment of public moneys which has been put into this site over many years? Do any clawback clauses exist if the site is to be closed?

The trade union involved, SIPTU, is working hard to secure the jobs and is in discussions with the company. We wish them all well and hope that the Minister and his Department will also become involved. Hopefully that effort will be successful. If it is not, however, and the company sticks to its plan to close the Waterford plant and move the operation to the St. James's Gate facility in Dublin, it is vital for Enterprise Ireland and the Department to consider some sort of replacement on that site in Waterford. It is an iconic building at the entrance to Waterford city, containing a state-of-the-art facility that cannot be left unused. It would be a travesty to abandon it. We must find some sort of replacement industry that can retain jobs and keep production going in some shape or form, if Diageo cannot be convinced to keep the facility open. For example, we could examine micro-brewing along with other options.

Is Enterprise Ireland alert to this matter? Is it working with stakeholders or individuals who may have ideas on how to protect and maintain jobs? I have raised this Adjournment matter to try to safeguard jobs. We want to support SIPTU's efforts to protect the existing employment and hopefully change Diageo's mind. If that does not prove possible, what steps can the Department and State agencies - especially Enterprise Ireland - take to ensure some level of continuing production and jobs on that site? The building must not be left unused and vacant. It must be utilised, so I appeal to the Minister of State to do what he can to make that a reality.

John Perry (Sligo-North Leitrim, Fine Gael)
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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.

David Cullinane (Sinn Fein)
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I thank the Minister of State for his lengthy and comprehensive response. This is an important issue for the people of Waterford but nobody in that county blames the Government for the fact that this company made this decision. We all accept that the company took a decision to consolidate its business in this State, whether we like it or not. That decision is very unpalatable for the workforce and the people of Waterford. However, there is a responsibility on the Government, the Minister, the Department and Enterprise Ireland to act. I am very pleased that not only is Enterprise Ireland alive to the need to do something but that it is actively working with potential investors. I very much hope that we can get one of those potential investors to secure development at the site and continue some sort of production there, thus securing employment at the site. It seems that is what Enterprise Ireland is working towards and it would be a very good day for Waterford if that can be secured.

Obviously, we still have to support the trade union in its efforts to change the minds of the decision-makers in Diageo but we live in the real world, where companies make such decisions all of the time. I commend Enterprise Ireland for its efforts and hope it achieves a good result for the workforce and people of Waterford.

John Perry (Sligo-North Leitrim, Fine Gael)
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The Government is very aware of the opportunities in Waterford and Enterprise Ireland will be actively working with the company to pursue alternative enterprises on this site. Clearly, this is not a blame game. What is important is that the Government creates an environment which is supportive of enterprise and the creation of jobs. We must encourage those with good ideas to commercialise them. That is the job of Government and we are very determined to continue this work. I have no doubt that this issue will be on the agenda of the task force for the south east set up recently by the Minister, Deputy Bruton.