Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 443: To ask the Minister for Enterprise, Trade and Employment when he became aware of the difficulties of an operation (details supplied); when his department became aware of the problems in the company; the ongoing discussions taking place with Enterprise Ireland on the development of the site; and if he will make a statement on the matter. [38721/06]

Micheál Martin (Cork South Central, Fianna Fail)
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While responsibility for the food sector rests with the Minister for Agriculture and Food, I am aware that the market for canned meat is in decline as a result of changed consumer preferences and a greater emphasis on fresh and chilled products.

Enterprise Ireland has been aware for some time of the difficulties being experienced at the plant in question. Over the past two years, the agency was working with the company to try to stimulate new product development to replace products in decline. Under its Research and Development grant aid scheme, Enterprise Ireland supported potential new product development projects. Unfortunately, there was no positive outcome from these initiatives.

There was also a possibility that some of the existing management team might purchase the business. Enterprise Ireland held discussions with these potential new owners and encouraged the company to do business if possible. However, the company recently came to the view that it had exhausted all possibilities in relation to a management buy-out and, as a result, it announced the closure of the plant last Tuesday.

Notwithstanding this, Enterprise Ireland will continue to work with the company to try to develop alternative uses for the site in Ruskey.