Ciarán Lynch (Cork South Central, Labour)
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Question 89: To ask the Minister for Enterprise; Trade and Innovation if his attention has been drawn to the announcement by a Cork based pharmaceutical firm (details supplied) of its intention to lay off 121 workers; the discussions he has had with a company with a view to saving these jobs; the steps he is taking to ask the industrial development agencies to source alternative employment in the area; and if he will make a statement on the matter. [36369/10]

Ciarán Lynch (Cork South Central, Labour)
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Question 126: To ask the Minister for Enterprise; Trade and Innovation if his attention has been drawn to the announcement by a Cork based pharmaceutical firm (details supplied) of its intention to lay off 160 workers; the discussions he has had with the company with a view to saving these jobs; the steps he is taking to ask the industrial development agencies to source alternative employment in the area; and if he will make a statement on the matter. [36370/10]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 89 and 126 together.

I am very conscious of the implications of the job losses at GlaxoSmithKline and Schering-Plough (Brinny), Co Cork. GlaxoSmithKline (GSK) currently employs over 1,500 people in Ireland, at its various sites in Cork, Dublin, Dungarvan and Sligo. The current job losses are a result of market conditions resulting in a fall in demand for the drugs GSK manufactures in Cork. IDA Ireland consistently engages with the company at both local and corporate level in an effort to secure further new investment to maintain and increase the company's base in Ireland.

Schering-Plough was acquired by Merck Sharpe and Dohme (MSD) in November 2009 and a review of global manufacturing facilities is under way in the new MSD. On 10th September, cost reduction proposals designed to secure the plant's future and to increase its competitiveness were announced by the company. This involves cutting the workforce by 160 people. It is expected that the staff reduction will take place over a three-year period, with management hoping the reduction can be obtained through voluntary redundancies. The site currently employs 497 people.

IDA is continuously working with the company with regard to skills and technology uplifts and the introduction of new products to the facility to strengthen Schering-Plough Brinny's bid to secure its future as a strategic site in MSD and for future investment in upgrading the existing plant. With IDA assistance, Schering-Plough Brinny will continue to make a significant contribution to the regional and national economy. I am acutely aware of the impact of the job losses on employees and their families. I have asked the State development agencies to make their full resources and services available to the employees affected by the company's decision.

FÁS will meet with management and staff representatives at GSK and MSD to formulate a plan of action to deliver FÁS services and supports to the staff due to be made redundant in 2010 and future years. The Cork County Enterprise Boards, together with Enterprise Ireland, will provide a range of supports and services to anyone wishing to start their own business. Cork has been particularly successful in attracting foreign direct investment over the years. Over the past 10 years, direct employment in IDA supported companies in Cork City and County has grown from just under 16,000 in 1999 to 20,000 now.

In 2009, foreign direct investment decreased globally by 30% and the average scale of investment was smaller than in previous years. Despite these trends, since 2009 IDA has announced 9 projects for Cork with a job potential of approximately 1,070. While it is clear that we are operating in a very difficult economic environment, there are still investment opportunities in global markets and IDA will continue to compete vigorously for projects for Ireland. IDA Ireland will continue to actively promote Cork and the advantages of locating in Cork. In addition, since 2008, Enterprise Ireland (EI) has approved €50M approximately to client companies in the Cork area. EI has a client base of over 700 companies in Co Cork employing about 18,000 people.