Paul Murphy (Dublin South West, Socialist Party)
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32. To ask the Minister for Jobs, Enterprise and Innovation his views on the announced job losses in the Cantrell and Cochrane bottling plant and the measures he will take to protect these jobs and others in the manufacturing sector. [2085/16]

Richard Bruton (Dublin North Central, Fine Gael)
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Clearly my first thoughts are with the workers affected by the announcement of job losses at the company.

The decision announced on 12 January is part of a company-wide restructuring particularly of its manufacturing base which the company has undertaken following the loss of contracts for private label water which has led to serious underutilization of capacity.

I have spoken to senior management at the company in recent days and urged them to reconsider the decision in relation to the facility in Borrisoleigh but unfortunately this did not prove possible.

The Group announced that following a detailed review of its manufacturing and operational footprint, it intends to consolidate production from sites in Shepton Mallet in England and in Borrisoleigh into its manufacturing site in Clonmel. Under this proposal, production and packaging will be transferred on a phased basis from the facility in Borrisoleigh. Consequently, Clonmel will become the core manufacturing site for Bulmers and Magners cider, Tipperary Water and the company’s range of niche premium beers and ciders. In support of the proposal, the Group will invest in excess of €10 million in enhancing packaging and logistics capability in Clonmel, creating 80 additional jobs, and designed to put Irish-based employment on a secure and competitive footing. The company has indicated that Borrisoleigh will remain as a key transport hub and both logistics and warehousing operations will be maintained in the town.

The company has indicated that, where possible, the workers at Borrisoleigh will be offered alternative employment at the expansion in Clonmel. Regrettably, net roles lost in Ireland across the company’s operational network are estimated to be 54 jobs. I note the company’s statement that it will provide support and training for the workers affected. In addition, all the supports of the State will be made available.

Enterprise Ireland will continue to engage with the company as it undertakes restructuring. The Agency will continue to monitor the situation at the company and will continue to offer any assistance that it can within Enterprise Ireland’s remit.

I understand that the company has initiated the consultation process with its employees and their representatives who are impacted by the announcement. The company plans to meet with employee and union representatives over the coming weeks.

Workplace Relations Commission information staff are available to meet staff of the affected enterprises, either individually or collectively, to assist the parties concerned.

With regard to protecting jobs in the manufacturing sector, the sector remains a key pillar of employment growth in the Irish economy. The companies that Enterprise Ireland works with, including its manufacturing clients, are a vital source of employment, both direct and indirect, in every county in Ireland.

In recognition of that, I established a Manufacturing Development Forum to act as a consultative body to advise my Department on manufacturing issues. The Forum helped inform work to develop a new National Manufacturing Strategy, Manufacturing 2020, published in early 2013, and it identified that an additional 20,000 jobs can be created by 2016. The Action Plan for Jobs 2016 will contain further actions to support the Irish manufacturing sector.