Dáil Éireann debate -
Thursday, 18 May 2000

Vol. 519 No. 4

Adjournment Debate. - Brewery Closures.

Mr. Kirk

Harp Lager and McArdle Moore are two long established breweries in the town of Dundalk. There is growing concern, however, in the Dundalk area now that the management is in negotiation with the unions in relation to redundancies in both places.

As anyone who is familiar with the area knows, breweries have been an integral part of the local community for generations. Unfortunately, there has been a steady contraction of the numbers employed in the trade over the years with only 400 employed in the two places now.

In recent years, significant capital investment was made in Harp Lager and McArdle Moore breweries. This investment provided the necessary reassurance that the breweries will continue to exist and prosper in the area. The holding company, Diageo, however, which owns and controls the breweries, appears to be carrying out a programme of rationalisation which could see diminishing numbers employed in the brewing industry in Dundalk town.

Despite falling unemployment figures in the town, the long-term unemployment statistics are still unacceptably high. If there were substantial job losses in this sector on the scale mentioned, it would seriously undermine confidence in the economy in Dundalk.

It is unusual that the Department of Agriculture, Food and Rural Development has responsibility for the brewing sector, although it is understandable in that the food industry and the drinks industry tend to be combined. One would have thought the Department of Enterprise, Trade and Employment would have a stronger role in that sector.

I appreciate that the Minister of State at the Department of Agriculture, Food and Rural Development, Deputy Ned O'Keeffe, has come into the House to reply to this matter. I hope he will be able to provide some reassurance for the workforce.

Mr. N. O'Keeffe

I thank the Deputy for raising this important matter. Guinness Group operations in Dundalk comprise two breweries, McArdle Moore which, in addition to its brewery function, is the sole packaging centre for Guinness in the Republic of Ireland and the Harp brewery, which brews Carlsberg and Harp.

My Department is the regulatory authority for the drinks industry and beverages. Irish drinks and beverages are promoted in a big way by An Bord Bia throughout the world and they are successful in the marketplace.

My information is that unions in Dundalk have agreed rationalisation plans for these two breweries which may lead to some voluntary redundancies, similar to other breweries in the group. In parallel with that rationalisation, I understand the Guinness Group is also currently reviewing its supply strategy across its brewing business in Ireland and the United Kingdom. I understand this involves its brewing and packaging plants.

I further understand that in the rationalisation negotiations concerning the Dundalk plants, the unions were fully apprised of the broader review that is taking place across the organisation. While the outcome of the broader review will not be known for some months, it may involve reallocation of products and consequential closures. My Department, in conjunction with Enterprise Ireland, will continue to monitor the situation closely.

While the Dundalk rationalisation already agreed is on a voluntary basis, I accept that the loss of employment is never palatable. Nevertheless, the recently announced expansion in Heinz creating 60 jobs and the greenfield investment by Kozy Shack down the road in Castleblayney to create a further 75 jobs should help to soften the impact that these voluntary redundancies will have on the local economy. Those were positive announcements and it is welcome that an American investor will invest in the area. The Deputy will also be aware that the Xerox investment in Dundalk will create 1,000 job opportunities by the end of this year and a further 1,000 shortly afterwards.