Dáil Éireann debate -
Thursday, 12 Dec 2002

Vol. 559 No. 3

Adjournment Debate. - Job Losses.

Ms Hoctor

Gabhaim buíochas leat, a Leas-Cheann Comhairle, as ucht na deise a thabhairt domsa, labhairt anocht faoi dúnadh na monarchan Miza i Roscré, inné. I am grateful for the opportunity to address the Minister of State at the Department of Community, Rural and Gaeltacht Affairs, Deputy Noel Ahern, on the urgent matter of job replacement in Roscrea, in view of the job losses at Miza Pharmaceuticals, Roscrea, yesterday.

A High Court decision, to the devastation of the people of Roscrea, deemed the wind up of the company, the largest employer in the town, which was in examinership for the second time in two years. Small statutory redundancy payments plus a small amount of holiday pay is all the 230 workers have to look forward to with the approach of Christmas. They are without income today and this is an appalling financial blow to the town.

If the Minister for Enterprise, Trade and Employment was in the House, I would remind her of her visit to Roscrea nearly four years ago when the town received a similar blow on the announcement of the closure of Offray. The Minister for Enterprise, Trade and Employment would recall her setting up of a task force to address the void of employment with a view to working towards establishing a replacement industry in Roscrea at that time. Within a number of months, the task force was abandoned without providing a glimmer of hope to the workforce affected. The setting up of a task force again would prove futile as there is no reason to believe that it would be helpful, in the knowledge of the poor history to date of a deficit of effective replacement industry in the view of such closures. Factory closures and redundancies are no stranger to north Tipperary, as the Minister for Enterprise, Trade and Employment well knows.

I recall when I, with other public representatives, met the Minister for Enterprise, Trade and Employment in Thurles with the 230 workers of the GMX Moulinex plant in May 2001 when they were informed of the closure of that 14 year old industry. A similar task force was also set up, comprising local authority officials, county enterprise board officials and Shannon Development but it was to no avail. To exacerbate the jobs loss problem further in north Tipperary, over 230 workers were laid off at Aventis Pharma, in my home town of Nenagh between April and August of this year, another devastating blow to the commercial fabric of a growing town.

No replacement industry has been found for these lost industries. The loss of such locally-based industries diminishes local investment in local shops and commercial entities. A town loses a sense of purpose with no clearly defined source of local income for a local spend. Worst of all, it depletes a local community of its morale and unique identity, where people work and spend locally, sustaining a healthy commercial circle of a vibrant local economy. Sadly, each of our three towns of Thurles, Nenagh and Roscrea are at a serious loss due to these factory closures in the past three years. This is serious for the three towns as none of them was given major recognition in the recent spatial strategy announced by the Minister for the Environment and Local Government.

I ask Deputy Ahern, who is standing in for the Minister for Enterprise, Trade and Employment, what immediate remedial action the Minister intends to take to address this major issue of con cern where the closure of Miza Pharmaceuticals in Roscrea is the third industrial closure in three years in north Tipperary. In anticipation of Deputy Ahern's response, I ask that Roscrea, Nenagh and Thurles be prioritised by the Department as towns in need, serving a shared hinterland of redundant workers who over the years have proven themselves in skills and commitment to their respective employers.

I ask the Minister of State to consider this request on behalf of the Minister for Enterprise, Trade and Employment, and to make my request known to her, emphasising that north Tipperary has been depleted due to the closure of Miza Pharmaceuticals but has a diligent workforce. I ask that north Tipperary be once again considered among the vibrant zones of industrial development, worthy of its young, committed and highly-skilled workforce.

Minister of State at the Department of Community, Rural and Gaeltacht Affairs (Mr. N. Ahern)

I thank the Deputy for raising this matter on the Adjournment and convey the Minister for Enterprise, Trade and Employment's disappointment in regard to the jobs lost in Roscrea. Miza Pharmaceuticals is a privately-owned Canadian company with headquarters in Toronto and subsidiaries in the US and the UK.

Miza Ireland Limited was formerly known as Antigen Pharmaceuticals and employed 280 people in the manufacture of injectable products in Roscrea. Antigen was founded in 1946. I worked in the freight side of CIE some years ago and Antigen was one of its major customers. The size of the consignments may not have been that big but there were many of them and I had many dealings with the company at that time. In 2001, as a result of financial difficulties, Antigen went under examinership for some months and in November 2001, Miza Pharmaceuticals took over the manufacturing assets and business.

The Irish firm has debts of €22 million and went into examinership in October 2002 because a UK company, Goldshield PLC, had indicated that it would consider acquiring the Irish operation. On 2 December 2002, Goldshield decided that it would not proceed with the acquisition. Since Miza went into examinership, the IDA and the local company management have been actively promoting the facility to potential investors in the pharmaceutical industry. I understand that two overseas companies have viewed the facility in the past ten days.

On 11 December, the High Court made an order for the winding up of the company, following a petition from Bank of Ireland and Bank of Scotland who are owed some €8.4 million between them. I understand that FÁS is already in discussions with the company with a view to offering its full range of services to staff. These services include information and advice on alternative employment options, services which address the personal needs of workers facing redundancy and services which will provide workers with education and flexible training options, and any other support that may be required. For industrial development purposes, Roscrea comes under the control of Shannon Development. The agency is committed to playing a full part in promoting the town and has a number of initiatives in hand.

Shannon Development is committed to the development of a business park in Roscrea as a major objective and has committed significant resources in purchasing a prime 29 acre site adjacent to the N7, and is developing business and physical master plans for the site. It is envisaged that planning permission will be sought in early 2003 with phase one development works commencing in the second half of the year.

Shannon Development has approved a business expansion certificate to a local consortium to facilitate the construction of a modern advance industrial unit in the town.

This project is well advanced. The investment target has been achieved, the site has been acquired and construction has commenced. It is expected to be completed by March 2003.

The promoters of Rackett Hall Hotel are currently implementing a major expansion of 42 new bedrooms, a 600 capacity conference and banqueting centre, meeting rooms, etc. This will make a major contribution to the attractions of the town as an investment location. The Tipperary Technology Park in Thurles, located 21 miles from Roscrea, will add to the attractiveness of the region.

I will convey to the Tánaiste Deputy Hoctor's view that north Tipperary, Roscrea and Nenagh needs special attention. I assure the Deputy that the development agencies under the aegis of the Department of Enterprise, Trade and Employment will continue to promote the Roscrea area and north Tipperary for investment and to find alternative employment for those who have lost their jobs.