Dáil Éireann debate -
Thursday, 26 Jun 2003

Vol. 569 No. 5

Adjournment Debate. - Job Losses.

Mr. Naughten

I thank you, a Cheann Comhairle, for giving me the opportunity to raise this issue on the Adjournment this evening.

On 8 May 2002, a major fire destroyed the Glanbia Meats pig processing facility at Rooskey, County Roscommon. Yesterday, the company announced that it had plans to restore the capacity lost due to the fire by upgrading and expanding its two remaining facilities at Edenderry, County Offaly and Roscrea, County Tipperary at an estimated investment cost of approximately €27 million, with the knock-on closure of the Rooskey killing facility.

While the decision to retain the cannery at Roosky, County Roscommon, is a positive one and leaves the door open for some hope, it is a huge blow to the local community. After the fire had destroyed much of the premises, the Tánaiste and Minister for Enterprise, Trade and Employment asked the then Minister for Agriculture and Food, Deputy Joe Walsh, who is also the current Minister, to immediately establish how soon the pigmeat facility could be reopened.

In a response on a previous Adjournment debate, the Minister of State at the Department of Finance, Deputy Parlon, stated that finding new investment and providing new sources of employment in areas of County Roscommon will not be easy but that the Tánaiste is determined to do everything she can to make that happen. Sadly, those were hollow words because in a reply to a parliamentary question I received from the Tánaiste and Minister for Enterprise, Trade and Employment and from the Minister for Agriculture and Food, in which I specifically requested information regarding the contacts made directly with the company, the responses I received were to the effect that neither Minister has made direct contact with the company. Not a word has passed between them, yet we are told that the Tánaiste and Minister for Enterprise, Trade and Employment is determined to do everything she can. Those are hollow words which she also uttered to the factory employees in Roosky, County Roscommon, on 8 May last year in light of the fact that the company had planning discussions with Roscommon County Council regarding the reopening and redevelopment of the facility.

In her response today, the Tánaiste and Minister for Enterprise, Trade and Employment stated that the company's proposal was part of a rationalisation of the slaughtering facility. I am aware it is a policy of Enterprise Ireland to see a rationalisation within the slaughtering and processing facilities for the meat industry. I ask the Minister to answer a number of questions. Are any State funds involved in the rationalisation programme into which Glanbia has now entered? Are State funds being made available to support the additional employment in Edenderry and Roscrea? What offer, if any, was made to Glanbia by way of financial aid or incentive to retain the facility in Roosky, County Roscommon?

Glanbia is the biggest employer in Roosky. The east Roscommon area has lost 340 jobs at the plant, which will have a major impact on the local economy. That is in conjunction with two other major blows in the area, namely, the loss of 300 jobs at Atlantic Mills and the postponement of an investment by Cardinal Healthcare which would have created 1,300 jobs in the locality.

Some 1,185 jobs have been lost to County Roscommon and its hinterland since January 2001, yet nothing has happened to address this crisis. I do not know of any other region that could absorb such job losses. It is ten years since County Roscommon benefited from a single IDA job. I doubt if there is any other county which has not received one IDA job in the past ten years during a time when there were massive amounts of foreign direct investment into the country. There is no doubt that County Roscommon has been neglected by the State agencies which have responsibility for job creation.

The establishment of the BMW region was nothing more than a paper exercise as far as creating jobs in the region is concerned. We now know that the IDA has abandoned the only policy decision taken by the Government, that 50% of all jobs created should be targeted to the BMW region. It says this is simply no longer possible.

Roscommon must be given priority and provided with the opportunity to create jobs either through the IDA or Enterprise Ireland. We must also have a firm commitment regarding the decentralisation of civil servants to the county and the future development by Cardinal Healthcare. Roscommon is an employment black-spot with inadequate infrastructure. As I said, it is ten years since we have had a positive proposal on job investment in the county and it is about time we got our fair share, nothing more and nothing less. I call on the Government and the State agencies to respond with a positive step to the needs of the county, in particular the needs of the people of Roosky and west Roscommon, and ensure a replacement industry is obtained. A 40 acre site is available on the site in Rooskey where Glanbia is pulling out. Surely that provides potential for investment.

Mr. Finneran

I thank you, a Cheann Comhairle, for accepting my matter for the Adjournment regarding the decision of Glanbia to abandon Roosky and reinvest in another part of the country. This is an outrage as far as the people of Roscommon are concerned, particularly Roosky and the catchment area that takes in the three counties of Roscommon, Leitrim and Longford. The question must be asked: why did a commercial company change its mind in the period since January of this year when at that time all of the discussions were focused on the rebuilding of the plant at Roosky? In fact, a company representative said at that time that the only outstanding matter that had to be dealt with regarding the re-establishment of the company at Roosky was the final agreement on the insurance package. We now know that the insurance package has been agreed, but we also know it has now been transferred to Edenderry and Roscrea.

I wish the people well in those two towns but if there is a need for employment in those two factories now, why are 75 jobs being presented to them when they have been granted leave to apply for work permits for foreign workers in the two plants? Will the extra 75 jobs now being provided in the plants be filled by people with work permits from states outside the European Union? If that is the case, it is an outrage because in the catchment area of Roscommon, Leitrim and Longford, there are 450 willing workers – in many cases local people with small farms – who worked at the plant over the years and made a great commitment to it. Some of them are second and third generations of people who previously worked in Hanley Meats. They built up a tradition of pigmeat processing in the village of Roosky which has been the mainstay in terms of employment and the local economy over many years. I would like to know the reasons the commercial decision has been taken by Glanbia Meats to raid the village of Roosky, take €28 million out of it and reinvest it elsewhere.

This was a disgrace which shows little concern for the workforce that has invested so much over many years. I call on the board and executive of Glanbia to explain to the House or the community in Roosky the reason the decision was made. What is its intention with regard to what is left of the plant?

A sop has been given to the people of Roosky regarding 100 jobs at the cannery. There are 60 jobs left at the cannery, not 100, and there will be none left down the line as I do not envisage the company transporting raw material from another location to Roosky for current purposes.

At my instigation and that of Deputy Naughten, discussions were held with the planning authority and Enterprise Ireland on the redevelopment and rebuilding of the plant and everything was on track at the start of this year. What happened in the intervening period?

An Ceann Comhairle

The Deputy's five minutes are concluded.

Mr. Finneran

As a public representative, I warn Glanbia it will not be allowed to get away with selling off the 40 acre site. The community and Roscommon County Council will have their say in terms of the planning and development charges for the site. I assure the company that, as a county council member and Member of the Oireachtas, I will try to get some recompense for the people.

An Ceann Comhairle

I ask the Deputy to give way to the Minister.

Mr. Finneran

I call on the Minister for Enterprise, Trade and Employment and the statutory agencies to address immediately the lack of jobs and the provision of new jobs for the Roosky area.

An Ceann Comhairle

In fairness to staff of the House, Members should stay within the five minute limit at this hour. If every speaker were to take an extra minute or two, it would add 20 minutes to proceedings.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Fahey)

I thank the Deputies for raising the matter on the Adjournment. Since the fire at Glanbia Meats plant at Roosky, County Roscommon, in May 2002, the company has been examining the possibility of rebuilding its pig slaughtering plant. It was always anticipated that it would be some time before a final decision was taken on the matter. Unfortunately, the end result was yesterday's announcement by the company that the rebuilding of the Roosky plant will not proceed.

Over the past two years, Enterprise Ireland has been actively working with the Glanbia Group in terms of its global competitiveness, given that it must compete with large-scale competitors from the UK, Europe and the US. Since the fire last year, Glanbia Meats has been examining its best future options and has been in ongoing discussions with Enterprise Ireland. The company had indicated, subsequent to the fire, that it was its intention to rebuild the plant. However, despite extensive exploration of options by the company, it proved to be uneconomic to do so. According to Glanbia, the restoration of lost capacity into the existing facilities at Roscrea and Edenderry was seen as a better long-term solution for the company and its producers.

While the Glanbia decision, based on commercial considerations, is not to rebuild the Roosky facility, it will develop the existing Roscrea and Edenderry plants. As part of a proposed €27 million investment in the rationalisation of slaughtering facilities with a view to improving competitiveness, an additional 150 jobs will be created between the Roscrea and Edenderry plants. In effect, plans are now being developed to reshape the business using the fire as a catalyst for change and Glanbia Meats has been in detailed discussions with Enterprise Ireland seeking support for the proposed investment with a view to maximising the level of value addition that will take place in Ireland.

This proposed investment is seen as critical to establish a sustainable strategic position for the Irish pigmeat industry, matching international competitive and best practice standards. Upon completion in late 2004, the upgraded facilities with integrated boning and packing facilities will be the largest and most efficient facilities of their kind in the Irish Republic. Overall, the expanded processing activities will result in an increase in employment at the Roscrea and Edenderry plants of approximately 150.

A voluntary redundancy scheme has been agreed with the workers at Roosky and 290 people have already left the company on this basis. Most of the redundant workers have registered with FÁS, which is offering them the full range of services available, including skills analysis, job placement, guidance and counselling interviews, identification of training needs and suitable courses. The existing Glanbia Meats cannery at Roosky, employing 95 people, will be developed and a number of growth initiatives are being explored.

The State development agencies are fully committed to addressing the adverse situation arising from the job losses in Roosky and elsewhere and are actively encouraging investment in the region through the establishment of new projects and the expansion of existing projects. IDA Ireland is committed to playing its part in the development of the midlands by maintaining the maximum number of jobs in overseas industry and by attracting new foreign direct investment into the region. The agency has strengthened its commitment to the midlands by establishing its health care division together with part of its property and regions divisions in Athlone.

Enterprise Ireland will work with the management of Glanbia Meats to assist any staff members who wish to pursue starting up their own businesses. This will be done in co-operation with FÁS and the county enterprise board. Enterprise Ireland will also make staff from its high growth start-up unit available to meet senior management-technical staff to explore business ideas. The county enterprise board is also fully committed to providing every support possible to encourage new enterprise in the area. I am confident that a focused agency approach, together with a local based approach, should be successful in addressing the jobs situation in the area.

I appreciate the comments made by Deputies Naughten and Finneran and the significant negative impact this closure will have for the area of County Roscommon in question. I will bring to the attention of the Minister and Enterprise Ireland the comments of the Deputies, in particular in respect of the need to make every effort to develop the 40 acre site owned by the company. I agree with Deputy Finneran's comments on the need for the company to act responsibly in respect of the site and make a contribution to a new industry being established in the location.