Adjournment Debate.

Job Losses.

Deputy Tom Hayes

I was so interested in the health debate I forgot I was first to speak on the Adjournment. I thank the Leas-Cheann Comhairle for this opportunity to raise this important issue of the loss of 140 jobs in Clonmel, County Tipperary, last week after a difficult period for Bulmers. I also ask what support has been given to Bulmers, what will be done for the workers involved, what other employment is planned for the town and the county and whether the IDA has any further developments to report.

The cost-cutting programme includes the shedding of 140 full-time staff or about one fifth of the workforce in Clonmel, County Tipperary. The company employs almost 900 staff worldwide, 600 of whom are based in Clonmel. Before the latest layoffs in the last two weeks, Clonmel drinks company Bulmers had confirmed that more than half of the temporary jobs losses of last July were to become permanent. Some 46 of the 70 temporary jobs losses announced by Bulmers in the summer are now permanent. This is on top of the 140 job losses that were announced last week.

Another disappointment that is going unexpressed is that the company was meant to be in the middle of a period of expansion. Certain Deputies and candidates in the constituency during the last general election announced that this year the company would employ over 700. Like the healthy economy the Government promised us, these jobs have gone belly-up. This is a serious situation for a town such as Clonmel with an indigenous industry such as Bulmers and I am concerned to see this in a company with the history in the constituency of Bulmers.

I hope the Minister will deliver some positive news on Bulmers. It has had a great impact on the economy of south Tipperary. Since it went public, C&C has prospered and I am concerned to see job losses at this rate. I thank the Minister for coming to the House and addressing this important issue. I hope he will deliver something positive.

Minister for Enterprise, Trade and Employment (Deputy Micheál Martin)

I thank Deputy Tom Hayes for raising this matter. I am aware of the situation in Clonmel and am concerned about the job losses at the company. The company has experienced a reduction in sales in a key market in the United Kingdom, primarily due to the impact of bad weather during the summer and increased competition from its main competitors. The company's sales in the UK are significantly below target. The company considers that the redundancies are necessary to reduce its costs and bring them in line with a revised business plan devised to ensure the competitiveness of its brands. Governments and Ministers cannot be held responsible for market trends. I respect the company's decision, which is aimed to ensure the long-term viability of the company and to protect the remaining 460 jobs in Clonmel.

Employment in the company increased rapidly from 330 people in 2004 to 600 employees this year, a dramatic increase by any standards. As the Deputy said, the company was planning additional expansion but market trends have impacted on that plan. The company has had to rein in its ambitions, regroup and move forward. We wish the company ongoing success.

While I am conscious of the effect any job losses will have on the workers involved and their families as well as on the local community, I assure any people affected that the State agencies will give every support they can to develop new employment opportunities. Enterprise Ireland is in regular contact with the company and is discussing how the agency can be of assistance with its research and development programme. To date, Enterprise Ireland has approved almost €300,000 in funding under its research technology and innovation scheme for the company and the agency expects all of this funding to be drawn down. The agency will continue to work very closely with the company during this challenging period.

The role of FÁS is particularly important in assisting those people who will lose their jobs. The agency has been in contact with the company and has offered its full range of services to support the employees. I understand from FÁS that the company is currently reviewing the redundancy situation with its employees and their union representatives. The company will contact FÁS to avail of the services that have been outlined in initial discussions.

When job losses happen, the Government, through the State development agencies and other interested parties, adopts a co-ordinated approach in dealing with the situation. All work together in making the employees, who are initially the most affected and need immediate assistance, aware of the supports available to assist in finding new employment, starting their own businesses or participating in appropriate training programmes.

The strategy of IDA Ireland for Clonmel and south Tipperary is to progress the development of a knowledge economy so that they can compete both nationally and internationally for foreign direct investment. The agency also works with its existing client base to help them develop their businesses further.

A substantial programme of activity is under way with existing overseas companies in the region. The success of these activities is demonstrated by the presence of 11 IDA Ireland-supported companies in south Tipperary, employing approximately 2,500 people. In marketing south Tipperary for new foreign direct investment, the agency is focused on attracting overseas companies in the services and knowledge-based industries, including advanced manufacturing. Recent successes in attracting foreign direct investment include Cordis and Alza in Cashel.

Cordis is expected to be operational in the second quarter of 2008. The future development of the Ballingarrane estate in Clonmel, incorporating an IDA business park and the Tipperary institute, will be a key asset in the quest for further overseas investment in the county. The key industry sector for south Tipperary is life sciences. The largest employers are Abbott and Boston Scientific, followed by Merck Sharp & Dohme, Pinewood Laboratories and Clonmel Healthcare. Abbott and Boston Scientific are companies of world-class calibre and reputation and it is very good that south Tipperary has the presence across the board of household names in FDI. It is a very healthy situation from a foreign direct investment perspective. Interestingly in today's announcement of 170 jobs in Carlow, mention was made of how successful the Clonmel plant was and is for Merck Sharp & Dohme. This fact was significant in the decision to locate another plant in the Carlow area.

A significant number of Enterprise Ireland client companies in south Tipperary are actively developing their businesses. Since 2006, Enterprise Ireland has made payments of more than €1.5 million to its client companies in south Tipperary.

According to figures for October 2007, the number of people on the live register in Clonmel is 849, an increase of 16 people on a year earlier. However, the live register is not specifically designed to measure unemployment as it includes part-time, seasonal and casual workers. Unemployment is measured by the quarterly national household survey, and the latest figure issued on 15 November for the south-east region, which is for the third quarter of 2007, is 4.8%. This is a welcome reduction from the 5.8% recorded for the third quarter of 2006.

I am confident that the strategies and policies being pursued by the State development agencies in Clonmel will continue to support investment and job creation in the area. I want to reiterate that the State agencies will continue to work closely with each other, with local interests and with all the Deputies representing Tipperary South to facilitate an integrated approach to enterprise development in both Clonmel and south Tipperary.

Deputy Martin Ferris

I have raised this issue to highlight the worsening situation in Tralee and the surrounding area with the loss of 44 jobs at the Denny plant. Just over a week ago the workers were told their jobs would be gone from 31 January 2008. It is not just those 44 jobs that will be lost. I am reliably informed that a further eight jobs in the office will follow. In addition, hauliers and part-time workers will lose their jobs. These losses need to be viewed with further Denny losses of 20 jobs in May and 25 jobs in June, resulting in the loss of almost 100 jobs in one small plant in Tralee. Denny is one of the longest-standing businesses in the town and is a very significant loss, not just to the workers but also to the wider community.

These losses come on top of job losses at other companies based in the town, including Glen Dimplex, Tralee Beef and Lamb, and Klopman in recent years. This has added to an already serious unemployment problem. There are now 1,300 people out of work in Tralee which has an unemployment rate of 14.2% — the second highest in the State for a town of its size. Apart from those who have no jobs, there is the growing problem of under-employment, casual employment and part-time employment, often at very low wages. There are almost a further 2,000 people in that position bringing the total signing on the live register to 3,286. That means that almost 40% of the total workforce in Tralee are either fully or partially unemployed. Where, it has to be asked, are the benefits of the Celtic tiger to the south west? They are certainly nowhere to be seen in the town of Tralee.

The unemployment rate in Tralee has hardly changed in the past 11 years. In 1996, unemployment in Tralee town was 15.3%. It is now14.2%, an improvement of a mere 1.1%. Tralee has not seen any benefit from the overall economic gains of recent years. Without doubt one of the key reasons has been the failure to promote the town properly as the centre for investment. On a number of occasions I have asked successive Ministers, including the present Minister for Health and Children when she was Minister for Enterprise, Trade and Employment, to state how many companies have been targeted by IDA Ireland for Tralee. I was told it was a manufacturing and technology town. However, on each occasion the Ministers avoided the question. It is my understanding that IDA Ireland has been instructed not to go into the south west. When I met representatives of IDA Ireland, they told me they were told to promote the area within a 50-mile radius of Dublin where the infrastructure is suitable.

While Tralee has an educated workforce along with Kerry Technology Park and the Institute of Technology, it has not been exploited for the benefit of the people of the south west. Without a proactive approach by the Government towards addressing that disadvantage for Tralee and north Kerry, this will continue to be the case. North Kerry in general has suffered. Listowel has lost three businesses in recent years and it is now proposed to close the ESB facility in Tarbert. These losses, along with what is happening in Tralee, highlight the lack of commitment of successive Ministers to proactively create jobs in Kerry in general and Tralee in particular. I ask the Minister of State to consider the situation. Given that 14.2% of the workforce in the town is unemployed, it should be top of the Government's agenda to reverse that unemployment rate.

Minister of State at the Department of Agriculture, Fisheries and Food (Deputy Mary Wallace)

The Kerry Group has indicated that it will shortly cut 50 jobs at its Henry Denny plant in Tralee. The Kerry Group took over the Denny plant in 1982. It ceased slaughtering pigs in the early 1990s and since then it has engaged in meat processing. I understand from the company that the reason for this move is that demand for the type of primary cuts that were traditionally manufactured at the Tralee plant has declined and therefore the operation there is no longer viable. Consumers have switched to a preference for convenience foods and ready meals. Nevertheless, 30 jobs will remain in place in Tralee where bacon curing will continue to be the main activity.

Decisions of this nature are entirely a matter for management of the company and we have no involvement in decisions regarding the location or nature of commercial activities. The Department of Agriculture, Fisheries and Food maintains a veterinary presence at the Denny plant for the purpose of monitoring compliance with hygiene legislation.

The Irish meat processing industry is in a robust state notwithstanding that this is a very competitive business. The sector has shown the degree of innovation and consumer focus needed for success in the global food market. The export of processed products, prepared meals, etc., is making a valuable contribution to export earnings. It is creating significant employment and, importantly, is adding value to our primary agricultural output.

Last week, the Minister, Deputy Coughlan, launched the 2007 edition of Quality Food Founded on Science, which features the projects funded under the food institutional research measure, FIRM. Investment in knowledge and innovation is critical to the continued success of the agrifood sector and the Government has steadily increased the funding available for research. We believe that the concerted efforts of the research community, the food industry and the State will position the sector to meet the ever-evolving demands of the international consumer.

The pig sector is an important element of the food processing industry. The main current concern for pig producers is the erosion of profit margins due to the very high cost of feeding stuffs. The Minister, Deputy Coughlan, has in recent times, worked with her EU colleagues, both at Council and bilaterally, to put in place steps aimed at improving the situation and ameliorating some of the difficulties being caused by the increased cost of inputs. These steps include a suspension of the obligation to set aside 10% of arable land. The European Commission is also examining ways of synchronising the authorisation process for genetically modified feedstuffs in the EU and the US to try to improve the efficiency of these arrangements.

We will continue to pursue appropriate measures aimed at addressing current income difficulties. A scheme of financial assistance for the private storage of pigmeat was put in place in recent weeks. This was adopted by the European Commission in response to a request from Ireland and some other member states. We have also impressed on the Commission the desirability of export refunds for fresh and frozen pigmeat. A proposal in this context will be discussed at this Thursday's meeting of the EU pigmeat management committee.

The question of compliance with legislation on the protection of the environment is an area of major importance for the future of the pig sector. It will have significant cost implications and will give rise to operational complexities for producers. We have established the intensive livestock group to help the pig and poultry sectors to find solutions to manure disposal problems arising from the nitrates regulations. The work of this group is continuing.

The case highlighted by Deputy Ferris relates to consumer affairs. Pigmeat features prominently in Bord Bia's programme of promotion on the home and export markets. I have asked the board to intensify its national pork and bacon promotion campaign and additional funding is being made available to that end. Bord Bia's quality assurance schemes help to maintain consumer confidence. The pigmeat scheme is well established and managed.

On exports, Bord Bia's marketing initiatives and overseas promotion drives relate, inter alia, to pigmeat. The Department of Agriculture, Fisheries and Food maintains an extensive scheme of controls in respect of the hygienic production of pigmeat and the operational procedures which are required to underpin the certification of pigmeat for markets worldwide.

We are working with the Minister for Health and Children on the introduction of legislation to provide better information to consumers on the origin of pigmeat and other meats. The process of public consultation on the proposed regulations has been completed and the comments received are being examined. The draft legislation will be notified to the European Commission thereafter.

Other relevant support actions on the part of the Department include the extension of the farm waste management scheme to the pig sector, the development of the programme of financial assistance for the transition to welfare-friendly sow housing and the continuation of the programmes for the monitoring and control of animal diseases. I will continue to work closely with the food industry to develop and implement measures which will ensure that the Irish agri-food sector continues to make an important contribution to the national economy and export earnings.

Schools Building Projects.

Deputy Ciarán Lynch

As the Minister of State, Deputy Wallace, is aware, Ballintemple national school on Crab Lane in Cork is full and therefore unable to cope with the increasing demand for school places within the parish. It is in the unenviable position of being unable to offer junior infant places to nine families from the parish for 2008. Furthermore, the 2009 and 2010 junior infant classes are greatly over-subscribed by families from within the parish. The school is not in a position to cater for the additional demand which will undoubtedly arise when the Elderwood and Belview Abbey developments, both of which are within the parish boundaries, have been completed. It is baffling that so much development was allowed to take place in the immediate vicinity of the school without any provision being made for the education of the children living in the houses in question. I would like that to be clarified on the Adjournment this evening.

As the Minister of State is probably aware, the SMA Fathers have donated a 1.5 acre site to the school, free of charge, to solve this problem. The Department of Education and Science has assessed the site, which is situated behind the SMA church on the Blackrock Road, and deemed it suitable for the construction of a 12-teacher school for the parish of Ballintemple. I am concerned that progress in appointing a design team has been slow, however, especially as the project needs to be advanced as a matter of urgency. I share the view of the school's board of management and the parents who are sending their children to the school that the generous donation of this valuable site should give the Department enough impetus to engage in a more realistic way with the development of the school and to make progress with this scheme.

I would like to pick up on two points which were made in the reply I received from the Minister when I tabled a parliamentary question on this issue. The Minister argued that the school should proceed with the acquisition of the site that has been offered to it by the SMA Fathers. That is not an issue, however, because the site to be acquired will be given to the school free of charge. The Minister informed me that the building project that is required will be considered in the context of the multi-annual schools building and modernisation programme. I would like to emphasise that there are no acquisition difficulties and that there is a clear and demonstrable need for a new school building to be developed. There are no obstacles to the completion of the acquisition of the school site.

The sole outstanding issue relates to whether the capital grant for the construction of the school will be provided for in this year's budget. Is it in the budget or not? What advice can the Minister for Education and Science give the school authorities about the Crab Lane school? When does she envisage that the school will be ready to enrol additional pupils, which is something to which she alluded in her response to my parliamentary question? Is a timeframe in place for the opening of the new school? Will the school be built by conventional public tender, rather than by means of public private partnership?

I accept that the Standing Orders of the House can be quite rigid. However, I have deliberately not used the five minutes available to me so that I will have time to respond to the Minister of State's comments. I hope she will facilitate my wish to organise the debate in this manner, in the interests of getting conclusive information to help the school to make progress with this project.

An Leas-Cheann Comhairle

The Minister of State may well wish to facilitate the Deputy in that regard, but the Chair will not be well disposed to such an arrangement.

Deputy Mary Wallace

I thank Deputy Lynch for raising this matter and giving me an opportunity to outline the Government's strategy for capital investment in education projects and to clarify the position regarding the provision of a new school at Ballintemple national school on Crab Lane in Cork city.

The modernisation of facilities in our 3,200 primary and 750 post-primary schools is not an easy task given the legacy of decades of underinvestment in this area and the need to respond to emerging needs in areas of rapid population growth. Since the Government took office, it has shown a focused determination to improve the condition of school buildings and to ensure that appropriate facilities are in place to enable the implementation of a broad and balanced curriculum. As evidence of this commitment, €540 million is being spent on school building and modernisation projects this year, in primary and post-primary schools throughout the country. Some €3 billion has been invested in school buildings since 1997 to deliver over 7,800 school building projects. The further investment of €540 million will build on these achievements and focus on providing school accommodation in areas where the population is growing at a rapid rate. As further evidence of the Government's commitment in this area, funding of approximately €4.5 billion will be invested in schools under the national development plan over the coming years. I am sure the Deputy agrees that this record level of investment is a positive testament to the high priority the Government attaches to ensuring that school accommodation is of the highest standard possible. Responsibility for smaller projects has been devolved to school level to reduce red tape and allow projects to move faster. Standard designs have been developed for eight-classroom and 16-classroom schools to facilitate speedier delivery of projects and to save on design fees. The design and build method is used to expedite delivery when the use of standard designs is not possible. Taken together with the unprecedented level of funding available, these initiatives ensure that building projects are delivered in the fastest timeframe possible.

Ballintemple national school is a co-educational primary school with an enrolment of 211 pupils as at September 2007. Enrolments at the school have increased by 14% over the last five years. The school has a current staffing of a principal, eight mainstream class teachers and two permanent learning support and resource teachers. The school has submitted an application to the Department of Education and Science for capital funding towards the provision of a new school. The long-term staffing figure on which accommodation needs will be based has been determined and notified to the school authority. It has been agreed that appropriate accommodation should be provided to cater for a long-term projected staffing of principal and 12 mainstream assistants, as well as for appropriate ancillary accommodation. The school authorities were advised in September 2007 that the proposed site for the new school building was suitable for the construction of a new 12-classroom school and they could proceed with its acquisition from the SMA Fathers. While I take Deputy Lynch's point about the acquisition of the site being a formality, it is obvious that certain legal documentation, etc, will have to be drawn up to make the land transfer official. Perhaps that is the issue at stake. This building project will be considered in the context of the multi-annual schools building and modernisation programme. I thank Deputy Lynch again for raising this matter and allowing me to outline the progress being made under the building and modernisation programme and the position in relation to the provision for a new school building at Ballintemple in Cork city.

Deputy Ciarán Lynch

With the Leas-Cheann Comhairle's permission, I would like to get clarification on a key point. Will a design team be appointed immediately, especially as a timescale for the completion of this project needs to be set as a matter of urgency?

An Leas-Cheann Comhairle

I am sure that will make an excellent parliamentary question in due course.

Deputy John Cregan

I would like to share time with Deputy Neville.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

Deputy John Cregan

I thank the Ceann Comhairle's office for giving me an opportunity to raise this issue, which is of great importance in my constituency, on behalf of the people of Kilfinane, the staff of Kilfinane national school and the current and future pupils of the school. I have first-hand knowledge of the difficulties being experienced at the primary school, which I have visited on a number of occasions. I have witnessed at first hand the difficulties being experienced. The school was built in the 1800s and was modernised to some extent in 1907. Since then it has served its purpose and has now outlived its usefulness.

I have described the difficult conditions in the school which affect both pupils and staff. In recent weeks, however, the principal has described a sinister incident which occurred in close proximity to the grounds of the primary school in Kilfinane. A person was seen photographing pupils attending the nearby secondary school and when questioned by a passerby, made his escape through the grounds of the primary school. This is a very worrying incident which is being investigated by the Garda Síochána and I hope there will be a successful outcome to the investigation. It is worrying in this day and age, both from the point of view of health and of safety, that pupils must go outside the confines of the school building to use outside toilets.

In March 2005 I led a deputation to meet the Minister for Education and Science, Deputy Mary Hanafin, to make her aware of the condition of Kilfinane school. She immediately agreed that Kilfinane needed a new primary school. The various stages for the building of the new school have advanced through the years and it was hoped that this year the tendering phase would be reached. Unfortunately, this has not happened. I accept the Minister's word when she informed me recently that she has not yet agreed with the Minister for Finance her departmental estimate for next year's building programme. I expect she will have an estimate for the building programme. I appeal to her to allow Kilfinane advance to the tendering stage because it is a thriving town in south-east County Limerick with new houses coming on stream. A new school is needed both for the current and future pupils. I ask the Minister to give the green light for the next stage.

Deputy Dan Neville

I thank Deputy Cregan for sharing his time with me. I am delighted to have the opportunity to raise this matter on the Adjournment.

We are very concerned about some of the activity around Kilfinane school. It is also of concern that the school has outside toilets and that the children must cross the school yard, out of the view of the teachers, to use the toilets. Some worrying activity has recently taken place in the vicinity of the toilets.

Firm commitments were made in 2002 by a Fianna Fáil Minister that the school would be completed without delay. Again in this election year, commitments were made and accepted. A firm commitment was made that in January 2007 the school would be one of the 54 to proceed to tender within 12 months, that contractors were to be short listed and it would go to tender, and that construction would commence in January 2008. Two weeks ago, information was received that no certainty existed in this regard and that funds might be diverted to rapidly growing urban areas. This is a betrayal of children, teachers and parents. It condemns them to continue in unacceptable conditions as I outlined on several occasions in this House between 2002 and 2004. Children crossing a school yard in all weathers to use toilets that are not in view of the teachers is unbelievable and dangerous. A school constructed in 1888 with some upgrading in 1909 is unsuitable for teaching requirements in 2007. This has been accepted by the Department for the past ten years and the school should be built next year.

Deputy Mary Wallace

I assure Deputy Neville that there is nothing in the response about funds being diverted. I do not know from where this information has come; it may be a rumour.

I thank Deputies Cregan and Neville for raising the issue and for giving me the opportunity of outlining to the House the Department's position regarding the provision of a new primary school at Kilfinane, County Limerick.

It is proposed to build a new six-classroom school including a general purpose hall and ancillary accommodation on a new green field site. The project is currently at an advanced stage of architectural planning. The stage three submission, developed sketch scheme, has been recently approved and preparation of the stages four and five documentation, detail design and bills of quantities, is currently underway.

Under the national development plan, €4.5 billion has been assigned to the capital requirements of the primary and post-primary sectors. More than €540 million will be spent this year on school buildings. The level of construction alone in the primary and post-primary sectors in 2007 is such that it will deliver more than 700 classrooms to provide permanent accommodation for around 17,500 pupils.

The progression of all large-scale building projects from initial design stage through to construction phase is considered on an ongoing basis in the context of the Department's multi-annual school building and modernisation programme. The progression of Kilfinane primary school, as with all large-scale projects, will be considered in this context.

I assure the Deputies that the Department of Education and Science is committed to providing suitable high quality accommodation for Kilfinane at the earliest possible date.

The Dáil adjourned at 9.10 p.m. until 10.30 a.m. on Wednesday, 28 November 2007.

Dáil Éireann debate - Tuesday, 27 Nov 2007