I sincerely thank Deputy Rabbitte and Deputy O'Connor for raising this very important matter on the Adjournment. The first I heard about this issue was when Deputy O'Connor raised it yesterday at our weekly parliamentary party meeting.
The company in question, the Gallaher group, advised the Tánaiste yesterday, 20 May 2003, that following an extensive review it was announcing plans for the restructuring of its European operations.
As a result of this review, it plans to cease all manufacturing in its Dublin factory. The company is also planning to reduce jobs in other European countries. Overall, approximately 430 jobs could be affected.
Here in Ireland, employee numbers are being reduced from 226 to 105. The company will retain 105 non-manufacturing jobs in sales, distribution and warehousing. The company expects that the restructuring of its European operations will help to ensure its success into the future.
The Tánaiste has been advised by the company that there will be full consultation with its employees in relation to the implementation of the restructuring plans. Arrangements were made by Enterprise Ireland and FÁS to contact the company immediately following the announcement. South Dublin County Enterprise Board has also indicated that it would be prepared to assist in whatever way possible.
The Tánaiste will ensure that the full services of all the industrial development agencies are made available to assist in whatever way they can. Enterprise Ireland has offered to assist the workforce to identify high potential start-up projects and other enterprise opportunities.
Should the company request the assistance of FÁS, it can assist through the provision of intensiveinterviews, individually or in groups, with the affected workers. These interviews would outline the range of supports and services available; the preparation of a skills analysis report by FÁS based on identified workers' needs and local opportunities; referral by FÁS of redundant workers to jobs and training courses where necessary; the establishment by FÁS of special or customised training courses where necessary; and ongoing support and action to keep redundant workers in touch with the labour market.
As regards employment opportunities generally in the area, IDA Ireland, which has statutory responsibility for attracting foreign direct investment, continues to work with companies in Tallaght to secure further projects to benefit the area. The development of the Digital Park at City West and the four data centres located at the park – I pay tribute to the local politicians for the way they worked together to ensure this park was developed – are serving the Internet needs of business over a wide area. Tallaght is well placed to attract additional companies in the technology/e-business sector. A number of prominent companies in the electronics, internationally traded services and software sectors such as AOL, GE Interlogix, UPS and SAP have already established operations in both Tallaght and the City West areas.
In recent months, one of the world's most prominent Internet companies, Google, has decided to locate in the area. In addition, Takeda Chemical Industries, the Japanese pharmaceuticals company, has begun construction of a new plant at Grangecastle, Clondalkin, to employ more than 60 people when fully operational. Also in Grangecastle, Wyeth Biopharma currently employs 500 highly skilled people in its new biotechnology facility and this is set to increase to 1,300 when the plant reaches full capacity.
Enterprise Ireland, the agency with responsibility for indigenous industry development, continues to foster an enterprise culture in the Tallaght-south County Dublin area through its close involvement with local partners. It is working closely with 316 grant assisted projects in the south County Dublin area in helping them to increase their competitiveness and exports. During 2002 alone, Enterprise Ireland provided financial support to 61 projects in south County Dublin at a cost of €2.67 million. The agency also works closely with the institute of technology in Tallaght and has approved funding of €2.54 million towards a new campus innovation centre there. It is expected that work will begin on this project within the next few months. Together with South Dublin County Council, Enterprise Ireland is assisting in the tackling of local unemployment and, in this context, has provided grant assistance to the four community enterprise centres in Tallaght.
At the micro-enterprise level, the South Dublin County Enterprise Board has, since its inception, supported projects in the Tallaght area with grants amounting to €2.5 million. It has assisted in the creation of 560 jobs in the area and provided a comprehensive range of supports and training. The county enterprise board will continue to assist other groups, including the Tallaght community group PARTAS, in its enterprise training programmes for the unemployed.
Overall the prospects for Tallaght are very good and with the completion of the Luas project in 2004, it is set to become a key area in the development of greater Dublin despite the job losses announced yesterday by the Gallaher group.
I pay tribute again to the two Deputies who put forward a number of proposals, which I will transmit to the Minister. I acknowledge the contribution made by the Gallaher management and workers over the years. I had reason to deal with some of the management in the past and I knew them to be outstanding people. I am confident that through negotiation, discussions and, I hope, political consensus, it will be possible, in co-operation with the company, to ensure that facilities and opportunities can be provided and utilised to the maximum benefit of the unfortunate workers who will lose their jobs. We are confident that with the support of the State agencies and political leaders on the ground and under the leadership of the Minister, Deputy Harney, we will be able to address the situation as soon as possible.