I thank the Minister of State for coming here this evening to deal with the need for the Tánaiste and Minister for Enterprise, Trade and Employment to make an urgent statement concerning the decision by Cardinal Health to defer its investment in Longford for at least two years. A positive statement is needed to lift commercial life in Longford and give a much needed economic boost to the entire region.
Following much speculation that a large multinational firm intended to make a substantial investment in Longford, an announcement was made finally by the Tánaiste, Deputy Harney, in December 2000. She declared that the pharmaceutical giant, Cardinal Healthcare, would invest £100 million in Longford in a state-of-the-art European headquarters to house both its manufacturing and technology divisions. It was claimed the project would transform the industrial make-up of County Longford and the surrounding counties.
Construction work on Cardinal Health's headquarters was due to begin in early 2002 and it was hoped to be operational by 2004, creating almost 1,400 jobs by 2006. As part of the agreement with the Tánaiste and Cardinal Health executives, Longford County Council was asked to provide land for the company at a cost of £3.5 million with a view to selling the land at a fixed price. Cardinal Health would immediately carry out an environmental impact study on the effects of this production on the site. Since purchasing the land, Longford County Council has been incurring interest charges of €190,000 per annum. Cardinal Health was to provide a mixture of employment, including IT, packaging services and industrial and manufacturing jobs. It would require a wide skill base and attract migrants back to the county.
Subsequent to the Tánaiste's announcement there has been an increase in construction and planning demands in the county. A significant number of new housing units received planning permission or are currently seeking planning permission. There are currently 2,000 residential units with planning permission or under construction and some awaiting planning permission. The announcement led also to new retail developments such as supermarkets and other retail units throughout the town and county. Planning permission has been approved for a new hotel with a bed capacity of 70while another with a bed capacity of 140 is going through the planning stage. These were regarded as part of the necessary infrastructure required by Cardinal Health.
As everyone knows, several factories in Longford have closed in recent years and employment in the existing factories has fallen. The labour force in the county in 1996 was 12,000, therefore the job losses as a result of the closures and lay-offs in the factories amounted to 6% of the labour force. This is a very large percentage against which the Cardinal Health project would be equivalent to more than 11% of the labour force. Therefore, the employment situation in the county was set to be transformed.
The people of Counties Longford and Roscommon are devastated at the news that the Cardinal Health project is to be deferred for at least two years, despite the Tánaiste and officials from Cardinal Health reaffirming their commitment on several occasions during the past two years that the project was on schedule for a planning application in 2002. We were reassured several times during the election campaign by Deputy Sexton, both in campaign literature and in press statements, that the project was delivered. On the night of Deputy Sexton's election the Tánaiste was satisfied the Cardinal Health project had delivered a Longford seat to the Progressive Democrats.
In the light of these commitments and promises, the news of the deferral comes as a shattering blow to Longford and the surrounding area where it had been anticipated that the project would soon create more than 1,300 jobs. It was a major blow to the local economy where considerable investment has taken place in anticipation of the project. If these promises were made in any other country law suits would be taken against the State for blatant misguidance or the resignation of the Minister who misled the public would be demanded.
At the very least, the Government owes the people of Longford an apology for buying the election with the Cardinal Health project which will not now be delivered within the promised timescale. The Government has cynically exploited for its own political gain the urgent need for investment in Longford. It has undermined the level of confidence generated by the announcement. All our hopes have now been shattered. The people of Longford deserve an official response. There is an expectation that the Tánaiste and Minister for Enterprise, Trade and Employment should issue this response.
The whole episode raises very serious questions about the commitment of the Government and State agencies in regard to supporting employment opportunities in Longford. What about the promise of the natural gas board? What about the promised delivery of the broadband communications service, the new ESB grid and the long-awaited 24-hour emergency service? There would need to be an emergency during normal hours because there is no 24-hour emergency service in Longford.
It is crucial that the Tánaiste should set up a special task force for the county which will deliver work in tandem with the people and Government agencies to attract significant industrial investment to Longford in the short-term. Longford has major advantages for industry. It is a superb location with good access routes. Land for industrial development is readily available and there is a well educated work force with skilled graduates willing to return to Longford. However, these people must currently leave the county to find decent employment.
There is a compelling case for Longford to be included in any new decentralisation programme drawn up by the Government. The location of a major Government agency and Department in Longford would go a long way to lift the commercial life in the area and give a much needed economic boost to the region.
