Adjournment Debate Irish Pride Bakery, Kanturk – 7 ^th February 2006

Reply by Micheál Martin, Minister for Enterprise Trade and Employment

Check Against Delivery

I wish to table an Adjournment Debate with Micheál Martin TD, Minister for Enterprise, Trade and Employment on the devastating news that was delivered in Kanturk last week with the announcement of the closure of Keating /Irish Pride Bakery with the loss of some 95 jobs.

- Michael Moynihan

I would like to thank the Deputy for raising this matter on the Adjournment.

I was very concerned to hear that Irish Pride Bakeries Limited in Kanturk had announced that it was closing with the loss of seventy-six full-time and twenty part-time jobs.

I am very conscious of the effect that these job losses will have on the workers involved and their families as well as the community in the surrounding area. This is very disappointing news for those who will lose their jobs as a result of the announcement. I wish to assure the people effected that the State agencies will provide every support they can. The priority will be to find alternative employment for those involved.

The job losses will be in production and administration. However, ten distribution jobs will be maintained. The reason for the closure is that it is no longer viable for the company to continue, as the Kanturk bakery is loss making and is no longer a viable production unit. The company has been reviewing the situation for some time and, unfortunately, has now arrived at this decision. The industry has changed significantly in the past few years in response to more competitive market conditions. In view of the bakery’s lack of viability, mainline production items will be transferred to Irish Pride’s other plants in County Wexford and County Mayo.

The company is currently consulting with the employees’ representatives in relation to the proposed redundancies and consultations with continue over the coming weeks. The decision to close is no reflection on the workforce but is rather a recognition of the commercial realities of operating within the bread market.

The role of FÁS, the State training agency, will be particularly important in assisting those who are to lose their jobs. The agency has contacted the company and a meeting has been arranged for Friday next. The full range of services will be made available to the effected workers if they wish to avail of those services.

Finding alternative employment for the workers will be a priority for the State Development agencies. I can assure you that IDA Ireland and Enterprise Ireland, in addition to FÁS, will play their part in developing a way forward for both the effected workers and the surrounding area.

Enterprise Ireland supported an initiative for the bakery in Kanturk under its Techstart Programme in 1998. The agency’s policy for the bakery sector is to support those companies that are exporting or demonstrating the capability to be able to service export markets. Enterprise Ireland also provides supports to the sector through Research & Development initiatives. The company has invested €10m in Taghmon, Co. Wexford which includes a new state of the art plant, which is doubling its capacity to produce a world-class range of products.

I know that IDA Ireland is promoting North Cork to potential investors from across the full range of its targeted sectors such as pharmaceuticals, medical technologies, information and communications technologies and internationally traded services. Every effort will be made to secure new advanced, knowledge-based industry for the area. The agency’s strategy for the County is to progress the development of a knowledge economy so that the region can compete both nationally and internationally for foreign direct investment and to work with the existing IDA client base to help them to further develop their presence in Co. Cork.

The recognition of the importance of Cork City as a major gateway location and Mallow as a hub will assist in promoting the entire region for inward investment. The town of Kanturk is marketed as part of the broader North Cork area. While IDA Ireland has only one client company in Kanturk - Packo Blackwater - which employs 32 people, it also has a landholding of 2.6 hectares, which is available to both indigenous and overseas companies. Alps Electric, based in nearby Millstreet, which currently employs approximately 450 people, announced an expansion of its operation in December, 2005, with the creation of 140 new jobs. Other significant IDA supported employers in the North Cork area include, Molex in Millstreet, FCI and Sanmina SCI in Fermoy as well as Kostal in Mallow.

I know that the loss of any full time and part time jobs is a severe blow to the Kanturk area. While I do not in any way want to underestimate the loss of the bakery jobs, I am encouraged about the future insofar as Cork is concerned. Already in 2006, two new projects have been announced for Cork which will result in 1,350 new jobs at full production. The recent Amgen announcement of 1,100 new jobs at an €820m facility is of particular importance. This is a major global project that has chosen Cork as its development location. In addition, Citco will create 250 new financial services jobs. I am confident that the on-going efforts of the Industrial Development agencies and the local interests will continue to provide investment and job opportunities for Cork City and County.

ENDS