Government blamed in Fermoy for 'shooting itself in the foot'

Fermoy reaction:The announcement by health insurer Bupa that it is to withdraw from the Irish market was greeted with dismay by political and community leaders in Fermoy in north Cork where some 270 of its 300-strong Irish workforce is employed.

It is estimated that Bupa, which set up in Fermoy in 1996, contributes over €15 million to the local north Cork economy either directly through salaries or through the purchase of supplies and services.

Mayor of Fermoy councillor Tim Carey said that while the decision by Bupa to withdraw from the Irish market was not entirely unexpected, it still came as a huge blow to Fermoy and the surrounding areas, particularly given its timing just two weeks before Christmas.

"The feeling in the town today is just one of doom and gloom. You have lots of young people working there with mortgages and instead of looking forward to Christmas, they are now facing an uncertain and bleak future," said Mr Carey.

"This announcement is as devastating a blow to Fermoy as the closure of the sugar beet factory was to Mallow, or the closure of Fords and Dunlops were to Cork city back in the 1980s - it's going to be hard to come back from this," he said.

Mr Carey said that while the discussions between Bupa and the Department of Health had failed to reach agreement, he hoped that it might still not be too late for the Government and Bupa to work out some deal that would save the Fermoy jobs.

Michael Hanley of the Fermoy Enterprise Board blamed the Government for Bupa's decision to withdraw and warned that there would be political consequences for Government party candidates in the next election if nothing is done to try and reverse the situation.

"I am absolutely appalled that the Irish Government would pull the plug on Bupa like this. With so many manufacturing firms upping sticks and moving business elsewhere because of labour costs, that the Government would shoot itself in the foot like this is incredible.

"These were attractive quality office jobs which we badly need in terms of the societal mix in town and which we can ill-afford to lose. We're not interested in pious offerings of empathy from any politicians and there will be political repercussions in next year's election."

Workers at Bupa Ireland were informed of the decision yesterday morning by managing director Martin O'Rourke at a meeting at the company's office's at Mill Island. While most were reluctant to comment afterwards, some spoke of their shock.

Local Cork East Fianna Fáil TD Ned O'Keeffe said the announcement was a major blow to the local north Cork economy and he was strongly critical of the Department of Health's decision to include a risk-equalisation component in its health insurance policy.

"The policy being pursued by the Department of Health is taking competition out of the health insurance market and creating an inefficient monopoly in VHI," Mr O'Keeffe said. "Bupa has brought competition to the market and this Government is supposed to be pro-competition."

Mr O'Keeffe's comments were echoed by Mallow-based Labour councillor Seán Sherlock who described the announcement as "a devastating blow for Fermoy and north Cork". He called on the Government to adopt a more flexible approach to try and save the jobs. Minister Harney who espouses the primacy of the market has now engineered a return to inefficient State monopolies."