Tánaiste says job losses at Pfizer due to overcapacity

JOB LOSSES at pharmaceutical giant Pfizer had nothing to do with the Irish economy but were a consequence of overcapacity following the multinational’s purchase of Wyeth, Tánaiste Mary Coughlan said.

She rejected claims by Fine Gael leader Enda Kenny that the Government failed to listen to Pfizer when its vice-president “clearly flagged” its intentions last year, and she said the IDA was confident that three of the Pfizer plants could be sold.

Labour leader Eamon Gilmore warned that 1,500 to 2,000 other jobs were at risk as a result of yesterday’s announcement, and asked if the Government had “thrown in the towel” on the job losses or made efforts to reduce the number.

The issue arose during Leaders’ Questions in the Dáil following the announcement earlier yesterday by the pharmaceutical multinational that it would cut 785 jobs in its Irish operations as part of 6,000 jobs globally over five years.

Mr Kenny referred to comments by Pfizer vice-president of operations, Dr Paul Duffy, in a speech in November when he called for budget measures to retain jobs, including the “PRSI holiday”, which was promised but not implemented.

Mr Kenny said “he [Dr Duffy] made a call that they should be allowed to offset research and development tax credit against other corporate or payroll taxes”.

The Fine Gael leader said it was a “major flag-up by a major investor” in our country.

He asked “why did the Government not listen” even though “a very major player-investor was sending out a signal about global repositioning”.

The Tánaiste insisted, however, that “the decision made by Pfizer has nothing to do with the Irish economy. It has to do about the fact that Pfizer has purchased Wyeth and we have an over-capacity globally.”

She said the Cabinet, the Minister for Enterprise and the IDA worked constantly with foreign direct investment (FDI) companies in Ireland. They “constantly reassure” investors. Ireland would keep its 12.5 per cent corporation tax and “we are waiting the discussion on the PRSI holiday in the social welfare Bill, and that entitlement will be backdated to the beginning of the year”.

She said a number of issues raised by the FDI community were included in the budget taxation package and accepted by them as hugely beneficial.

She said in Ireland “we are business-like, flexible and we are very, very supportive of our FDI clients in this country”.

“We have reduced the costs of doing business. We are much more competitive than we were heretofore, and we are more competitive than our euro neighbours.”

Mr Gilmore expressed concern that with “suppliers and contractors there’s probably another 1,500 to 2,000 jobs in the wider economy which will be at risk of this decision”.

He asked when the Government became aware that the jobs were at risk?

“Is the Government now throwing in the towel on these jobs or is any action being taken to try and retrieve at least some of these jobs?”

The Tánaiste said she met Pfizer’s chief executive during the takeover bid and stressed Government interest in working with the new company to sustain the maximum number of jobs in Ireland.

Mr Gilmore said: “It’s not clear to me, other than the kind of general conversations that you have described to us, Tánaiste, that any specific action was taken by you or by the Government to try and save the jobs.”

Ms Coughlan said there was ongoing dialogue with Pfizer, and the “IDA will work vehemently to ensure that we sustain as many jobs as possible”.