Address by Minister Martin at the Opening of a Branch of Brooks Group at Naas, Co. Kildare

Address by Mr. Micheál Martin TD, Minister for Enterprise, Trade and Employment, on the Occasion of the Opening of a Branch of Brooks Group at Naas, Co. Kildare, on Thursday 28^th September, 2006

I am delighted to have been invited to open this new facility today. I understand that since 2004, the Brooks Group has been part of Wolseley Plc, the world’s premier distributor of heating and plumbing products as well as being a leading supplier of building materials to the professional trades across the world.

I was interested to learn that the Wolseley Group in Ireland includes some very well known companies like Heat Merchants, Tubs & Tiles and Capper Plastics. This new purpose built outlet is an impressive operation, encompassing your new format Doors & Floors Centre together with a full Tubs & Tiles showroom and a full Brooks Hire operation. It is a most welcome development for Naas and the surrounding area.

With over 80 branches nationwide, I understand that Wolseley employs some 1,200 people. This in itself is a significant achievement. However, I also understand that you intend to grow the number of Irish based employees to 1,800 over the next five years through a combination of new branches and acquisitions. As Minister for Enterprise, Trade and Employment, I welcome the prospect of these additional employment opportunities and I have no doubt that you will achieve your objective. Also, you are providing a greater level of choice to your customers which means a better deal for consumers generally.

I understand that Brooks is the largest timber distributor and the third largest builders merchant in the Republic and Northern Ireland. Indeed, Brooks is a household name in Ireland as a whole and an institution in the Construction industry here since the late 1700s. I have been very impressed at how your company has continued to grow over the last 20 years, evidenced by the opening of eleven new branches here in the Republic and your acquisition of two outlets in Northern Ireland. I understand that Brooks operates through a network of 22 branches with an annual turnover of €250 million. It seems to me that you are well placed to achieve your ambition to become the market leader in each region that you serve.

I know that this new branch that we are opening today is only part of an ongoing programme of development within the Brooks Group that includes branch openings in Carlow and Athlone, along with relocations in Waterford, Longford and Balbriggan, in North Dublin. I understand that you intend to expand further over the next six months, with new branch openings in Letterkenny, Portlaoise, Castlebar and Wexford. With this programme of expansion, Brooks alone has already created an extra 100 jobs, increasing the number of employees from 440 in 2005 to 540 this year which is good news indeed.

I find it very encouraging to see the continuous commitment on the part of Brooks to the Construction industry in Ireland. The Construction sector has played a pivotal role in our economic success over the last number of years. The total value of the Irish Construction industry’s output in 2005 amounted to almost €30 billion. This equates to 22% of Gross National Product for the same period, clearly showing that the Construction industry has contributed strongly to our overall economic performance. Indeed, the Central Bank has predicted that Ireland’s GNP will expand by 4% in 2006, thereby maintaining our position at the forefront of the EU growth league. I have no doubt that the Construction sector will continue to play a major role in our economic progress.

It is expected that demographic patterns and continuing economic growth will maintain and drive construction demand in the years ahead. Recent projections from the Central Statistics Office estimate a national population of up to five million by 2020. Ireland is one of only four countries within the EU where such a pattern of significant upward population increase is predicted. Accommodating another one million people in the country by 2020 will require building activity to continue at levels similar to those of recent years. I have no doubt that the Brooks Group will continue to help the Irish Construction industry to rise to the challenge.

At present, new house building accounts for approximately 54% of all Construction activity. The Government has focussed considerable attention in recent years on a range of measures aimed at increasing housing supply. In this regard, it has been particularly successful, as approximately 500,000 homes have been delivered over the last decade. I firmly believe that successful, committed companies like Brooks have a vital role to play in helping to sustain this level of progress.

Finally, I would like to thank you for inviting me here today and I wish you all continued success in the years ahead.

(This press release is also available on the Department’s website www.djei.ie)

ENDS
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