Erin Foods Tuam closure
The Minister attributed the closure to years of losses, potato supply difficulties and foreign competition, saying the company—not the Government—had decided to replace processing with an engineering industry and safeguard or increase employment. Donnellan disputed claims that workers and growers were consulted or content, citing a protest and past public investment; other Deputies asked about investment and possible ways to keep potato processing viable. The Minister cited new investment and the plant’s losses.
asked the Minister for Finance the reasons for the closure of the Erin Foods factory at Tuam, County Galway; and if he is aware of the grave discontent in the area because of this decision.
Comment on this
The processing of potatoes at Tuam has been uneconomic for a number of years and heavy losses have been incurred during the past seven years. This has been due partly to difficulty in procuring adequate supplies of raw materials at reasonable prices and partly to the very severe competition which the products have been encountering abroad. The decision to cease production has been taken by the company only after very careful consideration of all relevant factors.
However, the company intend, when the present processing season ends, to commence a major engineering industry in its place. There will be no displacement of the existing permanent staff of 65 which in fact will be increased by 33 extra full-time workers. The increased employment will, in fact, add £90,000 per annum to the company's payroll at Tuam. Furthermore, farmer growers affected by the decision will, where appropriate, be offered beet contracts. The company will also assist regular contract growers where difficulties are shown to exist with potato equipment.
As regards the second part of the question, I am aware that the company's decision has caused disappointment among the growers and other interests, but I am satisfied that it is the correct one in all the circumstances.
Comment on this
The Minister says the decision was taken by the Government? That is what he read out.
Comment on this
By the company, yes. Is the Minister aware that Government representatives in the area were unaware of the decision?
Comment on this
I understand that the employees' and the growers' representatives had been fully briefed by the company on the new plans for the Tuam factory and the company have indicated that there is no grave discontent as suggested by the Deputy. After all, there is further investment in that factory.
Comment on this
If there is no grave discontent I would ask if the Minister is aware of a protest meeting that took place last Sunday week attended by a few hundred people? Surely that is discontent in the area? Is the Minister further aware that there was no consultation whatsoever between the company and the growers and the workers or the farmers who invested heavily in machinery in that area for the production of this crop prior to the taking of the decision?
Comment on this
I do not know what the speaker is aware of in things of that kind. This company was not viable, and the Deputy's Government were fully aware of that over the years.
Comment on this
The plant stayed open while we were in Government and not alone that but we ensured the future of the beet industry there by spending £1 million on the modernisation of the plant.
Comment on this
I have already said that the company's decision has caused disappointment to certain people but at the same time——
Comment on this
Deputies must address the Chair when asking questions, and the Deputy should resume his seat while the Minister is answering.
Comment on this
Did the Minister get a breakdown of the total money being invested this year by the Irish Sugar Company in Tuam on this manufacturing industry?
Comment on this
Deputy Donnellan talked about a protest meeting at which he was made stand by the wall and shut his mouth.
Comment on this
Could I ask the Minister if the Government requested the company to reinvestigate the possibility of, in the first place, maintaining the potato grading operation in Tuam on a viable basis by ensuring that they deal with graded potatoes and only those which can be used for no purpose other than processing as it is done in Tuam; and, secondly, of engaging in further processing to enable them to sell a branded product rather than an unbranded product which they are selling?
Comment on this
Could I ask the Minister if he is aware that if these steps had been taken there would possibly have been a viable plant in Tuam for potato processing?