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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Tuam Factory Closure.

Tuam closure and food-processing policy

Summary

Kelly challenged whether closing Tuam’s potato plant fit national agricultural and food-processing policy. The Minister cited the plant’s £1.38 million debt and said food processing remained Government policy where viable projects existed; he treated the Tuam decision as specific to that loss-making plant. Deputies asked whether potato processing could be viable elsewhere, whether machinery should be retained pending possible EU policy changes, and whether the company could grow its own potatoes.

asked the Minister for Finance whether he regards the closure of the potato processing plant at Tuam, County Galway, for the reason of unreliable potato supply, as an event completely out of harmony with any strategy for agricultural and industrial development appropriate to this region and, in general, with the policy of expanding the food processing sector of the economy.

Comment on this

As indicated in my reply today to Deputy Donnellan the proposed closure of the potato processing plant at Tuam is not entirely due to the effect of unreliable potato supplies over the years. In view of the history of loss-making at the plant and of the fact that employment is being safeguarded, and in fact increased, by the proposed switch to an engineering plant, I do not accept the implications in the Deputy's question.

There is no change in the Government's policy of expanding the food processing sector of the economy where viable projects are identified.

Comment on this

Does the Minister envisage that the processing of potatoes would be a viable project anywhere in the country if it is not viable in east Galway or are we to write off the potato-processing industry entirely from this moment?

Comment on this

Referring to the factory there was £1.38 million of a debt over the years. I do not know what the Deputy calls viable.

Comment on this

I want to get from the Minister a statement of his opinion.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

The Deputy will appreciate that this is a general question whereas the one on the Order Paper is specific.

Comment on this

If you, Sir, will do me the honour of looking at the question I have put down you will find that I am asking a general question in regard to the bearing which our national economic planning policy has on this event. I put down the question originally to the Minister for Economic Planning and Development and it is not my fault that it is being answered by the Minister of State, Deputy Wyse. Is it not an appalling reflection on the outlook for economic development in this country that we cannot process potatoes, the product for which we are world-famous. Is there any other part of this country in which he sees a future for this industry?

Comment on this

A number of Deputies are trying to make publicity out of all this. We should look at the whole situation. There is a viable industry established there and the company concerned are prepared to help the farmers as far as possible.

Comment on this

Referring to the industry which is going to take the place of this one, I would like to extract from the Minister a view—of regret or anything else he likes—on the apparent find implicit in this development that potato processing is not a viable part of the food-processing industry in general, notwithstanding that every speaker from the Government side——

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

We are not having any further speeches. I am calling question No. 18.

Comment on this

I would like to answer.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

I am calling Deputy Callanan for a last supplementary. Would Deputies please cease interruptions?

Comment on this

As the potato is the only crop for which there is not a common agricultural policy yet but for which there will probably be one in the next few years, was it not the wrong time for the company to decide to close down? They are not viable at the moment but they may become viable.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

A question, Deputy.

Comment on this

That is the question I am asking. Will the plant and machinery be left there in case the processing of potatoes becomes viable? We feel it is the wrong time for them to close down.

Comment on this

Could I ask the Minister——

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

Order.

Comment on this

Would the Minister for Finance think of urging the Irish Sugar Company to consider growing the potatoes they need for themselves even if that resulted in a "breakeven" situation rather than a profit?

Comment on this

We are talking about a specific industry in Tuam. The industry was not viable. I have already told the House that there is a £1.38 million debt running there. The matter of potato processing in other parts of the country is a different question.

Comment on this

Could the Minister give me a breakdown of the £1.38 million——

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

Question No. 18.

Comment on this