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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Tuam Potato Plant.

Tuam potato plant closure

Summary

The Minister said the company decided in January to close the plant and establish an engineering facility, and that he had no objection on 9 February. He was unsure whether Agriculture had been consulted, confirmed the Government had not been informed, and cited operating losses and growers’ contract failures. A later question sought annual figures for growers and contract defaults; the Minister said the information would be circulated in tabular form.

asked the Minister for Finance the date on which he originally gave his approval to the proposal by Erin Foods Limited to close the potato processing plant in Tuam, County Galway.

Comment on this

Following detailed evaluation of the economics of the enterprise, the board of Comhlucht Siúicre Éireann Teo decided in January last to close down the potato processing plant at Tuam and to replace it with an engineering facility. Before announcing their decision the company informed me of their intentions and I indicated on 9 February that I had no objection to their proceeding with their plans.

Comment on this

Did the Minister at that time consult with the Department of and the Minister for Agriculture?

Comment on this

I cannot say offhand. I think the answer is no but I cannot tell the Deputy definitely. The question of a decision of this kind is, of course, one within the competence of Comhlucht Siúicre Éireann. They did not require consent from me although in fact they acquainted me with the position.

Comment on this

I understand they do not need the Minister's permission. The Minister says he cannot now recall but, assuming that he did not consult with the Minister for Agriculture, would he not think it would have been appropriate to have done so, if he did not do so, seeing it was definitely within the agricultural area?

Comment on this

The Deputy will appreciate that the reason for the company's decision was related to the economics of the operation and the losses over the previous seven years. The factors that produced those losses were fully set out in their communication to me. The Minister for Agriculture could not, if consulted, after the facts of the situation. No doubt the Deputy is aware that one of the large considerations involved was the failure on a number of occasions of growers to honour their contracts— not the only factor by any means, but a substantial one.

Comment on this

If I may ask a final supplementary—the Minister was notified and gave his approval to the closure or at least did not raise any objection: would he not think that the Department of Agriculture would, or should have some interest in that area and should have been acquainted with the situation?

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

That is a separate question leading to a debate on the matter. I am calling the next question.

Comment on this

If I may reply to the Deputy, I think the Department of Agriculture were not unaware of the situation even if they were not consulted by me.

Comment on this

If, as he says, the Minister is not quite sure whether he consulted with the Department of or the Minister for Agriculture, could he say whether he informed the Minister for Agriculture or the Government?

Comment on this

A public statement was issued on 10 February which indicated that on 9 February I had indicated to the company that I had no objection to their proceeding with their plan, which included the setting up of a new engineering facility in the premises.

Comment on this

Before the Minister conveyed that publicly or conveyed it to the company, did he inform either the Minister for Agriculture or the Government of the pending closure of this plant?

Comment on this

The answer is no as far as the Government are concerned and, as I have indicated, I think it is no in regard to the Minister for Agriculture. I again remind Deputies that this decision was one which the company was competent to make and they informed me largely as a matter of courtesy, not to seek my consent.

10.

Comment on this

asked the Minister for Finance the number of farmers that have grown potatoes for the potato processing plant at Tuam, County Galway, each year since it was established; and the number of farmers that did not honour contracts each year, partially or entirely.

Comment on this

As the information available is in tabular form I propose, with the permission of the Ceann Comhairle, to have it circulated with the Official Report.

Following is the information:

Comment on this