Dáil debates

Tuesday, 1 February 2005

7:00 pm

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)

The farmers want the Minister to have something to do with it. Farmers naturally made their plans for this farm year long since. The crop will be sown from mid-February onwards and they do not have an option of doing anything else in such a short time. The growers had a legitimate expectation that their contracts would be renewed again this year, as has happened every other year. No indication was given to them that this would not happen. They have been left in a disastrous position.

This product is more than a commodity. It was grown locally at a premium and under certain conditions and specifications. That premium is now effectively taken away from farmers. It supplied local industry, which in turn supplied what was a national industry and is now a multinational industry. It is no secret that this company is setting up malting plants in Russia and turning its back on Irish growers and its existing employees. Ten years ago, Minch Malts's predecessor had ten branches and a maltings in the midlands. This is a significant negative turn around in such a short space of time.

This is not just a matter between farmers and a private company. Greencore has effectively been allowed to operate a monopoly in this area, with the exception of another small maltings in the south west. Overnight it can decide to close leaving farmers with nothing to turn to. It is a matter which must be addressed by the Minister for Agriculture and Food and I want to know what she can do about it. People are looking for answers and want leadership from the Minister on this issue.

Likewise, they are still looking for answers on the issue of the sugar plant in Carlow. We recognise that the agri-food sector accounts for one in ten of the Irish workforce. Unfortunately, people working in this area in both Laois and Offaly have been particularly hard hit by Greencore's recent decisions. We must remember, when we speak of the numbers in off-farm employment, that many sought employment in such plants, but this will no longer be available.

I met beet growers in my constituency last Friday. They are understandably frustrated and upset at the recent turn of events. It is not enough for the Minister for Agriculture and Food to say that "it is a matter for the farmers to negotiate with the company the best possible deal on transportation costs and the transportation of their sugar beet". It is not a matter of asking Greencore to just facilitate the farming community when it has shown a great reluctance to do this heretofore.

Government politicians who spoke at the protest in Carlow, and at the protest in Banagher today, have promised the sun, but reading the Minister's comments here last Thursday, she seems to take a different view of the power of Government.

Farmers have not got the facilities to store the quantities of beet which they will need to store if they must bring it as far away as Mallow. If they have to draw beet earlier in the year, there will be greater losses of beet and its sugar content. Carlow is the centre of the rotation crop and this too will be lost. Farmers will also lose the supply of pulp and tops for feed and while this is a less significant issue, it is still an issue.

Beet growers' contracts are usually issued in March, which leaves them very little time to negotiate on this closure. If they contract, it will be to deliver to Mallow, but they do not know what arrangements will be made regarding transport costs. They also have serious concerns about the company's intentions with regard to the sugar processing industry.

The Minister stated last Thursday that "it is incumbent on the Government to ensure replacement employment and support for the workers of the company". I will not hold my breath while we wait for this to happen. The Government owes the same duty of care to the farmers who supply both Carlow and Minch Malt. Will the Minister outline how she intends to address this?

Finally, in light of the recent developments in Carlow, Banagher, Borrisokane and Tullamore, will the Minister re-examine whether farmers as the core producers should hold the ownership of these valuable malt production contracts? The recent behaviour of Greencore suggests that it cannot be trusted to deal with growers in a fair and ethical manner.

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