Olwyn Enright (Laois-Offaly, Fine Gael)

Last Friday week, Minch Malt Limited, which is owned by Greencore, announced its decision to close its malting plant in Banagher and its branches in Tullamore and Borrisokane. This will result in the loss of 19 jobs in Banagher and nine full-time staff in its agri-trading branches in Banagher, Tullamore and Borrisokane, a huge blow to the staff, particularly in an area where there are few prospects for alternative employment. We have effectively witnessed this company closing its doors in the midlands in the past nine years — it has closed operations in Roscrea, Birr, Tullamore, Banagher, Borrisokane, Edenderry, Mullingar, Trim, Portlaoise and Rathangan.

This company has not only turned its back on the staff but on 350 specialist malting barley growers in the midlands. These growers supply between 40,000 and 45,000 tonnes of malting barley to Banagher each year, producing 30,000 tonnes of malt. The numbers with contracts to supply Banagher have dropped from 700 to 350 in only eight years. Last week in the Chamber, however, when I raised this issue with the Minister for Agriculture and Food, she said that malt and barley have nothing to do with her. I can only hope that she meant this in jest, even though it is not funny, because it has everything to do with her and her portfolio. The Minister's Department has given grants to malting plants in the past and gave €1 million to the same company's Athy plant in 2002 under the national development plan. I hope the Minister's comments were not indicative of her attitude and the Government's attitude to malting barley growers in the midlands because my constituents and I would find this totally unacceptable.

Growers made their farm plans for this year months ago. The seed will be sown from mid-February onwards — they do not have any other option in such a short time. The growers had a legitimate expectation that their contracts would be renewed this year, as happened every other year. No indication was given to them that this would not happen. In the past, as the chairman of Offaly IFA stated last week, business was based on mutual trust and understanding, out of which a deep sense of loyalty developed. Sadly, this is no longer honoured.

This is a product that is more than a commodity. It is grown at a premium under certain conditions and specifications and that premium has now been taken away from these farmers. It was grown locally to supply a local industry which in turn supplied a national industry. Not only will the growers lose out, so will the employees in the maltings and its branches.

This is not just a matter between farmers and a private company. It has been allowed to operate a monopoly in this area. There are no options open to growers at such short notice. If this company can say to malting barley growers this year that it is not renewing contracts, how do we know it will not do the same thing to beet growers next year? Unfortunately, it was not accepted that I could include the Carlow sugar factory in this debate, and it is not an issue that can be dealt with separately.

Last week I dealt with the cynicism of the company in announcing its decision so soon after the decision on the Carlow sugar plant. Taking both decisions together, they are devastating blows to the arable farming sector in the midlands. We cannot deal with one issue and ignore the other.

Farmers supplying beet to Carlow are facing equally difficult times. They do not have the facilities to store quantities of beet they will need to store if it is to travel as far as Mallow. There has been no information on how this will take place. If the farmers must draw beet earlier in the year, there will be a greater loss of that beet and its sugar content. Beet growers' contracts usually issue in March, leaving them little time to negotiate. If the contractors deliver it will be to Mallow but they do not know what arrangements will be made for transportation costs.

There are also serious concerns about the company's intentions for the sugar processing industry in Ireland. The Minister for Agriculture and Food stated two weeks ago that it is incumbent on the Government to ensure replacement employment and support for the workers of the company. I argue that the Government owes the same duty to the growers who supply both Carlow and Minch Malt Limited. The Minister of State should outline to the House how the Minister intends to fulfil that duty. Can the Minister take action? Has she had discussions with the company in Banagher, Tullamore, Borrisokane or Carlow and what assistance she can give to growers in these circumstances? The Minister will meet beet growers at midday tomorrow, and I ask her to extend the same assistance and courtesy to the malting barley growers.

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