Fergus O'Dowd (Louth, Fine Gael)

I apologise for the absence of the Minister of State at the Department of Agriculture, Fisheries and Food, Deputy Shane McEntee, who has asked me to take this matter on his behalf.

I am pleased to be given this opportunity to deal with the issues raised by Deputy Broughan. I would like to clarify the position with regard to the respective responsibilities of Teagasc and the Department of Agriculture, Fisheries and Food. Under the Act establishing Teagasc, the Agriculture (Research, Training and Advice) Act 1988, Teagasc has statutory responsibility for the provision of education, advisory and research services to the agriculture sector. It develops its programmes, services and activities in conjunction with its clients and partners, overseen by an authority that is representative of the main stakeholder groups in the agri-food sector. It is a matter for Teagasc and its board to prioritise activities in the delivery of these services and to allocate its resources in accordance with these priorities.

As far as my Department is concerned, ministerial responsibility is confined to matters of policy in accordance with the Act, and the Minister does not interfere in the day-to-day operations of Teagasc. Accordingly, decisions relating to the future of the Kinsealy centre or any other research centres or advisory offices are operational matters for the Teagasc authority to consider. It would not be appropriate, therefore, for me to interfere in decisions made by the Teagasc authority about the Kinsealy centre.

I am aware that the Teagasc authority approved a major change programme in 2009, reorganising and refocusing the organisation to meet the significant challenges that lie ahead. The programme provided for rationalisation measures across the organisation, including changes in the advisory office network and research centres, the disposal of surplus land and staff reductions. The agreed actions were seen as the first step in an ongoing process of change. The programme was updated in May 2010 to incorporate additional rationalisation measures to the end of 2012.

As part of this change strategy, Teagasc decided to move the activities and staff based in Kinsealy to other locations, with the majority transferring to the Teagasc campus in Ashtown. I understand that Teagasc took the decision to close the Kinsealy centre for a number of reasons. It currently has four centres in the greater Dublin area - Grange, Botanic Gardens, Ashtown and Kinsealy - and Teagasc has concluded that it does not make economic sense to maintain all of these sites. Many of the facilities in Kinsealy are aging and the move to Ashtown offsets the need to invest in these facilities. I understand Teagasc has developed excellent facilities in Ashtown following a €10 million investment programme in recent years. The move provides the opportunity to optimise the usage of this valuable centre. In addition, there are considerable savings in overhead costs and staff costs to be achieved from operating at one site. For example, Kinsealy education and research programmes can be delivered effectively from Ashtown and other Teagasc locations.

Teagasc has stressed that the decision to relocate horticulture services from Kinsealy will not have a negative impact on its support for the horticulture sector. It points out that most of the permanent staff located in Kinsealy are not involved in horticulture and could operate from other Teagasc centres. There are only three permanent horticulture and forestry researchers working in Kinsealy.

Teagasc has produced a comprehensive horticultural plan which outlines an alternative model for horticultural research that is less dependent on the traditional type of research infrastructure. Following preparation of the plan, Teagasc is satisfied that the needs of the programme can be adequately met by the facilities proposed for Ashtown and by conducting more research on producer sites. It plans to service the horticultural education programme from the new Teagasc facility in the Botanic Gardens and the training centre in Ashtown, with the addition of some new facilities. It is investing €2.5 million to upgrade educational facilities in the Botanic Gardens, and this will cater for many of the Kinsealy educational staff and students.

For strategic reasons, Teagasc considers it essential that it retains a presence in the Botanic Gardens. The Botanic Gardens brand is hugely important for the standing of the college and its courses. Teagasc plans to meet the needs of the forestry programme through a combination of new and existing facilities at Ashtown and through the exploitation of other Teagasc locations.

I understand that Teagasc has carefully assessed the potential investment attributable to relocating from Kinsealy to Ashtown, and that this is estimated to be €4.8 million. The actual costs will depend on the outcome of any competitive tendering processes. Teagasc estimates that overhead savings of approximately €300,000 per annum can be achieved through moving to Ashtown. The amalgamation and streamlining of services at Ashtown is expected to yield further annual savings of approximately €240,000. In addition, savings on the upgrading of facilities and equipment are expected to be €200,000 per annum, or €1.4 million over seven years, on the assumption that the facilities in Kinsealy would have to be upgraded to bring them into line with those proposed for Ashtown.

Teagasc is satisfied that the closure of the Kinsealy campus will give rise to significant annual cost savings. It confidently expects a payback arising from relocation savings over an acceptable seven-year period. Teagasc is substantially dependent on taxpayer-funded resources to deliver on its statutory mandate. In the current economic circumstances, it has had to explore every conceivable option to minimise the Exchequer contribution. It embarked on an extensive rationalisation programme in 2009 to respond to these constraints in a manner that minimises any adverse impact on its services and programmes. The move from Kinsealy to Ashtown is consistent with the aims of the rationalisation programme to reduce organisational overheads and achieve greater efficiencies.

The Teagasc authority has concluded that the Kinsealy campus is no longer a strategic site for the organisation and that programmes and staff can be accommodated in Ashtown and other Teagasc sites. I reiterate that this is an operational matter for Teagasc. It is entirely within its rights to make this decision, and it would not be appropriate for the Minister of the day or the Department to interfere in the matter. I will bring the Deputy's comments to the attention of the Minister.

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