Tom Hayes (Tipperary South, Fine Gael) | Oireachtas source

I thank the Deputies for this opportunity to set the Dáil's record straight as regards TLT International. I share their concern at this unfortunate turn of events for the company, which has served the live export trade well for decades. TLT International has been a significant player in the export of live cattle to the Continent, accounting for approximately 20% of total exports, some 20,800 cattle in 2012 and 12,400 cattle up to the end of this September.

I wish to express my sympathy for the 25 workers, the farmer suppliers to TLT International and other creditors who may be at risk of incurring losses as a result of the receivership. I am also concerned for other people in temporary employment who will be negatively impacted. However, I am heartened by the positive comments made on "Morning Ireland" by an Irish Co-operative Organisation Society, ICOS, representative this morning to the effect that marts had historically paid farmers during periods of worse crises and would continue to do so. This is a clear acknowledgement of intent.

My understanding is that the company has been placed in receivership by AIB and HSBC, which are owed significant amounts of money. I also understand that the company has advanced a number of reasons for its financial difficulties, including the slowing Italian economy, rising cattle prices in Ireland and delays in securing payments from customers. The House will understand that neither my Department nor I can interfere in the operations of the receiver. This is an important point. The position is that the role of a receiver appointed to companies in distress, which is set down in law, is to establish the assets and liabilities of a company and, in particular, to realise and receive assets in the hope that debts outstanding to the debenture holder that appointed him or her can be met. The powers of a receiver are essentially to manage the business of the company, carry it on and realise assets so as to repay those who are owed money.

As I stated in my opening remarks, TLT International has been a significant player in the export of live cattle to the Continent. In particular, it has been the dominant Irish exporter of weanlings to the Italian market, accounting for approximately 70% of Irish exports to that market in recent years. Clearly, the placing of TLT International in receivership is unfortunate, but it does not place the live export trade in jeopardy. It is likely that the company's absence from the market place will have some impact on the weanling market. However, that impact will not be very significant, particularly given the fact that, traditionally, the peak weanling export trade takes place in the early autumn. In addition, exports of live cattle from Ireland to Italy have declined significantly in recent years, mainly as a result of higher cattle prices in Ireland, meaning that our cattle were less price competitive for live export. The economic recession in Italy has also impacted significantly on consumer demand for beef. Live exports to Italy to date in 2013 have been some 23,000. This is down on the 33,100 cattle during the same period in 2012. In total, 37,900 cattle were exported from Ireland to Italy in 2012, down from 53,678 in 2011 and 70,000 in 2010. It is clear, therefore, that the Italian market has been declining in importance in recent years.

I should emphasise that quite a few live exporters are still in business and are capable of taking up some of the slack. Exporters have shown great flexibility in the past to respond to market demand. I am hopeful that, in the medium to long term, the remaining exporters will fill the void left by the departure of TLT International. I wish to reiterate my regret at the placing of TLT International in receivership, but there will not be a major impact on the live export trade.

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