Dáil debates

Thursday, 18 May 2006

Priority Questions.

Sugar Beet Industry.

4:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 5: To ask the Minister for Agriculture and Food if she will make a statement on the closure of the Irish Sugar plant at Mallow; and if she will agree to meet workers' representatives from the plant to discuss issues arising from the closure and the future of the plant and Greencore. [18940/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The decision by Greencore to discontinue sugar production and close the Irish Sugar plant at Mallow was a commercial decision by the company, having regard to market forces and the agreement on reform of the EU sugar regime. Throughout the negotiations on reform of the EU sugar regime, my primary objective was to seek to modify the Commission's proposals to ensure the continuation of an efficient sugar processing sector in Ireland.

I held several meetings with the Commissioner in that regard and Ireland played an active role in a group of 11 member states with common cause in seeking to modify the proposals. The group remained steadfast in its opposition to the reform proposals from the time they were first mooted in July 2004 until the final Council meeting in November 2005. When it became evident at the Council meeting that there was not sufficient political support to adapt the proposals to the extent necessary, I focused my efforts on securing a compensation package worth €310 million to Irish stakeholders. I also succeeded in having the reform arrangements introduced in a manner that opened up the possibility of continuing sugar processing in Ireland for a further two campaigns. Unfortunately, the subsequent deterioration in the market was obviously a decisive factor for Greencore and on 15 March the company announced its decision to cease sugar production.

Since the announcement of the closure of the Mallow plant, I have met workers' representatives and arranged to meet the unions involved to provide whatever clarification is required on the sugar reform agreement and the emerging Commission implementing rules.

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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I am glad to learn the Minister met the workers, with whom I have also been in contact. They are alarmed, to say the least, about the severence package. In the context of the State's golden share in the company, has the Minister met any success in using her influence to ensure the payment of the agreed severance package?

I presume the Minister has met beet producers' representatives. The figure I have been quoted with regard to the compensation package to these producers is €106 million. Does the Minister support that figure and, if so, will she ensure Greencore lives up to its responsibilities? This company, which has benefitted from the public purse, presided over the loss of hundreds of jobs and the threat to the livelihood of several thousand others in ancillary businesses, not to mention 3,800 beet producers, yet it claims the final say on compensation. Will the Minister ensure the Government has the final say and that compensation for beet producers will be adequate?

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The golden share only comes into play if a certain percentage of the company's sugar assets are sold. It does not allow me to interfere with the day-to-day management of the company or to influence decisions on severance pay. However, a number of my colleagues expressed their concerns to me about the Labour Court agreement. The Minister for Enterprise, Trade and Employment, Deputy Martin, and I have urged the company to adhere to the agreement and I believe it will do so. In light of the concerns of workers at the plant, it is important that the matter is addressed.

With regard to compensation to beet producers, the figure of €106 million was proposed prior to the finalisation of the Council regulation. A 45 day process has been put in place so that Greencore can hold discussions with all those involved in the fund, following which it will bring proposals to me. A decision has to be made within the following 30 days as to whether the proposal will be accepted. The Government has appointed someone to advise on the basis of the proposals, after which the decision will be made. The Commission, which has a limited timeframe to consider the proposal, hopes to finalise the matter by the end of September and the funds will then be distributed according to a programme that has already been established. I cannot now make a definite estimate on the amount of money that will be made available because the process has yet to be completed.

I am aware of the concerns of those in the sugar beet sector, including workers, hauliers, contractors and the company itself but these concerns will have to be addressed in the context of the process which began last Friday. My Department has placed advertisements to seek the views of people on the basis of the consultation period.

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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It is welcome that the Minister believes the company will agree to the Labour Court recommendations. I presume she made her views known to workers' representatives, who are concerned that Greencore is preparing to refute the agreement it reached some time ago.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Minister, Deputy Martin, and I have publicly expressed the opinion that the company should agree to the Labour Court recommendations. The process will be completed shortly and I will meet union representatives again on this matter.