Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the opportunity to discuss this matter and I welcome the Minister.

Livestock exports are undoubtedly a critical part of the agriculture sector in this country. Shipping of live exports is a significant competitive component in the market for weanlings and store cattle, particularly in the west of Ireland and County Clare, which I represent. Live exports provide an important element of competition, which ensures farmers get a valuable price for their produce.

Without live shipping, Irish framers would suffer considerably reduced cattle prices. It is estimated that live shipping has this year ensured that cattle prices are approximately €70 to €120 ahead of where they would have been otherwise. The difference in respect of sheep is approximately €6 to €8.

This week's news that TLT International, one of the country's largest exporters, has gone into receivership is worrying, first and foremost for all of those who are owed money by the company, be they cattle marts or large producers who dealt directly with it. It is also worrying for the company's workforce in Mullingar, some 30 people. It is also disturbing for the owners of the company.

It is particularly worrying for livestock producers, who are concentrated in the west, many in my constituency of County Clare. They are involved in beef production and the suckler cow scheme. They produce calves, weanlings and store cattle, in terms of which there is not an appropriate level of land in Ireland to finish. Those animals must be exported to ensure a healthy trade. In the absence of a solid livestock export trade where suckler cows are involved in the production of calves, the prices that farmers will get will be €120 less. This is not viable.

Ireland has a solid programme for the development of the beef sector, namely, Harvest 2020. Unless the Government intervenes without delay to protect livestock exports, we will not be able to achieve that level of production, as Harvest 2020's targets will be impacted. I appeal to the Minister of State to get the Government involved. It should consider export credit refunds and various other mechanisms to promote and support the work of livestock producers.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I will follow my colleague's comments by addressing the need for a robust livestock export industry. Given the potential elimination of TLT International, which is based in my constituency and heretofore accounted for approximately 70% of our live export industry, this is a timely debate.

It is crucial for the farming sector that there be a competitive live export trade so that factories do not gain an overly dominant position in our island economy. Given the fact that the agrifood industry is worth more than €1 billion per annum, it is important that the Minister take a hands-on approach to the issue and work with the receiver to ensure the business survives and Mullingar continues to be a hub for the live export industry. As my colleague stated, in excess of 30 people who were directly employed by TLT International in Mullingar have been let go in recent days. Many more people are indirectly employed. There is considerable anxiety among the farming community and the marts. As was done in respect of the travel industry, we need to take steps to ensure that marts and farmers are not left out of pocket. It is imperative that the Government move quickly to work with the receiver so as to ensure that we resuscitate the business as a going concern in the broader live export trade, particularly its cattle links to the Italian market.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | 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.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I hope that the Minister of State is right, but I believe differently. The failure of this company underlines a significant weakness in protections for people who take the risk. It is interesting that the bank concerned is Hong Kong and Shanghai Banking Corporation Limited, HSBC. It does not appear that TLT International was able to get a relevant supply of credit from our domestic pillar banks. I have no intention of asking the Minister of State to break the law or involve himself in the receivership. I fully understand the separation. However, what I do not understand is why the Government cannot recognise the inherent flaw in the climate in which livestock exporters operate. To suggest that some of the others will take up the slack shows that the Minister of State's parent Department misunderstands the crisis among livestock exporters. Of course the others will be impacted.

They will find it more difficult to avail of whatever level of credit they currently have. I am sure their bankers are all over them for the last couple of days wondering if their exposure is safe or has it increased the risk profile. Government intervention is therefore needed via a belt and braces approach to ensure the sector remains as it always has been - an outlet to ensure effective competition. In this case it is not so much an effective competition against factories, but effective competition against beef producers in the midlands who compete to purchase weanlings.

It is incumbent upon the Government to become involved and develop a strategy in the same way as the previous Government developed one for output and production from the farming sector, known as Food Harvest 2020. In fairness, the Minister of State has continued with that but he needs to examine the livestock export trade to find an appropriate mechanism to protect this sector which is under considerable threat at the moment.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I also have grave concerns about the impact that this decision will have on the industry. This industry has been in operation for almost 30 years. It has ensured competition yet it has received very little support. This particular business accounts for 60% to 70% of the market. It is not right, accurate or fair for the Minister of State to say that others will take up the slack. There are all sorts of rumours concerning the bank. Deputy Dooley is correct to say that this company was forced to go to HSBC, which is based outside the State, due to the difficulties that businesses here are facing in accessing credit.

Customer regulation comes under the aegis of the Central Bank, so it is vital that the Minister return to the House next week with a clear report on what actions the bank has taken in this regard. The Minister should give a commitment to do so. Was it right and proper that a receiver was appointed? The House should know that due procedure was adhered to. This serious issue has resulted in 30 jobs being lost in Mullingar and many more jobs indirectly. This company accounts for 60% to 70% of the market, which is now being taken out of play. Why has an examiner not been appointed, as opposed to a receiver? As we all know, when a receiver is appointed, the unsecured debts are most unlikely to be paid. The receiver's job is to pay himself first and then pay the bank, but that leaves marts and farmers way down the pecking order.

I am not confident that the Minister of State is giving this matter the urgency and priority it requires. This company has been in business for 30 years and has served the farming community well. It accounts for 60% to 70% of the market share, but I wonder if the Minister of State has what it takes to resolve this issue. I ask him to return to the House next week with a report on the Central Bank.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Deputy's time has expired.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

We need to be sensible in what we say and how we react. Everybody in this House hopes the receiver will be able to work his way through the difficulties and salvage the company. That would be the most satisfactory outcome, whereby cattle exports will continue regardless of who owns the company. The receiver should be allowed to do that. I take the Deputy's point concerning cattle prices. If Deputy Dooley is in contact with his people in County Clare, he will know what the manager of Sixmilebridge Mart said this week when reacting to the TLT story. He was quoted in the newspaper as saying there was a good trade at the mart on Saturday for all stock, with weaning prices especially strong. Before people in this House say cattle prices are down, they should check what is happening in their own constituencies. That was in County Clare.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

With respect, the company went into receivership on Friday.

Tom Hayes (Tipperary South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I spoke to some of Deputy Troy's constituents yesterday when I was presenting them with certificates for good farming practice. They told me that cattle prices had risen in their area.

The main point is that people should be paid for their cattle when they sell them. On "Morning Ireland" this morning, the chief executive of ICOS told a good story. I will be monitoring the matter as it proceeds, but I will not be interfering with the receiver's due process. I hope the business will be protected and that farmers will be paid.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

What is the Government going to do about it?

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The time for this Topical Issue matter has expired.