Fergal Browne (Fine Gael)

I thank the Labour Party for agreeing to switch its Private Members' time to facilitate this important debate.

There was great anger in Carlow at the announcement two weeks ago concerning the closure of the sugar factory. People in Carlow are realistic and are aware there are choppy times ahead for the sugar beet industry. However, it is hard to understand a company that made €10 million from sugar beet processing in Carlow deciding to close that factory, especially when vital talks are due to take place in the EU concerning the sugar quota. That action has weakened the Minister's hand.

I am severely critical of the Minister for releasing a statement last week in which she said that Greencore's action did not weaken her hand. Nobody believes that. The statement was undermined yesterday in Carlow by the former president of the IFA and current Minister of State, Deputy Parlon, when he clearly said that the company's action did weaken the Government's hand. It is outrageous that Greencore took this action in advance of the decision being taken at EU level which, as my colleague mentioned, could be 18 months hence.

The annual report from Greencore last year showed that profits before tax increased by 8% and that net debt had been reduced. One section reported on steady profitability in sugar which was driven by an excellent processing campaign, increased quota and cost control. Carlow sugar factory has done excellent work in terms of reducing soil intake when taking in the beet crop. It has done a huge amount of work in the environmental area. The factory has been reducing costs consistently. I presume the same applies in Mallow. The reduction in soil intake means the factory has to deal with less soil, stones and so forth.

The sugar factory has also put much effort into traffic management in Carlow. Last year's campaign was good. It started on time even though it coincided with the opening of the National Ploughing Championships. People feared there would be chaos on the roads but there was none. Everybody involved in the campaign, including the factory staff, growers and hauliers, co-operated excellently with the gardaí and ensured a smooth start to the campaign, which ended on target before Christmas.

It beggars belief that Greencore would make this decision in the first week of January without consulting the workers, the IFA, the beet growers and the hauliers and without giving consideration to the impact it will have. There are issues, which must be resolved with regard to the Carlow factory. Even if the factory there were to close tomorrow, transporting the beet from Carlow and surrounding counties to Mallow will be a major difficulty. Greencore suggested building a new rail depot in Bagenalstown but that has not even reached planning application stage. There have been no discussions so far with the local authority. The local road infrastructure will not be able to cope with the extra traffic. Some people believe the rail depot could take four years to complete. I hope it will not take that long but severe difficulties lie ahead.

Any such planning application will require an environmental impact study and a traffic impact study. Obviously, the local community will also be involved in the planning process. There are major issues of concern in this regard. There is also the problem of extra transport costs for growers in Carlow and surrounding counties who are furthest away from the Mallow plant. They have not been given any assurances with regard to those extra costs.

A few years ago I was involved in a protest campaign with Carlow sugar factory about beet prices. The former president of the IFA and current Minister of State, Deputy Parlon, was involved in that campaign during which there was a major stand-off. Finally, the company backed down and the beet prices were agreed. The farmers and the growers campaigned together and won the day. I hope the same will occur in this case.

I regret and resent the fact that an amendment has been proposed by the Government to this motion. The motion was deliberately non-contentious and simple. It merely sought to recognise the huge contribution the beet growing industry has made to rural Ireland, both socially and economically. It also seeks to put pressure on Greencore to immediately reverse the decision to close the factory in Carlow from 2005 and to take no further action until the EU discussions regarding sugar quota are concluded. That was a fair and reasonable request and it was made, loud and clear, yesterday by all the parties, including that of the Minister of State, and by Deputy Nolan when speaking in front of 4,000 people in Carlow. The president of the IFA, the beet growers and everyone involved in the industry made the same request.

It is regrettable that the Government has decided to amend the motion. In my view, it has turned its back on the factory in Carlow. It has raised the white flag, accepted defeat and is stating that the Carlow factory cannot be kept open for even one further season. This is despite the fact that the EU discussions are a long way from completion and that the necessary rail depot might not actually be in place in time for the autumn campaign in seven and a half months' time. I regret that the Government has thrown in the towel in respect of this issue.

It is time the Minister for Agriculture and Food, Deputy Coughlan, abandoned her "Mary from Dungloe" approach and got tough with Greencore. She should ask the executives of the company what they are playing at, take them on and ensure that the sugar quota is returned to the ownership of the beet growers of Ireland. In my opinion, Greencore cannot be trusted.

The difficulties experienced in Carlow during the past two weeks may also be experienced in Mallow in a few years' time, particularly if Greencore decides to import sugar cane from abroad. Senator Ulick Burke will later relate the experience in Tuam. Senator Coonan already referred to what happened in Thurles, namely, that when Greencore pulled out, the town was devastated and no substitute industry was put in place.

It is a matter of concern that Greencore obviously had a plan to develop the Carlow site, which is extremely valuable. However, it could be in for a shock. At recent meetings of Carlow County Council and Carlow Town Council, members gave clear indications that they will not co-operate with any rezoning to make the land more valuable for development, that they want it to remain zoned for industrial use and the creation of jobs and that they will not play into the hands of Greencore. That message should be broadcast loud and clear to the company. There is existing infrastructure at the plant which could lend itself to the creation of future jobs in the area of biotechnology. However, Greencore has not even considered this fact.

Greencore is a huge company and sugar production is only a small element of its activities. It could consider locating another aspect of its business at the Carlow factory in order to ensure that jobs are not lost in the town. I cannot overemphasise the fact that people in Carlow are extremely annoyed about the behaviour of Mr. Dilger and the executives of Greencore who decided to announce this decision to the Stock Exchange before consulting anyone else involved. This is not a simple matter of closing the factory in Carlow, building houses on the site, making a fortune and moving on. Major issues will arise in terms of the development of the land and the decommissioning of the site. There could be soil contamination and the lagoons and swamps might not lend themselves to development is the context envisaged by Greencore. There are also issues involving planning, particularly in terms of transport and the railway depot at Bagenalstown.

One must question Greencore's long-term plans for the sugar beet industry. During my lifetime, the number of sugar beet operations has been reduced from four to two and now down to one. Where will it end? I hope people in Mallow will not in the future experience the difficulties currently being faced by their counterparts in Carlow.

I have great pleasure in seconding the Fine Gael motion. I hope the Minister will, as a result of this debate, come to the conclusion that there is a need for steely resolution on her part in terms of taking on the Greencore executives on this issue, in respect of which they are blatantly wrong. These individuals were proven wrong a number of years ago in respect of beet prices and they backed down. I am of the opinion that they should again back down and take no further action until the EU discussions are concluded. That is a fair and reasonable request, particularly when one considers that Greencore made a €10 million profit from the Carlow plant last year.