Seanad debates

Wednesday, 26 January 2005

Sugar Beet Industry: Motion.

 

5:00 pm

Photo of Peter CallananPeter Callanan (Fianna Fail)

Greencore is a private company. While ownership of the sugar quota being produced has not yet been established, the fact is that if we commence with a defeatist attitude and state that the Minister will not be able to achieve anything in the negotiations as a result of the closure of Carlow, it will merely be a sign that we are throwing in the towel. If people say that the closure of Carlow is wrong, I will agree with them. I will not formally state that, however, even though I have indicated my agreement.

It is right and proper that Greencore should take a responsible attitude in terms of the future. What is the nature of such an attitude? Before I attempt to answer that question, I must state that I am somewhat surprised by the timing of Greencore's announcement. I say this because, like everyone else, I am aware of the challenge posed by European sugar producers such as the French who are dying to enter the Irish market. If we do not consolidate and improve the situation here, we will not be able to meet that challenge.

I may be the only Member present who has a direct interest in the growing of sugar beet. Some may state that I am making my remarks from a Cork perspective but that is not the case. However, I am making them from the perspective of my direct interest in the industry. The sugar industry in this country could well be lost unless we are prepared to meet the challenge we face and to change. There is no doubt that change will occur. The Minister's greatest task will be to minimise the effect of that change and protect the Irish industry.

I welcome the fact that the motion and the amendment state that the House should give every support to the Minister in her endeavours to protect the sugar beet industry. If significant changes cannot be achieved under the Fischler proposals in May or June, Ireland will lose the industry. It does not matter whether the Mallow or Carlow factories or both remain open, there will be nothing. We should adopt a cautionary, responsible attitude. It is easy to criticise Greencore but I am doing so because they are closing the factory so suddenly and Senator Browne raised a number of questions deserving of consideration. The House should call on Greencore and Irish Sugar to put what is required in place.

Senator Browne referred to the loading bay at Bagenalstown. Will it be in place next September? If Greencore is given an excuse, what will it say or do? Laois beet growers rightly say they need a connection to Mallow. If a climate of doubt, dispute and tardiness is created, Greencore will say the Government and the taxpayer should pick up the tab because the company wanted to do it. I am surprised at the attitude of Carlow County Council and Carlow Town Council. If one is to take a sensible approach, the survival of the industry is critical and it requires us to put our shoulders to the wheel together and I hope we can do so.

I refer to the golden share. There is ambiguity regarding who owns it. There are special conditions under which Greencore cannot dispose of the controlling interest in Irish Sugar Limited, its sugar assets or the sugar quota without the prior written consent of the Minister. The Minister is not empowered to become involved in operational matters or ordinary business decisions made by the company. We, the growers, own the quota and if there is a doubt about that, the Minister and the Department should legislate in this regard because there will not be asset stripping and our rights will not be abolished.

Is the European Union serious about the ACPs or poorer countries when it says they can import everything except arms? Will developing countries be held back? The World Trade Organisation and wealthy countries such as Brazil seek to stop the provision of funds to the ACPs and allow slave labour to continue. Let us reach out with the hand of friendship and help to poor, developing countries.

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