John Paul Phelan (Fine Gael)

I support the Fine Gael motion. I took part in the protest march yesterday in Carlow town to mark the outrage that exists among ordinary Carlow people, including factory workers, producers and the wider community in the south-east region who will be adversely affected by the closure of the plant in Carlow town.

Senator Moylan spoke about the traditional position of beet farmers and the fact that the beet industry has been one of the most profitable sectors of agriculture over the past number of years. It is fair to say that milk and beet producers are the two sectors of agriculture that have done reasonably well over the past number of years. However, the recent announcement means that the future is far from certain for milk producers. If people's worst fears become a reality, then there may not be a beet sector in the future. This is of great concern to someone like me who represents a part of the country where there are a number of producers, including Carlow and the immediate catchment area.

It is fair to say that the sugar factory in Carlow has been the bedrock of industry in that part of the country. Carlow has performed well in recent years, as have many towns throughout the country. This success was based firmly on the industrial employment generated for hundreds of people in the plant and by the incomes secured for farming families who supplied the plant in Carlow town.

I agree with Senator Browne regarding the proposed depot now being signalled by Greencore as a solution to the problem of transporting all the sugar beet from the Carlow catchment area to the plant in Mallow. It seems that as yet there is no planning permission for such a depot and the announcement of its establishment would see the plant close before the beginning of the next beet campaign. It is clear to all involved in politics, who know how the planning system works, that such a depot could not be operational by the time the next beet campaign starts. I share the wish of other speakers that Greencore would at least postpone its decision so the factory is not closed in 2005.

Many of the beet producers have invested over the past few years in facilities for transporting beet. They have invested a lot of money in machinery and equipment to bring the product from the farm to the factory and these people will be at a severe disadvantage. If one is travelling to Mallow from where I live, it is a long way and the roads in that part of the country are not in good condition. As previous speakers have noted, it would be incredible if this particular cost were to be passed on to the producer. Previous speakers have also pointed out that the plant in Carlow continues to be very profitable, making profits of some €10 million last year. I do not see how the board in all good sense could make the decision it made two weeks ago.

It was also remarkable that after we were informed of the decision to close the plant two weeks ago, each producer got a very detailed brochure from the company on the following day outlining the reasons the plant would be closed. They must think we came down in the last shower if they expect us to believe that a decision made the previous day resulted in these pamphlets being printed and posted to every grower in the country. Clearly the board decision was not made a number of weeks ago but some time earlier.

I missed the comments made earlier by the Minister for Agriculture and Food and cannot comment on what she said in this House but I urge her to use her role and the State's role — the State still has a stake in Greencore — to ensure the future viability of the sugar beet sector. It would be remiss of the Minister not to use the opportunity which exists while the State retains a shareholding in Greencore.

I and most beet producers worry that the Carlow plant closure will be followed by the Mallow plant closure. By means of strong reassurances from Greencore we were all led to believe that the closure of the factory in Tuam would consolidate the beet sector for the future, that there would be no need for future closures and redundancies and that we could continue into the future with some degree of certainty. It is clear that there is very little certainty in the beet sector. People trying to make their living from sugar beet production, many of whom live in my area, now find themselves in a very precarious position.

There is an alternative use for sugar beet which some other speakers may have noted. It can be used as a biofuel. As I understand it, the terms of the legislation which governs that area, and grant aid for that area, explicitly exclude sugar beet from grant aid if it is developed as a biofuel. I urge that to protect the long-term future of this important sector of the agricultural economy, the Ministers for Finance and Agriculture and Food ensure that grant aid which applies to other products be extended to sugar beet so it can be used as a biofuel in this country in the future.