Written answers

Tuesday, 21 November 2006

Department of Agriculture and Food

Sugar Industry

9:00 am

Joe Sherlock (Cork East, Labour)
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Question 507: To ask the Minister for Agriculture and Food the action she is taking to ensure that the former employees of Greencore, Mallow are paid their full and correct compensation as agreed by the Labour Court; and if she will make a statement on the matter. [39046/06]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I presume that the Deputy is referring to the EU restructuring aid for the sugar industry, which in Ireland's case is worth €145 million approximately. The aid, as provided for in Council Regulation (EC) No 320/2006, is to cover the economic, social and environmental costs of restructuring the sugar industry involving factory closure and renunciation of quota. In July 2006 the Government decided on the percentage of the aid to be reserved for beet growers and contractors and provided an indicative breakdown of the potential allocation of the aid to be followed by Greencore in preparing its restructuring plan, including a figure of €28.4 million for employee redundancy payments. This figure as well as others in the Government decision was based on information previously supplied by Greencore. These decisions are now the subject of judicial review proceedings instituted by Greencore in the High Court.

The position regarding the Labour Court recommendation was outlined by my colleague, the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, when the Deputy raised the matter on the Adjournment on 25 October 2006.

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