Vol. 548 No. 4
6 Mr. Spring asked the Minister for Agriculture, Food and Rural Development if he will provide an update on the closure of the Tralee Beef and Lamb plant in Tralee, County Kerry; and if he will make a statement on the matter. [4956/02]
The company to which the Deputy refers went into receivership on 9 October 2001. I understand the receiver has now sold the premises of Tralee Beef and Lamb Limited as a meat processing plant and that the purchasers propose commencing production in the facility within the next three months. The High Court appointed a liquidator on 29 January for the winding up of Tralee Beef and Lamb Limited.
When the Taoiseach met the farmers concerned today he said the Government would leave no stone unturned. Is the Government prepared to do anything or help in any way to facilitate the reopening of this plant? What is the position regarding prospective purchasers, has it advanced or does the Minister foresee any difficulties in that regard?
I have the greatest sympathy for the farmers concerned who supplied animals to Tralee Beef and Lamb. Before the closure of the company farmers had to await payment for a period of four or five weeks. The company was able to avail of that period and pay additional money over and above what was being paid by the vast majority in the industry who pay farmers on the day they supply. There are no circumstances under which a government could intervene where a company was trading under those conditions and bail it out when matters such as this occur and the company goes into liquidation.
My best advise to farmers is to trade with plants which pay on the day. Other formulae are brought forward from time to time such as bonding and a range of other practices similar to it, but there is no substitute for the farmer being paid on the day he or she supplies his or her animals. That saves the farmer and the Exchequer.
Given that farmers will have lost more than €3 million, it should be possible to provide some assistance to compensate them in some way. The Minister may be aware that in some cases their total annual kill was lost for which they did not get paid. This will spell ruin for a number of farmers.
Following the Taoiseach's meeting with farmer representatives in November, farmers held out some hope that some aid would be provided, but that has not materialised. Will the Minister examine the possibility of compensating farmers for some of their losses, perhaps under the slaughter premium scheme or through some other provision, given that I understand from the liquidator there will be very little money available to farmers in the winding up of the company?
I repeat I have the greatest sympathy possible for the farmers concerned. As the Deputy said, I understand when the liquidator was appointed by the High Court on 29 January to distribute the balance of moneys available to unsecured creditors the indications were that the total amount available for distribution would be negligible when compared to the amounts owed. That is a pity and difficult for the farmers concerned. When a company such as this delays making payments for a month or more and the dogs in the street know there is a difficulty concerning it, it is not good sense to continue trading with it. I do not know of any way the farmers concerned can be helped by the Exchequer. However, I will take the Deputy's suggestion on board and see if there is some creative mechanism whereby help can be given but I do not know of any system at present.
Will the Minister give Members a quick update on the Henshaws situation as he promised the committee he would?
I made inquiries and the matter is still being examined by the Office of the Attorney General. There is a slight difference here in that Henshaws was processing animals which had gone down under animal diseases. I am precluded from doing anything until I get legal advice from the Attorney General's office in relation to it.
