I move:—
Before Section 6 to insert a new section as follows:—
(1) Section 41 of the Principal Act is hereby amended by the insertion at the end of sub-section (3) thereof of the following paragraph, that is to say—
(d) a provision whereby the Minister agrees to pay compensa-on a failure to supply cattle in pursuance of an agreement entered into by him under the next preceding paragraph of this sub-section,
and the said section shall be construed and have effect accordingly.
(2) This section shall have and be deemed to have had effect as from the coming into operation of Part VIII of the Principal Act.
When making the agreement with the company in Roscrea who are dealing with old cows it was necessary to insert some provision to compensate the company in case the supply of old cows should, for any reason, cease. Deputies will realise that the company had to engage in a certain amount of capital expenditure, and they expected to have a four years' working agreement in order to get sufficient profit to make the company a paying proposition. On our side, we had to guarantee to supply them with a certain minimum and maximum number of old cows per week. The question arose as to what would happen in the event of its being found impossible to supply the number of cows. A guarantee had to be given that certain compensation would be paid in these circumstances. The only way under existing legislation that compensation could be paid would be by taking over the shares of the company. That was thought satisfactory at the time, but, on reconsideration, it is thought better by our advisers, legal and otherwise, that we should have power, in that eventuality, to pay a certain lump sum and have done with the matter. It is well to have the alternative. We can either take over the company or pay a certain amount in compensation and let the company remain as it is. This amendment is introduced in order to give the Minister power to pay compensation in cash rather than take over the company. The agreement made in regard to compensation was that, if we should default in the first year, we should pay £5,000, plus capital costs, to the company.