I move that the Bill be now read a Second Time. The purpose of this Bill is to enable the Minister for Lands to participate in a proposed increase of capital in Alginate Industries (Ireland) Limited.
Under the previous Act of 1949, which it is now proposed to amend, authority was given to acquire 5,100 shares of £1 each in this company, which is engaged in the drying and milling of sea-rods collected along the west coast. The remaining 4,900 shares are held by Alginate Industries, Limited, London, a company engaged in the extraction of alginates from various kinds of seaweed, including the dried and milled sea-rods sold to them by Alginate Industries (Ireland) Limited.
I am glad to be able to report to the House that since 1949, Alginate Industries (Ireland) Limited, has operated successfully at its factory in Connemara and has shown a modest profit each year. Of far more importance than this profit, however, is the contribution which this relatively small company has made towards the provision of steady and remunerative employment in one of the poorest districts in the Gaeltacht. A report on the working of the company has been submitted each year for the information of both Houses of the Oireachtas. The report on last year's operations shows that the company maintained full and continuous employment at its factory in Kilkerrin, County Galway, and that direct and indirect wages paid there amounted to over £8,000. In addition, locally produced turf to the value of over £4,000 was consumed, and then, of course, the sea-rods themselves, bought as they are in the poorest areas along the western seaboard, are a satisfying source of supplementary income where it is badly needed.
The company now proposes to expand its activities, first by improving its existing facilities for the drying and milling of sea-rods; secondly, by providing facilities for the purchase and preparation of carrageen for various markets; and, thirdly, by providing facilities for the production of seaweed meal for cattle-food. Additional capital will be required and this Bill seeks to authorise the expenditure of £37,900 on the purchase of shares in addition to the £5,100 already expended, making a total of £43,000, as set out in Section 2 of the Bill.
With regard to the first of the objectives I have mentioned, namely the improvement of the existing plant for the drying and milling of sea-rods, the company is satisfied as a result of the working experience of the last five years that more efficient and economic production can be achieved by effecting some changes in plant and lay-out at their factory in Kilkerrin. Several improvements have been made from time to time, including the installation of a Mona jet furnace and E.S.B. power supply. I am satisfied that the improved layout and the new plant now proposed will strengthen the position of the company as a supplier of rod-meal and that their proposals are prudent and desirable.
With regard to the proposal that the company should engage in the carrageen industry it will be necessary to give a brief review of the recent history of this industry. The quantity of carrageen harvested has been falling steadily in the last few years. In 1940, 1941 and 1942 this country exported an average quantity of 600 tons of carrageen per annum. In 1952, 1953 and 1954 the average quantity exported is estimated at less than 250 tons, and the tendency from year to year is downwards. My Department has had the position under close examination, and visits were made to France and the United States to study the organisation and development of the industry in these countries. Efforts were made to have exporters of carrageen cooperate in an association to safeguard the quality of moss for export, but I regret to say that the response received was poor. The Institute for Industrial Research and Standards was requested to develop a machine for the mechanical cleaning and grading of carrageen with a view to securing a general improvement in standard, and this machine was demonstrated to various firms and persons interested in the industry but, so far as I am aware, no one has yet proposed to install it.
The collection of carrageen moss can be a very useful means of augmenting the income of those living along the west coast, and the decline of the industry is a matter of concern. This is particularly so when investigations have disclosed that there is a ready market in America, Great Britain and the Continent provided that the purchasers can be assured of consistently high quality and regularity of supply. The lack of consistency in these matters has brought about a certain instability in the industry, which is reflected in the decline in the quantity harvested and exported. As carrageen moss is a raw material of great value, and as its collection depends on the maintenance of a tradition for the work along the western coast, it is clearly necessary that some steps should be taken to set a standard which will gain for Irish moss a high reputation in world markets and so bring about conditions of stability to encourage the gatherers and arrest the present heavy decline in interest among them. It is proposed, therefore, that Alginate Industries (Ireland), Limited, should equip themselves to handle and market carrageen moss to the best advantage, and I am satisfied that this step is both necessary and desirable. I am hopeful that as a result of the company's efforts there will be a revival of interest among gatherers and that the industry will be put on the right road to development.
Finally, the company also proposes to put itself in a position to produce seaweed meal for cattle-food. In the neighbourhood of its factory at Kilkerrin, Connemara, the company can draw from the richest beds of ascophyllum or bladderweed in the world, and this would undoubtedly be a welcome addition in income to the people of the area. The company has, in fact, in the last two years produced limited quantities of this meal by extemporary modifications to their sea-rod plant, and the entire production was sold abroad. The company is satisfied that there is a reasonable market on the Continent and elsewhere, and believes that with the installation of a suitable plant efficient and economic production could be achieved.
To summarise, the company is seeking additional capital to enable it— first to improve the operation of the existing sea-rod meal business; secondly to equip itself for the handling of carrageen moss, and thirdly to provide facilities for the production of seaweed meal for cattle-food. All three items relate to the development and use of native raw materials in parts of our country where natural resources are poor. The difficulties in the way of improving the economic situation of the people who have to make a livelihood in these areas are so great that it is all the more important that whatever resources are available should be developed to the full. The Bill now before the House seeks to authorise me to provide additional capital for the company for the purposes set out. Having regard to the excellent work of the company to date and the desirability of the further developments now proposed, I have no hesitation in recommending this Bill to the House.
