asked the Minister for Industry and Commerce whether he is aware that a milling company have closed down a substantial portion of their milling business at Shannonvale, with the resultant loss of employment to 15 permanent employees; and if he will make representations to the company with a view to securing the continuance of business there and the reemployment of these men.
Ceisteanna—Questions. Oral Answers. - Closing of Portion of Milling Business.
I have seen a newspaper report to the effect that a number of employees in a milling concern at Shannonvale have been laid off. The Deputy will appreciate that the undertaking in question is carried on by private enterprise and that I could not, therefore, discuss the affairs of the concern in Dáil Éireann. There has, however, been, over the last three years, a continuing reduction in the consumption of flour, and until this trend is reversed some repercussions on employment in flour production is to be expected. I understand that flour millers hope that the reduced extraction rate now in operation may have beneficial effects on the level of consumption.
Would the Minister say whether or not it is contrary to Government policy to allow firms with monopolies of certain types of business to centralise their work with resultant adverse effects on provincial and rural centres as is the case at Shannonvale?
That is a very general question. As far as flour milling is concerned, each mill has a quota and I would not agree to the transfer of that quota to another mill.
A company such as this enjoys certain facilities from the State and now finds that it has a monopoly of the milling business or very nearly so. They are closing down their business locally and transferring to the headquarters in Cork City. That will have an adverse effect on the Clonakilty area as far as employment and the transport of goods are concerned.
I made it quite clear that as far as this mill may be owned by a company which has a mill elsewhere, it would not be allowed to increase its quota of production in that second mill by reason of the transfer of business. In any case, it seems to me that the problem of this company is that it has not got a monopoly in its area.
Do I understand that a milling company cannot increase its output quota in the other mill?
The quota fixed for the mill could not be increased by reason of a decision to transfer the business of that mill to another mill. It may be, of course, that the first mill would not be producing up to its quota at present.
Do I understand from the Minister that each branch of the milling company has a separate quota?
Yes.