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Dáil Éireann debate -
Wednesday, 28 Nov 1962

Vol. 198 No. 2

Ceisteanna—Questions. Oral Answers. - Closing of Flour Mills.

79.

andMr. Governey asked the Minister for Industry and Commerce if he approved of the scheme presented to him, the Minister for Agriculture and the Taoiseach on 9th November by the Irish National Flour Millers Association for the closing of six flour mills; and whether he considers that the closing of these mills is in the best interests of the country.

80.

andMr. Governey asked the Minister for Industry and Commerce the total amount of compensation to be paid to the owners of the six flour mills about to be closed.

81.

andMr. Governey asked the Minister for Industry and Commerce the total estimated compensation to be paid to the 180 employees who will be rendered redundant as the result of the closing of six flour mills.

With the permission of An Ceann Comhairle, I propose to take Questions Nos. 79, 80 and 81 together.

My approval was neither sought nor given for the scheme referred to. While I have certain functions in relation to the control of the flour milling industry, it will be appreciated that I am not in a position to insist that particular flour mills must continue in operation if the proprietors of these mills decide to go out of business especially when, as in this case, there is considerable overcapacity in the industry. Regarding the compensation to be paid to millowners and redundant workers this is being provided by the Irish Flour Millers' Association and I have not been furnished with sufficient information to enable me to state the total amount of compensation which will be payable in each case but I understand that the proposals for compensation have been discussed between the millowners and trade unions representing the workers concerned.

Is there no corresponding obligation—or was an attempt made—to persuade the parties to the agreement to establish some alternative industrial activity in these abandoned mills? Was any attempt made to persuade them to set up an animal feeding industry in order to provide for the economic and social life of the provincial towns where these mills had been operating for generations?

I should like to say that when the Irish Flourmillers Association came to see the Taoiseach and my colleague, that aspect was put very strongly before them. They explained that since the negotiations leading to the closure of the mills were confidential, they could not take any overt steps to establish alternative employment, but they said that they were making every effort in consultation with the Industrial Development Authority to provide such alternative employment. I might mention, to correct what the Deputy said, that two of the six mills are located in Dublin city—it is not a matter of mills in six rural areas.

May I take it that arrangements are being made in regard to the provincial mills which play such a large part in the economy of the towns where they are situated, to establish some alternative industrial activity to these mills in order that the economic life of the towns will be disturbed as little as possible?

The Irish Flour Millers' Association are in touch with the IDA.

When the scheme was put before the Minister and his colleagues, did they have regard to the effect on employment in the various towns and the effect on the economy of the small towns? Did the Minister and his colleagues consider the proposition that the flour milling industry would be nationalised?

That proposition was not considered in this context.

When the Minister for Agriculture replied to me, he said that it was only by courtesy that this scheme was put to him and I asked no questions. I have put the same question down to the Minister for Industry and Commerce. I knew that it was not by courtesy that this would be presented to him because the flour milling industry has been under strict control since 1933. Therefore, the scheme had to be presented to him by compulsion. Now the Minister says that he did not approve of the scheme. From the papers issued on 10th November, it appeared that the Taoiseach, the Minister for Agriculture and the Minister for Industry and Commerce had fully approved of this scheme. In view of that statement of 10th November I cannot understand why the Minister says he did not approve of the scheme, especially since his Department is in complete control of the flour milling industry.

I did not say I was in complete control; I said I had functions in respect of flour milling. These referred to over-milling and under-milling. I have no power to prevent a man closing down his mill, if he wants to go out of business.

On 15th November, in reply to Deputy Barron, the Minister said that this industry had been subject to strict Government control. The Minister approved of two mills in the very centre of the wheat-growing area being closed down in preference to any other mills.

This is becoming an argument.

The approval at that time referred to the transfer of the milling capacity.

What about the compensation? Who is paying this compensation and where does the compensation come from? Is it to come from the Irish people who will use flour?

If the Deputy would refer to my first answer, he will see it there.

With regard to Question No. 80——

This has become an argument.

No question was asked on No. 80. I am asking——

The questions are taken together.

I am asking a supplementary.

We are going on to Question No. 82.

I think I am entitled to raise this matter on the Adjournment.

The Minister for Health is not anxious to be present to-night.

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