asked the Minister for Industry and Commerce if he is aware of the serious unemployment position which has resulted from redundancy and lack of employment in the Labadish potato processing factory, County Donegal; and if he will take steps to ensure that more continuous employment is available in this factory in future, including (a) the assurance of a steady supply of potatoes by an agreement with the local farmers' organisation to buy potatoes of seventeen per cent starch content at a guaranteed price of £9 per ton and (b) the conversion of the existing factory into a confined unit for the manufacture of starch and glucose.
Ceisteanna—Questions. Oral Answers. - Labadish (Donegal) Factory.
40.
In common with potato starch factories elsewhere, the Labadish potato starch factory operates on a seasonal basis, the length of the production campaign each year being governed by the availability of potatoes for processing. There was an unusually early layoff this year, caused by the shortage of potatoes. Ceimicí Teoranta endeavour to the fullest possible extent to ensure a continuity of employment by means of a continuity of supplies. However, the price obtainable for potato starch, which is sold in highly competitive markets, would not, I am informed, justify a price for potatoes greater than that which the company is now paying. The glucose factory at Corroy, County Mayo, is already producing sufficient glucose to meet the country's requirements of that product.
41.
asked the Minister for Industry and Commerce if he is aware that the cost of production at the Labadish potato processing factory, County Donegal is greatly inflated by the fact that shortage of storage space has resulted in the management spending considerable sums in renting such space; and if he will carry out a thorough investigation of the management methods in this semi-State factory, including, particularly, such matters as storage, transport, disposal of end products, etc.
I am informed by Ceimicí Teoranta that they are unaware of the basis of the statement that considerable sums are being spent on rented storage space. The present storage space at the Labadish factory is sufficient for the needs of the company, taking into account the fact that major export sales occur during the production season. Storage space, I am informed, is rented only when production is above normal, because of an unusually large supply of potatoes for processing, and the rental charges involved are quite moderate. Markets, both home and export, have been developed for disposal of the industry's end products, potato starch and potato pulp. The quantities produced depend on the quantity of potatoes available for processing. I have no reason to doubt that the company are managing this factory efficiently, and I see no need for an investigation of the type suggested by the Deputy.