asked the Minister for Finance the amount of the financial loss of Erin Foods Limited during the last financial year; and if he will take steps to reorganise the company in order to put it on an economic basis.
Ceisteanna—Questions. Oral Answers. - Erin Foods Limited.
48.
The accounts already presented to Dáil Éireann show that the loss incurred by Erin Foods, Ltd., in the year ended 30th April, 1965, was £611,594. As indicated in a note to the accounts, this was the loss on marketing. The total loss for the year incurred by Cómhlucht Siúicre Éireann Teo. and its subsidiaries on the food processing project was £1,168,285, of which £551,550 was incurred by Cómhlucht Siúicre Éireann, Teo., in the manufacture of products for Erin Foods, Ltd., at predetermined contract prices and £5,141 was incurred as a trading loss by Kinsale Canners, Ltd.
In considering these figures, it must be remembered that the food processing project is a pioneering venture. It involves developing new products and breaking into new markets, mainly abroad. The exceptional cost of such an enterprise could hardly be met out of profits in the early stages when sales are only building up and when the heavy investment in plant and marketing has not made its full impact on revenue. The Boards of Erin Foods Ltd. and Cómhlucht Siúicre Éireann Teo. are, of course, aware of my anxiety that the project should be put on a profit-making basis with the minimum delay. Cómhlucht Siúicre Éireann Teo., as the parent company, has, in fact, engaged one of the leading international firms of consultants to carry out a comprehensive appraisal of the project. The consultants have been working on this task for four months now and it is hoped that this investigation, which is expected to be completed within the next few months, will be of significant help both to the company and to myself in determining future policy.