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Dáil Éireann debate -
Thursday, 6 Oct 1966

Vol. 224 No. 6

Ceisteanna—Questions. Oral Answers. - Resignation of Lieut. General Costello.

5.

asked the Minister for Finance if he is prepared to make a statement on the policy difference between the Government and the General Manager of the Irish Sugar Company and Managing Director of Erin Foods.

6.

asked the Minister for Finance if he will now make a full statement on the circumstances of the retirement of Lieut. General Costello.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 5 and 6 together.

I have seen the Press reports regarding the resignation of Lieut. General Costello from the posts of general manager of Comhlucht Siúicre Éireann Teoranta and managing director of Erin Foods Ltd. but have not yet received any official communication in the matter from the companies. I notice from General Costello's statement to the Press that he attributes his decision to resign to his inability to support the policy set up by the Government in regard to Erin Foods Ltd. The statement, however, does not indicate the points on which he disagrees with Government policy.

As Deputies are aware, the Boards of CSET and Erin Foods Ltd., after consultation with the Government, engaged Arthur D. Little Inc., International Management Consultants, in 1965 to carry out an assessment of the Erin Foods food processing project. Their report was received early this year. The Government have considered the report and the recommendation of the combined Boards, and have taken certain decisions in regard to the future of the project. These decisions were conveyed to the companies early in September and were the subject of a Press release by Erin Foods Ltd. on 22nd September. This release indicated that the Government had approved the Board's plans for 1966-67 and that Exchequer support of £1.75 million for the project had been made in this year's Capital Budget. The release went on to say:

Erin Foods is now engaged in a vigorous development of the UK market and an expansion of their existing range of products. The Company's objective is the creation, within a reasonable time, of a substantial self-supporting food processing industry directed mainly to export.

It is the intention to introduce further legislation as soon as possible to deal with the provision of additional Exchequer investment in the food project and a number of related matters and discussions have already been initiated with the companies for this purpose. This legislation will, of course, provide an opportunity for a full discussion on matters of policy relating to the project.

Finally, I should like to say that I share the widespread regret that this outstanding public servant has resigned from office and should like to take this opportunity of paying tribute to him for his many years of devoted and valuable service.

Surely the Parliamentary Secretary is aware that the Minister for Agriculture met Lieut. General Costello last night in Leinster House? Is he not aware that the Irish Sugar Company have been more successful than the members of Fianna Fáil at any time envisaged and is this not a deliberate and calculated move to get rid of one of the most successful, efficient and hardest workers in any of the State bodies?

I do not recognise the makings of a supplementary question in that lot.

Is this not a calculated move to get rid of Lieut. General Costello?

You are a bigger "eejit" than the fellow who asked the question.

Will the Deputy withdraw that remark?

I withdraw it but I mean it.

The Deputy will withdraw the remark without qualification.

All right; I withdraw it.

Nobody believes you.

Deputy L'Estrange's suggestion that this is an effort to get rid of Lieut. General Costello is a shutting of his eyes to the sequence of events recently. It was Lieut. General Costello's own choice.

You left him no other choice.

Is it proposed to publish the Little report?

I referred to it in my reply.

I heard the reference but I did not hear what the Parliamentary Secretary said.

I said that the question was dealt with in the Press release of 22nd September.

Will it be published?

That question has been answered in the Press release of 22nd September.

Will it be published?

If the Deputy had seen the Press release, he would have read that the report will be published in due course.

On that occasion other things had not happened which have happened since.

Would the Parliamentary Secretary tell us with some degree of accuracy when this legislation will be brought to the House supplementing the funds of Erin Foods Ltd.?

I have not got that information.

Can we assume that legislation will be necessary to divorce the activities of these two companies and can the Parliamentary Secretary assure the House that the report to which he has referred and which is of some length will be in the hands of Deputies before such legislation is introduced in the Dáil?

The report will be published by the company. It is not a Government report.

I know; that is why I am asking the question.

Do I take it it will be permissible to have this report circulated to Deputies?

It is very likely that it will be, but it is not under the control of the Government.

Will it be possible to have it in the hands of Deputies before the matter is discussed in Dáil Éireann?

I think that is likely.

When will legislation be introduced?

It is the intention to introduce further legislation as soon as possible.

Before Christmas?

I think so.

Will the funds of Comhlucht Siúicre Éireann be available to Erin Foods until this legislation is introduced.

There is no reference to the funds of Comhlucht Siúicre Éireann in the questions tabled. I do not think Deputy Corry's supplementary arises.

Up to now the funds of Comhlucht Siúicre Éireann have been used by Erin Foods for development purposes, and this House voted £1,700,000 towards that development. I am asking: Are those funds available to Erin Foods until such time as this legislation is introduced here?

There is no reference to funds in either of the two questions.

Could the Parliamentary Secretary say whether any discussions have taken place between Lieut. General Costello and any Government Minister since he announced his resignation and whether there is any prospect of his reconsidering his decision?

I have no knowledge——

Is the Parliamentary Secretary not speaking to the Minister for Agriculture?

The Minister for Agriculture is quite well able to answer for himself.

Is it not a fact that the gravamen of the thing is that Erin Foods Limited have been restricted in their activities and in their expansion and that is why Lieut. General Costello resigned?

It is not a fact.

(Cavan): Would the Government wish Lieut. General Costello to reconsider his decision?

That is a very important supplementary.

I should think the answer to that is this: Lieut. General Costello will probably decide himself, and evidently has decided.

And the Government are delighted.

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