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Dáil Éireann debate -
Thursday, 9 Dec 1971

Vol. 257 No. 8

Ceisteanna—Questions. Oral Answers. - Tuam (Galway) Food Factory.

76.

asked the Minister for Finance the total acreage of potatoes grown under contract for the Erin Foods factory at Tuam, County Galway, in each county involved, in the years 1969, 1970 and 1971.

Contracts for potato growing are awarded by Erin Foods on a tonnage and not on an acreage basis. A breakdown by county of the tonnages grown for the Tuam factory over the past three years is set out in a tabular statement which with your permission, a Cheann Comhairle, I propose to circulate with the Official Report.

Following is the statement:

County

1969

1970

1971

tons

tons

tons

Carlow

3,401

Cork

1,817

6,368

Donegal

2,472

2,400

Galway

6,772

8,576

12,074

Louth

12,389

7,249

6,937

Meath

8,850

13,860

14,325

Offaly

525

2,508

4,482

TOTAL

31,008

36,410

47,587

77.

asked the Minister for Finance the total number of applicants for contracts to supply potatoes to the Erin Foods plant at Tuam, County Galway, which could not be accepted in 1969, 1970 and 1971; and the reason for the refusal.

In 1969 and 1970 all applicants for potato contracts were accepted with the exception of a few who either refused to comply with the terms of contract or submitted their applications too late. In 1971 applications were received from 950 prospective growers for 72,000 tons of potatoes and contracts for 47,500 tons were awarded to 844 growers. Preference was given to farmers who successfully contracted with Erin Foods in previous years and to farmers in areas where transport arrangements to the Tuam factory could be made at minimum cost.

Could the Parliamentary Secretary say how many of these refusals were in the West of Ireland?

I do not think I have that information. As I said, contracts were awarded to 844 growers.

Is the Parliamentary Secretary aware of the concern expressed by a large number of farmers in the west over the allocation of contracts? The tonnage was increased from 35,000 to 47,500 and the Connacht farmers got only 4,000 tons out of all this. Grave concern has been expressed by the farmers of Connacht because of the allocation of contracts.

I should like to say that the 47,000 tons was an all-time record. There were 950 applications and 844 were awarded contracts. It may not be possible to maintain that situation next year.

Is the Parliamentary Secretary aware of the widespread concern with regard to the activities of Erin Foods Limited? My concern in this is as a result of the deplorable situation arising in Carlow, as a result of which many of my constituents in South Laois are now redundant, and will he consider holding a public inquiry into the activities of Erin Foods Limited?

That is a separate question.

A public inquiry is most desirable judging by the information I have received in relation to the Carlow factory.

That would come more properly on the next question.

78.

asked the Minister for Finance if he would state where the products from the Erin Foods plant at Tuam, County Galway are sold; and the future prospects for this concern.

82 per cent of the production at the Tuam plant of Erin Foods is sold in the United Kingdom market. A further 6 per cent is sold on the home market and the remaining production, for the most part, is sold on continental markets. Because of a temporary glut of supplies of potato products to the UK market there will be a slow down in production at Tuam after the current campaign. In the longer term there are reasonable prospects that production at the factory will expand.

The Parliamentary Secretary indicated that 86 per cent of the produce——

82 per cent.

——of the two factories was sold in the United Kingdom. Could the Parliamentary Secretary tell me the number of personnel employed in the promotion of sales of that 86 per cent?

82 per cent. I can tell the Deputy that we have no established markets outside the United Kingdom other than Sweden and Spain.

The Parliamentary Secretary indicated there would be a slowing down. Is he aware that there is growing concern among the employees of Erin Foods Limited, Tuam, and that there is, in actual fact, a rumour that this plant may close down entirely?

No. The position is that there is a glut on the United Kingdom market now and what is being produced by these factories at the moment is being stockpiled. That means that next year there will have to be some reduction not alone in acreage and tonnage but also in contracts. It is hoped this will be of short duration and that the reduction will be small.

If there is a reduction of tonnage and acreage, as he has stated, will he ensure that the reduction in tonnage will be on this side of the Shannon rather than west of the Shannon?

That is a separate question.

That is a different matter.

I would like to know what effort Erin Foods are making to sell their products in Europe. Since there is a glut in the United Kingdom market is this not the time to get into Europe to sell their products there thereby ensuring that no redundancy takes place in the Tuam factory?

The company are quite aware of this and they hope to have an expansion of production, but the best they can do in the immediate future is to satisfy the requirements of existing customers. Europe means a new exploration. They have no established markets in Europe except Sweden and Spain.

Did I hear the Parliamentary Secretary correctly talking about an expansion?

The Parliamentary Secretary indicated to me that there was a reduction.

I said in the long term an expansion, in the short term a reduction.

I just want to get that straight for the record.

Does the Parliamentary Secretary propose to request the Minister to hold a public inquiry into the activities of Erin Foods because of the dissatisfaction of the farmers and because of the serious redundancy occurring among workers. particularly in the Carlow factory where a large number of my constituents are threatened with long-term unemployment as a result of the failure of Erin Foods?

I do not think that is necessary. The management and the Government are well aware of the problems that confront Erin Foods and are taking appropriate steps.

Is it not a fact that plans are under consideration for the transfer of the celery processing part of the plant?

I have no reference to it.

The Parliamentary Secretary will have a reference next week if I put down a question.

79.

asked the Minister for Finance the number of persons employed at the Erin Foods plant in Tuam, County Galway in 1969, 1970 and 1971.

The average number of persons employed in the Tuam plant in each of these years is as follows:

1969

140

1970

159

1971

160

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