asked the Minister for Finance if he will state in respect of the Erin Foods plant at Tuam, County Galway, the number employed in sales promotion in Great Britain and what effort is being made to find new markets for the produce of this factory.
Ceisteanna—Questions. Oral Answers. - Erin Foods Plant.
37.
The major portion of Erin sales in Britain, including sales of potato products, are made by the staff of the company's export sales division and their subsidiary marketing companies, a total staff of 14 in all. Agency selling arrangements are carried out through the joint marketing company, Heinz-Erin Limited, and through a major British company who specialise in the institutional sector of the market. The agency selling arrangements give access to a sales staff of approximately 120.
Erin Foods are making intensive efforts to secure new markets and sales of potato products from the Tuam factory have increased significantly in markets outside of this country and Britain in the past two years.
The market in Europe and America is suffering considerably from over-production, to the extent that the Americans are exporting to Europe, the Germans are exporting to Britain and now the French are processing and dehydrating vegetables. In the circumstances, would the Minister care to hazard a guess about what effect this will have on the plant at Tuam? I ask this question in good faith; I do not want any premature information and I am sure the Minister does not wish to create any undue fears.
It is true to say that perhaps another version of what the Deputy is suggesting is that there is a certain amount of dumping on the international market by some countries. It is also true to say that in the case of potato flake the market is heavily guarded by patents and licensing arrangements which make entry into new markets difficult. However as I have indicated, there has been an intensive effort in the last two years which is reflected in the fact that this year approximately 12 per cent of total production at Tuam will go to markets other than the United Kingdom. This will amount to £114,000, as compared with sales of only £38,000 to outside markets in 1970-71. Despite the difficulties I have mentioned, intensive efforts are being made and some success is attending these efforts. I have no reason to believe that in the long term the future of Tuam will be endangered.
That is encouraging and I thank the Minister.