asked the Minister for Finance if he will make a statement on the likely effect in County Meath of reduced potato and vegetable acreages announced by Erin Foods; if he will indicate the reasons for the reductions and the action he proposes taking in the matter.
Ceisteanna—Questions. Oral Answers. - Meath Potato and Vegetable Acreages.
39.
I understand that just over 20 per cent of the potatoes being processed at the Tuam factory in the current year were grown in County Meath. Because of a temporary glut of supplies to the UK market, which absorbs more than 80 per cent of production at the Tuam plant, Erin Foods must cut back potato tonnage substantially next season. Allocation of the new tonnage has yet to be discussed with the Beet and Vegetable Growers' Association so it is not possible to say at this stage precisely how County Meath growers will be affected. The cut back in vegetable acreage by Erin Foods will have no significant effect in County Meath. The quantities of potatoes and vegetables to be grown by Erin Foods are dictated by the level of sales which can be achieved on reasonable terms and there is no action that I can take in regard to this matter.
Is it not the case that a proposal is being made by Erin Foods at the moment which would mean that there would be no contracts for potato growers in Meath and that all the contracts would be made west of the Shannon?
I am not sure that is so, but it may well be.
Would the Minister not agree that if that is the case—and I am informed that it is—it would create a very serious situation in view of the fact that Erin Foods made a big effort quite recently to induce producers in Meath to enter into contracts for potato production with them and that, as a result of that arrangement, a number of small farmers in the Meath area invested substantially in planters, harvesters and other equipment——
The Deputy is making a statement.
Is it not the case that if contracts are not renewed all their efforts will be set at nought? Is the Minister aware that the producers in Meath have been reliable producers, and that it is most unfair, in the reduced acreage which is being arranged for, that they should be cut out?
I presume the Deputy is aware of the allegations made that some growers in County Meath—not small growers but large farmers—after the acreage was fixed managed to get additional contracts and contributed thereby to the glut? I am not saying that is true, but I am sure the Deputy is aware that such allegations are being made.
We are talking about the quota for the coming year and what the Minister says would not relate to that period.
The situation next season is governed by what has happened and by the great glut in potatoes which ensued.