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Dáil Éireann debate -
Wednesday, 3 Dec 1975

Vol. 286 No. 5

Ceisteanna—Questions. Oral Answers. - Dairy Disposal Board Properties.

28.

asked the Minister for Agriculture and Fisheries if he will give details of all the conditions of sale to Golden Vale of the Dairy Disposal Board's properties in Limerick and Clare.

The sale agreement referred to by the Deputy is a confidential commercial document between two trading concerns. It is not the practice to publish such documents and I do not intend to do so in this case.

Is the Minister not legally bound to give to the House all the information concerning the sale of public property and involving public money?

I am legally advised that I am not so obliged. Since all the transactions that take place in the IDA between individual firms and the IDA are all agreements none of those are published. The agreements are not published. The amounts are published. The Deputy is concerned about the paragraph dealing with continued employment. That paragraph was made known.

To the farmers of west Clare as well?

Is it not true that the Minister in not disclosing the full content of the agreement is hiding his own ineptitude in this regard?

There was absolutely no ineptitude in this. The sale agreement between the Dairy Disposal Company Limited and Golden Vale Co-Operative Creameries Limited is a normal commercial document and neither the Minister nor the Department is a party to it. It is not the practice to publish the contents of such documents.

In signing the agreement, did the Minister not act as guarantor on behalf of the workers at Lansdowne and Clare and in view of the violation of this agreement by the partner I would like to know what steps the Minister intends to take to protect the workers both at Lansdowne and in Clare?

The Deputy knows well, because he sat in at a meeting when we discussed the whole problem at length, that steps have been taken to have the problems ironed out if possible——

Will the Minister be directly involved in the talks due to the fact that he acted as guarantor in the sale of the Dairy Disposal Board's property?

I did not act as guarantor.

The Minister did act as guarantor. Will he read out that section of the agreement, please?

Yes, if that is any help. It reads:

The purchasing society will take over and employ the managers and the other employees set out in the Fifth Schedule hereto at present employed by the first and second vendors and in all respects and on the like terms as they are employed by the first and second vendors on the date prior to the possession date and shall not terminate their employment save on proper cause.

Is it not true to say——

This must be the Deputy's final supplementary.

——that the Minister gave his approval to this sale?

Was the Minister aware at the time of the takeover by Golden Vale that it was so grossly undercapitalised? Was he aware when the Clare farmers were asked to vote for or against that Golden Vale were in such financial straits?

No, I was not.

Would the Minister now undertake to have a complete examination carried out of the financial structure of this co-operative in the interests of the Clare suppliers and employees at Lansdowne and Clare before it goes any further?

I have no such authority.

(Interruptions.)

The time for Questions is past.

In view of the fact that the Minister sanctioned or had to sanction the sale of the Dairy Disposal Board's properties which were responsible for all the Clare suppliers up to that time, surely he has some responsibility to look into the affairs of Golden Vale in the interests of the same suppliers?

I have no legal right to look into it. Even if I did and found that they were unable to do anything more than they are doing, what then could I do?

Is the Minister aware that this co-operative appear to be in debt in excess of £10 million? The Clare suppliers were not in any way responsible for this debt.

A brief and relevant question, Deputy.

Is the Minister aware that the Clare suppliers who supply one-third of the milk to this co-operative are now responsible for onethird of at least £1 million interest for which they have no responsibility? Surely they are entitled to some protection since they were handed over from the Dairy Disposal Board. It is an injustice.

The Clare producers freely negotiated themselves into this arrangement. I did not pressurise the Clare producers. I asked them to make up their own minds. I did not force or compel the Clare producers into this situation. They came up to me on a number of occasions and I said: "Go back and make up your own minds. Tell me what you want and when you have made up your minds as to what you want I will help you to secure that position."

It was a pig in a poke.

The remaining——

Is it not a fact that a previous proposal to erect a milk plant in order to extend Lansdowne was set aside by the Minister?

And there was no option.

If Members wish to debate this matter, they will have to find another opportunity. The remaining questions will appear on tomorrow's Order Paper.

With your permission, a Cheann Comhairle, I wish to raise the subject matter of this question on the Adjournment.

I will communicate with Deputy Herbert.

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