Dáil Éireann debate -
Wednesday, 9 May 1979

Vol. 314 No. 2

Adjournment Debate. - Meat Processing Factory Closure.

Mr. Clinton

I sought permission to raise on the Adjournment the serious matter of the closing down of the IMP meat processing factory in Leixlip for a limited period because the information I received from representatives of the workers is that on Friday last 450 people got one week's notice that the industry would be closed down for at least a month. I understand that 650 people are employed there and I need not stress that the laying off of 450 workers will cause a lot of hardship. I am raising this matter in the hope that the Minister for Agriculture can do something to keep this lay-off to a minimum. The Minister should use his influence with the management to see if the situation can be eased.

I understand that talks did not take place prior to the serving of the notice and for that reason it is possible that if talks were arranged something could be done. I know the workers concerned and they are not unreasonable people. They do not want to cause trouble. I am also acquainted with those on the management side and they are reasonable people. I am sure both sides would be anxious to minimise the hardship involved. Discussions could take place with a view to, for instance, reducing the number and Finding other work for the remainder. Another suggestion is that those involved should take their holidays now. That would mean that the period off work before cattle become available again would be short.

The immediate cause of the close down is the shortage of cattle. I am aware that at this time of the year there is always a shortage of cattle but for a long number of years there has not been any trouble in the industry or closures. The last time there was any difTiculty was in 1972 when staff were put on short time for a period. The arrangement then did not work out very satisfactorily. Everybody feels that the shortage of cattle is an artificial one that has been created by the crazy 2 per cent levy announced in the budget. Farmers rushed to avoid paying that levy, a natural reaction, and anything that was fit or near fit for sale was sold. The cattle that are left are in poor condition because of the hard and long winter and the fact that there is no fodder available. There is little grass to put condition on them and the anticipation is that cattle will be in short supply for some time to come.

If the Minister moved quickly in relation to this problem some hardship could be relieved. We all have a responsibility to try to avoid hardship. In the long term there are other procedures that could be adopted in relation to the entire processing industry. One of the things that has been causing difTiculty is the MCAs not applying to certain processed products. I understand that that position has improved substantially due to the devaluation of the British Green £ by 5 per cent and the improvement in sterling and that the loss involved on the raw materials is : now less than it was. However, it still represents on a normal sized bullock a £5 difference and on cows a difference of £8 to £10. It is still serious and there is still an element of instability there that must be rectified. That can fluctuate and people cannot seriously go into further processing that is possible and necessary to keep people employed until some stability is brought into that sector. The only way that can be done is to rectify the MCA situation as a matter of urgency.

An Ceann Comhairle

The Deputy is straying from the subject matter, the closing of the factory.

Mr. Clinton

I am talking of the future of the factory and I do not wish to go outside that matter. Another matter that has a bearing on this subject is the fact that there is no money in winter feeding. There is this seasonal supply situation. On at least three occasions I pressed very strongly in Brussels for a phased intervention price but I failed to get agreement. I am convinced that a special case could and should be made for Ireland and that this is the time to make such a case because of our very exceptional position in that the bulk of our beef is produced on grass and, consequently, is very seasonal. In addition there is no other country in Europe in which, there are the same number of sales from one place to another, where there are the same number of movements. Elsewhere cattle are produced and finished on the same farms. Our processing industry is extremely important. It provides much employment. The plant at Leixlip is not the only one processing in this country that will be in trouble in the very near future. Reading the Order Paper today I was interested to note a motion from a Fianna Fail Deputy calling on the Minister to initiate a livestock development programme for beef production. That Deputy, too, obviously sees the prospects that are in this area and realises the amount of employment that this type of industry can provide.

We must do everything possible to bring about the provision of the extra raw material for processing by way of the dairy industry and by way of an expansion of that industry. Too much concern is expressed regarding the expansion of milk production. Our production represents only 4 per cent of the total supply in Europe. Therefore, we must be concerned about our own position. There is an unhappy situation in the processing industry generally but the situation at Leixlip is most unfortunate. I note that the plant has been delisted for the processing of meat for the American forces in Europe and that is another reason for the closure. That meat is now being processed at Grand Canal Street. I understand it was a rough decision on the part of the Americans to make this change but it is something that can be rectified quickly. However, I am asking the Minister to rectify what he is in a position to rectify and thereby to minimise the hardship involved for the workers at Leixlip.

Minister of State at the Department of Agriculture (Mr. Hussey)

The Department's veterinary personnel at Irish Meat Packers, Leixlip, were informed a few days ago that the factory would be closing on Friday next for a period of four weeks or so. They were not told the precise reason for the closure and as of now I do not know what is the reason. The latest information I have-and this was up to 6 o'clock this evening-is that the closure will go ahead and will be for a period of four weeks.

I understand that the Minister for Fisheries and Deputy Lawlor visited the factory this morning and had consultations with the management and the shop stewards. Whatever the reason for the closure it certainly cannot be blamed on the 2 per cent levy. Slaughter cattle are always relatively scarce at this time of the year and this year is no exception. It appears that the late spring and the scarcity of grass, by delaying the finishing of cattle has made the seasonal scarcity even more noticeable than usual. The current very high prices for cattle reflect that shortage to some extent. I can only assume that the factory management have taken the view that it is economic in the short-term to continue in operation when the supply of cattle is less than the management would like to handle and when cattle prices are higher than they would wish them to be. If this is their view there is nothing that either the Minister or I can do about it, however much we may deplore it.

It is essential to realise that this is a temporary problem. With an improvement in the weather the supply position will ease considerably in the coming weeks and factories should be able to get the level of supplies needed for profitable operation. It is not reasonable to suggest that there is a crisis in this area when all that is involved is the short-term closure of one meat factory. We must realise that the cattle that would otherwise be slaughtered there will maintain employment at other plants. It is not helpful either to suggest that jobs are at risk, The closure is for a few weeks at most.

Mr. Clinton

Four weeks.

Mr. Hussey

I am confident that this plant, which is one of our foremost and most efficient meat factories, will be in full production again very soon. There is the underlying problem that has implications for all our meat plants during the next year or two and that is the slow growth in the national herd. The effects of the h^avy cow slaughterings of a few years ago are still noticeable. Among the Minister's priorities is the achievement of significant growth in this area but in the shorter term factories will have to get their additional supplies by way of more effective competition with the live export trade.

Mr. Clinton

That is a poor show.

The Dail adjourned at 9 p.m. until 10.30 a.m. on Thursday, 10 May 1979.