asked the Minister for Agriculture if he will consider taking some initiatives to bring about the early re-opening of a number of meat processing plants in the country, with particular reference to County Kildare which has been severely hit by job losses in the last three years and where there are now two such plants closed with a loss of more than 600 jobs; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Meat Processing Plants.
3.
The question of re-opening the two meat plants referred to by the Deputy is primarily a matter for the proprietors. My objective is to create the conditions in which cattle production can expand and the trading environment in which the meat factories can prosper and develop. With regard to the expansion of the cattle herd there are already a number of measures in operation such as the calved heifer scheme, the calf premium scheme and the suckler cow scheme, as well as the headage payments in the disadvantaged areas. As regards the trading situation, EEC export refunds now favour exports as beef rather than as live animals. Arising from the recent EEC price negotiations and this month's meeting of the Council of Agricultural Ministers the support price for beef is, of course, being increased by a total of over 14 per cent. This should have a further stimulating effect on cattle production and on factory throughput.
Having regard to the fluctuations which the meat processing industry has gone through during the past few years would it not be opportune at this time to meet with the various interests involved in the two plants in County Kildare mentioned in the question in order to ascertain whether it would be possible to work out some kind of long-term strategy for the meat processing industry? I accept what the Minister has said in relation to responsibility as far as the owners are concerned.
I have no objection to meeting the meat processors to discuss longterm plans. The two factories mentioned in the question are the IMP factory in Leixlip and Premier Meat Packers in Sallins. There are negotiations going on between the IMP management and the trade unions at present with a view to rationalising operations because the concern was losing a considerable amount of money. Similarly I believe the Premier Meat Packers plant was also incurring heavy losses. It was reported in the newspapers at the time of that closure that it would re-open in July and I hope it does.
Will the Minister give us a commitment that he will meet the people involved here? I would be very much afraid that a monopoly situation could emerge. I would ask the Minister to ensure that some of these plants will reopen this year to ensure that a monopoly does not take place in the meat business.
I will be only too glad to meet the representatives of the meat trade in general but I do not intend to get involved in individual discussions between unions and the owners of the plants involved. That is an internal matter.
As the Minister is aware, the meat factory in Midleton is also closed. I would ask the Minister and his Ministers of State why it was not reopened last April as the Minister of State for the area stated at that time?
A similar type problem exists in Midleton as in Leixlip. There are negotiations going on about the Leixlip plant. The Midleton plant is not referred to in the question. I am not sure if there are specific negotiations in that case but I will inquire and let the Deputy know.
Mr. Leonard
Would the Minister agree that some of the managers and operators of plants seem to be making very little effort to ensure a continuity of operation and are just creaming off into intervention? Would the Minister not agree that there should be something written into grants from the IDA and FEOGA, etc., to ensure a continuity of operation?
That is a separate question.
I agree with the sentiments expressed by Deputy Leonard. There should be a greater effort made to export beef rather than to sell it into intervention.
I seem to have read somewhere that beef slaughterings have increased by 8 per cent in the last 12 months. One might conclude from that that perhaps some new factories may be opening up and putting some of the older extablished ones in jeopardy.
The Deputy is making a statement.
Is there any possibility that grant aid might be given at this time to some of the new plants and as a result of that that some of the more established plants could be coming under pressure?
I do not believe that is correct. The figure of 8 per cent referred to is a comparison between the numbers of slaughterings so far this year compared with 1982.
The Minister is aware of the UK variable premium. In his EEC negotiations he asked the EEC to get rid of that. Would he not request that the EEC introduce that variable premium in this country and that would solve our problems in the meat plants?
That is a suggestion that was made from time to time by interests in the trade but it would cost the Exchequer an enormous amount of money. It has never been accurately calculated but the estimates are considerable. We do not believe that the EEC would agree to such a proposal. We have consistently objected to the operation of this premium where exports of beef to other countries are concerned. Our objections still exist and talks will take place between officials of my Department and the British Ministry of Agriculture on 24 June. I will be anxiously awaiting the outcome of these talks because there will be a need to take further action if we cannot have it resolved in bilateral discussions.