Deputy Ormonde, Deputy Aylward, Deputy McCarthy, Deputy Hyland, Deputy Seán Byrne, Deputy Jackie Fahey, Deputy Nolan, Deputy Hugh Byrne and Deputy Browne have been given permission to put a question on Private Notice to the Minister for Agriculture. Will Deputy Ormonde please read the Question?
Private Notice Questions. - Clover Meats Group.
A Cheann Comhairle, thank you for allowing the question. The question is to ask the Minister for Agriculture if, so as to allay widespread public anxiety and concern especially amongst the employees involved, he will state the plans the Government have to protect the future of the Clover Meats Group.
During the past week the Minister for Agriculture has had discussions with representatives of the Clover Meats Group and the financial institutions——
On a point of order, it is traditional in this House that there should be a Minister of the Government present on the benches during Question Time.
The Chair has no control over that nor, so far as the Chair is concerned, is it necessary.
It is a time honoured tradition. I know the Government are walking and trampling on every institution of the State. This tradition at least they might preserve.
It seems incredible that the Minister for Agriculture is not here.
I should like to explain that. The Minister for Agriculture has a prior appointment this morning with members of the European Parliament.
Are they more important than the people of Waterford and the south-east?
A Private Notice Question has been allowed. At least the Minister should be allowed to answer it.
The Minister should be here to answer it.
I will repeat the answer. During the past week the Minister for Agriculture has had discussions with representatives of the Clover Meats Group and the financial institutions concerned about difficulties which were being encountered by the company. As a result of those discussions an outline of possible new arrangements emerged and these were subsequently finalised between the company and the financial institutions.
The arrangements provide for additional financing for the company and will involve some rationalisation of the company's operations. There is to be an immediate study of the entire group by a firm of consultants with the objective of placing the group on a viable basis. This is expected to involve some slimming down of the group. It is important that there should be the fullest co-operation from the company's management and workforce in implementing the arrangements agreed upon so as to ensure that the company will continue to make a significant contribution to the economy of the south-eastern region.
So far as the Department of Agriculture are concerned, all payments in respect of intervention purchases and export supports are being made to the company at the earliest possible date permitted by EC Regulations.
I might add that it is important that we should not say anything in this House which would exacerbate in any way what the chairman of Clover Meats has referred to as a crisis of confidence.
Would the Minister not confirm that his Department agreed that intervention payments should be made at intervals of 120 days rather than the practice heretofore of 30 days and that this had a major effect on the cash flow situation of Clover Meats? Would he comment now on this?
The Department of Agriculture have substantial dealings with Clover Meats in respect of intervention purchases of beef and in respect of export refunds and variable premium payments. Yesterday, certificates of debt to the value of £0.5 million in respect of intervention purchases of beef were issued to the company. These certificates, which permit the Department to pay the amount involved to a specific bank account after the 120 days' delay required by EC regulations, assist meat factories in obtaining financing. I might add also that if we breach that, we could jeopardise our intervention payments.
It was you who made the arrangements.
No, it is an EC arrangement. Nearly £5 million is currently committed to Clover Meats bank account under these certificates. Yesterday, also the Department made payments of over £260,000 to Clover Meats in respect of export refunds and variable premiums. Apart from some £15,000 which has already been paid and about £45,000 which again is being cleared, no further sums are likely to become payable in the near future. However, certificates of debt to the value of about £400,000 are expected to be issued within the next week and about £250,000 per week for some further weeks after that.
Does the Minister not agree that this is an act of gross irresponsibility on the part of the financial institutions which are mainly responsible for the present crisis? An institution which was formed, in the first instance, to support and assist the agricultural community have put at risk the security of almost 900 people. This is matter of great concern and special intervention can be made by this Government to ensure that the jobs of the 900 people are maintained in the south-eastern region. Also, as the Minister has said, a crisis of confidence has been created for the management, the employees and the suppliers of this company. There is a precedent for direct Government intervention. Might I say, when my party were in Government this company were in grave financial difficulties and the Government of the day intervened on behalf of——
The Deputy must ask a question.
——the employees of this company and I ask the Minister to do that now.
We directed the Agricultural Credit Corporation to do that and the Government can do it now.
The Deputy must refrain from interrupting. I call Deputy Jackie Fahey.
Could I have a reply to my question, please?
The Agricultural Credit Corporation were mentioned. The situation is a very complex one. It is well to bear in mind that Clover Meats are a private company with their own board of directors and their own shareholders. It would be undesirable to become involved in a discussion on the details of the ACC or Bank of Ireland relationship with Clover Meats.
A Cheann Comhairle——
I shall have to cross the floor. I call Deputy Seán Treacy.
Is the Minister aware that a meeting of Dáil Members of the constituencies involved has taken place and as a result I was requested to seek a meeting with the executives of the ACC? That meeting will take place at 4 p.m. today. Is the Minister further aware that the Deputies of the constituency and Members of the Oireachtas generally hope to meet the management of Clover Meats and possibly Fóir Teoranta and the Minister for Finance and Agriculture later this evening? In the light of these endeavours on behalf of all of us, would the Minister please assure us that he will use his good offices to ensure the success of all our negotiations and endeavours towards the stabilisation of the industry and the safeguarding of the jobs involved, almost 1,000 workers?
I am reassured by the Deputy's words. I certainly will help in any way possible in the efforts that the Deputies are making.
I am disappointed that the Minister is not prepared to give a greater commitment as far as the saving of Clover Meats is concerned. Does he realise the seriousness and importance of this matter, not alone from the employment point of view, Waterford city and the area around it being at present a disaster area? I take it from what the Minister has said in describing this as a private company that there is a certain washing of the hands, a Pontius Pilate act in it. Is he letting it go the way of many other industries in the past?
Deputy, please.
I say, too——
Just wait a moment, Deputy. The Chair regards the expression "Pontius Pilate" as unparliamentary. I will ask the Deputy to withdraw it.
(Interruptions.)
I am asking the Deputy to withdraw it.
I am not withdrawing anything that I have said. The Minister for Agriculture has treated this question with contempt. It is his own constituency.
Deputy, please.
There is no Minister here in the House to answer the question.
Deputy Fahey, please. When the Chair is on his feet other Deputies will sit down.
There have been many liquidations. Are the Government going to have another in Waterford? We are not going to stand for that.
Would the Deputy please resume his seat?
Does the Minister mean to go ahead with this?
If the Deputy does not resume his seat, he will have to leave the House.
The Deputy wants to do that.
(Interruptions.)
If Deputy Fahey does not resume his seat, I shall have to ask him to leave the House.
We are not going to tolerate that.
I shall ask the Minister to move the suspension.
The Minister is reneging on his responsibilities.
I have named Deputy Fahey and I am asking the Minister to move his suspension from the service of the House.