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Dáil Éireann debate -
Wednesday, 28 Nov 1984

Vol. 354 No. 5

Private Notice Questions (Resumed). - Clover Meats Group.

Why have the ACC acted so hastily with this firm which employs over 800 people while a few years ago on a different basis the ACC were very patient to see that employment with them was preserved? The Minister did not spell out when questioned by Deputy Ormonde the cause of the cash flow problem here. The cause was the very bad agreement made in connection with intervention payments, increasing the time from 30 days to 120 days. Millions of pounds are tied up for four months. That is the cause of this problem. Do the ACC say that they could not see the difficulty there?

A question Deputy.

I am repeating the question that Deputy Ormonde put which was not replied to. Why did the ACC act so hastily against the co-operative group who employ 150 people in my town of Clonmel? Why did the ACC act in such a fashion? Pennies from day to day will not do and we will not tolerate it.

Please let the questions be answered.

Like Irish Shipping, this company has been sold down the drain. If this Government do not take action they should be put out.

Some Deputies are responding as if this was over and done with. Nothing could be further from the truth. As I have said, following discussions over several days, in which the Minister took a leading role, an outline agreement has emerged. The details of this were subsequently finalised between the company and the financial institutions without the Minister and the Department being involved. The new agreement provides, inter alia, for additional finance with Clover Meats as they rationalise their operations.

I am calling Deputy Dowling and then Deputy Aylward, and that is the final question.

Why did the ACC give a prior commitment in writing to finance the operations of the Clover group in Waterford? I would like to add my voice to express my disappointment at the manner——

I am asking a question about the manner in which the ACC have withdrawn their commitment to supply a written agreement on finance and have brought about the problem of other banking institutions withdrawing their support. This has undermined confidence in the whole Clover Group area. Further, is it a fact that were it not for the intervention of the Minister for Agriculture last week a liquidator would have gone into the Clover Group in Waterford and that £3.5 million to £4 million of farmers' money in the south-east region would have gone and they would not have got one penny?

I can appreciate——

Get the Government out. That is what we want. We do not want to take up the paper in the morning and find companies out. We want the Government to act.

I appreciate the Deputy's anxiety but, as I have said, the Minister has already acted.

Would the Minister outline in detail the steps taken by the Government with the ACC to make sure that the moneys promised to Clover Meats would be made available? The commitment was reneged. Would he outline the steps taken by his Government to ensure that the money was made available?

I have called Deputy Ormonde.

Would the Minister agree that the performance of the ACC has been nothing short of disgraceful in relation to this? They have shown scant regard for Irish farmers and Irish workers. Surely the Minister concerned can direct the ACC as to how they should act. After all, it is the responsibility of the Government. The Minister made reference to a slimming down process. Would he indicate what he means by that?

What was the final point?

A slimming down of the organisation.

My name was on this question and I want to ask a question just as everybody else has done.

Every name in the House could go on and I could not let them all in.

The Minister has had discussions with the ACC and the banks. As a result of those discussions he has steered the whole negotiations back to the company and the lending institutions.

It is not a company.

They have worked out the details. Furthermore, a firm of consultants have been called in to ensure that the right action is taken to guarantee——

The Government own the ACC.

(Interruptions.)

I have been trying to get in for the last ten minutes.

I cannot let everybody in.

Would the Minister be more specific about what arrangements are being made with the lending institutions and what rationalisation has taken place? We have arrangements this afternoon to meet the ACC and Clover Meats and the Minister if necessary, and we are entitled to know these facts. Surely the Minister has a responsibility in relation to the ACC control and what they are going to do about this. The Minister should not hide behind the vagueness he has adopted. He should give us the facts.

Is the Minister aware that this is not the first time that the ACC pulled the plug on a company such as this and on many farmers also? Since he has already agreed that the Government own the ACC, can he tell us what he intends to do to ensure that the ACC will live up to their commitments to Clover Meats? This is very serious. Is the Minister aware that 900 jobs depend on his action here this evening?

All I am going to tell the House is that the ACC are having and have had a series of discussions with the company and with the other lending institutions. These discussions proved fruitful and a course of action has been worked out for the salvation and viability of the company. That is the position now.

(Interruptions.)

I am calling Deputy Bertie Ahern.

In view of the unsatisfactory answer given I intend to raise this matter on the Adjournment.

The Chair will communicate with Deputy Molloy.

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