asked the Minister for Agriculture if he will introduce a bonding scheme to protect farmers who deliver livestock to meat plants; if he will ensure that the creditors of Clover Meats Ltd. will be paid in full under the scheme; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Bonding Scheme for Farmers.
25.
In the particular circumstances of the livestock trade a bonding system could be open to serious abuse. Moreover, it would involve additional cost for the meat industry, which would be reflected in the prices paid to producers. If, however, farming organisations have specific suggestions to put forward in regard to protecting sellers of livestock, I will have them examined although it is doubtful if a bonding scheme would really be appropriate for the livestock trade.
So far as the creditors of Clover Meats Ltd. are concerned I regret that there are no funds at my disposal from which assistance could be provided.
The Minister will appreciate how important it is to get the Clover Meats problem tidied up. Has the Minister carried out any assessment of a bonding scheme as a way out of future difficulties like this?
We have examined the question of a bonding scheme in great detail and the consensus is that it is not such a good idea. It would tend to protect the inefficient operators in the meat industry and it would also be of fairly considerable cost to the farmer. In relation to Clover Meats, we certainly do not want to see a recurrence of that type of collapse. Certain moves are afoot, but I do not want to say too much here in case I cause ripples among the groups in consultation. However, I am encouraged by the nature of the discussions which are taking place. I do not want to raise hopes unduly, but people are working very hard and I have indicated that I will give every assistance towards resolving the problem.
Will the Minister agree that the collapse of Clover Meats Ltd. resulted from the refusal of the Government to underwrite additional borrowings for Clover Meats and that it has now been proved that Clover Meats were incorrectly brought into receivership?
I would not agree. It is not a question for my Department——
That is another question.
——but we have all heard about these stories that the company should not have been brought into receivership. However, the financial institutions made that decision; they decided that there was a case for receivership.
(Limerick West): The Minister seems to have some doubts about the implementation of a bonding scheme. Surely the Minister is aware that bonding schemes have operated successfully, for instance, for tour operators. Is there any reason why the farming community should not be protected in the same fashion? When the Minister refers to inefficient operators, or inefficient co-ops, surely he knows that there are inefficient tour operators as well?
That is so, but there are shortcomings in a bonding scheme. We have looked into it fully and the interested parties have acknowledged that there are shortcomings and that the situation is not comparable with the tourist industry where legislation is being introduced to protect people affected by the collapse of a tour operator. Negotiations are taking place. I cannot tell the Deputy the form of these negotiations but I hope they will bring about protection for the people who were caught financially.
The remaining questions will appear on tomorrow's Order Paper.
I am asking, for the fourth time, to be allowed to raise on the Adjournment the issue of Top Quality Products, Gorey, now in receivership, and the prospect of Government help to ensure that 250 jobs are not lost in that town.
I will communicate with the Deputy again.
A little more favourably this time, please.
I would like to raise on the Adjournment the change in the catchment area serving the Buttevant post-primary schools.
The Chair will communicate with the Deputy.
I would like to raise on the Adjournment the proposed closure of Scoil Ard Mhuire in Lusk.
The Chair will communicate with Deputy O'Rourke. Deputy Byrne will now appreciate the Chair's difficulties.
There is a special reason why I am not asking to raise a matter on the Adjournment.