asked the Minister for Agriculture if he will make a statement on the recent report of the Irish Sugar Company, with particular reference to the fact that the company have to provide a social service for which the Government do not compensate them.
Ceisteanna—Questions. Oral Answers. - Sugar Company Report.
13.
I am, of course, disappointed at the trading and other results shown in the report referred to and note that some of the current difficulties are attributed to certain sectors of the company which are non-viable. At the same time I appreciate the efforts being made to restore the company to profitability.
Since 1982 successive Governments have provided £50 million in new equity to the company, bringing the total capital issued to £57 million. The most recent injection of £20 million was made in conjunction with the decision to keep the Tuam premises open and this was subject to a requirement that the company adopt rationalisation measures which would result in significant savings in the cost of operating the factory.
Would the Minister comment on the statement of the chairman of the board of the Irish Sugar Company that the company plan to spend £7 million this year and a total of £30 million over the next few years in the main sugar factories? The chairman made particular reference to the fact that there would be no capital investment in the Tuam sugar factory. Would the Minister agree that this is total discrimination? Will he direct the board to ensure that there is equalisation and pro rata investment in Tuam?
I am calling Deputy Kitt because time is almost up.
Does the Minister accept the report which speaks about a £3 million loss in Tuam last year when the wage bill in that factory was not even £3 million? This was at a time when the sugar company actually provided £8 million for redundancies.
I would not like to lead the Deputy astray by saying I will direct the board to do this thing or that thing. I will not. I nominated the board. I will tell them to go away and do their job, and unless somebody points out that there are some fierce irregularities, I will not do anything at all. I feel the board of the sugar company have a job to do and they are doing it as best they can. It is a very difficult job in view of the losses sustained. I am somewhat disturbed by what has been said here today — I was not aware of it previously — that moneys were being provided but none of those were going to Tuam.
Is the Minister accepting the report?
I have no reason not to accept it. I am sure the company have got their figures relatively correct.
Is the Minister accepting that we are losing £3 million?
That allegation is continuously being made.
Has the Minister checked it?
I have asked the sugar company and they tell me that their figures are correct.
Will the Minister check it and report to the Dáil?
I wish to raise on the Adjournment the subject matter of Questions Nos. 13 and 17 and the position in regard to the Government guarantees for the sugar factory in Tuam.
I will consider the overall position generally and will communicate with the Deputy.