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Dáil Éireann debate -
Wednesday, 14 May 1986

Vol. 366 No. 5

Adjournment Debate. - County Kildare Mushroom Factories.

The Private Notice Question which I put down today was to ask the Minister for Industry and Commerce if he would make a statement about the imminent closure of the mushroom factories in Carbury, County Kildare, and the measures he proposes to take to save the 350 jobs in this vital industry. I wish to thank the Ceann Comhairle for allowing me to raise this matter on the Adjournment. I apologise to the Ceann Comhairle for any nasty remarks which I may have made in my endeavours to have this problem aired and I ask you, a Leas-Cheann Comhairle, to convey my withdrawal of those remarks to him.

For the past 28 years a good mushroom industry has grown and expanded in the Carbury area, Drummin Growers, Midland Growers and other sister firms started originally in an empty Bord na Móna camp. The industry gives employment to about 350 persons. Many of these jobs are female labour and are particularly important in a disadvantaged area of Kildare. Not alone does it include the Carbury area but also a very sizeable hinterland for miles around. In an area where job opportunities are few, where there is no hope of expansion in Bord na Móna and the ESB and where eventually turf supplies will run out, these two major employers will fold up. The serious impact of the impending closure of the mushroom factories cannot be over-estimated.

This area has seen the closure of Ceca, a French factory which makes carbon from turf, because of increasing costs. It has seen the closure of Robertstown Hotel and the dimming of the vision of the late Reverend Fr. P. J. Murphy to restore the waning glories of the Grand Canal. If the Government had their way, they would have seen the closure two years ago of the Allenwood peat fired electricity generating station, a decision which involved the use of Polish coal or Australian steam coal to make electricity rather than Irish turf which is still available in the area.

Some years ago Bord na Móna treated us to the premier of a local film which showed the evolution of Bord na Móna from the time of the great forests in the central plain through the first turf development board and down to the huge machines which are working on the bog today. That film was called Inné agus Inniú. It was a proud history. I want to ensure that there will be an amárach for this area too when Bord na Móna and the ESB have gone their ways.

Since 23 January this year the Carbury mushroom industry has been in receivership. In keeping with their previous record of good employment the factory was kept at full production. There was continuity of work and more particularly and importantly continuity of supply on the UK market. The receiver did not close it down. His aim was to keep it going and to try to sell it as a going concern. That has not been easy for the past four months. They have been losing money and they consider, rightly so, that the position is now unsustainable. They have come to the end of the road. It looks as if, by the end of May, we will also see the end of Carbury mushrooms. Measures have been taken already to wind down the operation and the production cycle will be broken. The biggest difficulty is the glut of mushrooms on the British market. That has led to a sharp drop in prices. The price of 60p per lb. is probably only a breakeven price for fresh mushrooms. The average price is 40p per lb. Prices as low as 27p per lb. have been mentioned for some grades. Even modern, up to date, recently built, family run, tightly knit units are going to the wall.

Some modern whiz kids will say that Drummin Growers are old-fashioned, that the system of trays which they use is archaic, that the modern system of satellites and small units growing in bags and supplying to one particular centre is the best. We must give credit where credit is due. This firm were a pioneer in the field of mushroom growing and they made a success of it for 28 years. If it is now necessary for them to modernise and to revamp, I would like to know what semi-State body or State grants are available to them to make themselves viable.

I listened to the Minister for Finance today at Question Time giving a dissertation on subsidisation and State aid. He explained that it would be wrong to give help in an area where it is likely to reduce employment in a similar industry down the road. I wonder did this type of thinking surface to any great extent when the new mushroom factories were mushrooming all over the country to put Carbury out of business and cause a glut on the market. It raised the price which suits no one only the British consumer. Even in the popular television programme of "Glenroe" we saw Biddy and Miley in the mushroom act.

In my schooldays the Irish word for mushroom was fás an aon óiche, the growth of one night. It might be uncomfortably appropriate for some of these Johnnie-come-lately outfits which we now have. I wonder if there was a degree of State subsidisation available to them which has been denied to the Carbury factory. This company have a cash flow problem. What attempts have been made to assist them? The area is obviously as disadvantaged as any other area in the country and deserves assistance. It may well be that a mushroom processing industry incorporated in the system would lessen the dependence on the fresh mushroom market. This might be the very scheme to tilt the balance in their favour. I hope this aspect has been and will continue to be examined.

I would like to stress to the Minister the need to be positive. We have 8 per cent of the British fresh mushroom market at present. The situation is not at saturation point despite what some pundits migh say. We could capture 10 per cent of the market and solve our difficulties. What is vital now is to give every assistance to the industry to hold their share of the market, to maintain continuity of supply and to be in a proper position to move ahead when times improve. I ask the Minister not to let this industry be another sad statistic in the litany of factory failures. There is a good employer there. There are no employer-labour-shop steward problems. There is an anxiety to provide continuity of employment. There is a willingness among the workforce to work. Surely there is an onus on the State agencies to match that willingness.

Traditionally summer time is a bad time for selling mushrooms. Demand falls off and there are losses. Usually the demand in winter time makes up for this and the books are balanced. I want the Minister to do something to bridge that gap. There is a trend of opinion that Dutch mushrooms are being dumped on the British market at much less than the cost of production. There are those who will say that with their in-built, cheap energy subsidisation the Dutch can afford to do this until they cut out the opposition and have a monopoly of the trade in mushrooms just as they have cornered the tomato industry.

We can ask ourselves why is it that the gas line which Fianna Fáil brought so swiftly from Cork to Dublin did not become extended in spurs to provide a cheap energy source for our own horticultural and glasshouse industries and particularly the mushroom industry. That is the problem which Deputy Connolly and I wished to raise today by Private Notice Question. It includes the real world where people live and work, rear their families and try to pay their way. They want to see a life for themselves other than life on the dole. They might see the debate on divorce today as an indication of how difficult it is to have their problem aired. As I mentioned before, they can see this House as divorced from reality and that their public representatives are not really in a position to represent them. These simple country people faced with a destitute future with the closure of the industry believe that their lives are irretrievably broken down. We, as public representatives, are concerned on their behalf and I hope the Government and their agencies and all the facilities they have at their command will help this industry and the jobs depending on it.

I support Deputy Power regarding the mushroom complex in Carbury. Three individuals in a limited company are involved. The firm has been in receivership since early this year. They had been very good employers, providing jobs for 350 people in an area otherwise without industrial employment. The workforce were very young in a rural area stretching from Clane to Edenderry in Offaly. There are no industries in that area capable of absorbing those workers and of giving them hope for the future.

This industry's problems were exacerbated by a glut of mushrooms on the British market. We Irish are excellent Europeans, abiding by all the Community's rules and directives and we behave ourselves as good Europeans. However, it seems to be possible for other member states to dump their goods wherever they like and that is why this industry has been forced to close.

I appeal to the Minister, though this is not strictly a Government problem, to get the Government agencies to do everything in their power to bring some relief to this area of County Kildare. Mushroom production is part of our food industry, and when we joined the EEC in the early seventies I thought that from the point of view of economics joining a free trade area would bring immeasurable advantages to us as a food producing nation. I thought that we would be encouraged to produce the goods that we were best at, based on the theory of comparative advantage. We thought we had an inbuilt advantage in food production and that within a free trade area we would be able to expand all branches of our food industry.

It amazes me that in County Kildare there are three meat factories two of which are closed at present and the other on a short working week. They are part of our food industry which has not been thriving. We must have gone seriously wrong in our industrial policy over many years if we cannot sustain such industries in free trade conditions. It seems to me that the original idea of the Community has not worked at all. The Minister of State, Deputy Hegarty, knows the problems in his own constituency, particularly in Midleton. The spectacle of so many food factories being closed suggests that something must be done urgently.

The area in which we are interested has not had a great industrial history. The power station at Allenwood will be closing down shortly and many jobs will be going to the wall. In a few years turf production in Timahoe, Ballydermot and their neighbourhoods will run out. Therefore, the Government should be preparing a long term strategy plan for that area of the midlands from the middle of Kildare into Laois and Offaly. If we do not take action now, in five years that area will be destitute from the point of view of jobs.

The mushroom industry has given excellent employment and I ask the Minister again to encourage the IDA and Fóir Teoranta to assist in a rescue bid. This industry has a long term future. If such industries have not got a future in Ireland we cannot foresee a future for what I call the matchbox factories producing Black and Decker tools, cameras etc.

I thank my Fianna Fáil colleagues for giving me an opportunity to speak for a few moments. I, too, had a parliamentary question disallowed on 5 May on this subject. Should this industry close it will spell social and economic disaster for north-west Kildare, an area that for 30 years has enjoyed continuous employment in an indigenous industry which has been self-supporting, which has bought all its raw materials locally and employed local people from north-west Kildare and Offaly. The company has had a very successful trading history.

People will say that as time passes and whiz kids take over and markets change, perhaps greater changes should be made, such as rationalisation. This private firm indicated their willingness at all times to co-operate with all State agencies in an effort to bring about rationalisation in the hope of saving the firm and the jobs. That being so, one expected that the State agencies would row in behind them and give them the support necessary. I give all credit to the IDA who have indicated their willingness to assist in revamping the plant so that as many as possible of the 360 jobs would be saved.

Unfortunately, I am not so impressed with Fóir Teoranta, who seem to look at the matter in a far more callous, economic light. They have not been forthcoming with assistance. They have indicated they want to see massive changes before they would put money in. As Deputies Power and McCreevy have said, this industry has been there for a long time. It has worked well and given good employment. Ninety-five per cent of their produce was exported, something to be proud of. Our export industries have shown great progress in recent years.

For all these reasons we should not allow this industry to disappear before our eyes. It has potential to develop exports and at the same time maintain its labour force. The area concerned can be regarded as disadvantaged in many ways. We would be neglecting our duty as public representatives if we did not bring sufficient pressure to bear on the one agency that can now assist in a worthwhile way, Fóir Teoranta. I repeat my appeal to Fóir Teoranta to look again at the proposals before them. A great deal of effort has been put into the proposed rescue package by the firm and the receiver. I am afraid that what is called rationalisation often turns out to be a much reduced version of what this industry has been. If that is to happen in this instance I can see the loss of the market share previously enjoyed by Drummin and Midland Growers in Carbury. I ask Fóir Teoranta to consider the 360 jobs at stake in an area that badly needs them.

I am aware of the financial difficulties which have built up in the mushroom production units at Carbury, County Kildare. The complex was set up in the sixties and represented an important unit of the national mushroom production and export over the years. Their problems emanated from the radical technological advances in mushroom production which have emerged in recent years. The traditional form of production in which compost manufacture and the growing of the mushrooms in large trays is carried out on a single mushroom farm has now changed to a system involving a central composting unit which distributes compost in growing bags to a number of satellite growers in the surrounding districts. The mushrooms are produced by these growers in polythene houses and are usually delivered back to a central packing centre for preparation and sale. This new system has major advantages in that the investment costs are spread over a big number of investors, labour costs are reduced and a high degree of yield and quality can be obtained. The satellite system has expanded considerably in this country in recent years and is now making a valuable contribution to increased competitiveness and expanding exports. Without the new technology we would not have maintained our position on the UK market.

Some of the traditional mushroom farms have adopted the new technology but this was not the case at Carbury. I understand that the receiver is trying to negotiate the sale of the company and it is hoped that he will be able to dispose of the assets. The IDA are keeping in close touch with the situation and will give every possible help to any new enterprise that may emanate from the sale.

We are encouraged by the fact that there has been quite an interest in the take-over. The enterprise is not a writeoff and I hope that jobs can be saved. There is a strong possibility that new technology will be adopted. I shall do everything in my power to ensure that mushroom growing will be continued in the Kildare area.

Reference was made to Dutch production of mushrooms but I do not think we need worry unduly. We were established in the English market long before the Dutch and we can and will maintain our position. However, we must be competitive and it is essential, therefore, that we adapt to new technology. Apart from the question of disease control, the use of polythene houses for the production of mushrooms is much more efficient. This fine industry has served the area well and I hope it will continue to do so, even though it may be in a different manner. Perhaps some of the people involved may become mushroom growers for the central unit. I give the House this commitment, that I will continue to be personally involved, as I have been in the case of IMP in Midleton where we have now a vigorous company involved in that undertaking.

Perhaps the Minister could do the same for the IMP factory at Leixlip?

There were problems in the food industry in Midleton and Mallow but with some effort the industries can be made profitable. It is my hope that that will happen.

The Dáil adjourned at 11.30 p.m. until 10.30 a.m. on Thursday, 15 May 1986.

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