Dairygold is a new co-operative body formed by the amalgamation of Ballyclough Co-op in Mallow and Mitchelstown Co-op. Mitchelstown will be devastated as a result of the proposed redundancies because it depends so much on the co-op and the subsidiaries for employment. The plans of the country's biggest co-op, Dairygold, to seek 250 redundancies immediately with a possible loss of a further 100 jobs later this year leads one to be highly critical of that body. I appeal to the Minister for Agriculture and Food and to the Minister for Industry and Commerce to meet with the co-op to see how the job losses might be averted. The redundancies would be a body blow to an area which has already suffered major job losses in recent years.
I accuse Dairygold of showing little regard for the interests of the workers who have made such a contribution to building the co-op into a major force. As soon as a co-op gets into difficulty they throw their workers on the scrap heap. We are all aware that agriculture is facing difficult problems but this cannot justify the callous treatment of workers.
When the co-op merger was announced last July I said the priority must be the preservation and maintenance of employment. The comforting words then uttered by the management and farm organisations about preserving the jobs of Mitchelstown and Ballyclough workers have proved to be of little value. If the job losses go ahead the loss of income will have a major knock-on impact on the economy of the entire area. Ballyclough shed 20 jobs last year. There are already 1,200 people on the live register in Fermoy and almost 1,500 in Mallow. Fermoy is the employment exchange that takes in the Mitchelstown catchment area. The loss of 350 jobs would lead to an increase of around 13 per cent in the level of unemployment in the area, a frightening prospect. Unless there is a rapid change in Government job creation policies the only option facing those who lose their jobs will be emigration or the dole.
The Government are reneging on their responsibilities to the people if they stand aside and accept job losses at this level without making some effort to save them. There are 243,000 people unemployed, representing 18.7 per cent of the workforce. This is the worst figure for more than two years and it will continue to worsen unless the Government take action. I want the Minister to seek immediate talks with the management of Dairygold to see how these redundancies can be averted. If they go ahead, the Minister should call in the IDA and urge that special priority be given to an industrial development campaign in the area.
It is particularly disappointing that this is a case of yet more redundancies in the food sector. Despite our natural advantages in terms of climate and land, our food industry has remained scandalously under-developed. Is it not appalling that we import more than £1,000 million worth of foodstuffs each year, much of which could and should be produced at home? The food industry should be a source of growth, not job losses. I strongly urge both Ministers to become involved in this issue straightaway.
