Vol. 407 No. 3
22 Mr. O'Shea asked the Minister for Agriculture and Food if he will outline the role the IDA have played in the talks which have been taking place regarding the possible merger of Waterford Co-op and Avonmore; if he considers this an appropriate role for the IDA having regard to the fact that such mergers generally lead to job losses; and if he will make a statement on the matter.
The IDA strategy for the food and drink industry 1988-92, through which Government policy for the industry is being implemented, states quite clearly in the chapter on the dairy sector that the authority will actively promote and support restructuring of the Irish dairy industry through amalgamations, mergers and acquisitions. In pursuance of this policy, which is essential to secure the long term future of the dairy industry in increasingly difficult and competitive international markets, the authority have been in discussion for some years with the main companies in the sector regarding their development plans. However, it would be inappropriate to comment on any particular discussions which may have taken place with individual companies as these are confidential between the Authortity and the companies concerned.
I take it that the Minister is telling the House the Government see it as appropriate for the IDA to act as an initiator and a facilitator in terms of mergers in the dairy industry. What is the Government's concern about jobs in the dairy industry, particularly in some of our small towns where high tech jobs are involved in that industry? If there are mergers, these jobs will be lost which will be a very serious loss to the towns, especially when they are added to the number of other jobs lost. Are the Government losing sight of the fact that the most important consideration in any industry is the protection of jobs?
The concern of the Government is the creation of an internationally competitive dairy industry in Ireland. The Government are aware of the increasing international competitive aspect of the dairy industry world wide. With challenges like the reform of the CAP, the emergence of supplies from Eastern Europe and the impact of the GATT negotiations, there is an increasingly competitive international climate for the dairy industry to survive in. The Industrial Development Authority are aware of this increased competitiveness but they also appreciate the importance of retaining as many jobs as possible, and it is a part of their policy to provide additional jobs. As a part of the policy from 1988 to 1992 they visualise the creation of 750 additional jobs in the industry.
In his discussions with the IDA, has the Minister discussed any minimum number of co-operatives he would like to see in existence in the country? Are we to have two co-operatives or five co-operatives; has any figure been mentioned? Is it the Minister's strategy to reduce the number of co-operatives significantly?
There is no specific number of co-operatives. What is quite clear is that the structure of the industry has to be rationalised and made more efficient and that can be done by co-operatives merging or between co-operatives where, at particular times of the year because of the seasonality of production, they can co-operate in the production of various products. What is quite clear is that the development of an efficient processing industry in Ireland is the only way for the future.
It is well known that mergers and rationalisations bring about job losses. Has the Minister, in conjunction with the IDA, any proposals to ensure that there is no overall loss of jobs in the food industry?
As I stated earlier, it is a part of the IDA policy to retain as many jobs as possible in the industry and, with joint ventures, mergers and associations with foreign companies, the IDA envisages an increase of 750 jobs between now and 1992.
In the dairy industry?
Yes.
