As the House probably knows, the Sallins meat processing factory which was upgraded about five or six years ago, was one of our most modern and efficient meat slaughtering plants in Ireland. The people of the area, the employees, the management and all those associated with the plant were of the opinion that it was well capable of surviving for the foreseeable future. Therefore, it came as a great shock to the people of the area when on 3 April last notice was given to the employees that the plant would be closed with the loss of more than 100 jobs. The closure of this plant will have a number of serious consequences unless action is taken.
The closure of the plant will have a devastating effect on the local economy, with a consequential detrimental effect on the national economy. Some weeks ago I put down a question to the Minister for Agriculture and Food on the closure, and he replied that this was a matter for the owners of the plant. I accept that the owners are responsible for the running of the plant, ensuring that it stays in operation, etc. but the letter issued to the union representatives on 3 April stated:
You will appreciate that in view of the protracted period of "lay-off" at the group's factory in Sallins and with no prospect of a resumption of work in the foreseeable future there is an obligation on the group to decide on a course of action for the factory and employees.
Any decision on the future of the factory must have regard to the generally depressed state of the markets for beef in third countries, the aftermath of the Gulf War and BSE scares. All of these factors combine to make beef slaughtering for third countries very difficult and this situation is likely to continue. Consequently the group is not in a position to resume operations at the Sallins factory and in accordance with the redundancy payments Acts 1967-84 has decided to make the workforce redundant.
That was soul destroying for the employees at the plant and the people in that general area. We in County Kildare lost a similar plant at Leixlip some years ago and this, on the heels of that, is a huge blow to the local economy. More important, the factors outlined by the group chief executive in that letter to the unions at that time refer to the Gulf War, the difficulty in selling to third countries and the BSE scare. The Minister has responsibility for the latter. There would not be a scare detrimental to the selling of our products in countries outside Ireland if the necessary action had been taken. I can accept the Gulf War was a problem, but the other factors should not have arisen having regard to the fact that the plant had been modernised. All the work necessary to ensure continued employment and slaughtering at the plant had been carried out.
I am fully aware of the alleged overcapacity in regard to slaughtering. I would remind the Minister, however, that only a couple of years ago a huge PR operation was launched when further slaughtering facilities were being provided at other centres throughout the country. That is all very fine. What is peculiar is that in County Kildare we have lost two plants. The last plant to close was a very efficient one and there was no reason why it should close if the marketing factors had been carefully monitored and the necessary remedial action had been taken by the Department. Notwithstanding the fact that the Minister said previously, in reply to parliamentary questions, that that was a matter for the owners, there is also a responsibility on the Minister, and his Department, to examine the possibility of reviving the plant and ensuring continued employment in the area. He should examine the possibility of eliminating the difficulties that have arisen in the marketplace to ensure that other plants do not suffer the same problem.
