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Dáil Éireann debate -
Tuesday, 28 May 1991

Vol. 409 No. 1

Ceisteanna—Questions. Oral Answers. - Classic Meats Plants Disposal.

Peter Barry

Question:

5 Mr. Barry asked the Minister for Industry and Commerce if he has satisfied himself that Classic Meats have disposed of the four plants at Tyrone, Tipperary, Longford and Kilkenny in a manner that complies with his 1990 ministerial order.

Pat Rabbitte

Question:

7 Mr. Rabbitte asked the Minister for Industry and Commerce if he has yet received the extensive additional information which he told Dáil Éireann on 24 April 1991 he had requested from Anglo Irish Beef Packers regarding the purported disposal of the four Classic Meats plants; whether any deadline has been set for the receipt of such information; and if he will make a statement on the matter.

I propose to take Priority Question No. 5 and Oral Question No. 7 together.

Since my reply on 24 April 1991 on this subject, I have received additional information from the relevant parties involved in these transactions. This additional information suggests that the orders have been complied with to the extent that I am informed that disposal of the four plants has taken place. However, a feature of the orders is that the disposal of the plants must be in such a manner that they thereby cease to be under common control with AIBP, and AIBP do not own, control or make use of any of these assets. On that aspect it has not been demonstrated to me that the purchasers are independent as required by the order. I would, however, draw the attention of the House to the fact that it is only in circumstances that the conditions set down in the order are fully met that title to the Bandon and Donegal plants can pass to AIBP.

What are the implications of the order not being complied with?

If the order were not complied with — and I put that forward as a hypothesis — title to the two plants I mentioned at Bandon and in County Donegal would not pass to the purported purchasers.

Would they then remain the property and be under control of AIBP?

No, they would remain the property and under the control of Master Meats Limited who are now, as I understand it, the official legal owners. The Deputy will, of course, recall that the Fair Trade Commission found, as a result of inquiries they made, that Master Meats Limited were controlled by Mr. Larry Goodman.

If the order is not complied with these meat plants are still under his control, is that correct?

Presumably they would but the situation is complicated by the fact that while we were told a year ago that these plants were not in the ownership or control of the Goodman organisation they have since been shown by the examiner appointed to that group as being among the assets of the group. The situation is certainly confused but what is important is that the people who will own 60 per cent of the Goodman group if and when the package is signed — and this has not happened as yet — presumably will not have title to those two plants which appear to form an integral part of the overall rescue package. It is not necessary for me to draw their attention to this as I am sure they are well aware of it. If and when they sign the agreement with the Goodman organisation no doubt they will raise that matter with the principals of that organisation.

Would it be correct to say that the implications are very serious in as much that the rescue package for the Goodman group could fall as under as a result of this?

The parties to it will have to have regard to the law and to the implications of the 1978 Act and of the orders which have been made under it.

A final question from Deputy Barry.

I am not worried about the Goodman group and the banks in particular in this regard but rather about the farmers who depend on these plants to take the beef and export it subsequently.

It is my understanding that the two plants are in operation. I can assure the Deputy that to the best of my knowledge there is no shortage of slaughtering capacity in the beef sector.

According to newspaper reports——

A final question, Deputy Barry.

——Mr. Goodman's organisation have said that they are cooperating fully with the Minister's Department and have satisfied them that the sale of the plants is legitimate.

In the usual manner.

As always.

I hope for the sake of the farmers the Minister will remove the uncertainty hanging over the beef sector at present.

As the Deputy will appreciate, it is not entirely within my control to remove uncertainty in this matter.

The Minister can facilitate this.

That is a matter of opinion. One can only make progress if there is a co-operation on all sides.

The Minister can encourage progress.

I have been seeking for quite some time to encourage progress.

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