The House will now hear two minute statements on matters appropriate to the Minister for Industry and Commerce and the Minister for Agriculture and Food. I propose to call the Deputies in the following order: Deputy Flaherty, Deputy Nealon and Deputy Sheehan.
Adjournment Debate. - Industry and Commerce and Agriculture and Food Matters.
I am aware, a Leas-Cheann Comhairle, that you would be glad to share this opportunity to raise the matter of the loss of jobs at Munekata Ireland Limited in Finglas. We were all deeply concerned and disappointed when we heard that 140 jobs out of a total of 337 would be lost at that factory; a flagship industry in the Finglas area. They recruited in the main leaving certificate graduates in the area and by achieving quality standards they were able to win markets from their competitors in Great Britain. We are very proud of them.
While I am aware that they have been experiencing difficulties for some time this is an enormous loss in terms of the number of jobs involved. We are in a unique position, however, in that the Industrial Development Authority have a 10 per cent share in the firm as a result of an earlier company at the same location encountering problems. I ask the Minister to ensure that the minimum number of jobs is lost. I wish to pay tribute to Munekata Ireland Limited for adopting a familial paternalistic attitude towards the workplace and for moving slowly before coming to this decision. I am aware that attempts were made to retain their employees in the hope that the recession would ease more quickly.
However, we are faced with a disastrous situation. Is the Minister satisfied that only the minimum number of jobs will be lost and can she assure us — this is just as important for the area — that the plant is viable and will be in a position to provide employment again as soon as the market improves? What opportunities are available to relocate the skilled employees at other plants even though I have to accept that some jobs will be lost given the times in which we live? Finally given the direct interest the Department have in this matter, via the Industrial Development Authority, what arrangements have been made in relation to the redundancy package being offered to those who must go?
I thank Deputy Flaherty for raising this matter. Indeed, the Leas-Cheann Comhairle has spoken to me about it also. I share their concern about the difficulties being experienced by Munekata Ireland Limited which I am aware has been a fine employer in the area and has a fine track record with regard to their relationship with their workers and the standards achieved.
As the Deputies concerned are aware of the history of the plant, there is no point in outlining the background to this case. As Deputy Flaherty has said, and as the Leas-Cheann Comhairle informed me in his private conversations with me, the Industrial Development Authority are seeking to ensure that the number of redundancies is kept to a minimum. However, there is a world recession — we are tired of hearing this but it is the truth — and this type of industry depends to a great degree on external markets and marketing for their successes. Having said this the Industrial Development Authority will continue to promote the Finglas area in relation to industrial development.
While they are not unique the Industrial Development Authority have a 10 per cent stake in the company and will do everything possible to help this very valuable commercial firm which is going through a difficult patch. I hope that when world conditions and external markets improve the plant will be poised to move forward bolstered by whatever plans can be put in place. If there is a number of job losses involved the repercussions for any area would be serious but particularly so in this case given that the plant concerned is a flagship industry, as has been said.
Given the Deputies' interest in the matter, I will contact the Industrial Development Authority tomorrow to speak to the chief executive and ask him to note the concern which has been expressed in the House, to keep a particular eye on the firm and help them through their rocky patch.
I congratulate the Minister of State on his elevation which is long overdue. The European Community buy-up scheme for milk quotas attracted a quota total of 10.5 million gallons, half of which came from the Connacht-Ulster area. By definition, therefore, this half came from small farmers, people without big bank balances or resources.
Many of these farmers face a temporary difficulty — a cash flow problem if one prefers to use that kind of terminology. Their milk cheques ended on 31 March, at the end of the milk year, but the first of their yearly instalments of their surrender money does not come until, in the words of the Department of Agriculture and Food who administer the scheme, "in or about the month of August", a delightfully vague phrase if one is not waiting at the end of the road for the postman to come with a cheque "in or about the month of August." There is a further problem in that many of these farmers seem to have got the impression that at least some of the money will be paid in April.
I am aware that this is an EC scheme with EC money administered by the Department but I am sure the Minister of State will accept that there is a problem facing small farmers in Sligo, Leitrim, Mayo and many other areas who surrendered their quotas and who have now no cheques coming in until "in or about the month of August". That is a long wait and I appeal to the Minister of State to organise an early pay-out of the first moneys due.
First, I would like to thank Deputy Nealon for his kind good wishes on my appointment and also to thank him for raising this matter.
The recently operated Community milk quota buy-up scheme, which involves the payment of five annual instalments of 41p per gallon to the producers who offered their quota for surrender, was the only legitimate way for producers during the milk year just finished to sell their milk quota without selling as well the lands to which the quota attaches. It was made clear in the explanatory documentation in respect of the scheme that the premium would be paid over a period of five years, as already specified.
I have asked my officials to ensure that the initial payment is made as early as possible this year. However, the timing of the payment date is determined by a number of factors. 1. The scheme is funded by the European Community. The funds are being made available in five annual instalments, with the first instalment being provided during the first quarter of the Community's 1993 FEOGA Year, which starts in mid-October 1992. 2. It will also be necessary between now and the date of payment to verify the details provided by the applicants relating to quota and land ownership. In addition there is a legal obligation under the Community Regulations to ensure that before any payment can be made to eligible applicants under the scheme my Department must carry out verification checks to prove that the production of milk has been totally and definitely discontinued.
When the payment system is put in place I will review the timing of the issue of the payments for future years. If it is found to be possible to bring forward the payment date the necessary arrangements will be made. I agree fully with the views expressed by the Deputy in relation to the need to speed up payments of grants under all of these schemes. Certainly I am committed to streamlining the system and expediting these payments to the best of my ability.
The House will now hear a two minute statement from Deputy Sheehan.
I, too, would like to wish the Minister the best of luck in his new office and I hope he will benefit the agricultural community in this country.
The Minister is aware of the huge number of farmers who are deprived of the EC special beef grant owing to minor technical errors in either completing the application forms or disposing of some of their animals. It is a matter for each member state to determine on such minor technical errors and make a decision on same. In view of that will the Minister now give to the House an undertaking to certify all those outstanding claims for payment and have the cheques issued immediately to each applicant concerned?
Many of those applicants waiting to have a decision made on their claims are farmers in very poor circumstances. I need not remind the Minister of State how necessary it is that the Department should pay out those grants to those farmers. With rock bottom prices for cattle nowadays and obstacles in the way of development of agriculture, I appeal to the Minister of State to contact the Minister for Agriculture and Food and get him to adhere to the promises he made here on the night he was elevated as Minister for Agriculture and Food that he would see that each and every case held up for investigation of minor technical irregularities will be dealt with sympathetically by the Minister and issue cheques immediately.
I am delighted that on the first occasion I have had to deal with a grievance question in the House I have the opportunity to respond to Deputy Sheehan and to say to him that there are only a few of us left.
Firstly, I would like to assure the Deputy that the Minister has given considerable priority to dealing with problems associated with the operation of the special beef premium scheme since taking office as Minister. He accepted the recommendations in the interim report of the task force and arranged for overtime working in the local offices of the Department with the aim of speeding up payments under the 1991 scheme.
Considerable progress has been made in paying premium grants and I expect that by the end of this week over 80,000 special beef premium payments will have been cleared. This compares with a figure of 60,000 payments only three weeks ago. Since the Minister came into office on 14 February, over 40,000 grants have been paid and every effort is being made to clear the balance as quickly as possible.
I accept the point made by Deputy Sheehan that farmers are almost totally dependent on the payment of these grants. In many instances, particularly those relating to the dry stock industry, the premium payment represents the only element of profit, if it could be called profit, in terms of the farming operation. I have no difficulty in identifying with Deputy Sheehan's points.
Cases involving innocent error are being cleared for payment in line with the recommendations in the task force's interim report. However, it will not be possible to pay all farmers at the end of the day. This must be the case where substantially incorrect claims are made. I emphasise the word "substantially" because the Minister's instructions to the officials in the Department were to pay these grants and premiums in every case where it was possible for them to do so.
My aim is to ensure that all legitimate claims are cleared as quickly as possible. I believe that major progress has been made in paying over the special beef premium and I expect a high rate of progress to continue in the coming days. Every effort is being made to clear the backlog. We will do everything possible to ensure that the maximum number of grants are paid. Unfortunately there will be a small number that, for very obvious reasons, cannot be paid by the Department.
The Dáil adjourned at 5.50 p.m. until 10.30 a.m. on Friday, 3 April 1992.