Dáil Éireann debate -
Wednesday, 26 Feb 1997

Vol. 475 No. 5

Adjournment Debate. - Jobs in Shercock (Cavan) Plant.

Dr. O'Hanlon

Shercock in east County Cavan is located in the heart of the poultry rearing area. Carton's is an excellent company and has been in business in Shercock for over 30 years. It is the only major employer in the region. It has had an excellent workforce. The work ethic in Cavan-Monaghan is second to none and is accepted as such by many, especially employers.

The major growth area in poultry processing is in value added and the portioning sector. The company recently requested 28 redundancies, not because there was no work but to relocate in County Meath. The employees of the company and the people of Shercock are concerned about the implications of this move. Over 350 people work for Carton's in Shercock.

What has the Minister of State's Department done to protect the jobs? What has Forbairt done? Was the company approached? Was any effort made to get the company to develop in Shercock? Was any grant aid offered or was it offered to the company to develop elsewhere? Land is available in Shercock, there is a proven workforce and a ready supply of new labour.

People in my area believe that the Border counties do not matter to the Government. For the first time in the history of the State, there is no Minister from any of the Border counties. When opening a high-tech industry in Dublin recently, the Minister for Enterprise and Employment stated that one of the reasons for the industry's location was the efficiency of the Government. Can it therefore be taken that the reason jobs are not being created in the Border region is the inefficiency of the Government?

Of the 14,087 jobs created by foreign companies in 1996 only 22 were located in County Cavan. However, the county lost 84 jobs. Twenty-five new overseas jobs were established in County Monaghan while 23 jobs were lost. In response to a parliamentary question, the Taoiseach told the Dáil on 18 February that of the eight regions in the country, the Border region had by far the highest unemployment rate at 15.2 per cent.

There is support for the region from outside the country. For example, the USA is prepared to give support through the Washington Conference, the Pittsburgh Conference and the IFI. EU support is available through INTERREG and the programme for peace and reconciliation. There would be results if the Government did its job.

I appeal to the Minister of State to ensure that these jobs are retained in Shercock and to encourage the firm to develop there. It has been very successful over the past 30 years. Cavan County Council and the county enterprise board support a new development. I appeal to him to consult with Forbairt to provide special grant aid and to give the company an opportunity to retain its jobs and develop in Shercock.

Minister of State at the Department of Agriculture, Food and Forestry (Mr. Deenihan)

I propose to deal with the avian health situation in Ireland and with the general economic health of the poultry meat industry. Deputies were briefed on Wednesday of last week on the Newcastle disease outbreak in Northern Ireland and on the animal health measures which were being taken by the industry and the Department to try to prevent the disease from spreading to this side of the Border. To date, those measure have been successful in that no case of the disease has yet been reported here.

Dr. O'Hanlon

On a point of order, is it in order for the Minister of State to make a statement on an issue that is unrelated to the question I have raised?

An Ceann Comhairle

It is, but it is rather unnecessary. Give the Minister of State a chance.

Mr. Deenihan

I have not yet received representations of consequence from the poultry and egg industry or from individual processors within that industry in relation to any adverse effects on their enterprises. I would not expect any such representations because any lessening of the measures in place could only be considered as increasing the disease risk here.

On the broader issue of the economic health of the industry, Deputies will be aware of the report of the Poultry Industry Forum. The forum was established by the Minister for Agriculture, Food and Forestry in January 1995 to assist in the implementation of a new development strategy for the poultry processing and egg sectors. The membership of the forum was representative of all sections of the industry, including poultry producers, poultry processors, feeding stuffs manufacturers, egg producers and egg packers. An Bord Bia, Forbairt, Teagasc and the Department were also represented.

The report dealt in a forthright and critical way with the structure of the industry, its strengths and weaknesses, the market environment and development strategy and recommendations. The weaknesses identified in the poultry meat sector included cost disadvantage, scale of operation and insufficient investment in further processing.

Regarding the market environment, it was acknowledged that one of the most fundamental changes taking place within the poultry sector is in the area of market liberalisation and the growth of free trade. It was accepted that the consequence of that liberalisation would be increased import penetration. Identification of the issues involved led to a development strategy which grouped recommendations under six main headings. These include cost reduction and competitiveness, health status, quality assurance and regulatory authority, marketing, innovation and research development and training. The issues of cost reduction and competitiveness have to be specifically addressed by the poultry processing industry overall.

Within the agreed development framework expenditure of £34 million is planned on Forbairt sponsored initiatives in a range of areas across the poultry industry value chain. Forbairt efforts will focus on the two aims of optimising industry cost effectiveness and greatly enhancing industry innovation. In the past year Forbairt has actively sought development plans from companies that will meet the agreed development objectives for the overall poultry industry.

Poultry meat processors in Ireland are commercial companies in competition with one another and with imports. They are required by market forces to take actions for commercial reasons to protect their markets.

Deputies will appreciate I am not in a position, in the circumstances, to intervene in the commercial affairs of individual companies nor can I discuss the market development proposals of those companies.

I advise the company concerned to contact Forbairt to discuss its problems. Should Deputy O'Hanlon do likewise and bring the problem to its attention Forbairt will listen to him.

The Dáil adjourned at 9.33 p.m. until 10.30 a.m. on Thursday, 27 February 1997.