JOINT COMMITTEE ON ENTERPRISE AND SMALL BUSINESS debate -
Thursday, 13 Jan 2005

Business of Joint Committee.

Deputy Nolan

I ask that Standing Orders be suspended to discuss the closure of the sugar factory in Carlow, which was announced yesterday by Greencore. Will the committee agree to invite the management of Greencore to a meeting of the committee to discuss the future of the sugar industry in Ireland? Negotiations are at an early stage in Europe regarding a new sugar regime. That will impact seriously on the Irish industry.

While Greencore announced the closure of the Carlow factory yesterday, down the road there will be significant knock-on effects for producers, workers, suppliers, hauliers and so on. This committee should have a clear understanding ofGreencore's proposals for the Irish sugar industry. It is, therefore, important to invite Greencore to give us a clear outline of its thinking regarding this very important industry which has been of service to Irish workers and communities for more than 80 years. We should knowGreencore's views.

Deputy Callanan

I second that.

Deputy Hogan

Deputy Nolan has raised a constituency issue. I wish to state how very displeased we in the constituency are, particularly the people who worked there and the suppliers, with this pre-emptive strike by Greencore in advance of any conclusion of the negotiations on the EU sugar quota. Almost 300 people will lose their jobs. There are 1,000 suppliers producing sugar beet in the region. This will have a major impact on the efficient transportation and growing of the product in terms of margin of profitability for farmers in the next couple of years. I propose that the Minister for Agriculture and Food, Deputy Mary Coughlan, be invited to appear before this committee at the earliest possible opportunity to discuss what influence the Minister can bring to bear on Greencore in the context of the golden shareholding the State still has in relation to the sugar regime and to update us on the negotiations on our national sugar quota regime.

This issue is probably more appropriate to the agriculture committee. However, in the context of employment, this committee should discuss the impact this decision will have on our sugar quota regime. This is a pre-emptive strike by Greencore in advance of the conclusion of the negotiations and that is regrettable for the people of Carlow.

Deputy N. O’Keeffe

I support Deputy Hogan's remarks. I regret the closure of the factory in Carlow but welcome the continuation of operations at Mallow, which is in my constituency. We need to know Greencore's policy for the years ahead in view of the proposed cut in quota and price and to know the future of operations in the sugar industry. I read last night in a farming magazine that two years after the introduction of the proposed cut 6% of the world's sugar will be produced by Brazil. That is not right or proper given the current negotiations taking place to reduce the sugar quota in Europe.

The Minister for Agriculture and Food has been supportive of Irish farmers in Europe in trying to retain what we have. A group of nine or ten countries in Europe has come together on this issue. Ireland has the worst beet growing climate, the highest rainfall and lowest sugar content in Europe. Finland has a higher sugar content and more efficient farming industry than Ireland. However, that is a matter for another day. The Minister since taking office has done an excellent job in Europe in issues relating to that area. I understand the new EU Commissioner, contrary to her Minister for Agriculture in Denmark, is taking a different approach and has ordered the papers, documentation and policies pursued by Mr. Fischler to be returned to her desk with a view to her retrieving what she can for the European industry.

We do not, for the first time, have the support of the French on this matter but we have the support of the Irish agricultural and agri-business sectors. I sympathise with Deputy Nolan. Carlow's loss is Mallow's gain.

Chairman

I must declare a keen interest in this matter. The Dublin Meath Growers Society Limited whose members, those in my constituency of Westmeath and those in Longford and throughout the midlands, attended a meeting of the committee yesterday will be seriously affected by the closure of the factory in Carlow. It has been agreed that the chief executive of Greencore and not more than three members of the board be invited to attend the committee to discuss future policy and, in particular, employment at Greencore.

Deputy Hogan

I propose the Minister for Agriculture and Food also be invited to appear before the committee in the context of the negotiations regarding the national sugar quota.

Chairman

I accept the Deputy's proposal and will endeavour to schedule such a meeting, subject to the Minister's existing commitments, to coincide with the attendance of the Greencore delegation.

I welcome Senator Feeney who is deputising for Senator Hanafin and Deputy Dennehy who is deputising for Deputy Tony Dempsey.

Deputy N. O’Keeffe

A matter, which may be of importance to this committee is that of the golden share. The golden share is, as I understand it, vested in the Government. That matter was discussed by the Dáil during the time of privatisation when former Deputy Michael Kennedy was Minister for Agriculture and Mr. Haughey was Taoiseach. That matter needs to be clarified. We cannot wash our hands of ownership of the golden share by the Government on behalf of the people.

The joint committee went into private session at 10.24 a.m. and resumed in public session at10.28 a.m.