The purpose of this Bill is to enable the Minister for Lands to participate in a proposed increase of capital in Alginate Industries (Ireland) Limited.
Before I deal with the details of the proposal, a short review of the origin and history of the company may be of interest to the House.
In 1942 the Gaeltacht Services Division of my Department succeeded in finding a purchaser in Scotland who was prepared to take large quantities of sea-rods. Export of sea-rods in air-dried state, as supplied by the gatherers along the West Coast, commenced in the following year 1943. In 1947, a private company was formed for the purpose of establishing a factory at Kilkerrin, Connemara, which would kiln-dry the sea-rods, grind them into meal and export the material in the meal form.
In 1949, the Minister for Lands under an Act passed in that year was given authority to acquire 5,100 shares of £1 each in this company. Since then, considerable improvements have been carried out in the factory, which has been operating successfully and has provided steady and remunerative employment in one of the poorest districts in the Gaeltacht.
A report on the working of the company has been submitted each year for the information of both Houses of the Oireachtas, and the report on last year's operations shows that direct and indirect wages paid at the factory amounted to over £8,000. In addition, locally-produced turf to the value of over £4,000 was consumed and then, of course, the sea-rods themselves, bought as they are in the poorest areas along the western seaboard, are a satisfying source of supplementary income where it is badly needed.
It is now proposed to expand the company's activities, first by improving its existing facilities for the drying and milling of sea-rods; secondly, by providing facilities for the purchase and preparation of carrageen for various markets; and thirdly by providing facilities for the production of seaweed meal for cattle food. Additional capital will be required and this Bill seeks to authorise the expenditure of £37,900 on the purchase of shares in addition to the £5,100 already expended, making a total of £43,000, as set out in Section 2 of the Bill.
With regard to the first of the objectives I have mentioned, the company believes that more efficient and economic production can be achieved by effecting some changes in plant and lay-out at the factory in Kilkerrin. As I have already mentioned, considerable improvements have been made from time to time, including the installation of a Mona jet furnace and E.S.B. power supply, and I am satisfied that the improved lay-out and new plant now proposed will further strengthen the position of the company as a supplier of rod-meal.
With regard to the proposal that the company should engage in the carrageen industry it will be necessary to give a brief review of the recent history of this industry. The quantity of carrageen harvested has been falling steadily in the last few years. In 1940, 1941 and 1942, this country exported an average quantity of 600 tons of carrageen per annum. In 1952, 1953 and 1954 the average quantity exported is estimated at less than 250 tons, and the tendency from year to year is downwards.
As the collection of carrageen moss can be a very useful means of augmenting the income of those living along the west coast, this decline of the industry is a matter of concern, especially so since there is a ready market in America, Great Britain and the Continent, provided that the purchasers can be assured of consistently high quality and regularity of supply. The lack of consistency in these matters has brought about a certain instability in the industry, which is reflected in the decline in the quantity harvested and exported.
My Department has had the position under close examination, and visits were made to France and the United States to study the organisation and development of the industry in those countries. Efforts were made to have exporters of carrageen co-operate in an association to safeguard the quality of moss for export but I regret to say that the response received was poor. The Institute for Industrial Research and Standards was requested to develop a machine for the mechanical cleaning and grading of carrageen with a view to securing a general improvement in standard. This machine was demonstrated early this year to various firms and persons interested in the industry but, so far as I am aware, no one has yet proposed to install it.
Carrageen moss is a raw material of great value, and its collection depends on the maintenance of a tradition for the work along the western coast. It is therefore necessary that an effort be made to set a standard which will gain for Irish moss a high reputation in world markets and arrest the present decline in interest among the gatherers by bringing about conditions of stability. With this object in view it is proposed that Alginate Industries (Ireland) Limited, should equip themselves to handle and market carrageen moss to the best advantage and I am satisfied that this step is both necessary and desirable. I am hopeful that as a result of the company's efforts there will be a revival of interest among gatherers and that the industry will be put on the right road to development.
Finally, the company also proposes to put itself in a position to produce seaweed meal for cattle food. In the neighbourhood of its factory at Kilkerrin, Connemara, the company can draw from the richest beds of ascophyllum or bladder weed in the world, and this would undoubtedly be a welcome addition in income to the people of the area. The company has in fact in the last two years produced limited quantities of this meal by extemporary modifications to their sea-rod plant, and the entire production was sold abroad. The company is satisfied that there is a reasonable market on the Continent and elsewhere, and believes that with the installation of a suitable plant efficient and economic production could be achieved.
To summarise, the company is seeking additional capital to enable it— first, to improve the operation of the existing sea-rod meal business; secondly, to equip itself for the handling of carrageen moss, and thirdly, to provide facilities for the production of sea weed meal for cattle food. All three items relate to the development and use of native raw materials in parts of our country where natural resources are poor. The difficulties in the way of improving the economic situation of the people who have to make a livelihood in these areas are so great that it is all the more important that whatever resources are available should be developed to the full. The Bill now before the House seeks to authorise me to provide additional capital for the company for the purposes set out. Having regard to the excellent work of the company to date and the desirability of the further developments now proposed, I have no hesitation in recommending this Bill to the House.
