Dáil Éireann Debate, Wednesday - 26 January 2005
640 Mr. Hogan asked the Minister for Agriculture and Food if she will take action to ensure the continuation of production at the Carlow sugar factory of a company (details supplied); and if she will make a statement on the matter. [1259/05]
View answer673 Mr. Wall asked the Minister for Agriculture and Food the position regarding her Department’s investigation of the proposed closure of the Carlow sugar factory; the position regarding agreements between her Department and the relevant company in relation to the golden shore aspect of such agreement; her plans to meet the relevant concerned bodies; the result of meetings she has had in regard to this closure; and if she will make a statement on the matter. [1959/05]
View answerI propose to take Questions Nos. 640 and 673 together.
The recent decision by Greencore Group plc — Irish Sugar Limited to close its sugar plant in Carlow and to consolidate all of its sugar manufacturing in Mallow was a commercial decision taken by the board. The company made the decision in the light of the increasing competition in the sugar market and taking account of the reality that changes will occur in the industry as a consequence of the reform of the EU sugar regime. The trend towards rationalisation and increased productivity in the sugar sector has been evident throughout the European Union for some time. In the EU 15, for example, the number of sugar plants declined from 240 to 135 between 1990 and 2001, while employment in the sector declined from 37,000 to just over 20,000 over the same period.
Greencore's rationalisation programme involves an investment of €20 million to €25 million which clearly demonstrates a commitment to maintaining an efficient sugar processing industry in Ireland. I am confident that the company and the beet growers will be able to work out satisfactory arrangements to meet the new situation. Meanwhile, I will continue my efforts to ensure that the future shape of the EU sugar regime will be consistent with the continuance of an efficient sugar beet growing and processing industry in this country.
As Minister, I hold a special share in Greencore plc. That share has the same monetary value as any other share in the company but has conditions attached which prevent the company from engaging in certain activities without the prior written consent of the Minister. It does not empower me to become involved in operational matters or ordinary business decisions made by the company.
The special share prevents the disposal of the controlling interest in Irish Sugar Limited or the sugar assets and prevents a single shareholder or group of shareholders acting together from gaining control of Greencore plc.
I have had several meetings with stakeholders about the future of sugar beet growing and processing in this country in the context of the forthcoming reform of the EU sugar regime. However, I have had no meetings specifically related to Greencore's rationalisation programme which is a commercial matter for the company.
