Dáil Éireann díospóireacht -
Wednesday, 15 Jul 1936

Vol. 63 No. 11

Committee on Finance. - Slaughter of Cattle and Sheep (Amendment) Bill, 1936—Committee and Final Stages.

Sections 1 to 5, inclusive, agreed to.

SECTION 6.

Dr. Ryan

I move:—

Before Section 6 to insert a new section as follows:—

(1) Section 41 of the Principal Act is hereby amended by the insertion at the end of sub-section (3) thereof of the following paragraph, that is to say—

(d) a provision whereby the Minister agrees to pay compensa-on a failure to supply cattle in pursuance of an agreement entered into by him under the next preceding paragraph of this sub-section,

and the said section shall be construed and have effect accordingly.

(2) This section shall have and be deemed to have had effect as from the coming into operation of Part VIII of the Principal Act.

When making the agreement with the company in Roscrea who are dealing with old cows it was necessary to insert some provision to compensate the company in case the supply of old cows should, for any reason, cease. Deputies will realise that the company had to engage in a certain amount of capital expenditure, and they expected to have a four years' working agreement in order to get sufficient profit to make the company a paying proposition. On our side, we had to guarantee to supply them with a certain minimum and maximum number of old cows per week. The question arose as to what would happen in the event of its being found impossible to supply the number of cows. A guarantee had to be given that certain compensation would be paid in these circumstances. The only way under existing legislation that compensation could be paid would be by taking over the shares of the company. That was thought satisfactory at the time, but, on reconsideration, it is thought better by our advisers, legal and otherwise, that we should have power, in that eventuality, to pay a certain lump sum and have done with the matter. It is well to have the alternative. We can either take over the company or pay a certain amount in compensation and let the company remain as it is. This amendment is introduced in order to give the Minister power to pay compensation in cash rather than take over the company. The agreement made in regard to compensation was that, if we should default in the first year, we should pay £5,000, plus capital costs, to the company.

Mr. Dillon

£5,000 plus the entire capital?

Dr. Ryan

Yes. It was realised that the company would have much more expense during the first year than the capital costs. It was thought that they would probably put a certain amount of money into the company to pay working expenses, as they did. However, that trouble is now done with. If failure took place in the second year it was agreed that we should pay £5,000 towards capital, plus 75 per cent. of the profits of the first year. If failure took place in the third year, it was agreed that we should pay £5,000 towards capital and 50 per cent. of the average profits of the previous years. That is an outline of the terms of the agreement with regard to compensation in the event of failure to supply the requisite number of cows.

Mr. Dillon

The Minister will agree that in a matter of this kind it is necessary that the fullest publicity should be given to the contract of guarantee. We are now dealing with the Roscrea factory, and I think that certain members of the House are interested in that factory. It is, therefore, desirable that the fullest publicity should be given to the terms of the indemnity. When the Minister says that the Government undertakes to pay, in the fourth or fifth year, £5,000 towards capital costs and 50 per cent. of the average profits of the previous years, in what contingency does that sum become payable? Does it mean that if the Minister says, "I am not going to send you any more cattle," the money will become payable? Suppose he says, "I have to suspend deliveries of cattle for a month or six weeks, because I cannot get any, but I intend to resume deliveries later," what will happen?

Dr. Ryan

There are various clauses in the agreement dealing with these matters.

Mr. Dillon

May I suggest that the terms of the agreement of guarantee between the Government and the factory should be laid on the Table of the House?

Dr. Ryan

There arc provisions in the agreement to meet cases of temporary cessation of delivery due to railway strikes or any other cause. The Minister has also power to stop deliveries for a fortnight without any reason. There are a number of safeguards of that kind.

Mr. Dillon

What is the total capital of the company?

Dr. Ryan

£10,000.

Mr. Dillon

Has the Minister any figures as to the average annual profits?

Dr. Ryan

Not yet. I do not think they have been working a full year yet.

Mr. Dillon

It is a rather odd contract of guarantee that you are to pay a sum of £5,000, plus a percentage of an unascertained sum. Naturally, the company will make their profits as big as their auditors will permit and there will be no prudent writing down of assets and no proper depreciation of machinery or premises in the first balance sheet. It strikes me as somewhat odd that an agreement of that kind should have been come to which offers the board of the company that inducement to pursuing an improvident course of financing during the first three years of their business, in order to make the contract of guarantee with the Government more attractive.

Dr. Ryan

I agree with the Deputy that the form of guarantee ought to be published. The Deputy will agree, perhaps, that it is a very long document and if the relevant clauses are laid on the Table perhaps that is all that would be required.

Mr. Dillon

I submit that the contract should be laid on the Table of the House. If anything further arises in connection with the matter there could be a discussion on it if it were thought desirable.

Dr. Ryan

Yes, I agree. That can be done.

Amendment agreed to.

Section 6, as amended, agreed to.

Sections 7 and 8 and the Title agreed to.

Bill reported with amendment.

Dr. Ryan

I should like to explain to the Dáil that it would be necessary under this Bill to give notice to certain people; and as we are anxious to have the Bill in operation by the 1st August it would facilitate me to have the remaining Stages of the Bill taken now if there is no objection.

Mr. Dillon

I can see no objection to taking the remaining Stages now.

Mr. Roddy

I understood the Minister to give a sort of undertaking to Deputy Morrissey that where certain people are in default in the payment of their levies that he would review their cases. In some cases I know the licences were actually withdrawn from the people who were in default with these levies. Will the Minister review these cases?

Dr. Ryan

In some cases that has been done. It is very hard to describe what a reasonable period is and the Deputy knows that each case must be considered on its merits. Where a reasonable settlement has been offered the licence has been restored.

Mr. Roddy

The Minister will not insist on the full payment in these cases?

Dr. Ryan

Oh, yes, on the full payment.

Mr. Roddy

Surely not immediately?

Dr. Ryan

Not immediately.

Question—"That the Bill be received for final consideration"— put and agreed to.

Question—"That the Bill do now pass"—put and agreed to.