asked the Minister for Industry, Commerce and Tourism if his attention has been drawn to the decision of the Kellogg Corporation to cease the manufacture of cornflakes in this country and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Corn Flakes Manufacture.
27.
Kelloggs cornflakes were manufactured in this country by an Irish company under licence. This arrangement was terminated by Kellogs with effect from the end of 1979. The possibility of cornflakes being manufactured in this country in the future on an independent basis is being examined.
Is the Minister aware that Kelloggs termination of the production of cornflakes here will result in a net loss of 100 jobs, or will do so ultimately? What arrangements is he making to avoid any loss if possible in that? CPC who could produce cornflakes cannot do so because of some conditions in their contract with Kellogs. Would the Minister have a look at the contract to see if anything could be done to improve the position of CPC in the hope that they might produce cornflakes at an earlier date than they might otherwise be allowed to do so?
The statement in the Deputy's question about the numbers unemployed is not correct. The total number of persons engaged in the manufacture and distribution of cornflakes was 90. All of them have been re-employed in the firm which over the past year or so has diversified into other product ranges. It may be that some of the older workers concerned will be offered voluntary redundancy——
I am told 50 of them.
——at some time in the future. It depends on the extent to which the company are in a position to move into further production ranges. I am very glad to say that the company concerned took this step over the past year or so because there would have been serious difficulties in that factory if they had not done so, and this has now been avoided. Under the licence between this company and Kellogs the company concerned are precluded for a period of 12 months from December 1979 from manufacturing cornflakes here but only for a period of 12 months. In the course of this present year they will assess the viability or otherwise of setting up their own manufacturing plant with effect from 1 January 1981.
Do I take it that the Minister would give any assistance possible to ensure their success in setting up the new plant?
If they make the commercial decision, and they should do it, I will give them every encouragement. The present position is that all these cornflakes are now imported and it would be import substitution which I would welcome greatly.