Dáil Éireann díospóireacht -
Tuesday, 7 Dec 1993

Vol. 436 No. 7

Written Answers. - National Stud Development.

Bernard J. Durkan

Ceist:

162 Mr. Durkan asked the Minister for Agriculture, Food and Forestry the plans, if any, he has for the future development of the National Stud, County Kildare, especially in view of the recent threatened redundancies; and if he will make a statement on the matter.

Bernard J. Durkan

Ceist:

187 Mr. Durkan asked the Minister for Agriculture, Food and Forestry if he has a development programme in mind for the National Stud, County Kildare; if such plan entails a retention of employment; and if he will make a statement on the matter.

Minister for Agriculture, Food and Forestry (Mr. J. Walsh)

I propose to take Questions Nos. 162 and 187 together.

The National Stud has incurred substantial losses in recent years associated principally with a serious downturn worldwide in the thoroughbred industry.

Late last year the Minister requested the board of the stud to draw up a rationalisation plan with a view to returning to viability in order to ensure that the stud can continue to provide a service to the thoroughbred industry. This plan is now being implemented and involves the introduction of some new work practices necessitating some redundancies. I would point out that day-to-day matters including the issue of redundancies are matters for the board and in relation to which I have no function. However, I understand that redundancies will be on a voluntary basis.

The Government and the Minister have every confidence in the future viability by the stud. This confidence is demonstrated by (1) the fact that the remaining authorised shares in the company were taken up by the Minister for Finance during 1992 at a cost of £1.3 million; and (2) the introduction of the National Stud (Amendment) Bill, 1993 earlier this year and its passing by both Houses of the Oireachtas. The new Act increases the authorised share capital of the stud from five million shares of £1 each to ten million shares of £1 each. Increased borrowing powers are also provided for, subject to a ceiling of £5 million and to the approval of the Minister and the Minister for Finance.