I regret that the Minister for Enterprise, Trade and Employment is not able to be present this evening. I would like my views to be conveyed to her.
We all know that mergers lead to rationalisation and rationalisation invariably leads to job losses. I am particularly worried about the so-called merger of the Avonmore/Waterford food groups which are primarily dairy groups. I do not believe that rationalisation there will be based upon the relevant factor involved, namely, the efficiency of the various plants. The dogs in the street are saying that the plants in Dungarvan and Kilmeaden, County Waterford, are those most likely to be adversely affected, if not closed.
I ask the Minister for Enterprise, Trade and Employment to ensure that the rationalisation is carried out on the basis of the various plants' efficiency. There are eight milk plants — if what I read in the finance page of yesterday's Irish Times is correct — within the merged entity. The Dungarvan and Kilmeaden plants are the two most likely to suffer in terms of job losses. An overall figure of 1,000 jobs has been mentioned; that figure does not merely allude to the Dungarvan, Kilmeaden and Kilkenny operations; it also refers to other parts of the operation in Ireland and Britain.
Will the Minister carry out an assessment to ensure that the efficient elements of the operation and the jobs, in particular, are retained? We, in Dungarvan, believe our plant is the most efficient in the merged group. I use the word "merged" in inverted commas because we believe it is a virtual take-over by Avonmore of the Waterford Group with Avonmore calling the shots. When it comes to redundancies, rationalisation and job shedding, it will be the Waterford end of the operation which will suffer, irrespective of its efficiency.
The Dungarvan operation, in particular, employs a considerable number of people because it is in the centre of a very large milk pool. Dungarvan and County Waterford in general would be regarded as the premier milk producing area in all of Ireland. Since 16 million gallons of milk are produced per annum in the Dungarvan vicinity, it is incredible to think that milk would be moved 50 or 60 miles to a less efficient plant in north County Kilkenny.
The Dungarvan and Kilmeaden plants produce value added products. The Dungarvan plant produces lactic butter which is unique to any milk processing plant in Ireland; the product — all of which is exported — is the sole supplier of the German market. The Kilmeaden plant produces Kilmeaden cheddar — familiar through the television advertisement — and a white cheese, which are also exported and are the utmost in value added products in the dairy industry. We feel particularly aggrieved that there is talk of these two plants being closed down. Where initially there was talk of voluntary redundancies, there is now talk of voluntary and compulsory redundancies. That is not acceptable.
Incidentally, last July the Minister gave her blessing to the merger. That is why I am raising this matter tonight and why I regret she is not present. I ask her to investigate and ensure that there is no victimisation based on parochial or regional grounds, and that everything is done according to the book. We are entitled to that.
I want to see the best components of the operation retained. We accept that there will be job losses in a rationalisation plan but we want to see it done in an even handed manner. I ask the Minister to oversee the manner in which the rationalisation is carried out and the way in which the redundancies are created, and to ensure that no favouritism is shown.
