Vol. 553 No. 4
25 Mr. Rabbitte asked the Minister for Agriculture and Food if his attention has been drawn to reports that a major rationalisation plan for the beef processing industry is being considered by the processors themselves, which could see the number of factories halved in coming years; if there have been discussions with his Department on this plan; the implications for employment in the industry; and if he will make a statement on the matter. [13986/02]
I am aware that the Irish beef industry is considering a rationalisation plan for the cattle slaughtering sector. This plan is in line with the recommendations of the McKinsey Study, the report of the task force on the beef industry and Agri-Food 2010 Plan of Action. These reports concluded that there is excess slaughtering capacity in the sector and that the removal of this surplus would result in substantial benefits to the industry in terms of reduced processing costs and the more effective marketing of Irish beef both on the EU and third country markets. The recommended means of removing the excess capacity was by means of a special fund to be established and managed by the industry itself.
The rationalisation plan under discussion in the industry envisages a modest reduction in the number of factories in the sector and takes account of the need for the geographic spread of such facilities. With regard to the implications for employment, the Beef Task Force concluded that the existing situation resulted in part-time working and the leakage of skilled employees to other sectors. The removal of excess slaughtering capacity would provide for more sustainable full time jobs and the development of a skilled work force as well as better career prospects in the industry.
The Government accepts the need for the rationalisation of slaughtering facilities in the beef sector and has already decided under the national development plan to give priority to the beef sector in the context of rationalisation. My Department has had informal preliminary discussions with the beef industry on its most recent rationalisation plan. I should emphasise, however, that the funding of the rationalisation plan is entirely a matter for the beef industry itself.
