I want to raise the issue of the statement of the Minister for the Marine and Natural Resources in relation to Arramara Teoranta and particularly the Meenmore plant which is based in Dungloe.
Arramara was established in Dungloe in 1968. Currently it has 12 full-time workers, two of whom have been there from the very start, for 33 years, and six of whom have more than 25 years' service. The company also has between 100 and 200 seaweed harvesters stretching from Mayo to Donegal.
Shock waves ran through this rural community yesterday as a result of the Minister's announcement. It is an area where there is no alternative employment and a high level of unemployment. While there were difficulties over the past two years, the suddenness of the announcement took us all by surprise. I am displeased with the announcement. I am particularly displeased that the information was made available to the media before the board, the management, the workers and local public representatives were informed. I know all the people who work in that factory and yesterday's announcement came as a tremendous shock.
The National Seaweed Forum stated the need for more added value in the industry. However, this company, particularly the Dungloe plant, has been given no chance. The announcement that all operations are to be relocated to the company's plant at Kilkieran in Galway was made before any meaningful discussions could take place on developing alternative projects at Meenmore. I cannot understand, therefore, why the Minister states that high priority will be given by his Department to consultation with all the relevant interests. The difficulties have been known for two years and the management discussed the possible alternative some six to nine months ago with the board and the Department, but no serious discussions have taken place since.
I ask the Minister to postpone the closure of the Dungloe plant until a chance has been given to find alternatives. Otherwise many harvesters could drop out in the short term. The blame for this fiasco lies totally with the Department's co-shareholder ISP Algenates UK, formerly Kelco. The position we are in is due to the failure to build a third plant in Mayo in the early 1990s. Kelco was displeased that this venture did not proceed. Subsequently it purchased 75% of another company in Canada and its product was sourced there. Despite many years of providing good quality seafood meal at low prices at the Dungloe plant, the company is to reduce the volume of product taken from 6,500 tonnes in 1997 to about 2,000 tonnes this year. Despite increased sales to other markets, which have risen from 1,500 tonnes in 1997 to 3,500 tonnes this year, the lack of loyalty on the part of the shareholder, ISP Algenates, which is now walking away, is the death knell for this Dungloe activity.
The Minister stated that the company is insolvent. I do not accept this. There has been a lack of investment. No subsidy has been paid to this company despite the only financial drain on the Department being the set-up costs in 1968. Many other lame ducks have been carried for years. I ask the Government to provide £1 million to enable this company to restructure financially and to retain jobs in Dungloe until an alternative is found.
I would also like clarification on the following matters. When will the relocation to Galway take place? What is the up-to-date position in relation to consultation on alternative product production? How will the proposed restructuring secure the future of the company given the record of one of the shareholders to date? How will protection of the employment and income of seaweed harvesters in this coastal community in the Rosses be achieved as stated by the Minister yesterday? For what will the £350,000 commitment by the Department and ISP Algenates be used? Is it an investment towards redundancy payments? What package will be available to the workers, many of whom have given more than 25 years' service to the company, and particularly for the manager who has given 33 years of his life to this company? Will any compensation be made available to the harvesters and hauliers who have worked for this company in a self-employed capacity? Most of these men will have no alternative now but to go on the dole or to return to work for McAlpine and Wimpey as they did before they came back here to work for this company. Given the record of the shareholder in the Dungloe plant, how can long-term viability be restored and the business developed in the future?
