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Dáil Éireann - Volume 259 - 24 February, 1972

Ceisteanna—Questions. Oral Answers. - Creamery Rationalisation.

16. Mr. O'Donnell asked the Minister for Agriculture and Fisheries why he has refused a request from four Deputies from east Limerick to receive a deputation representing the Hospital Creamery Society to discuss amalgamation with Mitchelstown; and whether he will now reconsider the matter and receive such a deputation.

Minister for Agriculture and Fisheries (Mr. J. Gibbons): Plans for the reorganisation of the dairying industry envisages that the Hospital society would be included in the east Limerick/ west Tipperary group; that is the Arravale group, and not in the Mitchelstown group. The inclusion of Hospital in the latter group would be totally at variance with existing plans and accordingly I do not consider that any useful purpose would be served by my meeting a deputation as proposed.

[405] Mr. O'Donnell: Is the Minister aware that the total milk supply to Hospital has been carried out by Mitchelstown Creameries for several years? Further, is the Minister aware that Mitchelstown Creameries are manufacturing butter for Hospital and that because Hospital is not a member legally of the Mitchelstown group, 86 farmers supplying milk to Hospital are losing an average of £200 each per annum income? This is because the Minister will not allow them to amalgamate with Mitchelstown. Regarding the Arravale group, there is no milk procesing plant there. It is a mythical group.

An Ceann Comhairle: The Deputy cannot make a speech on the question.

Mr. J. Gibbons: The overriding consideration here is the uniform welfare of milk producers. It is not the welfare of producers in any particular area but in the Munster area generally. This requires the formation of the group known as the Arravale group. Anything that could be done to the detriment of that group would have very serious adverse effects on milk producers in Tipperary and west Limerick. That is something that must be avoided at all costs.

Mr. O'Donnell: Is the Minister aware——

An Ceann Comhairle: I am calling Question No. 17.

Mr. O'Donnell: ——that five years ago Mitchelstown Creameries offered to put up a processing plant in Tipperary to cater for the Arravale group but that permission for the plant was refused?

Mr. J. Gibbons: I am talking about the IAOS plans that exist, and which are more or less similar to the ideas of the Department of Agriculture and Fisheries, for the formation of an Arravale group in Tipperary/west Limerick. Unless that is done there will be certain societies in that particular area that will suffer greatly. That is the only reason for the formation of the Arravale group.

[406] Mr. R. Barry: Would the Minister agree that those suppliers would get much better value from Mitchelstown than they are getting now?

Mr. J. Gibbons: If the rationalisation of creameries in the Arravale area proceeded now, they would be in a position to pay their suppliers much better prices than are being paid to them but if the dissipation of the proposed group is allowed to continue, this chance will go.

17. Mr. O'Donnell asked the Minister for Agriculture and Fisheries the outcome of the meeting held on Wednesday, 16th February, 1972, at which officers of his Department were present to finalise the take-over of the Knocklong creamery group by Mitchelstown; and from what date the take-over will be effective.

Mr. J. Gibbons: The negotiations between Mitchelstown Co-operative Agricultural Society and the Dairy Disposal Company for the transfer of the company's Knocklong creamery group to the society have not yet been finalised and it would be inappropriate for me to comment at this stage.

Mr. O'Donnell: In view of the fact that the Minister gave the go-ahead almost 12 months ago for this merger, does it not seem strange that the position has not yet been finalised? Is the Minister aware that the completion of this merger has been held up by the Dairy Disposal Company who are being most unrealistic in the price they have been demanding? Would the Minister, at the beginning of the milk season now, ensure that the Dairy Disposal Company will co-operate properly?

Mr. J. Gibbons: In July last year the Dairy Disposal Company were authorised to open negotiations. I do not think that the period of negotiation is inordinately long but as I said in my reply, anything that either Deputy O'Donnell or I may say now might prejudice these negotiations. I do not wish to do that because I want the negotiations to be completed successfully so that farmers in Knocklong will be able to benefit from the merger.

[407] 18. Mr. O'Donnell asked the Minister for Agriculture and Fisheries his proposed plans for rationalisation in respect of the following creamery societies: Hospital, Kilteely, Sarsfield, Kilross.

Mr. J. Gibbons: Plans for the rationalisation of the creamery industry envisage the inclusion of the Hospital, Kilteely, Sarsfield and Kilross societies and the Toher society's Doon creamery in a group covering east Limerick/west Tipperary commonly known as the Arravale group.

Mr. O'Donnell: Is the Minister aware that in respect of four of these societies —Hospital, Kilteely, Sarsfield and Kilross—the same situation obtains as obtains in relation to the application by Hospital for a merger with Mitchelstown? Is he aware of the ludicrous situation that exists in the case of those four societies: a total of 750 farmers are delivering milk to them and in 1971 these farmers lost a total of £150,000 because the Department did nothing with regard to rationalising the situation?

Mr. J. Gibbons: The Deputy knows well that the rationalisation of co-operative creameries is a matter, primarily, for the people themselves. He knows, too, what I have been pointing out on the other question in relation to Arravale, that is, if you want to benefit only a sector of the farmers in Munster this can be done possibly in this short-term, shortsighted way but that is not what is intended. It is not what the IAOS want and neither is it what I want. I want to see the same benefits conferred on the farmers of Tipperary that I am talking about in the proposed Arravale group, as are conferred on anyone else. If the erosion of the proposed Tipperary group is allowed to take place, they will be deprived of that chance.

Mr. O'Donnell: Could the Minister——

An Ceann Comhairle: I am calling Question No. 19.

Mr. O'Donnell: ——give me any reason why the plans for the erection [408] of a major processing plant in Tipperary, which were announced first in 1961, announced again in 1965 and, again in 1969, have not been executed? If that plant had been built in 1961 the farmers in those areas could supply milk there now.

Mr. L'Estrange: Before each election.

An Ceann Comhairle: Deputy O'Donnell may not monopolise Question Time.

Mr. J. Gibbons: The Deputy is trying to score cheap debating points.

Mr. L'Estrange: What points did the Minister score when he shook hands with Deputy Haughey on Sunday last?

Mr. Andrews: A winner.

Mr. J. Gibbons: I am aware that there is a nucleus now of an Arravale group with the amalgamation of Tipperary Co-Operative and Borrisoleigh and also that negotiations are going on between the Dairy Disposal Company in Tipperary town and the co-operative regarding the take-over of the Dairy Disposal Company in that area. If Deputy O'Donnell thinks the formation of this group should be frustrated, that is his affair.

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