Deasy's Thumbs Down to Tuam
Tuam Herald, May 7, 1983.
By Francis Farragher.
Introduction
The Minister for Agriculture, Deputy Austin Deasy, gave a clear indication in the Dail on Tuesday night that the Government will close the Tuam Sugar Factory.
In reply to a Fianna Fail motion dealing with agricultural based industries which was spoken on by Deputy Micheal Kitt the Minister stated:
"There will be no scope for keeping unprofitable operations going if the Sugar Company is to survive."
The statement by the Agricultural Minister is a major body blow to those fighting for the survival for the Tuam plant as it has emerged in the past couple of weeks that the CSET rationalistion plan holds no hope for Tuam.
The Fianna Fail Dail motion asked that Dail Eireann call on the Government to review their decision in regard to the proposed closures of the many agricultural based industries, as the consequence of such closures would be detrimental to the continuance and growth of the food processing industry in this country.
However a Government amendment to the motion called on the Dail to support the efforts of the Government to increase production of raw materials for the food processing industry and to promote the development of the industry along the most efficient lines.
This is what the Minister for Agriculture stated in the Dail on Tuesday night in relation to the Sugar Company:
"A condition of the capital provided last October is that a further rationalisation plan must be furnished by the Company.
"This was stipulated by the last Government as well as the present one.
"We still have quite a distance to go before the Sugar Company is on a sound financial basis. I expect to have within the next month the company's proposals for further rationalisation.
"In the light of those the Government will be able to take the financial restrictions a step further. However, we can be sure of one thing. There will be no scope for keeping unprofitable operations going if the Sugar Company is to survive.
"The fundamental choice facing us is do we or do we not want a sugar industry which will hold its own in the intensely competitive international environment in which the Company has to operate.
"There is a constant threat from imported sugar which we will ignore at our peril," the Minister stated.
Deputy Micheal Kitt who spoke for 20 minutes on his party's motion told the Herald that the Minister's statement was very discouraging from the point of view of the Tuam plant.
"The Minister clearly had the opportunity to state that Tuam would be kept open and he didn't do so. When the then Fianna Fail Minister for Agriculture Deputy Brian Lenihan gave the £30 million to the Company last October there was a clear commitment to keep Tuam open. That seems to have gone," said Deputy Kitt.
He said that he would be getting the Western TD's to use their influence to keep Tuam open.
A statement issued to The Herald by the Workers Action Committee of the Tuam factory said that they wanted no hand—outs, only "a bloody chance to show that the situation could be improved over the next few years."
The statement will be 80 people less working at the factory as a result of our efficiency plans. Productivity has been increased even beyond what we had hoped. This direct contribution can continue from the workers.
"In addition to that the local beet acreage has met the full quota this year and indeed more would have been grown locally if the allocation was higher.
"the growers and the workers have worked tirelessly to improve the situation but without the support and good—will of the company we are up against it.
It is awful easy to close a factory but it is not that easy or cheap to open a new one. It is a natural home—based Irish industry.
The all—party Oireachtas committee said that it would be more beneficial to run the factory than to close it.
A Government commitment has been given to keep the factory open, not a party one and as far as we know no Government commitment has been reneged on.
"All we are looking for is a bloody chance to prove that the situation can improve over the next few years. We want no hand—outs. All we want is a bit of help and goodwill from the Sugar Company and the Government," the statement concluded.
Last Monday members of the Workers Action Committee met the four worker directors of the Sugar Company and it is understood that all are sympathic to the Tuam case.
The workers are now seeking a meeting with the full Sugar Company Board of Directors in Tuam before May 24th, the date on which the Board are due to discuss the rationalization report.
The report will then be submitted to the Government.
Local junior Agricultural Minister Deputy Paul Connaughton has stated that the Government has made no decision on the Tuam plant and won't be doing so until they get the Sugar Company report. He has said that he will be fighting to keep Tuam open.
Senator Mark Killilea told The Herald that neither the Company nor the Government should be allowed to close the factory.
"Even apart from the workers and farmers the whole area is depending on the factory for survival. It would be a completely retrograde step." he said.
A Staggering Loss to West
Should the Government pull the plug on Tuam Sugar Factory the loss to the local economy will be staggering and despite talk of a replacement industry of similar size being established in the town there is no way that the benefits will be comparable.
Despite a reduction in staff of 58 between September, 1981, and the end of January this year there is still a permanent staff of 318 earning their daily bread at Tuam Sugar Factory.
The value of the wages alone (after PAYE and PRSI reductions) is a sizeable £2.1 million each year and the State received tax payments of a further £1.1 million.
Farmers who grow beet are the other major beneficiary and the value of the beet crop last year to Tuam growers was £4.5 million.
This money was then circulated throughout town and country and indeed all over the West of Ireland.
Galway County Council receive £40,000 in rates and the value of the pulp products produced at the factory last year was £1.5 million.
C.S.E.T. Tuam are involved in turf production and even the humble sod of turf is a big money spinner and 100,000 tonnes of turf at £30 per tonne works out at £3 million.
The beet tops are worth £200,000 in feeding value. Add them up and you get an enormous £12.5 million for the national and local economy.
Not counted in that figure is the value of purchases from Irish companies which create many jobs in service areas and that is specifically excluding spin off employment to agricultural contractors, C.I.E., transport haulers, etc.
If even the pulp by—products were lost it would require massive imports from other countries to substitute and a further serious consequence would be a dramatic drop in barley acreage as crop rotation would be severely hit.
The question must now be asked if the Government use purely financial considerations to evaluate Tuam Sugar Factory (with its reported £1.4 million last season) and decide to close it down what other industry will provide similar benefits to the economy of the West of Ireland.
The answer is simple. There is no such industry.