June 9 New D—Day for Tuam Sugar Factory

Connacht Tribune, June 3, 1983.

A new date — June 9 — has been fixed by Irish Sugar for its Board of Directors to consider a rationalization plan for the group — the plan is based on the assumption that the Tuam Sugar Factory should close down.

Two new directors have been appointed by the Government bringing the board to its full—strength, twelve, but next week could see an embarrassing spilt in the board as it comes to consider the controversial rationalization plan.

For, a demand that Tuam be kept open is likely to be backed by six of the directors; the four worker directors, Tuam director Mr. Brendan Gilligan, plus I.C.T.U. representative, Ruairi Roberts and this could spark quite a boardroom battle.

Already the political battle on Tuam is hotting up with a visit this week to Tuam by Fianna Fail Agriculture Spokesman, Mr. Michael Noonan, who promised that any closure decision would be reversed by them, and said the decision to close should not be taken. Fianna Fail are to put down a motion in the Dáil.

It was learned this week that Minister for Agriculture, Mr. Austin Deacy is likely to visit Tuam in the near future, Junior Agriculture Minister, Mr. Paul Connaughton confirmed yesterday that Mr. Deacy had said he was willing to visit Tuam.

The town's Chamber of Commerce meets in special session tonight (Thursday) with elected representatives from all over the area to discuss the Tuam crisis, and yesterday the Chamber lashed out at a leading article in the "Irish Independent" which distorted the facts on the plant saying it had received £30 million in aid and was seeking another £38 million.

An angry Chamber statement pointed out that the £30 million was for the entire Sugar Industry and Tuam had received none of this, that the £38 million was further capital needed by Irish Sugar, and what Tuam needed now was an investment of £300,000 that would repay itself in one year. An "Independent" correction had been entirely inadequate.

Irish Sugar's board will meet on Thursday afternoon next to discuss the rationalization plan for the industry, one of the major assumptions of which is that Tuam should close down — the company describes it as a £3 million per annum 'cost penalty' on Irish Sugar.

Workers in Tuam say the loss for Tuam is £1.4 millions out of a total Irish Sugar—Erin Foods loss of £22 millions last year (over £16 millions in interest on borrowings for development and modernization) and that they can further reduce losses.

The employees say that already 70 jobs have been lost with their agreement through non—replacements and early retirement and that they are prepared for further slimming down of the operation to make it as economic as possible.

In his Tuam visit on Monday, Mr. Michael Noonan said Fianna Fail on returning to Government would reverse any decision that might be made by the present government to downgrade or indeed close the Tuam Sugar Factory. Earlier he had made a tour of the factory and the engineering plant.

Said Mr. Noonan:

Now that we have a Labour / Fine Gael Government back in office, the question of the closure of Tuam Sugar Factory is again to be considered, with, of course, the consequential loss of 230 full—time and as many part—time jobs.

At the present time, and particularly in times of recession, with massive unemployment, it is imperative that every job that can be saved should be saved. Fianna Fail has no doubt at all that Tuam Sugar Factory, not only should be maintained but that its performance can be significantly improved. All I feel that is required is the goodwill of all concerned, the company, the government, the producer, and of course, the workers.

I want to state here categorically this evening, as I have already stated earlier when I spoke and met with the workers of the Tuam Sugar Factory, that our party on return to Government will reverse any decision that might be made by this Government to downgrade or indeed close the Tuam Sugar Factory, and in the meantime we will make every effort and will employ every means at our disposal to ensure that the Tuam Sugar Factory remains open.

The economic implications of the closure of this factory for the West of Ireland should be seriously examined, rather than just the finances or the economic viability of the plant. If we were to look at this in terms of pure economics, the West of Ireland should have been cleared of its population long ago, but of course a caring Fianna Fail Government down through the years ensured that this did not happen.

We feel that the cost to the State of unemployment, in terms of tax receipts foregone and unemployment benefits paid, will probably exceed the difference between the value of what the workers produce and their wage.

Provided this condition is held it is 'cheaper' for the State to subsidize the company in maintaining its plant rather than allowing is workers to go on the dole, or until such time as alternative employment opportunities are provided.

I feel that the whole structure of the Sugar Company cannot be fully evaluated by reference to the particular circumstances of the factory in Tuam in isolation from the other features of the Sugar Company which have a bearing on the issue.

It is not a matter for a policy decision by the company as to the relative weighting it should give to its commercial and social roles.

There should not be serious conflict between the two, and we in Fianna Fail realize only too well the importance of the social role which this factory was put up in the first instance in Tuam this was very much to the forefront, and is also to the forefront today in Fianna Fail's thinking.

Mr. Jimmy O'Mara, Chairman of the Workers' Action Committee and Mr. Austin Gaffney, Secretary, detailed the history and the efforts made and being made to keep the Tuam factory in operation and Mr. Gaffney pointed out that the goodwill of the top executive of the Irish Sugar Company was lacking.

Mr. John Connern, Worker / Director of the Sugar Company, said the commitment to keep the factory open had been given. He felt that the financial targets set by the company had no option when they get a letter with specific terms of reference from the Government. The direction of the company is not what they would like it to be.

Mr. Brendan Gilligan, Director, said it was well time to get away from closures and while he and John Connern would try to change the direction the company was taking everybody knew that he and Mr. Connern were in a minority.

Senator Mark Killilea, Senator Tom Hussey and Deputies M. F. Kitt and Noel Treacy also spoke and assured the workers of their full support to keep the plant open.