Inquiry to start on Mallow sugar plant closure

THE OIREACHTAS agriculture committee is to inquire into the closure of the Mallow sugar beet factory, which EU auditors recently found was unnecessary because the business was profitable.

Greencore officials have been invited to a meeting of the committee later this month, when they will be asked about the company’s closure of the plant in 2006 under a European Commission scheme to eliminate unprofitable sugar production. Some 320 workers lost their jobs when Greencore shut the plant.

The committee will also investigate ways in which the sugar beet industry might be redeveloped, following the passing of a motion put down by Mallow-based Fine Gael Senator Paul Bradford at a recent private meeting.

“Ireland has ended up the only EU country without a sugar beet industry,” Mr Bradford said. “It was at the time regrettably agreed by the Government and Greencore, and everyone could have been stronger in trying to retain the industry. But we are where we are, and we’re talking about a new government being in place in the next few months. We should be investigating every possibility for regrowing the industry. There’s a duty on the committee to initiate moves.”

Mr Bradford said renewable-energy crop production should be explored simultaneously. The committee’s chairman and vice-chairman are both Fianna Fáil TDs, Johnny Brady (Meath West) and Tom McEllistrim (Kerry North), but Mr Bradford said he was hopeful there could be a cross-party approach to the matter.

The secretary general of the Department of Agriculture, Tom Moran, will attend a meeting of the committee next week.

Labour TD Seán Sherlock, who is also based in Mallow and a member of the committee, said he welcomed the move. “With the secretary general and hopefully Greencore representatives, we could at least explore the possibility of whether or not a feasibility study could be carried out, hopefully funded by the State.”

In a report published last November, the European Court of Auditors suggested it had cost more to close the business than it would have to have kept it open.

Referring to Ireland, without naming the country or the Mallow plant, the report noted that the only national producer had rationalised its operations before reforms were introduced.

In a subsequent Dáil debate on the report, Minister for Agriculture Brendan Smith said the European Commission had the “most up-to-date information” about Ireland’s position during negotiations five years ago on the scheme to eliminate unprofitable sugar production. He said Tánaiste Mary Coughlan, who was minister for agriculture at the time, “did everything to support the industry. We hadn’t got the support when it came to the Council of Ministers”.