Unions bemoan demise of sugar industry
The demise of the Irish sugar industry was tonight condemned as a catastrophe by unions and as a devastating body blow by beet growers.
Greencore announced today the country’s last remaining plant in Mallow will close in May with the loss of 330 full-time and part-time jobs.
The four plants were set up in the early years of the state but Carlow closed last year while Tuam and Thurles both shut in 1983.
Employment Micheal Martin said he was deeply disappointed at the news but insisted that everything would be done to secure alternative jobs for the shocked workers.
“This is devastating news for the workers concerned. Finding alternative employment for those staff affected is now a top priority.
“Full resources of the state agencies will be available to assist the workforce in finding and adapting to existing and future job opportunities.”
FAS is carrying out an immediate assessment of the skills of the workforce and developing alternative industry at the site is also being considered, Mr Martin added.
Siptu organiser Gerry McCormack said: “It is a national disgrace, a regional disaster and a local and community catastrophe for the workers who will be placed on the scrap heap as a result of the death of the sugar industry in Ireland,”
IFA president, Padraig Walshe accused Greencore of draining over 300 million euro in profits from its Irish Sugar division without planning for a viable future for the industry.
“Closing Carlow was a fatal misjudgment by Greencore management which has staggered from one crisis to another since. It is a black day for the country’s 3,700 growers and Irish farmers,” he added.
Greencore said it made 25 million euro profits from sugar processing in the year to September, 2005 but this would plummet to 15 million euro in 2006.
Agriculture Minister Mary Coughlan tonight expressed regret at the closure but accepted that it was a necessary commercial decision that had to be taken by the company.
Minister Coughlan said: “The decision taken by the Greencore Board marks the end of an era and is obviously difficult for everyone concerned including workers, beet growers and all those who have depended on the sector in one way or another over the years.”
Opposition parties tonight accused Agriculture Minister Mary Coughlan of turning her back on Ireland’s sugar-growing industry when she negotiated a deal with her EU counterparts in November.
Fine Gael’s agriculture spokesman Denis Naughten had previously called for multi-party talks with representatives of growers, contractors, Greencore and the Finance, Agriculture, Employment and Energy departments, employees and the Attorney General.
“This would have facilitated a full evaluation of the short term future of the manufacture of sugar and provided at least some clarity on many of the legal and operational issues associated with the buyout package for the industry,” he said.
He also said sugar beet represented a golden opportunity for the biofuel industry to produce ethanol.
Mallow-based Labour Party TD Joe Sherlock, who worked in the factory for 18 years, said: “It’s a sad day. This closure will come as a huge shock to the area. My sympathies are with those 250 full and part-time workers who are to lose their jobs.”
“This plant has been in operation for generations, and these job losses will be felt all across North Cork. State job creation agencies should be instructed to give priority to this area immediately.”
In a statement to the Irish Stock Exchange, the firm’s board said it was forced to halt sugar production due to EU subsidy cuts announced in November.
Greencore today warned that it would incur unacceptable losses if it processed sugar again.
Today’s Greencore statement said: “It is envisaged that the sugar factory at Mallow will close in May. The employees are being advised that Greencore Sugar will be engaging in the appropriate information and consultation process with its employee representatives in the coming weeks.”
The company said it has enough stocks to supply its customers until November and will use the Siucra and McKinney brands after that date.
David Dilger, chief executive of Greencore who bought Irish Sugar in 1991, said: “It is a very sad day for everybody involved in sugar processing and beet growing in Ireland, not lessened by the inevitability of closure due to the EU sugar regime change.
The Green Party condemned the closure as cruel and unnecessary and said it would have a devastating impact on workers and their families.
Finance spokesman Dan Boyle said: “The company cannot use the excuse of changing conditions within the EU and new trade rules from the World Trade Organisation to justify its decision this time.
Mr Dilger added: “The board regrets that it has no alternative but to take this course of action. Since the EU sugar regime change was announced, we have worked really hard with our staff and our growers in a determined effort to have one last campaign.
“However, the regime change has turned an efficient, profitable operation with dedicated employees into a loss making processing business with no viable future. This is a difficult time for all associated with sugar processing and beet growing in Ireland.”
