Closure to weaken Irish case in EU reforms
MEP Mairead McGuinness issued the warning yesterday when she said replacement jobs had to be secured and the proposals resisted at European level.
Ms McGuinness said an initial impact assessment by the European Commission into the proposed reforms points out that Ireland is one of the most vulnerable countries.
“A senior Commission official indicated to me some time ago there would be no sugar industry in Ireland, post the reforms. This is an entirely unacceptable position and must not be tolerated,” she said.
NCB analyst Paul Meade, looking at the financial implications of the decision by Irish Sugar, part of the Greencore group, said management is front loading the necessary capital investment in Mallow to expand its processing capacity to 170,000 tonnes on one site, matching competitor plants and ensuring the long-term viability of sugar processing in Ireland.
He said the projected annual savings of €6-7m would offset any impact on earnings from EU reforms until 2009.
“We see the move as a desirable fast-track solution and may increase the prospects of attracting a buyer for its remaining sugar plant, allowing Greencore to focus completely on its British convenience food business,” he said.
Irish Sugar said it would take €28m less to upgrade the Mallow factory than Carlow.
The direct rail line to Mallow Beet Factory was a key factor in the plant being chosen.
The company will be able to move two-thirds of the beet grown in Carlow to Mallow by rail for the annual processing campaign, which will be expanded to 120 days initially.
Irish Sugar said closing Carlow and upgrading Mallow would involve a net investment of between €20m and €25m.
The workforce will be reduced by 326 (189 full- time and 137 seasonal), from 614 to 288.
IFA Sugar Beet Section chairman Jim O’Regan, who will hold an emergency growers’ meeting at the Dolmen Hotel in Carlow on Monday night, said the decision to close the plant was damaging, irresponsible and had undermined Ireland’s case in the EU sugar reform negotiations.
He said: “With only one factory, growers are facing a longer beet campaign and the IFA Beet Section is demanding that growers will not suffer any losses on harvesting, yields, sugar or transport.”
SIPTU regional secretary Mike Jennings said the decision was a disgrace and was taken with indecent haste.
“Apart from the devastating consequences for the workers, who are facing the loss of their livelihoods, it will have an enormous knock-on effect on the economy of Carlow town and area,” he said.
Mayor of Mallow Sean Sherlock welcomed the decision to keep the town’s plant open and said it was a relief to workers and their families.
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