Parlon says Greencore claim unjustified

THE row between Greencore and farmers over the €145 million EU compensation package for exiting sugar processing has taken a further twist as Minister of State at the Department of Finance Tom Parlon has backed the case for maximum EU compensation.

Already facing a takeover threat from property tycoon Liam Carroll, the owners of the Irish Sugar Company have had their cages rattled further by a letter sent by Mr Parlon, calling on Agriculture Minister Mary Coughlan to defend farmers’ interests.

“We cannot stand idly by and allow Greencore walk away with the lion’s share of this funding,” he said.

In the letter, Mr Parlon said farmers have underpinned the industry for 80 years and that Greencore, who got the sugar company from the State 15 years ago, have not come out badly from this deal.

Mr Parlon argued that Greencore’s claim to the bulk of the EU Commission compensation package was not justified and had to be resisted at all costs by Ms Coughlan.

“Greencore will not walk away empty-handed from this; in addition to making hefty profits each year from sugar processing they have valuable property land banks in a number of locations, which they acquired 15 years ago from the Government,” he said.

He added that the group has a successful distribution business in Ireland, thriving British interests and the valuable Siúcra trade mark.

Greencore boss David Dilger has already dismissed claims by the Irish Farmers Association that they were entitled to the bulk of the money, and said he and his board would fully defend shareholders’ interests.

The group says it is entitled to €131m of the €145m compensation package. Ms Coughlan will determine Greencore’s share of the restructuring, and “all I can do is assert 100% confidence on our entitlement to that money”, said Mr Dilger.

Prior to the publication of Greencore’s first-half results recently, sugar beet committee chairman Paddy Jordan said that “the livelihoods of the country’s 3,700 growers have been destroyed”.

On that basis Mr Parlon in his letter said: “As elected representatives we must show strong leadership on this issue.

“I believe this is an opportunity for us to prove that the PD/FF Government is fully supportive of agriculture and rural life in Ireland and assure farmers that their future is secure under our watch.”