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26 Apr 1994 House of Keys Hansard Printed Printed (by Authority) by CORRIE Ltd., 48 Bucks Road, Douglas, Isle of Man. REPORT OF PROCEEDINGS OF HOUSE OF KEYS Douglas, Tuesday, 26th April 1994 at 10.00 a.m. Present: arrive at a percentage of capacity utilisation as requested The Speaker (the Hon. J.C. Cain) (Douglas West); we have taken the total numbers of each species which the Hon. A.R. Bell and Mr. T.R.A. Groves (Ramsey); Mr. R.E. new meat plant has been designed to handle and converted Quine, OBE (Ayre); Mr. J.D.Q. Cannan (Michael); Hon. those numbers into unit numbers as recognised within the H. Hannan (Peel); Mr. W.A. Gilbey (Glenfaba); Dr. E.J. industry. For example, one beast equals one unit, three pigs Mann (Garff); Hon. D. North (Middle); Messrs. P. Karran, equal one unit, five lambs or sheep equal one unit. The R.K. Corkill and J.R. Kniveton (Onchan); Hon. B. May meat plant is designed to handle 30,160 units annually. and Mr. W.D. Corlett (Douglas North); Messrs. A.C. Similarly, converting the throughput of the present plant Duggan and D.C. Cretney (Douglas South); Messrs. D.F.K. in a likewise manner, the utilisation of the new plant over Delaney and P.W. Kermode (Douglas East); Mr. A.F. the last three years would have read as follows: 1991 - 84 Downie (Douglas West); Hon. J.A. Brown (Castletown); per cent; 1992 - 84 per cent; 1993 - 77 per cent. However, Hon. D.J. Gelling (Malew and Santon); Hon. M.R. Walker, production from the farm is very seasonal. For example, CBE, Hon. J. Corrin and Mr. N.Q. Cringle (Rushen); with in 1991 the workload presented in terms of units on a month Prof. T. St.J. N. Bates, Secretary of the House. by month basis would have varied from a high of 93 per cent in November to a low of 68 per cent in February. In 1992, had the new meat plant been in operation, the The Chaplain took the prayers. percentage utilisation would have ranged from a high of 95 per cent in November to a low of 59 per cent in LEAVE OF ABSENCE February. Arising from live exports and a loss of confidence in the industry the throughput of the present meat plant The Speaker: Now, hon. members, leave of absence was depressed in 1993. Nevertheless, using the same has been given today to the hon. member for Douglas East, formula, the utilisation of the new plant would have been Mr. Kermode, to the hon. member for Douglas West, Mr. a high of 85 per cent in December 1993 to a low of 56 per Downie, from 4 o'clock, to the hon. member for Douglas cent in February 1993. With confidence back in the East, Mr. Delaney, for about an hour from 2.30 p.m. and industry, expert management and the opportunities which to the hon. member for Castletown for about an hour from the new meat plant offers I am satisfied that past decisions about 11 a.m. made were sound and I look to the future, working with progressive farmers as an interesting challenge for the betterment of Manx agriculture. Thank you, Mr. Speaker. MEAT PLANT — CAPACITY UTILISATION - QUESTION BY MR. CORLETT Mr. Corlett: A supplementary, Mr. Speaker. In the UK, due to derogation, plant capacity is high while livestock The Speaker: Now, we have nine questions for oral numbers are falling. Will this not encourage the export of answer this morning and the first of these questions is in animals from the Island and thereby further reduce the the name of the hon. member for Douglas North, Mr. utilisation of the meat plant? Corlett, and I call upon him to ask the question standing in his name. Mr. Corrin: Mr. Speaker, I have discussed this with the agricultural community and we are not aware of any Mr. Corlett: I beg leave to ask the Minister for powers that we could take to stop live exports, not that we Agriculture, Fisheries and Forestry: would want to because that could well be protecting an inefficient operation on the Island here. What percentage of capacity utilisation is projected Our future, as we see it in the industry, is to meet the for the new meat plant? challenge of live exports by providing an efficient operation here on the Island and giving the return to the Manx farmer The Speaker: The Minister for Agriculture, Fisheries that he would feel comfortable with. That is the challenge and Forestry to reply. and indeed a lot of work, including the Ernst and Young Report that is now being implemented, was all toward that Mr. Corrin: Thank you, Mr. Speaker. Mr. Speaker, to goal. Leave of Absence • Meat Plant — Capacity Utilisation — Question by Mr. Corlett K376 HOUSE OF KEYS, TUESDAY, 26th APRIL, 1994 Mr. Delaney: Mr. Speaker, in the light of the minister's restrictions or freedoms there to be adhered to. I understand answer, how does the minister expect to combat the export from the chief veterinary officer that that is the position. of live animals off the Isle of Man if the farmers are being paid a higher profit margin by doing so rather than paying Dr. Mann: Could the minister please explain, if the the proposed increases in the kill charge at the new abattoir? unit charge at the moment is too high and thus is How do we combat that? encouraging live exports, how the higher unit handling charge of the new plant is going to make any difference? Mr. Corrin: Mr. Speaker, I am not aware of where the hon. member gets the evidence to state a higher unit Mr. Corrin: Mr. Speaker, right from day one, indeed handling charge. We have been in discussions with the when I stood up in Tynwald to ask for the money for this Fatstock Marketing Association to agree a rent, a rent new plant I asked members, before they cast their vote, to between the Fatstock Marketing Association and a support understand that the meat plant, in isolation was not a viable amount that my department will pick up so that an proposition. At that time I think I remember saying the annualised rent is paid to the Department of Highways, alternative was to export annually somewhere around Ports and Properties in respect of the new plant. Now, as it 93,000 animals live, and if you take on board the weather is now well known, a restructuring process is taking place and the expertise now required of presenting animals in a finished state for the market and the holdups that that would in the FMA. They have taken and they are continuing to have occurred as well as the welfare of the animals as far engage more professional staff, indeed there is a major as travelling, that was totally unacceptable and it was the meeting on in this Island tomorrow of those same people, wish of the agricultural community three years ago when and it is looked forward that with a more efficient operation these issues were considered, and indeed it was accepted and a more aggressive and efficient marketing policy extra by Tynwald Court, that the building of the new plant was income can be generated and that income will be divided the better course forward to protect agriculture on the Isle between the producer and indeed the rental towards the of Man and of course to run it in an efficient manner and new meat plant. the rent would be, as I have said many times publicly, commensurate with the ability of the industry to pay. The Mr. Corlett: A supplementary, Mr. Speaker. Previously remainder will be picked up by my department as a support the minister has mentioned the need for a business plan. measure. Thank you, Mr. Speaker. Should not such a plan have been formulated before construction, taking into account both utilisation and running costs? POWER OF ATTORNEY — PUBLIC AWARENESS — QUESTION BY MR. KARRAN The Speaker: I think I am going to rule that question out of order. The hon. member for Douglas East, Mr. The Speaker: We move on to question number 2 and I Delaney. call upon the hon. member for Onchan, Mr. Kann. Mr. Delaney: Thank you, Mr. Speaker. In the light of Mr. Karran: Vainstyr Loayreyder,, I beg to ask the Chief the minister's reply to my first supplementary, can I ask Minister: this then? Bearing in mind the deficiency announced by the minister as some £460,000-odd, is he then stating that Will the Council of Ministers make arrangements this deficiency will be carried directly by the taxpayer to draw the attention of the general public on a regular because, if not, would he not agree with me that any basis to the facility of an enduring power of attorney under increased rent will have to be carried by either the producer the Powers of Attorney Act 1987? of the meat that goes through the plant or the company itself, increasing the overhead of the plant and eventually The Speaker: The Chief Minister to reply. being passed on to the consumer? Somebody has to pay for this plant. Is the minister saying that this total deficiency Mr. Walker: Thank you, Mr. Speaker. It is not our of £460,000 will be carried directly by the taxpayer? normal practice to make arrangements for bringing particular pieces of legislation to public attention on a The Speaker: That question I am also ruling out of regular basis. To do that for all legislation would be clearly order.
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