Teagasc to Proceed with Rationalisation Programme

7 May, 2003

At its meeting today, the Teagasc Authority agreed to proceed with the rationalisation programme aimed at solving the current financial deficit facing the organisation and securing priority research, advisory and training services to the agriculture and food industry.

The Authority unanimously agreed to proceed with the first phase of the programme. This involves the sale of its Head Office in Dublin, its soft fruit research centre at Clonroche, Wexford, its dairy farm at Ballinamore, Co. Leitrim and its property at Lullymore, Co. Kildare. The sale of the Teagasc advisory offices at Corduff, Co. Dublin and at Cork City will also proceed.

While the first phase of the programme is being implemented, the Authority will continue to examine the implications for Teagasc services of proceeding with other phases of the rationalisation programme.

The Authority's decisions have been taken against the background of a significant cutback in Teagasc finances. The organisation is facing a deficit of €15m in its current budget in 2003 on a 'business as usual' basis. Funding for capital investment has also been cut, from €14.5m in 2002 to €6m in 2003.

While significant curtailment is being implemented in staff recruitment and in operating costs, these measures would only go a small way towards meeting the projected deficit of €15m. Therefore, the Authority had no alternative but to proceed with the sale of some assets. Otherwise, a number of priority research, advisory and training programmes provided by Teagasc would come under serious threat.

At its meeting today, the Authority requested that immediate discussions would take place with staff affected by its decisions.