Farming body 'shocked' by non executive fee increase at meat plant

The FMA says it understands that the additional payments were stopped as soon as the minister and new chief officer became aware.

If there had been improvements in the operation of the loss-making plant, the FMA says the rises could perhaps have been condoned.

It lists ongoing problems at the plant including increased waiting times for farmers to get their stock in to be processed and an increase in staff numbers.

The farming industry, it says, is 'struggling to understand this particular level of expenditure'.  

Manx Radio has approached Isle of Man Meats and the Department of Environment, Food and Agriculture for comment.

Statement in full

'Since the FMA were forced to sign its meat plant business over to the new IOMMCL, an arm’s length government company, in 2018, we have had ever increasing concerns with how the business has been run.

'The FMA is the A Shareholder and has one nominated NED on the board. DEFA is the G shareholder and is responsible for the appointment of the other NEDs and the Chairman, the FMA currently having no say in these appointments.

'The A Shareholder NED has received £7000 per annum payment since April 2022.  The current director in this position and the rest of the FMA Board were unaware of the change of payment to the G Shareholder NEDs and the extent of the board members payments until the publication of the answer to the written question submitted by Julie Edge MHK.  The FMA directors have been asked by farmers how they have allowed the payments to directors and the chairman to escalate, the simple answer is we did not know because the information was not shared.

'We understand that the additional payments were stopped as soon as the Minister and the new Chief Officer became aware.

'If improvements were far above the costs incurred by these Professional Directors, then they could perhaps be condoned but unfortunately this does not seem to be the case, in fact, the business seems to be reliant on ongoing subvention, usage of which has escalated annually, staff numbers have increased significantly, waiting times (stagger) for farmers to get their stock into the plant has risen markedly again and local butchers have struggled to get the product their customers want through the season and again especially in the lead up to Christmas.

'The FMA which is made up of 5 elected farmer members, a number of whom have been actively engaged in running the business prior to IOMMCL's takeover, is dismayed and shocked with the payment detail of what was provided in the written response to the tabled question by Julie Edge.

'The farming industry is struggling to understand this particular level of expenditure and the consequential strain on the remaining DEFA budget. As farmers, we have a very clear understanding of how critically important this facility is to our businesses’ along with keeping the Island self-sufficient in meat.  Not only does the plant support beef, lamb and pork producers; dairy farmers and cereal farmers along with the huge support network of businesses that both support and supply farmers and local buyers rely on a healthy meat sector supply chain on the Island.

'The industry and the Island recognise the complexities and challenges of running this facility and values the contribution that DEFA make. The shareholders are currently working together to identify core roles, structures and framework for the board as part of the current reset process and are working towards improved communication and understanding with the IOMMCL.'