IDB slam poor bank support
The Irish Dairy Board (IDB) has raised serious questions about the commitment of Irish banks to the much anticipated expansion of the dairy sector.
The group is now looking for €350m in a new banking deal to fund their cash requirements for the next three years, €100m more than they had budgeted previously.
However, IDB CEO Kevin Lane was critical of the support that his company had received from the Irish banks for their funding proposals.
"We've plenty of interest from foreign banks but the question has to be asked why the taxpayer is being asked to support our banks if they don't support the development of Irish businesses," he said.
Last October, Lane told a dairy conference that the total cost of coping with a 50pc expansion could be as much as €850m.
"I stand by those numbers," he said at the announcement of the group's results for 2010. "If anything they have increased in the interim. I still believe co-ops will need to invest €400m in their facilities, even though I have heard some commentators claiming that it can be done for little or nothing."
It has been more than seven years since the IDB has made a purchase of any significance, but Mr Lane was adamant that his executive team were actively looking for new opportunities.
"We don't expect to see Christmas without having made a move in this regard," he said.