Invoice discounting could save Welsh Abattoir

23/10/2008

An abattoir in North Wales has asked the Welsh Assembly to provide an invoice discounting solution that could save the company from going into receivership.

Cig Cibyn wants the government to provide a loan to service its invoice discounting system of paying farmer suppliers. The firm owes money to several farmers, hauliers and auction markets, with one local supplier reportedly owed £12,000.

The company's problems have come about as a result of its bank restricting borrowings. They are not able to access an invoice discounting facility from the bank, and their cash flow has suffered as a result.

Cig Cibyn's accountants advised last week that all slaughterings should cease. Only 7 of the plant's 73 staff remain on site.

Co-director Gwynfor Roberts said of the invoice discounting request: "There is no plan B. We need help and if the Assembly Government does not provide it, the best part of 100 people will end up on the dole."

Gwynedd Watkin, Caernarfon county executive officer for the Farmers Union of Wales, also commented. "We cannot expect the Assembly Government to be the saviour of every struggling company but it does have a commitment to promoting local food," he said. "If Cig Cibyn fails, there will be no abattoirs left in the area and livestock will be left with long journeys to slaughter."