I move: "That the Bill be now read a Second Time."
The main purpose of the Bill is to amend and extend the Córas Beostoic agus Feola Act, 1979, in order to confer on CBF responsibility for the promotion of pigmeat in addition to their existing promotional role in relation to cattle and sheep. Provision is made in the Bill for the introduction by CBF of a levy on pigs of 20p per animal and for increasing the existing levies on cattle and sheep from £1 and 10p respectively to £1.50 and 20p. The opportunity is also being taken to introduce certain provisions which will facilitate the collection of levies by CBF.
CBF were established under the 1979 Act and replaced CBF Teoranta, a company limited by guarantee. Heretofore, their purposes, broadly, have been to promote the export of cattle and sheep and their meats and to furnish promotional and marketing support to exporters in addition to the promotion of beef, mutton and lamb on the home market. The role of CBF in relation to cattle and sheep could be defined as follows: To adopt a position of leadership which will be instrumental in guiding the industry towards meeting market requirements; to provide processors and exporters with specialist marketing support services; to build an information bridge between the market and the producer.
In so far as pigmeat is concerned, for some time past there has been no body responsible for the overall promotion of pigmeat. Córas Tráchtála Teo have been doing very valuable work in assisting individual pigmeat firms in their export endeavour. However, CTT have no function in relation to the home market which accounts for some 70 per cent of our pigmeat output. This has been a matter of considerable concern to me, as indeed has the fact that the industry must now also meet the competition at home from imports from some other member states of the Community.
The House will be aware of the major development and rationalisation programme for the pigmeat sector which is already underway. This programme involves a total investment of up to £140 million, including very substantial inputs by the Exchequer and FEOGA. The main elements of the programmes are the establishment of about eight centralised slaughter units, each with a minimum capacity of 6,000 pigs a week, which will cater for their own needs and for those of surrounding processing plants. All of these premises will meet the highest standards prescribed by EC and third country importers particularly the United States and Japan. The successful implementation of the plan will require a substantial increase of pigmeat output from 2.2 million pigs a year at present to nearly 3 million by 1992. All of this extra product will have to be exported and increased exports of £100 million are targeted.
I regard the efficient promotion of pigmeat as an essential element in the success of the programme. Hence this Bill, under which CBF, which has done such fine work in promoting beef and lamb, will take over the promotion of pigmeat on the home and export markets. CBF will provide the necessary assistance to those firms which will be adopting strategies and programmes to market in the most effective way the increased output which will result from the development and modernisation programme. The decision to extend the role of CBF to cover pigmeat has, in general, been well received by the various sectors of the industry.
As regards the funding of the activities of CBF in relation to pigmeat, it is proposed to introduce a levy by CBF of 20p per pig. This will yield about £400,000 in a full year. In addition, a further £400,000 is being transferred from the grant-in-aid of Córas Tráchtála to CBF for the year 1988. This latter will enable CBF to meet commitments already entered into by CTT in the pigmeat area and will fund further activities by CBF later this year.
I am also taking the opportunity to provide for CBF to move into promotion of other meats at a later stage should the occasion warrant it. The growing interest in deer farming and the export prospects for venison as well as the possibility of further developing poultrymeat exports — turkeys and ducks in particular — along with the need to retain the share of the domestic market for chickens are examples of further complementary activities for CBF in the meat area. These are medium—term possibilities for which provision is now being made.
As the House is, of course, aware, the board of CBF are at present representative of the sectors of the meat industry with which it deals. It is accordingly proposed that, since CBF are taking over the promotional functions in relation to pigmeat, the number of ordinary members of the CBF be increased from nine to 11 to allow for an additional producer representative and an additional exporters representative. Provision is also made to further increase the number of board members by order if additional types of livestock and meat are included in CBF's functions at a later date.
As regards CBF's present functions in relation to cattle and sheep, their corporate plan for the years 1986-1990 envisages a significant increase in funding to enable them to expand and develop its promotional work. They will have an important role to play in the years ahead in identifying trends in overseas markets and in seeking out new outlets for the products of the industry.
Section 28 of the Córas Beostoic agus Feola Act, 1979, provides for the payment of levies on cattle and sheep slaughtered in the State or exported live. It also makes provision for the amendment of these rates by ministerial order. The current rates of levy, which have been in force since 1 January 1985 are £1 per head for cattle and 10p per head for sheep. I am taking the opportunity in the Bill to update the amounts of these levies by increasing them to £1.50 for cattle and 20p for sheep. The board of CBF which includes both industry and farming representatives was unanimous that the levies be increased to these amounts to enable them to expand and develop their promotional work. There is broad industry acceptance of these levels of fees. Current CBF levies on cattle and sheep yield approx. £1.9 million. The increased rates proposed should yield some £3 million. Taken with the proposed levy on pigs, estimated total levy income will amount to approximately £3.4 million.
I now come to the Bill, which is divided into 12 sections. Section 1 simply refers to the original CBF Act, 1979. Section 2 amends the definitions of "livestock" and "meat" to cover pigs and pigmeat. It also provides for the inclusion of other species of animals and meat by regulations at a later stage should the remit of CBF be further extended at some future date.
Section 3 increases the number of ordinary members of the board of CBF from nine to 11 to allow for representation of the pigmeat sector on the board. The board will then comprise, in addition to its Chairman, four producer representatives, three exporter reprepresentative, one livestock export trade representative and two members appointed by the Minister. The number of ordinary members may be further increased by regulations. This is to provide for the possibility of the promotion of other meats being assigned to CBF later on.
Section 4 details the amounts of levies payable in relation to bovine animals, sheep and pigs. This section also makes provision for a levy, to be determined by order at the appropriate time, on other animals if considered necessary. It further provides that rates of levy may be varied, subject to the approval of both Houses of the Oireachtas.
Sections 5 to 10 are designed to improve the efficiency of CBF's levy collection system. They provide, in general, for increased penalties for contravention of the Act and firms will be required to retain records for four years. Provision is also made for the appointment by the board of authorised officers who will be empowered to enter premises and inspect records. The board may also estimate the amounts of levy due where firms fail to furnish the appropriate returns. In addition, officers of corporate bodies will, in future, be answerable, in addition to the body, for offences under the Act.
The remaining sections relate to general provisions and there is little need to refer to them further at this stage. These, in summary, are the main provisions of the Bill which I now commend to the House.