Vol. 402 No. 6
16 Proinsias De Rossa asked the Minister for Agriculture and Food if he will outline his plans for the expansion and development of the beef industry, especially in the light of the difficulties created by the current situation in the Middle East.
27 Mr. Rabbitte asked the Minister for Agriculture and Food if, in view of the fact that the Goodman Group controlled a significant section of the Irish food industry, he will outline the steps he is taking to ensure the continued expansion and development of the industry, in the light of the difficulties experienced by that group; and if he will make a statement on the matter.
I propose to take Questions Nos. 16 and No. 27 together. The Goodman Group's involvement in the Irish food industry is of major significance only in relation to the beef sector. The short term difficulties facing the beef sector have been addressed by increasing the intake of Irish beef into intervention.
The expansion and development of the beef sector in the longer term is being considered by the policy review group in the Department and who are expected to report in the next few weeks.
Does the Minister accept that there are lessons to be learned from the crisis we have had if we are not to be faced with similar problems in the future? We must certainly learn a lesson from allowing one firm, or, indeed, one individual to have so much control. Will the Minister say if the immediate problem of exports to Iraq — on which this country relied so much — has been addressed? Will the Minister be more specific about future policy?
The current difficulties being experienced by the beef industry are related to two separate matters, first, the Middle East difficulties and, second, the BSE problems. To cope with those short term difficulties, due to the skilled negotiating of the Minister for Agriculture and Food, Deputy O'Kennedy, we got a major increase in the amount of beef going into intervention. That has been a tremendous advantage. We also secured an increase in the export refunds which, again, has been a tremendous advantage to the farming community. A policy review group was established in the Department and their report will be available in the next few weeks. It will signpost the future of the industry.
I am waiting a long time for an opportunity to ask the Minister of State the type of project evaluation carried out into the Goodman company when they and the Government announced the £260 million "fast track" food project? Food processing was on the fast track that day. Will the Minister give us some indication of the evaluation the Government carried out into the affairs of the Goodman Group before they decided to entrust our entire food processing to one industrialist? Everybody would like to know the answer to that question.
It is inaccurate to say that the entire food industry was entrusted to one company.
That is what the Minister said at the time.
That is a lot of nonsense and the Deputy knows that. This particular project was evaluated by the Industrial Development Authority, similar to the many commercial companies which are approved for grant aid each year. I want to again put it on the record that no grant aid whatsoever was paid to this company.
There is a number of Deputies offering and I will facilitate them if they will be very brief; first, Deputy Connaughton.
I want to ask the Minister if, by virtue of the fact that he identified the Goodman Group, this basically meant that no other group were entitled to be grant aided by the IDA. In effect, is that what happened?
That is not true. It is inaccurate.
Deputy Deasy——
That is correct.
You put all your eggs into one basket.
I wish to ask the Minister where we stand with regard to the reopening of the Iranian market which we opened in 1984.
That is a separate question.
Question No. 16 refers to the Middle East.
It is worthy of a separate question.
Is it true that this market will reopen?
The Deputy should put down a question on the matter. Deputy Stagg has been offering.
In his reply the Minister seemed to be pointing to a great achievement when he boasted about the fact that the amount of intervention this year is three times what it was last year. Does the Minister of State not accept that we have to sell into intervention and use the safety net because of the failure by the Minister for Agriculture and Food and his Department to put the infrastructures in place so that we can have a real market?
I do not think cattle producers would agree with Deputy Stagg. In fact, intervention in the short term is of tremendous advantage to our cattle producers.
At a terribly low price.
It is a safety net for failure.
With regard to Deputy Deasy's question, he will be aware that the Minister visited Iran. The signs there are very positive and encouraging and hopefully that market will open up very shortly.
